U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

EDGAR Modernization Contract Awarded

FOR IMMEDIATE RELEASE                                                     98-59

Washington, D.C., June 30, 1998 Today, the Securities and Exchange Commission (SEC) announced that it has awarded to BDM International, Inc. (BDM), a wholly owned subsidiary of TRW Inc., a three-year contract for the modernization of the EDGAR system. The contract will be effective on July 1, 1998. The estimated three-year cost of modernization is $22.4 million. The total award amount for both the modernization and ongoing operation of the system through June 2001 will be approximately $49 million.

EDGAR modernization will improve substantially the presentation quality and structure of SEC filings. The EDGAR architecture will be converted to an Internet-based system using HTML as the official filing format, and will also support the attachment of graphical files such as PDF. Filers will realize reduced costs and effort associated with the preparation and submission of SEC required documents.

The new dissemination system will reduce dramatically the annual subscription cost for the entire, real-time database of filings. The rate for each of the current nine subscribers will be reduced from the present cost of $278,000 to $79,686. If the number of subscribers increases to 16, the subscription rate for each subscriber will be reduced to $47,439.

At the end of the three-year modernization contract, the SEC has the option of a full recompetition or may extend the contract with BDM for up to five years, in one-year increments. If all five extensions are exercised, the total eight-year cost for this contract would be approximately $102 million.