Press Release:


    New IBM Start Now Solutions Provide Rapid ROI for Small and Medium
                                Businesses
Eight Modular Solutions--Including Three Linux-based Offerings--Cover the
Spectrum of e-business with Software, Hardware and Business Partner
Services

SOMERS, N.Y.--(BUSINESS WIRE)--June 26, 2001-- IBM (NYSE:IBM) today
announced the new IBM Start Now(a) Solutions for e-business, a family of
offerings to help small and medium businesses (SMB) rapidly implement
powerful, cost-effective, e-business solutions.

    The eight Start Now Solutions, including three Linux-based solutions,
fulfill the requirements of e-business--from initial Internet access,
through e-mail, research and information, Web site management, simple and
complex e-commerce, business intelligence, integrated activities and new
business opportunities.

    "I looked for the most scalable middleware that could support thousands
of simultaneous users of database and streaming media functions," said
Bruce Camber, executive producer and founder of Small Business School, a
weekly TV show that airs on PBS-member stations. "I compared IBM with Cold
Fusion, COM+, and even a few custom-tailored systems. But IBM's Start Now
e-commerce Solutions addressed my scalability concerns and gave me an
affordable entry point that the other products couldn't."

    These solutions, delivered by trained and qualified IBM Business
Partners, include IBM software, suggested IBM e-Servers and services
provided by IBM Business Partners. The Start Now Solutions program also
includes a complete marketing and enablement program that provides Business
Partners with a recommendation of software and hardware configurations,
instructions for proposing, implementing and extending a complete solution,
tested implementation scenarios, ISV tools and financing options.

    "We compared IBM to other companies, but no one offered a better
combination of products, stability and commitment to its Business Partners.
IBM is second to none," said Drake Philbrook, CEO of Globalogic. "I've
belonged to other programs--including Sun's--but no one can match IBM's
partner offerings."

    For the first time, IBM will offer three new Linux-based Start Now
solutions for small and medium-sized businesses. According to IDC, Linux is
the fastest growing server operating system, with small businesses
representing 48 percent of all Linux server installations. The three new
solutions that support Linux include: IBM Start Now Infrastructure
Solutions, IBM Start Now CRM Solutions and IBM Start Now Host Integration
Solutions. Also new to the Start Now family is the inclusion of solutions
based on Tivoli's web and storage management software. The inclusion of an
ISV solution as a key component of one of the Start Now offerings also is
new with the IBM Start Now CRM Solutions featuring Relavis
eBusinessStreams(tm) eSales application.

    "IBM's Start Now Solutions will give SMB customers a fast, inexpensive
and scalable solution designed to fuel the e-business adoption curve and
drive faster ROI," said Mark Hanny, vice president, Software Channel
Marketing, IBM. "Start Now is a set of solutions and a supporting program
designed for IBM Business Partners by IBM Business Partners, and includes
time-tested recommendations of hardware and software, partner services and
proven implementation scenarios."

    IBM research confirms the fact that the opportunity growth rate of SMB
exceeds that of large enterprises, at an average of 13 percent, and in some
cases as high as 17 to 20 percent. According to studies from Gartner Group
and Arthur Andersen, e-business adoption in SMB presents a large untapped
opportunity with only 15 percent of the market having yet achieved simple
e-commerce, and 5 percent having achieved complex e-commerce. Yet eMarketer
2000 predicts that by the year 2002, 72 percent of SMBs plan to adopt
e-commerce solutions.

    IBM Start Now Solutions for e-business include core solutions, which
provide the platform needed to do business online; extensions, to move into
the more sophisticated areas of business intelligence, collaboration and
integration with host systems; and management solutions to optimize and
secure a business' Web presence and data.

