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Comdata Extends, Expands IBM Technology Outsourcing Agreement

Contract valued at Over $150 Million: Partnership Extends through 2005

SOMERS, NEW YORK - 13 Aug 1998: -- IBM announced that it is extending and expanding its technology outsourcing agreement with Comdata, a North America leader in information and financial services to the ground fleet transportation industry. The original outsourcing contract was signed in 1991. The new agreement will run through April 2005 and is valued at over $150 million.

Under the terms of the agreement, IBM Global Services will manage Comdata's information technology resources, providing data-center management at three locations; network, voice, and data management; desktop management; application development and maintenance; and business recovery services.

"IBM Global Services has created a "True" partnership with Comdata," said Tony Holcombe, chief executive officer, Comdata. "Our management teams are completely integrated and are focused on providing customer solutions. IBM's tremendous technical skills, coupled with a dedicated team of people who know and understand our business, truly give Comdata a competitive advantage in our marketplace".

"We really appreciate Comdata's extension of the IBM Global Services outsourcing relationship as it is a testimony to our record in helping Comdata achieve their aggressive business objectives," said Robert Zapfel, IBM Global Services General Manager for Travel and Transportation, Utilities and Government Industries. "Comdata is a real leader and successfully leverages its information systems investment. We look forward to continued growth and success together."

On July 9, 1998 Comdata announced plans to launch its first Internet-based business application for the transportation industry using WebSphere technology; a high-performance and scalable solution to make e-business a reality. At IBM's recent Web ྞ exhibition, Comdata was highlighted as one of IBM's business customers currently implementing the IBM WebSphere application server through its partnership with IBM Global Services.

MOTRS(TM) (Modular Over The Road System) Interactive Solutions will allow transportation companies to access their drivers' Comchek(R) accounts, conduct account maintenance and send updated account information electronically to Comdata for processing, all over the Internet. Additionally, MOTRS Interactive Solutions subscribers can obtain the latest transportation related information, including current diesel fuel prices from OPIS (Oil Price Information Service) and the U.S. Department of Energy. MOTRS is an information management software platform that operates in a PC, AS400 or UNIX operating environment.

Comdata is the leading provider of transaction processing and information services to the transportation industry. It provides funds transfer, fuel purchase, cash advance and permit services, as well as fuel optimization, routing and scheduling services and long distance telecommunications services to the trucking industry, and point-of-sale and data collection services to the truck stop industry. Its services reach over 17,000 trucking companies, and over 8,000 truck stop service centers as well as hundreds of thousands of truck drivers. Founded in 1969 in Tennessee, Comdata, a Ceridian Company (NYSE: CEN) today has over 1900 employees in 11 locations, with operations in the United States and Canada. Comdata revenues for 1997 were in excess of $250 million. Visit the company's Internet web site at http://www.comdata.com or the Ceridian web site at http://www.ceridian.com.

IBM Global Services has signed $14 billion in new or expanded outsourcing agreements in the first half of 1998.

With 1997 revenues of approximately $26 billion, IBM Global Services is the world's largest information technology services provider. IBM's fastest growing business segment has an unsurpassed breadth of capabilities, with more than 116,000 professionals helping companies of all sizes solve real business problems and create new business opportunities. For more information on IBM Global Services, visit http://www.ibm.com/services.

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Contact(s) information

David Caplan
IBM Global Services
914-766-4529
caplan@us.ibm.com

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