IBM CORP - ASSEMBLES ALL-STAR INTEGRATOR TEAM FOR DEPARTMENT OF DEFENSE.

IBM has assembled an all-star line-up of information technology integrators to vie for a major Department of Defense project to build the largest integrated pay/personnel system in U.S. Government history. IBM's 'Delta Blue' team will compete for the DOD Human Resources project known as Defense Integrated Military Human Resource System (DIMHRS). The project, part of DOD's business reengineering efforts to reduce costs and improve efficiency, aims to improve military mission readiness and enhance quality of life for service members.

Delta Blue, led by IBM and including Cap Gemini Ernst & Young, Ciber, TRW, CACI Dynamic Systems, American Management Systems, and MPRI, plans to integrate PeopleSoft commercial-off-the-shelf software in what will be the largest implementation of human resource software in history.

"The team of integrators we've assembled are world class companies with extensive experience implementing large-scale solutions across multiple and disparate systems," said IBM's Tom Burlin, vice president IBM Global Services, Public Sector. "IBM's own expertise in implementing PeopleSoft applications is similarly extensive. By pulling together a team with such a broad array of experience and expertise, we are sending the Defense Department a clear message about our ability to deliver for them on this ambitious and significant project."

The project, contracted by the Space and Naval Warfare Systems Command (SPAWAR), will support some 3.1 million service personnel. To accomplish this extensive transformation, multiple legacy personnel and payroll systems will be replaced with a fully integrated system. When completed, the system will address many Congressional mandated 'fixes' to current personnel/pay systems deficiencies.

IBM, the world's largest information technology company, has helped governments transform services and systems since 1917. Over the years -- from the first automated US Census to on-line applications serving citizens and businesses in many agencies and jurisdictions around the globe -- IBM has supplied governments with innovative and cost-effective technology-based solutions. IBM's team of e-business professionals offers a broad range of products, services, solutions and experiences - all focused on helping government organizations deliver innovative, secure, available and reliable solutions.