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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: PCSS who wrote (81910)	5/3/2000 5:21:00 PM
From: hlpinout	Respond to of 97611

A bit more on the new alliance. -- Computer Makers to Create Online Purchasing Company Story Filed: Tuesday, May 02, 2000 6:03 PM EST May 2 (The Dallas Morning News/KRTBN)--Three leading computer makers and other technology companies are combining their market power in an Internet exchange for the purchase of parts and supplies. Compaq Computer Corp., Hewlett-Packard Co. and Gateway Inc. said Monday that they and at least nine other technology companies are contributing $5 million each to finance an independent company to act as their purchasing arm in the market. The new company should be up and running in 90 days, they said. Carly Fiorina, chief executive of Hewlett-Packard, said she called Michael Capellas, chief executive of Houston-based Compaq, about three weeks ago to broach the idea. "We believe this will transform the way our industry manages its supply chain," she said. Dell Computer Corp., which pioneered the direct sales model over the Internet, was approached to join the group, but a spokesman for the Round Rock, Texas, company said it declined. "It's not clear to us exactly what kind of exchange this is or how it would benefit Dell," spokesman T.R. Reid said. According to Mr. Capellas, savings on supply costs could be as much as 5 percent to 10 percent a year. Other companies joining the computer makers in the venture include: Hitachi Ltd., Infineon Technologies AG, NEC Corp., Quantum Corp., Samsung Corp., SCI Systems Inc., Solectron Corp., Western Digital Corp. and Advanced Micro Devices Inc. Rob Herb, executive vice president of AMD in Sunnyvale, Calif., said the online mart will help the chip company "get the latest technology to market as soon as possible." Ms. Fiorina declined to quantify the amount of business that members of the exchange plan to shift from traditional to Web-based purchasing. But she said that sales of electronic components are expected to reach $600 billion by 2004 and that spending by member companies represents at least one-third of that. Palo Alto, Calif.-based Hewlett-Packard began experimenting with its own online trading exchange a year ago, Ms. Fiorina said, using it to sell excess parts and, most recently, to buy capacitors on short notice. "We got the parts we needed within four hours," she said. More participating buyers and sellers will make the market work more efficiently, she said. "You need deep, liquid markets to have this kind of exchange," she said. For Compaq, which has been cutting costs to increase earnings, the idea came along at the right time, Mr. Capellas said. "This is the Internet at work. It's all about driving benefits to our customers," he said. Among the first tasks of the new company will be to pick a software vendor to handle the e-business. Each member company will have a seat on the board of directors and an equal say in how the business is set up. The technology group follows the automobile and tire industries in setting up online buying exchanges. General Motors Corp., Ford Motor Co. and DaimlerChrysler AG are putting one together, and six leading tire makers agreed last month to create a marketplace called RubberNetwork.com. By Leah Beth Ward

To: PCSS who wrote (81910)	5/3/2000 5:24:00 PM
From: Captain Jack	Respond to of 97611

Michael- lots of rev and news for a 25 - 30 stock,,, too bad they cannot get past that but the mkt has them valued here,,

To: PCSS who wrote (81910)	5/3/2000 5:30:00 PM
From: hlpinout	Read Replies (1) \| Respond to of 97611

Michael, I like these numbers too. -- Compaq Gets $150 Million Ericsson IT Outsourcing Deal May 03, 2000 9:19 AM LONDON -(Dow Jones)- LM Ericsson AB (ERICY) Wednesday signed a contract to outsource its information technology and support efforts to Compaq Computer Corp. (CPQ), a five-year deal initially valued at $150 million. Savings of SEK100 million (roughly $11.5 million) a year are envisioned, the Swedish telecommunications company added. The agreement takes effect immediately and covers some 20,000 end users in Ericsson's Swedish-based companies. The contract builds on a memorandum of understanding concerning desktop infrastructure support the two companies signed last December. That deal in its first stage covered some 40,000 workstations in the Nordic region, with Compaq taking over the role of some 400 Ericsson IT staff in the first quarter of this year. The new contract will see about 170 employees transfer from Ericsson to Compaq, where they will be responsible for updating technology, server management, a help desk and maintenance. "The agreement with Compaq is an important link in Ericsson's IT standardisation agenda," said Haakan Liedman, Ericsson's chief information officer. "Customers demand easy access to Ericsson and to our services. Flexibility in a truly global organisation requires standardisation of the IT platform." -By Robb M. Stewart; 44-20-7842-9294; robb.stewart@dowjones.com