June 19, 1998
By Mary Beth Regan, reganmb@washpost.com
WashTech Contributing Editor

Welcome to Beltway Bootup.

SUDDEN DEPARTURE: T. Coleman Andrews III, one of Northern Virginia's most visible execs, has left his job as chair of World Airways Inc. 18 months ahead of schedule, and moved to Johannesburg to take over South African Airways. Russell L. Ray Jr. takes over as chair of the struggling airline. The Post's Jerry Knight reports that the exodus comes as parent company, Herndon-based WorldCorp Inc., is fighting off bankruptcy proceedings. WorldCorp, which also owns InteliData Technologies Corp., is now headed by turnaround-artist Patrick F. Graham. Neither World Airways nor InteliData are turning profits. Andrews, who last year ran for Virginia's lieutenant governor, was reportedly under pressure from WorldCorp's board to leave his post.

MANUGISTICS SUIT: A group of investors have filed a class action suit against Rockville-based Manugistics Group Inc., alleging that certain officers and directors sold $6.7 million in stock after artificially inflating the share price. The investors bought the company's common stock between February 13 and May 22 of this year. The suit has been filed by Cohen, Milstein, Hausfeld & Toll PLLC in U.S District Court in D.C. The company reported a first-quarter loss of $8.2 million on June 10. The company's stock has since dropped from highs of $56.75 per share, and has yet to rebound.

MEET THE NEW BOSS: There's more news today in Dulles. America Online Inc., which spent most of the week battling takeover rumors, has hired J. Michael Kelly as senior vice president and chief financial officer. Kelly replaces former AOL CFO Lennert Leader, who was appointed to head AOL Investments in February. Kelly, 41, joins the online service provider from Stamford Conn.-based GTE Corp., where he held the top financial post. AOL may also have expansion plans in the works: According to filings with the SEC yesterday, the company intends to raise $1 billion through the sale of unsecured debt or shares or preferred or common stock.

LAND GRAB: Seems like you need a scorecard lately to keep up with all the media and entertainment giants trying to muscle in on prime Net real estate. Think Florida-style land grab. The current buzz is about Walt Disney Co.'s deal to buy a 43 percent stake in Infoseek Corp. of Sunnyvale, Calif. Motivation: The search engine gives Disney an Internet gateway, or portal, to advertise its super-popular sites including ABCNews.com, Mr. Showbiz and ESPN SportsZone. A twist: Disney forks over $70 million in cash and gives Infoseek a majority share in Bellevue-Wash.-based Starwave Corp., which produces Disney's mega-sites.

SATELLITE SECRET: Former DOE Secretary Hazel O'Leary's insistence on sharing Uncle Sam's secrets appears to be spreading. This week the Naval Research Laboratory, in Southwest Washington, let on that it had launched a classified secret spy satellite system in the early 1960s. Called Galactic Radiation and Background (GRAB), it was the nation's first reconnaissance satellite system. One use: To gather data about Soviet air defense radars. The Post's Steve Vogel says the NRL is now touting the satellite system as part of a five-day symposium to celebrate the lab's accomplishments.

BIG BLUE: The Post's Elizabeth Corcoran says International Business Machines Corp. is jumping into the Internet server-software business. IBM has joined the team developing "Apache," a Web service program being developed by a coalition of programmers from around the world. The forthcoming "Apache" is a direct challenge to Microsoft's free-for-download server software – IBM's offering will also be a freebie.

WORLD CONGRESS: Are you going to be in the neighborhood of Fairfax's George Mason University this weekend? If so, expect the local haunts to be filled with tech talk. Dignitaries and business leaders from 92 nations arrive this weekend for the '98 World Congress on Information Technology, which runs from June 21 to June 24. If you want to avoid crowds, Bootup will keep you posted next week with up-to-the-minute dispatches.

BILL'S TWIN: Had a recent Bill Gates sighting? Don't be too sure. One Washington state resident is pulling in pocket change by stepping in for the software billionaire. Steve Sires, a civil engineer designer by trade, has hooked up with Entco International of Lynnwood, Wash., to show up at ribbon-cuttings as a Gates lookalike. His pay: $800 to $2,000 per appearance. Still, Sires isn't trying to pass himself off as the software visionary. But he says couldn't convince one tourist, who insisted on posing with him anyway.

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