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Navy Awards NCR $49 Million Contract to Expand

ATMs-at-Sea Program to Smaller Ships

DAYTON, Ohio - NCR Corporation announced it has been awarded a $49 million contract by the U.S. Navy to expand the ATMs-at-Sea III program to smaller Navy ships, down to the frigate level. The program, which currently includes automated teller machines (ATMs) deployed on more than 140 U.S. warships, calls for installation of additional ATMs, as well as other services.

The award includes a $21 million fixed-price contract - called ATMs-at-Sea III - that will provide for the upgrade of current ATM's, as well as another $28 million in options for additional teller machines and services. NCR's Government Systems Group expects to complete the primary Navy contract by August 1999, performing the work at about 50 ports in the U.S. and around the world. The new program has already installed ATMs on 24 warships.

"By working closely with the U.S. Navy, NCR's ATMs-at-Sea program provides sailors' access to their money no matter where they are - far out at sea or even in hostile waters," said Steven Cooker, president of NCR's Government Systems Group. "NCR is committed to working with the Navy to expand the services available to meet the needs of service men and women now and in the future."

NCR's ATMs-at-Sea III contract builds on the prototype network established for the ATMs II contract on two Navy ships - the USS Constellation, and the USS Theodore Roosevelt. That network, implemented in 1997, put the on-board ATMs in touch with banks back in the sailors' hometown via satellite, using the Navy's Challenge Athena satellite communications system to link the ATMs to the Armed Forces Financial Network.

Commercial Banking Afloat

The Navy and NCR launched the ATMs-at-Sea program a decade ago, using ATMs as a replacement for the Navy's on-board payroll system that paid sailors in cash. The ATMs-at-Sea program takes the Navy payroll office out of the cash dispensing business - by depositing money directly into the sailors' accounts. By doing so, the Navy has cut costs on its payroll systems dramatically.

In 1997, the second phase of the program, ATMs-at-Sea II, upgraded the machines so sailors could not only get paid electronically, he/she could also access their bank accounts back home by using their regular ATM card in a program called "Commercial Banking Afloat." "Commercial Banking Afloat is the ultimate in personal banking," said Cooker "It quite literally permits customers to access their monies anywhere in the world, whenever they want, and lets the bank market services that suit the specific needs of the military customer."

The ATMs-at-Sea program has been so well received by crew members that cash machines on aircraft carriers, the Navy's largest ships, are often the highest volume ATMs in the world, according to the Navy. The ATMs, made by NCR, each churn out as much as $20,000 a day in cash.

Carriers are effectively floating cities; and sailors need cash to buy everything from toothbrushes to videotapes. And of course, they need cash to take with them on shore leave.

The $29 million option in the ATMs III contract may be used to pay for a lighter ATM better suited for installation on smaller-sized Navy frigates.

NCR equipped each ship in the ATMs-at-Sea program with from one to as many as eight NCR 674 or 5070 Interior ATMs, an NCR 3350 Server or Tower 32/400, from one-to-five 4430 Debit Terminals, a laser printer, and an uninterruptible power source.

The Navy's ATMs-at-Sea program office is based in the Naval Supply Systems Command (NAVSUP) in Mechanicsburg, PA. The command, which employs 820 military personnel and about 11,000 civilians worldwide, is charged with overseeing logistics for supply operations, contracting, and fuel; and it runs the Navy's food service, mail and exchange store operations, among other things.

About NCR Corporation

NCR Corporation (NYSE: NCR) is in the business of transforming transactions into relationships. NCR is a recognized world leader in data warehousing solutions, ATMs, point-of-sale, high performance scanners, and support services for retail, financial and national accounts markets. NCR's business solutions are built on the foundation of the company's long-established industry knowledge and consulting expertise, value-adding software, global customer support services, a complete line of consumable and media products, and world-leading hardware technology. More information about NCR and its products may be found on the Internet at


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