Friday, May 22, 1998

CORRECTIONS AND TRW INC. REACH AGREEMENT ON CONTRACT

The Youth and Adult Correctional Agency and TRW Inc. today announced that they have reached an agreement for finalizing TRW's work on the Agency's Correctional Management Information System. TRW's work focused on the analysis phase for designing and building an electronic inmate records system.
The agreement provides for the allocation of final costs and the intellectual property rights in the product developed by TRW, and for future consulting services to be provided by TRW to the Department. From a financial standpoint, the agreement provides that CDC will retain the $10 million letter of credit posted in connection with the contract. TRW will also contribute $8 million to resolve all remaining issues.

The pending lawsuit between TRW Inc. and CDC will be dismissed as a result of the agreement, and CDC will move forward with a request for proposal for the remaining phases of the computer project.