Comdisco To Sell Computer Mainframe Portfolio to IBM Credit Corporation; Sale Supports Corporate Strategy to Focus on High-Growth, High-Margin Technology Services Businesses

Business Wire, May 3, 1999

ROSEMONT, Ill.--(BUSINESS WIRE)--May 3, 1999--

Comdisco, Inc. (NYSE:CDO), a leading technology services company, announced today it is has reached an agreement in principle to sell its mainframe computer leasing portfolio to IBM Credit Corporation. Comdisco expects the transaction to conclude in its third fiscal quarter (ending June 30, 1999), pending the execution of definitive agreements and receipt of regulatory approval. Terms of the transaction were not disclosed.

The move by Comdisco represents one of several key steps the company has taken recently to focus its expertise and resources on higher-margin, higher-growth technology services businesses. Comdisco provides a complete suite of technology services including continuity, managed network services, and desktop management services. Its fast-growing technology services business currently has a backlog of more than $1 billion in contracts.

"We announced our corporate strategy shift earlier this year, and we are pleased to report that we are on schedule with our plan," said Nicholas K. Pontikes, Comdisco president and chief executive officer. "This transaction is a critical element of the strategy, and I'm delighted that our mainframe customers will now receive leasing support from IBM Credit Corporation, a leader in information technology financing," he said.

Comdisco announced in March that it would exit the mainframe residual leasing business and sell its vendor lease portfolio. "We will continue to provide our mainframe customers with the consultative services that they have long valued from us - including our unique, independent perspectives on pricing, market timing, technology upgrades and vendor selection," Pontikes said.

Comdisco continues to provide a complete suite of services in the leasing category to assist customers in the acquisition, assessment and management of IT technology, including PCs and servers, and of diversified technology, including electronics, communications, lab and scientific, and medical equipment.

About Comdisco

Comdisco provides global technology infrastructure solutions that drive business advantage for its customers. The company offers a complete suite of information technology services including business continuity, managed network services and desktop management services. Through its subsidiary Prism Communication Services, Inc., Comdisco is developing a high-speed, always-on digital network, which will provide customers with leading-edge connectivity. Introduced in Manhattan, the service will be rolled-out nationally and eventually integrate voice, data and business continuity services. Comdisco also offers equipment leasing through its electronics, communications, medical, lab & scientific businesses, and through its ventures group. For more information, call 800-272-9792 or visit Comdisco's Web site at www.comdisco.com.