This won't be the case in the year 2000, though. The problem often results from simple arithmetic. When you subtract 94 from 97, your result is 3, as would be the case for a 3 year contract. But when you subtract 97 from 00, you get -97. Many computer programs use negative numbers to store special meanings, or always assume the number will be positive and don't know how to deal with negative numbers.
Strange things can happen and systems can crash.
Worse, bad data can be passed from one system to another. Some side effects have already appeared in systems that deal with with long contracts such as mortages or credit cards. Other problems could show up as early as next year when planning or registration software needs to accept and deal with dates a year in advance correctly. Some potential results could include disrupted banking, payroll, social security payments, air traffic control systems, and many other systems. The computer apparently thought he was only 2 years old, probably because he was born in 1896.