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EDS AND DEL MONTE FOODS ANNOUNCE STRATEGIC OUTSOURCING CONTRACT

 EDS AND DEL MONTE FOODS ANNOUNCE STRATEGIC OUTSOURCING CONTRACT
 DALLAS, Nov. 5 /PRNewswire/ -- EDS and Del Monte Foods today announced a major expansion of their current relationship that calls for EDS to provide all information technology services for Del Monte effective immediately. Financial terms of the 10-year agreement were not disclosed.
 The outsourcing contract, the first of its kind in the foods industry, will help Del Monte focus its resources on the company's mainstream strategic activities, including fruit and vegetable seasonal processing, product development, container manufacturing and customer service. The partnership is expected to reduce Del Monte's operational costs and provide a competitive advantage by controlling information technology costs through economies of scale.
 "We view this as a strategic business partnership that will help us be more effective in meeting our business and information needs," said A. Ewan Macdonald, president and CEO of Del Monte Foods. "We will leverage the technology infrastructure of EDS without the capital investment."
 Under terms of the agreement, EDS will provide all applications enhancement and systems maintenance, data processing operations and capabilities, and the necessary telecommunications network. Approximately 100 Del Monte information technology employees will join the EDS team.
 Del Monte will retain a management cadre to supervise strategic technology functions the company considers key to its business.
 This expanded relationship will leverage EDS' capabilities across the integrated supply chain in an aggressive strategy to increase sales and provide better internal cost control, asset use and plant capacity volume.
 "EDS was selected based on its ability to provide superior service, its commitment to customer satisfaction and a plan of action that allowed 100 percent employee transition," said David MacPherson, vice president of information systems at Del Monte. "Our recent success with EDS on an AS/400 operations project proved to be a solid indication of the quality and teamwork we can achieve."
 EDS and Del Monte recently completed an ambitious revamping of the food processing company's manufacturing systems in all U.S. plants. The move from a high-overhead, fragmented, host-based application environment to a distributed computing environment was completed on time and on budget.
 "EDS is committed to Del Monte Foods' success in a highly competitive industry," said Hank Johnston, president of EDS' Manufacturing and Distribution Services Division. "Our objective is to continue to help Del Monte maximize use of state-of-the-art systems to be more flexible and timely in serving its customers."
 Del Monte Foods is a San Francisco-based, privately held company that processes and markets fruit and vegetable products under the Del Monte brand name. The company has been independent since a 1990 leveraged buyout and posted annual sales of $1.4 billion during the most recent fiscal year. Del Monte Foods has operations in the United States, Mexico, the Philippines, Central America, Panama and the Caribbean, and employs 14,500 full-time employees throughout the world.
 EDS has operations in 30 countries, employs more than 70,000 people and is the leader in applying information technology to meet the needs of businesses and governments around the globe. Stock reflecting EDS' performance is traded on the New York Stock Exchange under the symbol GME. EDS reported revenues of $7.1 billion in 1991.
 -0- 11/5/92
 /CONTACT: Ken Smalling of EDS, 214-392-8948; or Dee Ann Campbell of Del Monte, 415-442-5034/
 (GME) CO: Electronic Data Systems Corporation; Del Monte Foods ST: Texas, California IN: CPR FOD SU: CON


JG -- DE011 -- 2922 11/05/92 09:52 EST
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Date:Nov 5, 1992
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