Will Focus On Core Strengths In Providing IT Solutions

Somers, NY, September 14, 1998 .... IBM today announced that it is exploring the possibility of selling its global network, the underlying infrastructure that provides connectivity services to businesses worldwide.

IBM, which has retained Merrill Lynch to assist with the potential sale, said it has been discussing the sale with a number of interested parties, including major telecommunications companies. IBM is currently evaluating this interest.

In the event of a sale, IBM would continue to provide fully integrated, strategic outsourcing services, including designing and managing global network solutions. However, instead of operating and maintaining its own network infrastructure to deliver these offerings, the company would acquire the necessary connectivity services for itself and its customers from the prospective purchaser and others. This would allow IBM to focus more on its core strengths of providing information technology and e-business services, including Web content hosting, electronic data interchange (EDI), Lotus Notes deployment, network services consulting, e-business advisory services and network application integration.