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CompUSA Signs Multi-Year Services Agreement with IBM for Information Technology Support


SOMERS, NY - 10 Feb 1999: -- CompUSA Inc. (NYSE: CPU), America's Largest Computer Superstore (R) retailer, today announced it has signed a seven-year strategic outsourcing agreement with IBM.

Under the agreement, IBM Global Services will be responsible for IT application development and data center operations that support CompUSA nationwide, including its 210 retail stores and related businesses such as technical services, training, manufacturing and call center.

In addition, IBM is providing enterprise resource planning services in support of CompUSA's migration to SAP.

CompUSA belives the combination of the outsourcing agreement with IBM and the implementation of SAP will enable it to consolidate its legacy systems, leading to increased efficiencies and lower costs.

"Outsourcing application development and maintenance and IT operations to IBM Global Services will allow the CompUSA IT organization to focus on more strategic initiatives, such as e-commerce," said Honorio Padron, CompUSA senior vice president of process engineering and CIO. "Additionally, IBM's knowledge of the distribution industry will provide us with access to a broad base of skills to help us further build on our reputation as the total solutions technology provider for our retail and corporate customers."

"We understand the challenges faced by CompUSA and can help them remain focused on their business objectives," said Sean Ryan, vice president - Distribution, IBM Global Services. "This relationship also will help CompUSA by allowing them to more easily predict long-term IT expenditures."

CompUSA is one of the nation's leading retailers and resellers of personal computers and related products and services. The company currently operates 210 CompUSA Computer Superstores in 79 major metropolitan markets across the United States that serve retail, corporate, government and education customers and include technical service departments and classroom training facilities. CompUSA also offers its own build-to-order personal computer series, the CompUSA PC (TM), and operates an Internet site located at http://www.compusa.com">http://www.compusa.com where customers can shop for more than 50,000 items on-line.

IBM Global Services is the world's largest information technology services provider, with 1998 revenues of approximately $29 billion. Services is the fastest growing part of IBM, with more than 126,000 professionals operating in 160 countries. IBM Global Services integrates all of IBM's capabilities -- IT services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. For more information, visit http://www.ibm.com/services">http://www.ibm.com/services.

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Contact(s) information

Brian Ditzler
IBM
914-766-4253
bditzler@us.ibm.com

Suzanne Shelton
CompUSA
972-982-4181
suzanne_shelton@compusa.com

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