Nabisco and Inacom Ink $61 Million Services Agreement; Deal Specifically Designed to Support Nabisco's Strategic Sourcing Initiative

Business Wire, July 26, 1999

OMAHA, Neb.--(BUSINESS WIRE)--July 26, 1999--

Inacom Corp. (NYSE:ICO), a Fortune 500 technology services company, today announced the signing of a renewed and expanded three-year, $61 million technology services contract with Nabisco. The agreement will enable Inacom to provide a full range of technology services to Nabisco's 8,500 corporate employees at over 180 locations nationwide.

The new contract was developed as part of Nabisco's new Strategic Sourcing Initiative (SSI). Nabisco's SSI is aimed at reducing costs associated with information technology investments by increasing efficiencies and reducing the overall number of sources from which IT products and services are obtained.

"During our evaluation process, we were looking for the most comprehensive solution we could get from a single provider -- a provider committed to our vision," said Doreen A. Wright, executive vice president and chief information officer, Nabisco, Inc. "Inacom provides excellent expertise in procurement and professional services, and is committed to our SSI initiative. In addition, we had already selected IBM as our PC and laptop vendor of choice. Since Inacom is the number one provider of IBM PCs and related products, they were a good choice."

Under the terms of the new agreement, Inacom will provide Nabisco with a broad range of technology services, including expanded help desk support, technology maintenance services, equipment Install Moves Adds Changes (IMAC) and procurement. In addition, Inacom will streamline and automate Nabisco's replacement procurement process, thus lowering and controlling "per seat" IT acquisition costs while establishing a standardized environment. The agreement with Nabisco is consistent with Inacom's plan to grow its services business from 15% of total revenues to 25% of total revenues within five years, improve operating margins and accelerate cash flow and return on invested capital.

"At Inacom, we are committed to providing fully-integrated, innovative technology solutions to help clients like Nabisco manage the complexities and costs of their information technology infrastructures," said Dick Anderson, senior vice president, sales, Inacom. "Our methodologies and expertise will help Nabisco increase the level of service to their corporate end-users, better utilize their IT staff for developing business process and systems, and - ultimately -- optimize IT investments."

About Nabisco

Nabisco is an $8.3 billion multinational food business manufacturing more than 200 brands and 8,000 products in 85 countries. Leading domestic brands include Oreo and Chips Ahoy! cookies; Ritz and Premium crackers; SnackWell's low-fat and fat-free products; Planters nuts and snacks; Life Savers candies; Grey Poupon Mustard, Milk-Bone Dog Snacks, Cream of Wheat, Royal Desserts, Knox Gelatin and A.1. steak sauces.

About Inacom Corporation

Inacom Corp. is a $6.9 billion global Fortune 500 technology services leader. The company designs, implements and manages distributed technology infrastructure solutions that optimize clients' return on IT investments. Inacom's client portfolio includes more than 35% of Fortune 500 corporations.

Inacom's infrastructure solutions utilize desktop, client/server and network technologies. Clients gain real value from these solutions with Inacom's Professional Services, Life Cycle Services, Procurement Services and Convergence Services. Inacom leverages more than 16 years' experience with distributed technology as well as its proven methodologies, size and independent perspective to benefit clients. Inacom employs approximately 12,000 people including more than 7,500 technical professionals and is headquartered in Omaha, Neb. For more information on Inacom, visit www.inacom.com.