Comdisco Inc.'s Senior Debt Lowered To `DD'.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 16, 2001

Fitch lowered Comdisco Inc.'s senior unsecured debt rating to 'DD' from 'CCC' following the company's announcement that it and 50 of its domestic subsidiaries had filed voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code. These bankruptcy filings exclude the company's international operations. While expected recovery values are highly speculative and cannot be estimated with a high degree of precision, Fitch's 'DD' rating indicates potential recovery in the range of 50%-90%. Additionally, Comdisco's 'C' commercial paper rating has been withdrawn as there is no commercial paper outstanding at this time. Comdisco's senior debt rating has been removed from Rating Watch. At March 31, 2001, Comdisco had approximately $3.5 billion of unsecured public debt outstanding.

The rating change reflects Fitch's belief that Comdisco intends to suspend principal and interest payments on its pre-petition unsecured debt obligations immediately. A $600 million debtor-in-possession facility arranged by Salomon Smith Barney Inc. and J.P. Morgan Securities Inc. will be used to help support Comdisco's continuing operations. This facility is subject to bankruptcy court approval. The company projects that it will emerge from bankruptcy in early 2002.

Comdisco also announced this morning that it had reached an agreement with Hewlett-Packard Company to sell substantially all of its Availability Solutions (Technology Services) business for $610 million. This sale is subject to bankruptcy court and regulatory approval.

Based in Rosemont, Ill., Comdisco Inc. is a worldwide company engaged in information technology leasing, technology services and venture loans and leases.