million share repurchase programme.

"Our share price has been impacted recently by considerable confusion regarding economic versus GAAP earnings,'' Exel president and chief executive officer Brian O'Hara stated in a press release. "We delivered $6.45 of economic net income in 1998 and this increase in share repurchase authorisation gives us the flexibility to take advantage of the current market condition.'' Exel's share price has fluctuated from a high of $82 1 in July to a low of $62 1 in September last year. The stock was at about $64 on Friday. Exel increased the repurchase program following a 15 percent drop in the stock since Jan. 4.

The share price fell in part because of concern that intensifying competition threatens earnings growth.

Exel said the buyback programme, which amounts to about seven percent of the company's $7 billion market value, includes a previous $148 million repurchase authorisation.