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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (26245)	7/16/1999 7:32:00 AM
From: Teflon	Respond to of 74651

Today should be a lot of fun! Here's more good news for MSFT: EDS wins $800 mln New Zealand deal Telecom Corp. also brings Microsoft on line By Bill Clifford, CBS MarketWatch Last Update: 7:05 AM ET Jul 16, 1999 NewsWatch WELLINGTON (CBS.MW) -- Beating off several contenders including International Business Machines, Electronic Data Systems Corp. on Friday won a 10-year $800 million (NZ$1.5 billion) contract to manage Telecom Corp. of New Zealand's information technology services. In announcing the country's largest IT contract ever, Telecom also said Microsoft Corp. will join its alliance with EDS to help the phone company develop its online businesses. "Customers will benefit from the combined wealth of telecommunications, information services and software technologies that the three companies have to offer," Telecom chief executive Roderick Deane said in a statement. EDS (EDS: news, msgs), America's No. 2 computer services company, will manage and operate Telecom's company-wide billing and customer information systems, IT infrastructure and Internet services. Telecom (NZT: news, msgs) did not make clear how quickly the outsourcing deal with EDS (EDS: news, msgs) would translate into cost savings. Shares in Telecom fell 0.5 percent Friday to NZ$7.90. EDS hit an all-time high of 64 1/2 Thursday in New York. The alliance agreement gives Telecom the option of purchasing up to 49 percent of EDS (New Zealand) over the next four years, and an initial acquisition of a 10 percent stake is likely in the near term, company executives said. Steve Smith, managing director of EDS New Zealand, said the participation of Microsoft (MSFT: news, msgs) is key to delivering online services to the government and business markets. Telecom is counting on Internet and data services to give its earnings a shot in the arm after posting its weakest sales growth in five years. Teflon