IBM MAKES SHOPPING FOR SOFTWARE AT HOME QUICK AND EASY; IBM DELIVERS THEME CDS FOR THE DESKTOP MARKET.

SOMERS, N.Y.--(BUSINESS WIRE)--Feb. 14, 1995--IBM continues to expand its innovative CD Showcase(a) program with the delivery of its new Right At Home(a) Software Series, a library theme of CDs that let customers quickly and easily shop at home for software products in the expanding desktop CD-ROM market.

The first CD in the series is Small Office Home Office (SOHO), which IBM delivered in late December 1994 for small offices, home offices, and families. It contains more than 35 products, such as WordPerfect(b), PC Paintbrush(b), Simply Accounting(b), and Harvard Graphics(b). IBM plans to offer all the CDs in the Right At Home Software Series through major retail stores, continuing its emphasis on working within the channel. Currently, the SOHO CD is available in 26 PC Warehouse(b) stores, with more retailers planned in the future.

"Unlike shrink-wrapped products that require customers to know what they want before they buy, the Right At Home Software Series lets customers try or compare products before making a purchase," said Michael P. Kiyosaki, director of marketing, IBM Software Manufacturing Solutions. "IBM has done the `pre-shopping' for customers by selecting the highest quality products, grouping them logically by theme, and combining them onto one inexpensive CD." Customers can purchase the CD, try or compare software products, view marketing materials, and then buy the preferred products directly from their home or office at any time of the day or night.

Plus, customers receive free software and money-saving offers with the purchase of any Right At Home Software Series CD. On the SOHO CD, customers get $150 worth of free software and more than $300 in money-saving offers.

Each Right At Home Software Series CD contains a variety of software products. Software publishers participating on the SOHO CD include 4Home Productions(b), Caere Corporation(b), Cybermedia(b), Delrina(b), IMSI(b), Individual Software Inc.(b), Lotus Development Corporation(b), Novell, Inc.(b), O.A.G.(b), SoftKey International Inc.(b), Software Publishing Corporation(b), Symantec(b), and T/Maker(b).

How Does A Customer Purchase the Software on the CD?

A customer purchases any CD in the Right At Home Software Series at a major retail store typically for about $10, inserts the CD into a home or office personal computer CD drive, and then reviews a variety of software products and promotional demos. To purchase a product, the customer calls the toll-free telephone number provided, arranges for credit card payment, and receives a code that instantly releases the product and any related documentation for installation. The customer receives any full documentation by mail.

What Are the Benefits?

For software publishers, the Right At Home Software Series offers substantial marketing, merchandising, and production-cost benefits. Participation in this innovative marketing program for IBM Software Manufacturing Solutions lowers the cost of goods sold while letting publishers penetrate new markets and capture valuable registration data with each purchase. When a publisher agrees to participate and a product is selected for a theme CD, IBM handles manufacturing, encryption, production cost, registration, and documentation fulfillment. Publishers receive royalties each time a customer purchases a product.

For retailers/resellers, the Right At Home Software Series means lower inventory costs, lower "returns" costs, and increased customer satisfaction through pre-purchase product reviewing. Software retailers can expand software product offerings without increasing shelf space requirements and other overhead costs. For retailers looking to enter the software market, the Right At Home Software Series provides a low-risk way to offer customers a variety of software products with minimal cost and effort. The retailer earns a margin on each CD sold, plus healthy net rebates each time a customer purchases a product at home. IBM handles order entry, licensing and registration, disbursement of publisher royalties, and other administrative functions.

For consumers, the Right At Home Software Series brings the convenience of reviewing, purchasing, and installing software directly to the customer's desktop. And, with each CD, customers also receive free software in addition to special pricing and discounts on future software purchases.

IBM Software Manufacturing Solutions (ISMS) is part of IBM Software Solutions, an IBM division headquartered in Somers, N.Y. ISMS offers to software publishers, information providers, retailers, and resellers a broad spectrum of software manufacturing and distribution services worldwide. Services range from electronic distribution and packaging to consulting, replicating (diskette, tape, compact disc), printing, translation, localization, packaging, shipping, and order fulfillment.

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(a) Indicates trademark or registered trademark of International Business Machines Corporation.

(b) Indicates trademark or service mark of its respective holder.

CONTACT: IBM, Somers

Rick Bause, 914/766-1750

or

Crescent Communications, Atlanta

Chris Nivens, ext. 124

Judy Morris, ext. 113

404/698-8650

MCI: crescentcomm

CompuServe: 75453,2510