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DATA GENERAL SIGNS AGREEMENT WITH NEW YORK STATE; WILL NOT COMPETE FOR BUSINESS WITH OFFICE OF GENERAL SERVICES UNTIL AFTER MARCH 31, 1993

DATA GENERAL SIGNS AGREEMENT WITH NEW YORK STATE; WILL NOT COMPETE FOR BUSINESS WITH OFFICE OF GENERAL SERVICES UNTIL AFTER MARCH 31, 1993
 WESTBORO, Mass., Oct. 7 /PRNewswire/ -- Data General Corporation (NYSE: DGN) today announced that it intends to sign an agreement with the State of New York that will result in the company not participating in the procurement process and competing for contracts issued by the Office of General Services until after March 31, 1993.
 The agreement results from an ongoing investigation by the New York State Inspector General's office of a number of computer companies and the purchasing practices and relationships between State officials and those vendors. Data General fully cooperated with the investigation, which was initiated by the state in May of 1991.
 The Inspector General's office concluded that two former Data General salespeople discussed making large payments to a consultant working for a State agency. No such payments were made. The State concluded, however, that the two employees did make a $1,000 payment to a charitable fund directed by an official of the New York State Division of Substance Abuse.
 In response to the State inquiry, Data General learned in its own investigation that a $1,000 payment had been made by the salespeople in violation of company policy and so informed the State. The employees were subsequently terminated.
 As a result of the State investigation, a 1991 sale of Data General equipment to the New York division of Substance Abuse Services, valued at approximately $1 million was rescinded and the equipment returned to the company in March 1992.
 Data General President and Chief Executive Officer Ronald L. Skates stated, "once we were informed of the investigation, we cooperated fully with the Inspector General's office. As we learned of any improprieties we immediately informed the Inspector General's office. The Inspector General made no allegations against the company beyond those we discovered and discussed with his office."
 "Data General is committed to the highest ethical standards. We do not tolerate any violation of that trust. It is unfortunate that the actions of two individuals can damage the reputation of our company and our employees," said Skates.
 -0- 10/7/92
 /CONTACT: Jim Dunlap of Data General, 508-870-8162/
 (DGN) CO: Data General Corporation ST: Massachusetts IN: CPR SU:


CH -- NE011 -- 7597 10/07/92 16:53 EDT
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Publication:PR Newswire
Date:Oct 7, 1992
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