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Growing Businesses Get Added Flexibility for Technology Needs with Launch of CDW Leasing
VERNON HILLS, Ill. - May 13, 1999 - CDW Computer Centers, Inc. (NASDAQ: CDWC) is strengthening its relationships with business customers through the formation of CDW Leasing, L.L.C. CDW Leasing is a joint venture between CDW, a Fortune 1000 company and the country's leading direct solutions provider of brand name computer products, and First Portland Corporation ("FIRSTCORP"), an independent full-service leasing company.
"Businesses large and small have one thing in common, the need for flexibility in buying and using the latest technology innovations," said Dan Kass, CDW vice president of sales. "We're taking our one-stop model one step further by creating CDW Leasing to make it easy for business customers to finance the latest technology quickly and efficiently."
CDW Leasing was created in response to the growing popularity of leasing, particularly among smaller, growth-oriented companies. Eighty percent of U.S. businesses lease all or some of their equipment, according to the Equipment Leasing Association, which represents the $160 billion leasing industry. Computers-like those offered by CDW-are the most commonly leased piece of equipment.
With CDW Leasing, business customers now have the flexibility of choosing products and brands that best suit their business needs, with leasing terms tailored to their financial needs. "We are giving our business customers more byte for their buck with CDW Leasing," said Craig Shipley, vice president of sales and marketing for CDW Leasing. "In today's digital economy, leasing helps our customers by providing a flexible vehicle to help them manage their technology investments."
CDW and FIRSTCORP will each own 50 percent equity and profit-sharing interests in CDW Leasing. CDW will account for its investment in CDW Leasing under the equity method of accounting. Additionally, CDW has committed to loan up to $10 million to CDW Leasing on a secured basis to fund new leases that will be retained by CDW Leasing. External financing, as required by CDW Leasing, will be obtained on a non-recourse basis to CDW.
FIRSTCORP has been providing third-party leasing services to CDW's customers for more than three years. "FIRSTCORP's proven expertise in managing a commercial leasing program will serve as the backbone of the joint venture, with FIRSTCORP providing leasing sales, credit underwriting and portfolio servicing functions," said Harry J. Harczak, Jr., CDW chief financial officer. "By giving customers added services and financing alternatives with CDW Leasing, we are enhancing our relationships, reinforcing our brand equity and creating new marketing opportunities."
More information is available About CDW Leasing by visiting www.cdw.com/leasing or by calling 1-888-239-8271.
About CDW
CDW® (NASDAQ: CDWC) is the country's leading direct solutions provider, offering complete, customized computing solutions for business and consumers nationwide. With competitive prices on a selection of thousands of brand name computer products, CDW is the No. 1 authorized direct source of Compaq, Computer Associates, IBM, Microsoft, Toshiba and other top name brands. Celebrating its 15th anniversary year, CDW was founded in 1984 as a one-man, home-based business and today employs more than 1,500 coworkers whose efforts generated net sales of $1.9 billion for the trailing twelve months ended March 31, 1999. CDW's pioneering direct model offers personalized expertise through one-on-one relationships with highly-trained, knowledgeable account managers; telephone and online purchasing; custom configured solutions; customized financing solutions; next day shipping; and lifetime phone and online technical support, with close to 60 factory-trained and A+ certified technicians on staff. For more information About CDW's products and services, call 800-797-4239 or visit the award-winning e-commerce Web site at www.cdw.com. For media inquiries or general company information, please call CDW's media relations at 888-CDW-7040.
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