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McDONNELL DOUGLAS CORPORATION AND ISSC ANNOUNCE 10-YEAR, $3 BILLION AGREEMENT

 TARRYTOWN, N.Y., Dec. 29 /PRNewswire/ -- McDonnell Douglas Corporation (NYSE: MD) and Integrated Systems Solutions Corp. (ISSC), a wholly owned subsidiary of IBM Corporation (NYSE: IBM), today announced the signing of a 10-year outsourcing agreement for ISSC and its business partners to provide McDonnell Douglas with a variety of information technology services.
 Under this technology alliance, ISSC will acquire McDonnell Douglas' multi-vendor infrastructure from mainframe computers to desktop workstations, including voice and data telecommunications. ISSC will have operational responsibility for strategic systems including: fiscal, scientific, manufacturing production and engineering, serving commercial and defense programs. These services were previously handled by McDonnell Douglas Aerospace Information Services (MDAIS).
 The approximately 800 MDAIS employees in St. Louis, as well as the 650 employees in southern California directly affected by the agreement, will receive an employment offer from ISSC or one of its business partners.
 "This arrangement is strategically and financially advantageous for McDonnell Douglas," said Herbert J. Lanese, McDonnell Douglas executive vice president and chief financial officer. "ISSC's unmatched systems operations experience and ability to implement new technologies will help give us the competitive edge and enable us to focus on our core business functions. For our employees, this agreement opens the door for career opportunities with information technology leaders. In addition, it eliminates the need for ongoing investment in an area that is peripheral to our core aerospace business."
 Lanese said that the combined resources, experience and economies of scale offered by ISSC are expected to significantly reduce McDonnell Douglas' total data processing expenses. McDonnell Douglas will pay ISSC approximately $3 billion for services during the 10-year period covered by the contract.
 "This technology alliance provides McDonnell Douglas with high- quality, cost-effective information services and the technology to be the most competitive in the aerospace industry," said Dennie M. Welsh, president of ISSC. "The ISSC team will offer McDonnell Douglas best-of- breed technologies, reference-proven processes and depth of expertise."
 MDAIS manages and operates computer centers in St. Louis and southern California. Under this agreement, ISSC will lease the 74-acre facility that houses the St. Louis computer center.
 ISSC, headquartered in Tarrytown, is a premier provider of customer solutions through information technology services. Founded in 1991, it provides innovative and total enterprise information technology solutions that contribute to the success of more than 30 major U.S. corporations. ISSC provides: systems operations, consulting, systems integration, business recovery services, voice and data networking and applications software development.
 McDonnell Douglas, with headquarters in St. Louis, is the nation's largest defense contractor and one of the world's leading producers of commercial jetliners. As such, the company is engaged in development and production of combat aircraft as well as commercial airliners, helicopter, space systems, electronic systems and missiles. Production programs are under way for all four U.S. military services.
 -0- 12/29/92
 /CONTACT: J. P. Versace of IBM, 914-642-5367; or Pete Sloan of McDonnell Douglas, 312-232-2300/
 (IBM MD)


CO: IBM Corporation; McDonnell Douglas Corporation ST: New York, Missouri, California IN: CPR SU: CON

GK -- NY030 -- 0386 12/29/92 15:37 EST
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Publication:PR Newswire
Date:Dec 29, 1992
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