RCG Information Technology to Acquire OSPC During Meeting with Philippines President Fidel Ramos

Pacific Rim Acquisition Would Address Industry-Wide Labor Shortage Crisis and

Increase Company's Ability to Provide End-To-End Year 2000 Solutions Onshore

and Offshore



    LOS ANGELES, May 7 /PRNewswire/ -- With Philippine President Fidel Ramos
 looking on, Robert Buttacavoli, president and chief executive officer of RCG
 Information Technology, approved an agreement in principle to acquire a
 majority interest in Manila-based Open Systems Philippines Corp. (OSPC).
 Terms were not disclosed.
     Mr. Buttacavoli made the announcement yesterday during an Information
 Technology Trade Mission sponsored by the Philippine Department of Trade &
 Industry here.  The meeting was attended by representatives from every
 information technology service provider in the Philippines and top-level
 representatives from business, media and government in the United States.
     The purpose of the mission was to showcase the Philippines expertise in
 information technology and to position the Pacific Rim nation as a formidable
 alternative to other countries as a source of skilled computer technicians and
 programmers.
     OSPC will retain its name, and Jojy Azurin -- president and chief
 executive officer of OSPC -- will continue in that position where he will
 focus on marketing OSPC's products and services.
     The acquisition of OSPC will unite one of the Philippines leading
 technology systems integration companies with the Edison, New Jersey-based RCG
 Information Technology, a global leader in providing cost-effective
 information technology solutions to Fortune 1000 companies and specialist in
 providing end-to-end Year 2000 solutions.  As a result of this transaction,
 RCG will substantially increase its offshore capabilities, generating more
 cost-effective Year 2000 conversion solutions for its clients.
     "The synergism between OSPC and RCG should benefit everyone involved,"
 Mr. Buttacavoli said.  "Together, we can dramatically increase RCG's offshore
 capabilities, create even more jobs for the Philippines' talented labor force,
 and strengthen our ability to overcome the Year 2000 labor shortage.  At the
 same time, we will be able to continue to offer state-of-the art Year 2000
 products, services and conversion capabilities to our customers in the United
 States and the Philippines.
     "The signing of this agreement is a momentous occasion for RCG.  With many
 members of our work force coming from the Philippines, we have always had
 great respect for the country and it citizens.  For that reason, we are
 particularly delighted to have President Ramos with us today as we take the
 next step in our aggressive strategy to become a dominant player in the global
 information technology consulting business," said Mr. Buttacavoli.
     "OSPC will provide cost-effective programming services for projects
 undertaken by RCG's regional offices in the United States," said Chuck
 McGlynn, a senior vice president of RCG and head of its fast-growing Year 2000
 conversion practice.  "While its initial focus will be on providing
 state-of-the art Year 2000 project conversion solutions, OSPC also provides a
 full spectrum of mainframe client/server technologies.  Additionally, OSPC
 will be charged with expanding its local and Asian consulting business through
 the use of PeopleSoft and other leading edge technological expertise, thus
 attracting more global business to the Philippines."
     RCG Information Technology, with revenues of $137 million in 1996, a team
 of 1,700 consultants worldwide and one of the most comprehensive employee
 training and development programs in the industry, experienced a 28 percent
 revenue growth over the prior year.  OSPC, with 150 experienced consultants on
 staff, currently provides consulting and programming services to major Asian
 companies.  Additionally, the company works on large systems integration
 projects for such industry leaders as IBM, NCR, Citibank, Philippines Long
 Distance Company and government institutions.
     "We are looking forward to increasing our role as a responsible corporate
 citizen.  RCG has been active in the Philippines for the past 10 years," said
 Manny Rodriguez, RCG's vice president for off-shore operations.  "As a native
 of the Philippines, I am especially eager to begin working with OSPC and the
 Philippine government to attract more global business there."
     RCG IT is a leader in providing information technology consulting services
 to Fortune 1,000 companies.  These services include product and application
 software development, complete Year 2000 products and services, software
 outsourcing, supplemental staffing, client server and emerging technologies
 such as SAP and PeopleSoft.  RCG is a subsidiary of New York-based Reliance
 Group Holdings (NYSE:   REL).
 
 

SOURCE RCG Information Technology

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