Comdisco, Inc. Reviews Financial Strength With Fixed Income Analysts.

Business Editors

ROSEMONT, Ill.--(BUSINESS WIRE)--Oct. 5, 2000

In a conference call yesterday with fixed income analysts, Comdisco, Inc. (NYSE:CDO) reiterated that its current financial resources and estimated cash flows from operations are considered adequate to fund anticipated future growth and operating requirements.

John Vosicky, Executive Vice President and Chief Financial Officer, stated that Comdisco's cash flow from operations for the fiscal year ended September 30, 2000 will be approximately $3.3 billion. The company anticipates that number to grow to approximately $3.7 billion at September 30, 2001, an increase of 12% over the prior year period. Vosicky also commented that he estimates Comdisco's liquidity (consisting of cash on hand and available commercial paper and bank facilities) as of September 30, 2000 was slightly over $1 billion.

Ed Pacewicz, Senior Vice President and Treasurer, reviewed Comdisco's strong banking relationships, bank lines of credit and global banking facilities with the audience. Pacewicz stated that Comdisco's banking community was in agreement with Comdisco's recent decision to withdraw funding from the operations of the company's Prism Communication Services, Inc. subsidiary. The company issued a separate press release regarding that decision on October 3, 2000.

Nick Pontikes, President and Chief Executive Officer, informed the audience that Comdisco Ventures experienced a record fourth fiscal quarter. Pontikes told the audience that the current mark-to-market valuation for publicly traded securities within the Comdisco Ventures portfolio is approximately $870 million as of September 30, 2000. The company reiterated its policy of selling these securities in an orderly fashion as they come off their lockup period.

Safe Harbor:

The foregoing contains forward-looking statements regarding Comdisco, which are based on current expectations and assumptions, and which involve risks and uncertainties that could cause results to differ. The company intends that such forward-looking statements be subject to the safe harbor created by Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. The following lists some of the factors, which could cause results to differ from expectations.

As a result of the evolving nature of its services business, the company has limited meaningful historical data in which to base its planned operating expenses. A significant portion of the company's expense levels are based in part on its expectations as to future services revenues, and, to a large extent, are fixed.

To attain its services earnings contribution goals for fiscal 2001 the company will have to meet its obligations under the agreements underlying its sales backlog. Also, the company must expand its contract subscription base (through new contract signings and contract renewals), increase its revenues through other technology services, primarily managed network services, web availability services, and IT CAP Solutions, and contain costs.

The company's ability to obtain new business and realize revenue on its sales backlog depends on its ability to anticipate technological changes, develop services to meet customer requirements on a global basis and achieve delivery of services that meet customer requirements on a domestic and global basis. In addition, with respect to new business opportunities, the company must successfully compete with organizations offering similar services.

The company's liquidity depends, in part, on its access to capital markets, specifically medium-term and senior notes, and commercial paper, and on its lines of credit. If the company were not able to refinance its indebtedness or obtain new financing under these circumstances, the company would have to consider other options, including: sales of some assets; sales of equity; negotiations with lenders to restructure applicable indebtedness; or other options available to the company under applicable law.

Securities held by Comdisco Ventures are generally subject to lockups restricting its ability to sell until several months after an initial public offering. The public market for high technology and other emerging growth companies is extremely volatile. Such volatility may adversely affect the ability of the company to dispose of the securities held by Comdisco Ventures and the value of those securities on the date of sale. Unrealized gains are based upon market and business data available to the Company as of today's date and is subject to change based on additional market and business data as it becomes available.

Additional factors that would cause results to differ are discussed in the company's Form 10-Q for the quarter ended June 30, 2000. The company undertakes no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events or otherwise.

About Comdisco

Comdisco (www.comdisco.com) provides global technology services to help its customers maximize technology functionality, predictability and availability, while freeing them from the complexity of managing their technology. The Rosemont, (IL) company offers a complete suite of information technology services including business continuity, Web-Availability(SM), network, and IT Control and Predictability Solutions(SM). Comdisco also offers equipment solutions to key vertical industries, including electronics, telecommunications, pharmaceutical, biotechnology and manufacturing. Through its Ventures division, Comdisco is providing equipment leasing and other financing and services to venture capital backed start-up companies. The company's revenue for the 12 months ended June 30, 2000 was $3.8 billion.