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GIS officials went on the offensive and issued a statement to their public sector customers: "Let us set the record straight. Though public sector will no longer be targeted for industry specific solutions and marketing programs, we will continue to meet your needs."

GIS took a $189 million loss for the second quarter and initiated a restructuring effort that will affect its 42,000 employees worldwide.

Group officials said, "The loss continues an unacceptable earning trend that makes it imperative for us to take decisive action to focus our business and reduce our cost structure."

The group decentralized its marketing organization into six, newly created business groups:

financial, retail, communications, computers, services and system media. Although the unit will continue to build systems for any industry, including government, GIS will focus investments for the retail, financial and communications industries.

"The marketing emphasis is changing, but we're not getting out of the government business," said Steve Cooker, vice president for business development.

In a July 28 memo to GIS personnel, the group's senior executives wrote: "We understand that this initial announcement will not relieve the anxiety for AT&ampT GIS people, but it does clearly define the path we chose to take.... Associates affected by the restructuring will be notified before the end of the third quarter."

PRC gets on the Internet: PRC has set up a home page on the World Wide Web. It provides general business and technical information about the company, including major customers, projects, products and services.

CDSI takes an $11 million hit. Computer Data Systems Inc. got word earlier this month that it lost its piece of a contract with an Argentine bank. The Maryland company, teamed with NetStar S.A., was providing systems integration support to automate the bank's lottery game.

Both companies plan to fight the cancellation of the contract. In fact, CDSI officials may invoke the binding arbitration provisions under the Bilateral Investment Treaty between the United States and Argentina.