Comdisco Announces Workforce Reduction; Cuts Staff by 10% as Part of Ongoing Cost Reduction Efforts in Chapter 11 Reorganization.

Business Editors

ROSEMONT, Ill.--(BUSINESS WIRE)--Dec. 5, 2001

Comdisco, Inc. (NYSE: CDO) announced today that as part of its ongoing cost reduction efforts the company will cut its workforce by approximately 10 percent, or 128 positions. Impacted employees are being notified this week, and will be released over the next 30 to 60 days. Just over half of the employees affected work in Comdisco's facilities in the greater Chicago area, primarily in operations functions. Others are located throughout company operations worldwide.

"While we've made considerable progress in our chapter 11 restructuring efforts, such as the sale of our Availability Solutions business on November 15, 2001, and the ongoing sales evaluation process for our Leasing businesses, it's clear that we need to continue to cut costs and improve our efficiency," said Norm Blake, Comdisco's chairman and chief executive officer. "This is a very difficult decision that impacts many talented and hardworking people. We are committed to treating our employees fairly and compassionately, while we continue to focus on our cost reduction efforts."

Comdisco employs 1,272 people worldwide and approximately 680 in Illinois. Affected employees will be given severance, training workshops, and on-site placement assistance.

Comdisco, Inc. and 50 domestic U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Illinois on July 16, 2001. The filing allows the company to provide for an orderly sale of some of its businesses, while resolving short-term liquidity issues and enabling the company to reorganize on a sound financial basis to support its continuing businesses.

Comdisco's operations located outside of the United States were not included in the chapter 11 reorganization cases. All of Comdisco's businesses, including those that filed for chapter 11, are conducting normal operations. Comdisco is continuing to pursue other strategic alternatives to create value for its stakeholders, including the potential sale of all or some of its leasing businesses, as well as the restructuring of its Ventures group. The company has targeted emergence from chapter 11 during the first half of 2002.

About Comdisco

Comdisco (www.comdisco.com) provides technology services worldwide to help its customers maximize technology functionality and predictability, while freeing them from the complexity of managing their technology. The Rosemont (IL) company offers leasing and other financial management services to key vertical industries, including semiconductor manufacturing and electronic assembly, healthcare, telecommunications, pharmaceutical and biotechnology. Through its Ventures division, Comdisco provides equipment leasing and other financing and services to venture capital-backed companies.

Safe Harbor 

The foregoing contains forward-looking statements regarding Comdisco. They reflect the company's current views with respect to current events and financial performance, are subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the actual results of the company to be materially different from any future results, express or implied by such forward-looking statements. The company intends that such forward-looking statements be subject to the Safe Harbor created by Section 27(a) of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. The words and phrases "expect," "estimate," and "anticipate" and similar expressions identify forward-looking statements. Certain factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: Adjustments arising in the course of completing the analysis of information with respect to the review of the company's businesses and evaluation of impairment charges; continuing volatility in the equity markets, which can affect the availability of credit and other funding sources to the high technology sector companies in the Ventures portfolio, resulting in the inability of those companies to satisfy their obligations in a timely manner and an increase in bad debt experience beyond current reserves; continued consolidation in the telecommunications industry and curtailment of the growth plans of the remaining companies in that sector, which could result in fewer buyers and reduced prices for available Prism assets, and a further reduction in the proceeds actually received from the sale of those assets compared to prior estimates and an increase in the losses associated with the discontinued operation. Other risk factors are listed from time to time in the company's SEC reports, including, but not limited to, the report on Form 10-Q for the quarter ended June 30, 2001. Comdisco disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.