Fluor and IBM Announce Plan for E-Markets Venture

Business Wire, March 8, 2000

Business Editors

ALISO VIEJO, Calif. and SOMERS, N.Y.--(BUSINESS WIRE)--March 8, 2000

Fluor Corporation (NYSE:FLR) and IBM Corporation (NYSE:IBM) Wednesday announced plans to create a global business-to-business e-market that will offer services and capital goods required to build, operate and maintain industrial and commercial operations.

Initially, the e-market is intended to serve capital goods buyers and sellers in the manufacturing, telecommunications, pharmaceutical, petroleum, consumer products and chemicals industries.

"Through the formation of this new venture with IBM, we can capitalize on our own considerable purchasing power and expertise to drive great efficiencies in purchasing a broad array of goods and services without being limited to one industry or one category," said Fluor's Philip J. Carroll, chairman and chief executive officer. "Our new venture will provide a one-stop shop for many of our customers."

"This venture with Fluor represents an important step in delivering on the promise of e-markets," said Mark Elliott, general manager, IBM Global Services - Americas. "By combining our collective expertise in procurement and capital goods supply chain management, we believe this e-market has the potential to offer significant savings to e-market participants."

Fluor, which has been known primarily as a global engineering, procurement and construction company, in recent years has reorganized and expanded its business into such areas as telecommunications, operations and maintenance, temporary staffing, equipment rental, as well as its traditional heavy construction capabilities.

IBM is a world leader in e-procurement. In 1999, the company procured $13 billion in goods and services on the web. The effort to web-enable the company's procurement systems, which began in 1994, has to date resulted in savings of $6.5 billion. In 1999, IBM was awarded the Medal of Professional Excellence by Purchasing Magazine.

With 1999 revenues of $12.4 billion, Fluor Corporation provides services on a global basis in the fields of engineering, procurement, construction, maintenance and operations, consulting and coal production. The company has more than 50,000 employees, maintains some 50 offices around the world, and is actively working on projects in 70 countries. Further information about Fluor can be found at www.fluor.com.

With 1999 revenue of more than $87 billion, IBM is the world's largest information technology provider (hardware, software and services). The company has more than 300,000 employees and does business in more than 160 countries. Further information about IBM can be found at www.ibm.com.

NOTE ON FORWARD LOOKING STATEMENTS:

The foregoing release contains forward-looking statements regarding the formation and implementation of a new business venture, the economic efficiencies expected to be realized by such venture and participation in such venture. Such forward-looking statements reflect current analysis of existing information.

Caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, actual results may differ materially from expectations. Factors potentially contributing to such differences include, among others:

-- Changes in global business, economic, technological conditions;

-- Failure to achieve required levels of participation in the

venture;

-- Difficulties incurred in systems implementation or operations;

and

-- Competition.

The forward-looking statements are also based on various operating assumptions regarding, among other things, the availability of management resources and customer support for the venture and its participants.

Additional information concerning factors that may influence the Fluor Corporation's results can be found in its press releases as well as its periodic filings with the Securities and Exchange Commission. In this regard, risk factors are specifically discussed under the heading "Item I. Business - Other Matters - Company Business Risks" in the Company's Annual Report on Form 10-K for its 1999 fiscal year. Such filings are available publicly and upon request from Fluor's Investor Relations Department: 949/349-2000.