Intelligence

DATE=08/01/01

TYPE=CORRESPONDENT REPORT

TITLE= CODE RED FLOPS (L)

NUMBER=2-278866

BYLINE=NICK SIMEONE

DATELINE=WASHINGTON

CONTENT=

VOICED AT:

INTRO: Internet computer experts say the much feared code red virus continues to spread. But so far, as Correspondent Nick Simeone reports, the virus has not turned out to be the threat to global internet traffic that was feared.

TEXT: No significant disruptions to traffic on the web have been reported since the code red virus was unleashed. But experts warn the threat may be far from over.

Bill Jones is spokesman for California's Keynote Systems, a company which helps businesses with e-commerce.

/// JONES ACT ///

I have not seen anything so far that I would call unusual but we certainly are watching it.

/// END ACT ///

But the F-B-I says the code red virus is still spreading and has the potential to infect internet sites and cause significant disruption to traffic on the world wide web.

/// SECOND JONES ACT ///

I would expect that the worm has probably not run its course. To have expected something immediately at 12 o'clock G-M-T yesterday I think was unrealistic but over the next 24 hours and next few days we could certainly see a slowdown.

/// END ACT ///

Last month, the virus attacked more than 350-thousand computer systems running on Microsoft operating systems -- including the White House website --and prompted the Pentagon to shut down its site as well. But it seems that the advice issued by the F-B-I and cyber industry leaders for internet users to take precautions may have paid off. So far, more than a million people have downloaded a so-called patch from Microsoft's website that prevents computers from being infected. (SIGNED)

NEB/NJS/KBK