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To: H James Morris who wrote (49093)	4/6/1999 7:57:00 PM
From: Glenn D. Rudolph	Respond to of 164684

High-tech firms storming Fortune 500 bulwarks By Amy Collins NEW YORK, April 5 (Reuters) - Automaker General Motors Corp. <GM.N> topped the Fortune 500 list for the 11th straight year, but the business magazine warned that younger high-technology companies have "made it clear that one day, the Fortune 500 will be theirs." "There was tremendous growth in the new economy, while the old economy slowed," Nelson Schwartz, a senior writer at Fortune who worked on the list, said Monday. "The companies that are showing such tremendous top-line growth are in technology, software and services. That leads me to believe they will continue to take up more of the list." The Fortune 500 rankings are based primarily on revenues, but other factors are considered, such as profit performance, market value, number of employees and return to investors. Overall, revenue growth for the list's companies dropped to 4 percent from 8.7 percent a year ago and profits declined for the first time in seven years. Among the up-and-coming technology companies: -- Computer networking company Cisco Systems Inc. <CSCO.O>, based in San Jose, Calif., jumped 61 slots, from No. 253 to 192. -- Dell Computer Corp. <DELL.O>, the world's top direct seller of personal computers, moved up 47 spots from No. 125 to 78. -- Palo Alto, Calif.-based Sun Microsystems Inc. <SUNW.O>, known for its workstations and servers that run corporate networks, moved up from No. 184 to No. 164. Higher up on the list, software company Microsoft Corp. <MSFT.O> rose from No. 137 to No. 109. And Compaq Computer Corp. <CPQ.N>, the world's largest personal computer maker, moved up from No. 42 to No. 28. The traditional powerhouse companies, which still made up up the top 10 of the Fortune 500 list, are not without their supporters. Bill Meehan, chief market analyst at Cantor Fitzgerald in Darien, Conn., predicted that the growth of the technology companies would not likely accelerate as much as Fortune predicts. "It can't happen that quickly, if it's going to happen at all," he said. The pricey technology companies will eventually be pressured to produce revenues that match their market capitalization, he said. The entire Fortune 500 list, now in its 45th year, is posted on the magazine's Web site. (http://www.fortune.com.)