To: ChrisJP who wrote (5781 ) 7/16/2001 1:00:23 AM From: 2MAR$ Respond to of 208838 SUNW, EDS strike partnership, see $3 bln over five yrs SAN FRANCISCO, July 16 (Reuters) - Network computer maker Sun Microsystems Inc. <SUNW.O> and consulting firm Electronic Data Systems Corp. <EDS.N> said on Monday they had struck a nonexclusive partnership that they expect to bring them an additional combined $3 billion in revenues over five years. The two companies have had a strategic alliance for a year and a half and worked together longer, and executives in a telephone interview declined to say what sort of increase the closer relationship would bring and how the revenue would be broken down between firms. Palo Alto, California-based Sun and Plano, Texas-based EDS said the $3 billion over five years would be in addition to sales generated from current cooperation. They aim to build and even operate technology systems for mid-sized and major customers. As part of the cooperative deal, Sun will provide hardware and software and EDS consulting and outsourcing. The specialist companies are competing against firms like International Business Machines Corp. <IBM.N> and Hewlett-Packard Co. <HWP.N> that offer both consulting services and computer hardware and software. "We have common competitors in the marketplace," John Wilkerson, EDS vice president of global alliances, said in an interview ahead of the announcement. Wilkerson said the firms had already proven they worked well together, and he argued that their nonexclusive arrangement will allow them to serve customers better than IBM or H-P, which are more bound to relying on their own wares. ((-- Peter Henderson, San Francisco Bureau 415 677-2578 peter.henderson@reuters.com)) REUTERS *** end of story ***