Comdisco Receives Court Approval of Debtor-in-Possession Financing; Company Requests Lower Amount Due to Improved Liquidity.

Business Editors

ROSEMONT, Ill.--(BUSINESS WIRE)--Aug. 24, 2001

Approval Facilitates Company's Ongoing

"Fast-Track" Reorganization Process

Comdisco, Inc. (NYSE: CDO) announced that yesterday the U.S. Bankruptcy Court for the Northern District of Illinois gave final approval for $450 million in debtor-in-possession (DIP) financing for use by Comdisco to continue operations as normal, pay employees and purchase goods and services. The financing package was provided by a group of banks led by Citibank, N.A. as Administrative Agent, The Chase Manhattan Bank as Syndication Agent, and Heller Financial, Inc. as Documentation Agent. Of the $450 million, $100 million has been reserved to support the company's international operations. The court had already granted interim approval for $200 million of the DIP financing facility on July 17, 2001, as part of Comdisco's "first day motions."

Comdisco said that the final facility size was determined based on the company's increased cash reserves, which increased to approximately $400 million since its filing for Chapter 11 on July 16, 2001, and its determination that a larger facility was unnecessary. The company also said that its bank agents had fully syndicated the original $600 million facility, but concurred with the company's determination on the size of the facility, which was also supported by the Official Committee of Unsecured Creditors.

Norm Blake, Comdisco's Chairman and Chief Executive Officer, said: "The final approval granted to Comdisco by the court for our $450 million in DIP financing, along with significant cash reserves, should give all of our customers, employees and business partners added reassurance that we have sufficient financial resources to continue to run our businesses as usual and meet all of our commitments without disruptions. This approval, along with the proposed sale of our Availability Solutions business announced in July, will significantly facilitate our ongoing `fast-track' reorganization efforts."

On July 16, 2001, 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. The filing allows the company to provide for an orderly sale of its services business, while resolving short-term liquidity issues and enabling the company to reorganize on a sound financial basis to support its ongoing businesses. Simultaneously with the filing, Comdisco also announced on July 16 its decision to sell substantially all of its Availability Solutions (Technology Services) business to Hewlett-Packard for $610 million. This transaction is still subject to higher or otherwise better offers through the Technology Services bidding process, which the court approved on August 9, 2001.

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 evaluating the possible sale of certain of its leasing assets and the restructuring of its Ventures business. The Bankruptcy Court has scheduled a hearing on August 30, 2001, to consider the company's request for competitive auction procedures for the company's IT leasing business in North America, and its leasing business structured around specific vertical markets, including electronics, healthcare, laboratory and scientific, telecommunications and manufacturing. The company intends to reorganize on a "fast-track" basis and has targeted emergence from chapter 11 during early 2002.

About Comdisco

Comdisco (www.comdisco.com) provides technology services worldwide 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, managed web hosting, storage and IT Control and Predictability SolutionsSM. Comdisco offers leasing to key vertical industries, including semiconductor manufacturing and electronic assembly, healthcare, telecommunications, pharmaceutical, biotechnology and manufacturing. 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: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the DIP Facility; Court approval of the Company's first day papers and other motions prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 Cases; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the Company's cases to Chapter 7 cases; the ability of the Company to reduce its workforce and related expenses and to achieve anticipated cost savings; year end audit and other procedures which may affect the Company's 2001 financial results; the ability of the Company to obtain trade credit, and shipments and terms with vendors and service providers for current orders; potential adverse developments with respect to the Company's liquidity or results of operations; the ability to fund and execute its business plan; the ability of the Company to attract, retain and compensate key executives and associates; the ability of the Company to attract and retain customers; potential adverse publicity; and 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.