STORY:
IBM Sees $575 Million Y2K Spending

A Reuters's article says International Business Machines Corp. plans to spend $575 million to fix possible Year 2000 glitches on its own computer systems. Reuters cites the figures from IBM's 1999 annual report.

According to Reuters, a spokesman said the budget for Year 2000 repair efforts covers spending by the world's largest computer maker from 1997 to 1999, including software code conversion, testing and contingency planning in the event of computer failures.

The spokesman says the computer maker plans to take no charge against earnings to cover the costs, which the company plans to absorb as part of its normal budgeting.

IBM's Year 2000 related spending is dwarfed by the $82 billion in revenues the company reported for 1998 alone.

The spending is part of an estimated $300 billion to $600 billion that industry analysts have projected will be spent by companies in order to fix computer systems in order to recognize dates beginning in the Year 2000. IBM's outlay compares to the $550 million auto maker General Motors Corp. has disclosed it plans to spend on Year 2000 remedies.

Source: Reuters

DATE: 3/24/99

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