Today, IBM announced that Banco Mercantil, one of Venezuela's largest banks
with total assets of  close to $3 billion, has chosen to run mission
critical enterprise applications on Linux on an IBM mainframe. The bank
decided to move applications formerly running on 30 NT servers onto the
mainframe, because it was more reliable, more efficient and more
cost-effective. The bank also plans to move applications currently running
on Sun and HP onto the mainframe as well.

Linux has been gaining acceptance as an "open" technology -- full of
potential to integrate all levels of  enterprise computing, but in the
minds of some, not quite ready to handle critical e-business
applications. Today, the time has come when one of the world?s most
conservative industries is changing its perception of Linux. The financial
services sector is rapidly adopting Linux as a key e-business enabler
rather than just a cost-savings technology. By their very nature, financial
companies need the most stable, reliable, secure and integrateable systems
available, and the platform they?re choosing in greater and greater numbers
is Linux.


Banco Mercantil Moves to Linux on IBM Mainframe
Venezuelan Bank is First Financial Institution with Linux

Caracas, Venezuela and Armonk, NY...May 03, 2001 -- IBM and Banco Mercantil
today announced that Banco Mercantil is the first Latin American company --
and
among the first financial institutions anywhere -- to implement Linux for the
enterprise.

In the first phase of the project, Banco Mercantil has replaced 30 existing NT
servers with a single IBM mainframe. Later, applications currently running on
Sun and HP servers will be moved to the new Linux platform. In addition, the
bank is using Linux mainframe Web applications to enable customers to check
bank
account information via the Internet. The mainframe's two cryptographic
co-processors provide the high level of security necessary for sensitive
financial data.

"Linux on the IBM mainframe allows us to consolidate in a very cost effective
way," said Isaac Arismendi, IT Infrastructure Manager, Banco Mercantil. "In
addition to these applications running on the mainframe, we have higher
availability and reliability, and better performance. Consolidation also means
that we have far fewer individual servers to administer."

The IBM mainframe, an S/390 G6, running a SuSE distribution of Linux will at
first handle file servers, Internet domain servers and a firewall. Previously,
these had each been running on separate NT servers. Banco Mercantil, using a
specially designed hardware feature for Linux on the mainframe, the IBM
Integrated Facility for Linux, was able to add Linux applications and system
capacity without increasing overall mainframe software costs, making Linux the
most economical way for the bank to consolidate.

"This landmark project is a breakthrough for Linux in the banking sector and
is
yet further evidence that Linux for the enterprise is here today," said John
Morris, Vice President, IBM eServer z900. "The combination of Linux and the
mainframe provides Banco Mercantil with the superior technology necessary to
meet the demands of the uncompromising financial sector."

"The reliability and stability of SuSE Linux compliments the needs of Banco
Mercantil," said Dirk Hohndel, CTO, SuSE Linux AG.  "SuSE Linux, with IBM's
mainframe server, delivers a powerful, high-performing and economical solution
for the banking industry."

The IBM mainframe is handling a mixed workload utilizing three logical
partitions (LPARs) -- one for Linux, one for Domino for S/390, and one for
OS/390. The OS/390 LPAR is running OS/390 V2.9, CICS TS V1.3, MQSeries V1.2
and
Tivoli Famework.

About Banco Mercantil
Banco Mercantil is one of the largest banks in Venezuela with 375 branches.
Leading technology has over the past few years been a key force, allowing the
bank to offer better services and compete with foreign banks.

Banco Mercantil owns Commerce Bank which has 10 branches in Miami, one in New
York and branches in Curacao and Bogota. The bank is a member of the Servicios
Financieros Mercantil, a holding company that includes Commerce Bank, Seguros
Mercantil and Banco Mercantil de Suiza. Banco Mercantil recently acquired
Interbank, a financial institution with 70 branches.

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