XN000022-1976-10-25 — Page 2

MONDAY, OCTOBER 25, 1976

GOVERNMENT ORDERS LARGE NEW COMPUTER SYSTEM

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A $40 MILLION CONTRACT FOR THE LEASE OF A NEW GENERATION COMPUTER SYSTEM TO THE GOVERNMENT WAS SIGNED THIS AFTERNOON.

THE CONTRACT FOR A DUAL PROCESSOR ICL 2970 COMPUTER SYSTEM WAS SIGNED IN THE PACIFICA ROOM OF THE FURAMA HOTEL BY THE MANAGER OF THE GOVERNMENT'S DATA PROCESSING DIVISION (DPD), MR. LEE TATE, AND THE CHAIRMAN OF THE INTERNATIONAL COMPUTERS (HOLDINGS) LIMITED, MR. TOM HUDSON.

THE DURATION OF THE LEASE IS FIVE YEARS. APART FROM THE RENTAL COSTS, GOVERNMENT WILL ALSO SPEND ABOUT $20 MILLION ON THE IMPLEMENTATION PROJECT FOR ITS SUCCESSFUL INSTALLATION.

THE EQUIPMENT WILL BE DELIVERED IN TWO PHASES, WITH THE FIRST SYSTEM READY FOR SERVICE IN JULY NEXT YEAR AND THE SECOND IN EARLY JANUARY, 1978.

THE SIGNING OF THE CONTRACT CULMINATED A THREE-YEAR PERIOD OF DYNAMIC GROWTH IN GOVERNMENT'S COMPUTER ACTIVITIES. IN TOTAL, DPD NOW RUNS MORE THAN 40 APPLICATIONS ACROSS A WIDE SPECTRUM OF GOVERNMENT ACTIVITY.

THE DPD'S CURRENT 1900 RANGE OF COMPUTERS WILL BE PHASED OUT ON A PLANNED BASIS WITH A TARGET OF MID-1978 FOR FINAL WITHDRAWAL.

ACCORDING TO MR. TATE, THE REQUIREMENT TO RE-EQUIP AROSE FROM TWO CAUSES - SYSTEMS DEVELOPMENT IN THE PIPE-LINE. INCLUDING MAJOR APPLICATIONS IN WATER ACCOUNTING, INLAND REVENUE AND HOUSING MANAGEMENT- AND FROM A TECHNICAL REQUIREMENT TO USE MORE SOPHISTICATED FEATURES OF DATA COMMUNICATION AND DATA MANAGEMENT.

HE SAID THE ICL EQUIPMENT WAS SELECTED FROM COMPETITIVE PROPOSALS FOR ITS ABILITY TO MEET THESE REQUIREMENTS AND TO PROTECT GOVERNMENT'S EXISTING INVESTMENT IN APPLICATIONS BY CLEAR AND WELL UNDERSTOOD CONVERSION TECHNIQUES.

A FURTHER FACTOR IN THE SELECTION, HE SAID, WAS THE POTENTIAL OF THE EQUIPMENT TO PROVIDE A FLEXIBLE YET RESILIENT SERVICE TO THE DIVISION'S USERS.

+WE BELIEVE THAT WE ARE NOW IN A POTENTIALLY POWERFUL POSITION TO SUPPORT A FURTHER PERIOD OF CONSOLIDATION AND GROWTH, MR. TATE SAID.

+WE HAVE NOT YET SEEN THE LIMIT OF COMPUTER APPLICATIONS WITH GOVERNMENT AND I CONFIDENTLY ANTICIPATE A FURTHER DECADE OF NEW SYSTEMS DEVELOPMENT, HE ADDED.

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