The real virus that's going to be unleashed in 2000 occurred when Michigan-based grocer Produce Palace International received a $250,000 settlement from Tec America Inc. earlier this month.

The suit is being hailed as the first Year 2000 settlement in a claim against a consultant who provided a "solution'' to the computer bug. Produce Palace claimed Tec America had sold it a system that did not always process credit and debit cards with expiration dates of "00'' representing the year 2000.

The suit was filed last year. Many in the business predict lots of lawsuits will be filed and billions paid out in connection with the problem. Expect a tie up of the courts.

The suit should put consultants and providers on their toes against selling lemon solutions. Some in the business have decided not to handle the Year 2000 problem at all even though it's a lucrative business.

In the US, Congress is forging a bill that would give businesses limited protection from lawsuits if they share information about the Year 2000 problem. The bill is meant to protect companies in sectors where the sharing of information among peers is important. It would also protect companies that issue statements identifying products that might fail in the turnover to 2000.

The companies are afraid the information might be used against them in any legal action.

Insurers are also wary of being caught up in the problem. The Insurance Council of Australia, for example, has warned that consumers and businesses would not be covered for "Millennium Bug'' losses. Brochures sent out to business policy holders are just the first salvo in a looming battle between insurance companies, retailers and manufacturers.

All this and 466 days to go to January 1, 2000.

Tech Tattle continues its reporting on how Bermuda Stock Exchange listed companies are dealing with the Year 2000 problem with a look at The Bermuda Telephone Co. Ltd. (BTC) and Island Press (Holdings) Ltd.

BTC's David Bedard is directly responsible for dealing with the problem. The company has appointed him as the BTC's Year 2000 programme director. He reports directly to BTC president Lorraine Lyle who is the executive with final responsibility.

BTC's programme is worth running down just to get an idea of the logical steps Mr. Bedard is taking in dealing with the problem, and as an example to other companies of the kind of sophistication required. BTC is a key infrastructure company and so it's important for it to be compliant.

The programme has been broken down into seven stages: Inventories, compliance assessment, plan upgrades, communication with customers, implementation of upgrades, testing, and contingency planning. BTC expects to complete all phases by the end of June 1999.

Inventories and compliance assessment has been completed. The upgrade phase is "majority completed''. BTC has started the communication with customers and the implementation of upgrades phases. Testing and contingency planning are not yet started.

BTC has four main areas to tackle. For the purposes of the project the business has been divided into the categories of the public switched telephone network, interconnection with other carriers such as Quantum, Cable & Wireless and TeleBermuda International, equipment at customers' premises, and BTC's internal business systems.

Dealing with the switched network has entailed upgrading of the main Nortel DMS equipment in August. Other upgrades are underway to the infrastructure.

BTC states the majority of equipment it owns at customers' premises is already fully compliant. Customers will receive a letter confirming this. Those who need an upgrade have been identified and are being contacted. BTC plans to have communicated with all its business customers by October.

On the issue of interconnection BTC has met all the other carriers, including Quantum which it is in a legal battle with.

"The mood of these meetings is very co-operative, with issues relating to competition left for others to discuss,'' Mr. Bedard reported.

In dealing with the company's internal business systems a review of plans had to be made due to the issue of deregulation and the start of competition in Bermuda's telecommunications sector, and the fact the existing information technology (IT) systems were not Year 2000 compliant. The solution was to replace and upgrade the software and the hardware.

"The solution: Satisfy both needs at once,'' Mr. Bedard stated in a report he sent me. "By aligning these two sets of requirements (IT applications which can meet the new business requirements and IT applications which are Year 2000 compliant) we have been able to choose applications and platforms which satisfy both issues. In essence, we have been able to deliver Year 2000 compliant results at no additional cost to the company.'' Island Press (Holdings) Ltd. is made up of two main operating subsidiaries, commercial printer Island Press Ltd., and newspaper operation The Bermuda Sun Ltd.

Island Press Ltd. general manager Gary Taylor is responsible for the Year 2000 programme at the printing side of the operation. Bermuda Sun publisher Randy French is responsible for the newspaper's programme. Both subsidiaries are expected to be Year 2000 compliant by the end of first quarter 1999. Mr.

French is also the vice president of Island Press (Holdings) and a board director.

"Every business unit within the company has been assessed for compliancy issues and now those issues are being dealt with,'' he said in a statement.

"It is expected that the company will comfortably meet varying internal deadlines for Y2K compliancy.'' Tech Tattle deals with issues about technology. Contact Ahmed at 295-5881 ext.

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