Intel Press Release

IBM And Intel Expand Scope Of xSP Prime Agreement

Collaboration to Drive xSP Business on Intel-Based IBM eServer xSeries Systems

SAN FRANCISCO, Calif., February 19, 2002 -- IBM and Intel Corporation today announced that the two companies are expanding the scope of their relationship in IBM's xSP Prime program to the Asia Pacific region. The xSP Prime program provides technical, marketing and business support to help the growing number of developers, hosters and solution providers worldwide who deploy e-Business applications over the Internet.

The expansion of the xSP Prime relationship to Asia Pacific will support sales and marketing activities in China, Hong Kong and Taiwan to drive xSP business on the Intel® Architecture-based IBM eServer xSeries server platform. To date, the relationship between the two companies has covered the United States and Europe.

"By extending our collaboration, IBM and Intel will serve the growing xSP market in Asia Pacific," said Steven Worrall, general manager, Emerging Markets, IBM Asia Pacific. "Through this relationship, we will be able to expand our resources to assist ISVs migrating their applications to the xSP model and to help existing service providers maximize the potential of the xSP model as deployed using Intel architecture-based IBM servers."

Based on industry data, IBM and Intel expect the xSP market segment worldwide to grow at a robust rate of 19 percent per year for the next three to four years. Market data also shows that the xSP market segment in Asia Pacific is expected to grow at an even faster rate of 24 percent Internet user growth in Asia is the fastest in the world at 41 percent per year.

"IBM's xSP Prime program provides developers and service providers with the technical and business support they need to successfully migrate to the xSP business model," said John Davies, vice president and general manager of Intel's Solutions Market Development Group. "The success and leadership of Intel Architecture solutions on the Internet combined with IBM's xSP Prime program is a natural fit that we expect will provide significant value to developers and service provider communities."

The IBM eServer xSeries systems incorporate mainframe-inspired features and self-managing technologies that deliver superior performance, reliability and scalability in Intel-based servers. These affordable industry standard servers offer customers Windows 2000/NT, Linux, Novell and other operating systems.

Intel's participation in xSP Prime helps to bring the benefits of Intel Architecture to the xSP market segment, supporting the developer that is planning the migration of their application to the xSP business model on IBM eServer xSeries platform. Intel's involvement has supported the expansion of existing facilities and equipment at xSP Prime centers, which has enabled a large set of world-class solutions and applications running on Intel Architecture based IBM servers in all elements of e-business. Over the last two years, 450 plus applications have graduated from the xSP Prime program worldwide. Of these, more than 40 percent have graduated on the IBM eServer xSeries platform, based on the Intel Architecture.

About xSP Prime
IBM's xSP Prime program is designed to provide IBM Business Partners, including ISVs, application service providers, Web hosters, Internet data centers and other emerging service providers, with enhanced go-to-market opportunities, market development funds and increased access to education, technical support and business development tools. The program also helps extend the participants' reach by teaming with IBM's extensive network of value added resellers, ISVs, solution development Business Partners, consultants and systems integrators. For more information on xSP Prime, please call 1-877-477-1255 (US and Canada) and 1-770-858-5052 (worldwide) or visit the website at www.ibm.com/xspprime

About IBM
IBM is the world's largest information technology company, with 80 years of leadership in helping businesses to innovate. IBM is a leading provider of e-business solutions and is dedicated to helping customers, IBM Business Partners, and developers leverage the potential of the Internet and network computing across a wide range of businesses and industries. The company offers a host of cross-industry and industry specific solutions designed to meet the needs of growing companies.

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