Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.tech From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: tech Tue, May 12 1992 Date: Tue, 12 May 92 05:10:23 EDT Message-ID: 05-12 0000 DECISIONLINE: Technology USA TODAY Update May 12, 1992 Source: USA TODAY:Gannett National Information Network GM BUYS MISSILE BUSINESS: General Motors' Hughes Aircrafts agreement Monday to buy General Dynamics' missile business highlights two vastly different strategies for confronting the shrinking defense industry. The companies said GM Hughes will give General Dynamics stock worth at least $450 million for the missile business. General Dynamics will get 21.5 million shares of GM Hughes. (For more, see special Missile package below.) DELL CUTS COMPUTER PRICES: Dell Computer cut prices Monday on its full line of desktop, floor-standing personal computers and its color notebook PC. New prices include the 325NC color notebook for $3,499 from $4,299 and Dell's 325SX PC for $1,199 from $1,349. It was the company's fifth price reduction in the last 12 months. U.S. PUTS SANCTIONS ON FIRMS: The United States put narrow sanctions on the Russian Glavkosmos and an the Indian Space Research Organization Monday for a $250 million missile deal. The Russian firm plans to sell rocket engines powered by liquid nitrogen. India insists the missiles will be used for its space program. The United States says the missiles could be converted for use on offensive weapons. COMPAQ, EPA TEAM UP: Compaq Computer Corp. Monday said it is working with the Environmental Protection Agency to outline and implement energy efficiency guidelines as part of the EPA Energy Star Computers Program to be announced Tuesday at the EPA's Northeast Region Energy Efficiency Initiative conference. The project's aim: To encourage manufacturers to design computers requiring less energy. COMMUNICATIONS CENTER OPENS: The new O'Hare Communications Center was formally dedicated Monday at the Chicago airport. From the center, police and fire can receive emergency calls and respond by using a new integrated and interactive mapping system that displays the exact location of the incident. The center is also linked to law enforcement, weather and flight information networks. JOURNAL TO HAVE INTERACTIVE ADS: Dow Jones & Co., publisher of The Wall Street Journal, and telephone giant BellSouth Corp. said Monday they have developed an interactive system to give readers more information about advertised products and services. Dow Jones and BellSouth will use BellSouth's voice messaging system to give Journal readers access to information about products or services advertised in that paper. ADS LIST TOLL-FREE NUMBER: The Wall Street Journal's "Reader Service Line" is already in operation for readers getting regional editions of the Journal in the Southeast and northern California. A toll-free number and advertiser codes are listed in ads for participating products or services so readers can call to get more information and possibly leave an address or number so the advertiser can send material. SOURCEMATE OFFERS FREE SOFTWARE: SourceMate Information Systems Inc. said Monday it will donate AccountMate accounting software to companies who incurred significant damage during the riots in Los Angeles. Qualifying businesses can receive single- or multiuser AccountMate systems consisting of General Ledger, Accounts Receivable and Accounts Payable programs. This offer is good until Nov. 30. MAXWELL LABS BUYS HYTEC: Maxwell Laboratories Inc. Monday said it has bought International Hytec Corp., a computer software and systems developer for various commercial, state and local government agencies in Alabama. The company will be an operating unit of Maxwell's S-Cubed Division. SPECIAL PACKAGE ON MISSILE: DYNAMICS IS SCALING DOWN: Analysts say the sale of General Dynamics' missile business to General Motors' Hughes Aircrafts represents two defense contractors reacting to the shrinking defense business. For General Dynamics, it is its latest move to sell non-core businesses and become a financially stronger firm, with the focus on tactical aircraft, nuclear submarines, armored vehicles and space launch systems. GM GETTING OUT OF DEFENSE: The purchase is part of the GM Hughes' effort to bolster all areas of its business. As GM Hughes Chairman C. Michael Armstrong said in a statement: "This acquisition fits our strategy to be a growth company." GM Hughes has been beefing up its commercial and non-defense businesses. General Dynamics' missile business will fortify GM Hughes' already strong position in that area. GM'S MISSILE REVENUE TO DOUBLE: GM Hughes now makes the AMRAAM air-to-air, Phoenix air-to-air and Maverick ground-to-air missiles. General Dynamics produces the Navy's standard surface-to-air, Stinger anti-aircraft and Tomahawk cruise missiles. The acquisition will just about double GM Hughes' annual missile revenue to more than $2.3 billion. DEFENSE BUDGET IS SHRINKING: Jack Modzelewski, analyst at PaineWebber, says in both cases the companies are bracing themselves for a much tougher U.S. defense industry. "The Department of Defense will order less, and we're going to need less plants and less people. The defense industry now is trying to get ahead of the curve," he says. (End of package.) Technology Editor: Ed Kelleher. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM