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CISCORP ANNOUNCES ESOP AND REORGANIZATION PLANS

 PITTSBURGH, March 11 /PRNewswire/ -- CISCORP, western Pennsylvania's largest headquartered data processing information consulting services firm, has formally announced its intent to separate the company into two autonomous corporations with the establishment of an ESOP (Employee Stock Ownership Plan) within one of the companies.
 Both privately held firms will remain headquartered in Pittsburgh; however, the two businesses, CISCORP Partners, Inc., and CISCORP Consulting, Inc., will be distinct and separate.
 CISCORP Partners, Inc., led by Joseph S. Ogrodnik, CISCORP's founder and CEO, will provide specialized niche services that focus on platforms related to ongoing strategic relationships developed with: Apple, Tandem, Cincom and FileNet. CISCORP Consulting, Inc., will be led by Mark Kurtzrock, former vice president and human resources director of CISCORP and a prior executive with the Pittsburgh High Technology Council, now promoted to president of CISCORP Consulting, Inc. Under Kurtzrock's direction, CISCORP Consulting will continue to provide the tri-state area with consulting and project management services to many of the firms located in the greater Pittsburgh area. CISCORP Consulting has been the mainstay of the organization since its incorporation in 1981 with nearly 150 professionals generating over $8 million in gross revenue in 1992. CISCORP Partners has been a division of the company since 1985 and is nearly 100 professionals strong with gross revenue of over $7 million in 1992. The majority of CISCORP Partners' business is located out of Pennsylvania and predominantly in the Silicon Valley of California. Ogrodnik stated that "By separating our business, we can more clearly focus our energies on what each company does best, therefore, providing even more responsive and higher quality services to our clients."
 The establishment of an ESOP within CISCORP Consulting is the result of an extensive feasibility study in which the Pennsylvania Department of Commerce provided a low-interest loan of $50,000 and in which Mellon Bank, ESOP Services, Inc., and several local legal and accounting firms took part. The analysis indicated that over an estimated 5-7 year period, majority ownership of CISCORP Consulting could be beneficially transferred to the employees from the sole shareholder Ogrodnik in a manner highly advantageous to the employees and the owner alike. "The ESOP is really a win-win situation," stated Ogrodnik. "Our employees win by obtaining a piece of ownership and the opportunity to share directly in the equity growth of CISCORP. We feel it's an especially appropriate way to recognize the commitment our employees have made to the company over the years and their critical role in our success to date."
 Currently the transaction is awaiting an IRS approval ruling, which is expected to occur sometime in the third quarter of 1993. Upon the future growth and financial maturity of the Partners business, a similar employee ownership plan is also envisioned within a few years. Both organizations, as part of the restructuring analysis, have also been preliminarily evaluated for a minority of the outstanding shares to go public. However, the analysis has indicated that gross revenue will need to exceed $25 million (a figure Ogrodnik hopes to approach with both organizations in 3-5 years) before such an IPO (Initial Public Offering) can be made practical.
 According to the National Center for Employee Ownership in California, over 10,000 ESOPs, involving nearly 10 million employees, exist in the United States today. Locally, Michael Baker Company, Diskriter, Kerotest, AVIS and others have experienced successful transitions to ESOPs.
 -0- 3/11/93
 /CONTACT: Walter H. Ogrodnik, vice president and COO of CISCORP, 412-787-9600/


CO: CISCORP; CISCORP Partners, Inc.; CISCORP Consulting, Inc. ST: Pennsylvania IN: CPR SU: RCN

KC-CD -- PG010 -- 5203 03/11/93 15:29 EST
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Publication:PR Newswire
Date:Mar 11, 1993
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