Text COM:1989068 (56 lines)

From: Tribhangananda (das) ACBSP (GB)

Date: 05-Jan-99 13:40

To: UK National Council [1541]

Cc: Bhakti Raghava Swami [4497] (forwarded: 06-Jan-99 00:20) (sender:

Kaunteya (das) JPS (Mayapur - IN))

Cc: Apocalypse 1999? (Are you ready?) [356]

Subject: PC World News

------------------------------------------------------------

The point is this - the news is already heading steadily for the fan.

Firms Expect Y2K Failures

Telecom firms are said to be dead last in addressing problems--are we

surprised?

by Reuters

January 4, 1999, 4:06 a.m. PT

The new millennium's much-anticipated computer bug is still a year away but

many U.S. companies are already throwing in the towel: They admit they won't be

ready.

Companies are beginning to make such frank statements on Y2K risks to cover

themselves against possible securities litigation, analysts said. The

statements also provide ammunition for their own suits.

Companies such as Chevron and AT&T say their systems may be vulnerable to

significant failures as they grapple with the Year 2000 date change.

McDonald's and DuPont are more confident their machines can handle the date

change. They are less sure about those of suppliers and local governments.

With Year 2000 errors putting profits at risk, industry consultants report

companies doubling or tripling spending to ensure key systems are Y2K compliant

and insulated from outside failures.

"It appears that over half the work will be crammed into 1999," said Steven

Hock, chief executive of research company Triaxsys Research LLC.

Of the 500 largest U.S. companies, 70 percent have been reporting in Securities

and Exchange Commission filings on their progress with the Y2K bug. As of the

end of September, those companies had spent 42 percent of their Year 2000

budgets, according to a report by Triaxsys.

At that rate, Triaxsys estimates many companies will fall short of fixing all

their computers and machines by 2000.

The technologically complex telecommunications sector ranks dead last among all

other industries in progress toward completion of Y2K projects, according to

Triaxsys. Also behind are the utilities industry and the energy sector.

Industries leading the race are banking, securities and insurance, all of which

began looking at Y2K as long as ten years ago largely because of regulatory

requirements. Most telecommunications companies only began looking at the issue

two to three years ago.

Chevron has said it will not fix all its systems by December 31, 1999, and Year

2000 business interruptions could prevent it from making and delivering refined

products and producing oil and gas.

AT&T has acknowledged the potential for failure across its systems and has

cranked up Year 2000 spending by more than 50 percent.

(Text COM:1989068) -----------------------------------------