Press Release

18 October, 1999 EMBARGOED UNTIL 1.00 AM

LARGE COMPANIES PREPARING FOR Y2K DISRUPTION

...Preparations Being Made To Combat Infrastructure Failures... ...Over 30 Per Cent Expect Competitors To Be Wounded By Y2K...

A survey published today, commissioned by Adam Associates and Taskforce 2000, shows Britains Top 1000 companies are taking the threat of major Y2K disruption seriously and are making detailed preparations to mitigate the effects.

Carried out in early October by independent research organisation, Business Strategies, the survey reveals that, despite constant reassurances from Government Agency Action 2000 that it will be business as usual, top companies are making detailed preparations - most of them for a period extending well into 2000 and, for a substantial minority (38 per cent) beyond 2000.

98 per cent of companies said they believe it is necessary to take action to protect their business against the risk of disruption. Nearly all (92 per cent ) believe that problems may arise from outside their organisation.

84 per cent of big business has made it a priority to prepare for power failures, 86 per cent for loss of telecomms, 90 per cent for third party failure, 97 per cent for systems failures and 82 per cent for loss of buildings and facilities.

The sorts of measures that companies are actually taking are: developing workaround programmes (94 per cent), sourcing alternative premises (46 per cent), stockpiling (49 per cent), finding alternative suppliers (68 per cent), developing alternative systems (83 per cent).

The seriousness of the Y2K problem has been brought home to many companies by the fact that 31 per cent have already experienced failures within their organisation.

Robin Guenier, executive director of Taskforce 2000, said: "This is a clear indication that the possibility of infrastructure failure is a major concern and that companies are taking action to offset it. It confirms that without detailed information from the Government, large companies have made their own judgements about the readiness of the infrastructure. The truth is that we are all in the dark and it is time that the Government made full information available not just the discredited traffic light system."

"The latest information made available by the FSA about the readiness of financial institutions is also highly unsatisfactory. There are 50 companies that have gone missing, the green light for those that have finished has been dropped and we were told that anything that was amber in September should be counted as red. Yet there are no red lights in the latest report."

"If the Government wants to avoid public confidence issues in the final quarter it urgently needs to publish more information. Above all what businesses want to hear is that infrastructure providers and financial institutions have finished the job as recently defined by Margaret Beckett MP when reporting on the Y2K readiness of central government. Without such information, individuals will draw their own conclusions from large companies taking their own preventative action."

Richard Pursey, chief executive of Adam Associates, said: "It is clear from this survey that the countrys biggest companies are taking this issue very seriously. Not only are 98 per cent totally committed to minimising their risk but for over half, the Board has overall responsibility for the project."

"The commitment to crisis planning is perhaps best illustrated by the number that have already seen a Y2K triggered interruption.. This demonstrates that the problem is real and is not the hype and exaggeration many would have us believe!"

"It is significant that the companies see a positive commercial outcome to this: nearly 60 per cent recognise that they will gain competitive advantage. A third expect their competitors will be wounded by the millennium bug. If true, this could lead to an increase in mergers and acquisitions if share prices are devalued as a result of failure."

Editors note: Adam Associates Ltd is the recognised leader in business continuity management, with a client base that includes many of the worlds leading blue-chip companies. Its consultancy services cover all areas of operational business, including contingency planing, impact analysis and crisis management. Its I.T. Continuity division, Adam Information Technology, provides technical disaster recovery services for companies throughout the UK, continental Europe and South Africa. According to a 1999 Dunn and Bradstreet poll, Adam Associates is the UKs 16th fastest growing company.

Taskforce 2000 was set up in July 1996 by the then Minister for Science and Technology, Ian Taylor. Taskforce 2000 is a not for profit organisation, committed to minimising the impact of the Y2K problem. It acts as an independent watchdog, ensuring that business and the public have accurate information so that informed decision-making and contingency planning can be made.

For further information contact Rob Wilson, Three Communications Tel: 01252 811117, Fax: 01252 812337 Email: Rob@3hree.co.uk

-- Old Git (anon@spamproblems.com), October 20, 1999