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ENTEX REALIGNS BUSINESS CREATING TWO OPERATING UNITS FOCUSED ON CONTINUED MARKET LEADERSHIP

RYE BROOK, N.Y. (November 12, 1998) – ENTEX Information Services, one of the nation’s leading PC systems integrators, today announced the creation of two business divisions -- ENTEX Technology Acquisition Services and ENTEX Services.

CEO John McKenna said, "This reorganization is a crucial step for ENTEX to insure long-term value for our customers, our employees, and our stakeholders. By moving to a line-of-business operating model, ENTEX will be better organized to bring increased focus to these two business segments. We are creating two nimble organizations that will be empowered to effectively and efficiently make the swift business decisions that today’s marketplace demands."

Rick Nathanson has been named President, ENTEX Services Division and John Lyons has been named President, ENTEX Technology Acquisition Services Division. Both Lyons and Nathanson will report directly to CEO John McKenna. Field sales management positions within each operating division will be held by many of the current senior field executives to ensure customer and marketplace continuity.

In conjunction with the reorganization, the company has announced the appointment of Spencer McIlmurray to the position of Executive Vice President and Chief Information Officer.

McIlmurray will strategically align technologies to support both new operating units and prioritize the company’s technology investments. Prior to ENTEX, McIlmurray held the position of Vice President, Information Technology Services for Avon Products where he received public recognition for deploying innovative technologies that enabled business process change in both established and emerging markets.

ENTEX Technology Acquisition Services Division

ENTEX’s Technology Acquisition Services Division, a national leader in providing distributed computing technologies to large businesses, will increase its dedication to the company’s core technology product business. The Technology Division, made up of 1,500 employees, will continue to offer hardware and software solutions including custom configuration, channel assembly, electronic commerce and integration services.

According to John Lyons, President of the Technology Acquisition Services Division, "This reorganization increases our focus on our core business, technology products. It better enables us to drive increased levels of value for our customers and enhance our partnerships with our vendors. At the same time, it provides the Technology Acquisition Services Division the opportunity to bring new products, innovative offerings and market leadership to this area of our business."

Critical to the success of the Technology Division, the company has announced the promotions of Chris Philpott to the position of Senior Vice President of the Corporate Account Center (CAC) and Kim Nathanson to the position of Senior Vice President, Product Management. Philpott, a former General Manager in the company’s St. Louis market, will have responsibility for management of more than three hundred employees focused on customer order management. Nathanson, formerly Vice President, Paragon will be responsible for purchasing and management of $2 billion of product per year for the Technology Division.

ENTEX Announces Establishment of Two Operating Units

Lyons continued by saying, "The additions of Chris Philpott and Kim Nathanson have significantly strengthened our senior management team. I am confident that ENTEX will continue to develop best-in-class product management and customer support."

ENTEX Services Division

ENTEX’s Services Division will focus on expanding the scope and scale of the company’s desktop outsourcing and enterprise network and consulting services. A geographic field sales structure will be replaced with a client and practice-oriented model that better supports the needs of both ENTEX customers and ENTEX Client Managers. The Services Division will be organized around three primary practice areas – desktop outsourcing, professional services, and traditional maintenance services. A new client management approach will draw upon the resources and methodologies from these core practices to drive greater value to ENTEX customers.

Rick Nathanson, President of the ENTEX Services Division said, "With more than 680,000 desktop systems under management, ENTEX has created a clear market-leading position in the desktop outsourcing arena. Through this reorganization, we will better leverage our expertise in desktop outsourcing to establish leadership across a broad spectrum of distributed computing services."

To increase the Service Division’s focus on desktop outsourcing, the company also announced the addition of Lou Schiavone to the newly established position of Senior Vice President, Outsourcing Services. Schiavone, previously Vice President and General Manager of Desktop Outsourcing, Americas Territory with Digital Equipment Corporation and Compaq Computer Corporation, will develop the ENTEX Outsourcing Practice to establish the company as a premiere provider of outsourced desktop services.

According to Rick Nathanson, "Desktop outsourcing represents one of the largest growth areas and one of the most fully developed services for ENTEX. Lou Schiavone will help to drive additional enhancements in this area and significantly expand the company’s reputation as a leader in this market segment."

The restructuring, which began internally within the company within the last few weeks, is anticipated to be fully completed by the end of December 1998.

About ENTEX

ENTEX Information Services, at $2.5 billion in revenue, is one of the largest PC systems integrators in the U.S., managing over 680,000 PC desktops largely at Fortune 1000 companies. The company provides a complete spectrum of integrated technology solutions ranging from product acquisition and customization to desktop outsourcing and professional services. Through

The Global Alliance, the company and its international partners cover 29 countries and provide the resources of more than 300 sales offices, 15,000 employees, and combined revenues of more than $8.0 billion. For more information about ENTEX, please visit the company’s website at http://www.entex.com.

 

Entex Contact
Corporate Headquarters: (914)935-3600
Six International Drive, Rye Brook, NY 10573

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