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Non-Tech : Secret Squirrels hit! -- Ignore unavailable to you. Want to Upgrade?

To: Trumptown who wrote (9656)	1/8/2004 5:14:33 PM
From: Tom Swift	Read Replies (1) \| Respond to of 12872

11 M$ accounting irregularity. Not an Enron situation. IBM Reports Receipt of SEC 'Wells Notice' Regarding Dollar General Thursday January 8, 4:55 pm ET ARMONK, N.Y.--(BUSINESS WIRE)--Jan. 8, 2004--IBM today announced that it has received a "Wells Notice" from the staff of the U.S. Securities and Exchange Commission (SEC) in connection with the SEC's investigation of a customer of IBM's Retail Stores Solutions unit, which sells point-of-sale products. IBM disclosed the existence of this investigation on June 2, 2003. The IBM customer that is the subject of this investigation is Dollar General Corporation. It is IBM's understanding that an IBM employee in its Sales and Distribution unit has also received a Wells Notice from the SEC in connection with this matter. The Wells Notice notifies IBM that the SEC staff is considering recommending that the SEC bring a civil action against IBM for possible violations of the U.S. securities laws relating to Dollar General's accounting for a specific transaction, by participating in and aiding and abetting Dollar General's misstatement of its 2000 results. In that transaction, IBM paid Dollar General $11M for certain used equipment as part of a sale of IBM replacement equipment in Dollar General's 2000 fourth fiscal quarter. Under the SEC's procedures, IBM has the opportunity to respond to the SEC staff before the staff makes a formal recommendation regarding whether any action should be brought against IBM by the SEC. IBM continues to cooperate fully with the investigation relating to Dollar General and the separate SEC investigation relating to the recognition of revenue by IBM in 2000 and 2001 primarily concerning certain types of customer transactions, which is not the subject of this Wells Notice.