Amdahl Authorizes Stock Repurchase Program.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 8, 1996--Amdahl Corporation announced today that its board of directors has authorized the company to buy back up to $100 million worth of Amdahl's common stock.

"This stock repurchase plan reflects management's confidence in our strategy for diversification and future growth," said Joseph Zemke, Amdahl president and chief executive officer. That strategy has led Amdahl to shift its focus from hardware manufacturing to becoming a more complete supplier of total information-processing solutions.

Even though a transition to new data processing and storage products is expected to depress margins and financial results in the first half of 1996, Zemke feels Amdahl is making progress in transforming itself into a less capital-intensive company where service and software should account for approximately half of revenues this year.

He also noted that the company's cash position remains sufficiently strong for it to continue pursuing strategic acquisitions as opportunities arise.

In November, to expand its consulting and professional services businesses, Amdahl invested approximately $150 million to acquire DMR Group Inc., a leading international provider of information-technology services. After that transaction, the company still had cash, net of debt, amounting to more than $530 million at the beginning of 1996.

The stock repurchases may be made in both open market and block transactions from time to time, depending on market conditions. The program can also be discontinued at any time management feels additional purchases are not warranted. -0-

NOTE TO EDITORS: At the end of 1995 Amdahl had approximately 119 million common shares outstanding.

CONTACT: Amdahl Corporation 

William Stewart, [phone]