    CORE SOLUTIONS

    Start Now Infrastructure Solutions

    IBM Infrastructure Start Now Infrastructure Solutions provide open,
standard interfaces and protocols that allow systems to interoperate. They
enable users to manage demanding databases and storage challenges, to
develop Internet and intranet presence, to set up log on and registration
procedures for customers and suppliers and to share information and data
online. The Start Now Infrastructure Solutions are based on IBM DB2(a)
Universal Database, IBM WebSphere(a) e-infrastructure software, Lotus
Domino(b) Application Server R5, Lotus iNotes(b) Client, and Lotus
Sametime(b).

    Start Now e-commerce Solutions
    IBM Start Now e-commerce Solutions allow customers to browse catalogs,
fill electronic shopping carts, make secure purchases and specify delivery
instructions. Buyers can get assistance in real time and purchase in their
own language and currency. The enabling technology is IBM WebSphere
Commerce Suite, V5.

    Start Now Customer Relationship Management (CRM) Solutions
    IBM Start Now CRM Solutions focus on how customers interact with
business through multiple channels, such as the online storefront, direct
mail, the call center and the service center. It provides a blueprint for
lowering the walls between the marketing, sales and service disciplines,
and connecting them through flexible, Web-enabled applications. The
solutions are based on Lotus Application Server R5, Lotus iNotes Client,
Lotus Sametime and Relavis eBusinessStreams.

    E-BUSINESS EXTENSIONS

    Start Now Business Intelligence Solutions
    IBM Start Now Business Intelligence Solutions help customers analyze
the business data they collect in order to gain an unprecedented level of
knowledge about target markets and customer behavior, to build a complete
profile of customers with valuable demographic information. They are based
on IBM DB2(a) Universal Database V7, IBM DB2 Warehouse Manager V7, IBM
Query Management Facility (QMF)(a) and DB2 OLAP Starter Kit.

    Start Now Collaboration Solutions
    IBM Start Now Collaboration Solutions give the personal touch to
e-business, enabling the real-time sharing, teaming and interaction that
help solidify human relationships and build personalized communications and
trust. Team members can communicate online with customers, provide answers
to questions, offer assistance, process order forms, develop and negotiate
contracts online, and resolve other problems that occur. The solutions are
based on Lotus Sametime Server V2, Lotus QuickPlace(b) V2 and Lotus Domino
Application Server R5.

    Start Now Host Integration Solutions
    IBM Start Now Host Integration Solutions extend existing legacy host
applications and data to the Internet and enables new e-business
applications simply and securely. The solutions based on IBM Host Access
Package V1 and IBM WebSphere Host Publisher V2.

    MANAGEMENT SOLUTIONS

    Start Now Website Management Solutions
    IBM Start Now Website Management solutions provide the tools needed to
manage and optimize websites by identifying exposures, increasing
availability and delivering enhanced performance. This solution uses
Tivoli(c) Web Services Manager and Tivoli Storage Manager.

    Start Now Content Management Solutions
    IBM Start Now Content Management Solutions are a web-ready portfolio of
integrated software for managing and distributing digital content, when,
where, and how it is needed; and for delivering it to those who need it
most. The Start Now Content Management Solutions are based on IBM Content
Manager Entry Bundle V7 and Content Manager CommonStore for Domino V7.

    IBM Start Now Solutions are available immediately to Business Partners
around the world. Suggested prices for Start Now Solutions start at $15,000
to $55,000.

    About IBM

    With 80 years of leadership in helping businesses innovate, IBM is the
world's largest information technology company, the leading IT services
provider, and the leader in business intelligence solutions. The fastest
way to get more information about IBM is through the IBM home page at
http://www.ibm.com. For more information on IBM Start Now solutions, visit
www.ibm.com/software/smb. Business partners should go to
http://www.ibm.com/partnerworld/startnow.

(a) Indicates trademark or registered trademark of International Business
Machines Corporation. (b) Indicates trademark or registered trademark of
Lotus Development Corporation. (c) Indicates trademark or registered
trademark of Tivoli Systems. All other trademarks are the properties of
their respective companies.

    CONTACT:  IBM Corporation
              Mike Maloney, 914/766-1420
              Mobile: 516/578-5535
              maloney2@us.ibm.com

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