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IBM TO JOIN WITH GRUBB & ELLIS AND NORRELL IN TWO NEW BUSINESS VENTURES

IBM TO JOIN WITH GRUBB & ELLIS AND NORRELL IN TWO NEW BUSINESS VENTURES
 PURCHASE, N.Y., May 7 /PRNewswire/ -- IBM (NYSE: IBM) and two leading services sector firms today announced plans to form two new business alliances to provide facilities services and business support at IBM locations currently supported by the IBM North America headquarters services organization. The alliances also will market their expertise to other companies.
 A business venture between IBM and Grubb & Ellis Company (NYSE: GBE), San Francisco, will provide property management and corporate facilities management, engineering, maintenance and other related building management services to IBM and third parties. At the same time, IBM has acquired a minority equity position in Norrell Corporation, Atlanta, and will use a Norrell subsidiary to provide general business support services.
 It is expected that both companies will be operating by Aug. 1. Any IBM employee whose job will become part of one of the new companies will be offered the opportunity to interview for a position with that company. In addition, employees will have the option of continued employment with IBM, or may apply for IBM's modified and extended Individual Transition Option program. Under this program they may elect to retire, resign or begin a pre-retirement leave of absence and receive the greater of eight weeks' pay or one week's pay for each six months of service fully or partially completed, up to a maximum of 52 weeks' pay.
 "This restructuring enables us to provide facilities services and business support more efficiently through alliances with leading companies in a large and growing market," said Robert J. LaBant, IBM Vice President and General Manager, IBM North America. "In this way, we enjoy the benefits of equity interest, afford ourselves a new business opportunity in the multi-billion dollar vended services industry, and establish a structure to help us meet future needs."
 Both Grubb & Ellis and Norrell currently provide vended services to IBM and are familiar with the company and its operations.
 "More and more American companies are recognizing the importance of streamlining operations to meet economic objectives," said Harold A. Ellis, Jr., president of Grubb & Ellis. "The outsourcing of real estate and particularly property management services is one manifestation of that fact. We feel that the strength of the people coming to us from IBM's facilities group, combined with the marketing and management expertise of our property management group, provides a powerful option for companies who have recognized and are acting on this trend."
 "The demonstrated skills of the IBM people expected to join the Norrell subsidiary, combined with Norrell's experience in human resources management, provide it with a depth and breadth of capabilities few competitors will be able to match," said Douglas Miller, president of Norrell Services, Inc., a subsidiary of Norrell Corp.
 Thomas E. Wynn, assistant general manager, site services and real estate operations, IBM North America, will become chairman and CEO of the IBM and Grubb & Ellis business venture. Ronald M. Puntil, president, national property management services, Grubb & Ellis, will be president and COO. Charles H. Gibbons, headquarters services director, IBM North America, will become president and COO of the business venture with Norrell.
 Finalization of the agreements is contingent on appropriate government and other approvals.
 -0- 5/7/92
 /CONTACT: Paul Neuman of IBM Corporation, 914-697-6537, Penny Pence-Smith of Grubb & Ellis, Co., 415-956-4699, or Doug Miller of Norrell Services, Inc., 404-240-3000/
 (IBM) (GBE) CO: IBM Corporation; Grubb & Ellis Co.; Norrell Services, Inc. ST: New York, Georgia, California IN: CPR SU: JVN


PS -- NY127 -- 7892 05/07/92 18:26 EDT
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Publication:PR Newswire
Date:May 7, 1992
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