Dow Jones Hits Record High -- Potential Trouble for I.T. If Dow Reaches 10,000; ADPAC Offers Solution for Systems Unable to Accommodate a Five-Digit Average.

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 7, 1999--The Dow Jones Industrial Average (DJIA) smashed previous records yesterday, closing at a record high of 9544.97.

While investors enjoy the booming DJIA index, IT managers worldwide should be apprehensive about the potential ramifications for computer tracking of the DJIA when it reaches 10,000.

Known as DJ10K, this computer error has the potential to either freeze systems or sell a stock out from under an investor. Many automated trading operations are programmed to suspend trading if the DJIA falls by a predetermined amount in order to prevent "panic" trading.

Additionally, many brokerage systems have pre-set percentages, which will cause an automatic sell-off. These same processes that are designed to protect the market and the buyer could be triggered by the DJ10K.

Designed to compute only four-digit averages, many systems will read the extra digit incorrectly, dropping the first or last digit. That is, if the DJIA closes at 10,673, this figure could be read as either 1,067 or 673.

"People need to take a proactive approach rather than wait for these IT problems to blind-side them," said Ed Severs, COO of ADPAC Corp. a 35-year old mainframe software company.

"The focus on Year 2000 and euro standardization issues tells everyone in the strategic planning world -- from the CIO to the CFO -- that IT concerns are critical to the overall organization. Conversely, DJ10K shows IT managers that they must understand business issues beyond bits and bytes."

In May 1998, when the DJIA reached the 9000's, research firm The Gartner Group Inc. issued an advisory on the problem, aimed at companies making extensive business use of the DJIA.

Warning these organizations to immediately investigate their systems and determine the level of exposure, The Gartner Group recommended that companies start with a complete inventory of business processes that incorporate the DJIA in rules-based decisions, accompanied by a technical drill-down to identify associated IT subsystems.

If data fields are found that cannot recognize the extra digit, immediate budgetary, management and technical resources should be applied to the problem areas.

IT professionals such as Louis J. Marcoccia, president of Millennium Technology Services, and PeopleSource, an east coast consultancy, echo the recommendations of Gartner and ADPAC. "This issue should be addressed with the same fervor as the Year 2000 Problem," Marcoccia said.

"Organizations dealing with stock exchange data, that are not already dealing with Year 2000 issues and do not have relatively good control over their technical and business relationships, will dig themselves a deeper hole when the DJIA surpasses 9999."

San Francisco-based ADPAC has a solution for DJ10K challenges with its SystemVision Impact software. Part of the SystemVision line of conversion solutions, this package helps organizations in maintaining and reworking legacy code, pinpointing system components and relationships and compiling reports to recommend a course of action.

The software also provides step-by-step instructions for use when reengineering begins.

About ADPAC

ADPAC Corp., headquartered in San Francisco, was founded in 1963 and incorporated in 1964. ComputerWorld magazine heralded the company's first product, the ADPAC compiler, as a language superior to COBOL or RPG. In 1994, ADPAC introduced its SystemVision product line, which features YEAR 2000, an impact analysis tool for compliance with the century date change.

ADPAC University, located at corporate headquarters, provides regularly scheduled classes on all ADPAC products. Additional information on the company and its products can be found on the world wide web at www.ADPAC.com.