Amdahl to Further Expand its Information-Technology Services Business with the Acquisition of Trecom Business Systems, Inc.

MONTREAL--(BUSINESS WIRE)--April 3, 1996--Amdahl (AMEX:AMH) Services and Software Will Now Account For Over Half of Amdahl's 1996 Revenues, More Than 60 Percent of Workforce.

Amdahl Corp. announced today that it will further expand the consulting and professional services segment of its business by acquiring TRECOM Business Systems, Inc., a major provider of information-technology services with revenues last year of approximately US$140 million. The purchase price has been set at US$145 million in cash, approximately half to be paid now and half in the second quarter of 1997.

This will be Amdahl's second large acquisition within the last five months. In November, the company acquired DMR Group Inc., a leading international supplier of consulting and professional services with revenues in 1995 of more than US$210 million.

These acquisitions reflect our commitment to become a provider of complete information-technology solutions, offering a broad range of hardware, software, and services that address strategic needs across an entire business enterprise, said John C. Lewis, Amdahl Chairman, President, and Chief Executive Officer.

Strong credentials in consulting and service also permit us to participate fully when a client's business solutions are first being conceived, allowing us to add value throughout the life cycle of information-technology projects, Lewis added.

Although Amdahl has long been known as a major supplier of information processing hardware, Lewis pointed out that well over half of the company's revenues and more than 60 percent of its workforce will be associated with services and software in 1996.

Established in 1985, TRECOM is a privately owned corporation employing 1,700 people at operations in New Jersey, New York, Connecticut, Georgia, Florida, Alabama, Texas, and Washington, D.C. According to Manny Arturi, TRECOM co-founder, President, and Chief Operating Officer, the company's revenues have grown by an average of 40 percent annually the past three years.

Systems integration services presently contribute the majority of TRECOM revenues and include systems design, development, and implementation. The company has developed several proprietary methodologies for designing and deploying distributed, client/server architectures for networks and for reengineering centralized legacy systems. Particular areas of expertise include databases and data warehousing, Year 2000 century date conversion, object technologies, networking systems, document imaging, workflow, and operating systems.

Another of its businesses, which has been growing very rapidly in recent years, is the outsourcing of tasks related to applications portfolio management, systems and network management, and quality assurance and testing. The continuing trend of corporate downsizing, the global need for Year 2000 conversion services, and the massive restructuring of the telecommunications industry are expected to further fuel dramatic increases in demand for our outsourcing services, Arturi noted.

TRECOM also derives revenues from consulting in such areas as strategic technology planning, process improvement, and requirements assessment.

TRECOM's strategy has been to market its services vertically, building a high level of expertise in selected industries. As a result, we have created an impressive portfolio of proven, standardized solutions for needs common within those industries," Arturi said. The company's largest market is the telecommunications sector followed by financial services, both of which are also among Amdahl's biggest markets. In addition, TRECOM has established a presence in pharmaceutical and commercial enterprises and state governments.

"Above and beyond our penetration of similar markets, there are several other significant synergies between Amdahl, DMR, and TRECOM," Lewis noted.

As is the case with DMR, TRECOM's rapidly growing applications outsourcing capabilities fit well with Amdahl's ObjectStar software for applications development and business process reengineering. TRECOM's and DMR's systems integration expertise also represents an important resource for Amdahl's Open Enterprise Solutions Group, which offers complementary suites of systems management software and is creating significant integration and service opportunities through expanding sales of server hardware.

In addition, TRECOM's strong presence in the eastern and southern U.S. and DMR's strength in the western U.S. and Canada mesh well geographically, giving Amdahl a broader established base for furthering its penetration of North American markets, noted Michael Poehner, DMR President and Chief Operating Officer.

The pending merger of Amdahl and TRECOM will become effective as soon as possible following expiration of the Hart-Scott-Rodino waiting period, which is expected later this month.

Once that occurs, TRECOM will retain its name and will report to Poehner, who has plans, via the DMR and Amdahl service organizations, to make use of certain of TRECOM's proprietary methodologies and industry-specific solutions on a global basis. Poehner reports to Pierre Ducros, Chairman and Chief Executive Officer of DMR Group Inc. With revenues last year in excess of US$1.5 billion, Amdahl (AMEX -AMH) is an international supplier of information processing systems, software, and services for use across all types of computing environments. Its products and services are available in more than 30 countries worldwide.

CONTACT: Amdahl Corp.

Investor Relations, 408/746-6076

or

DMR Group Inc.

Michel Auclair, ark/ing and Business Development

514/877-3342