IBM OFFERS DB2 UNIVERSAL DATABASE UPGRADES.

IBM, Somers, N.Y. has celebrated widespread industry acceptance for DB2 Universal Database -- the world's first multimedia, Internet-ready relational database management system, powerful enough to meet the demands of large corporations and flexible enough to serve medium-sized and small businesses. IBM marked DB2 Universal Database's first- year anniversary by announcing ready-to-ship product upgrades and platform enhancements, and reporting partnership initiatives and education programs to further support its growing roster of e-business and business intelligence customers.

A year after its launch, DB2 Universal Database has been adopted by nearly two million users worldwide. Some 2,000 industry software vendors are porting applications to DB2 Universal Database, adding to the more than 4,300 applications already developed. To address market demand, IBM has more than 2,500 IBM data management specialists and developers. In addition, IBM plans to hire 1,000 additional data specialists over the next two years to support aggressive marketing campaigns.

More and more customers are moving to DB2 Universal Database to run their businesses -- from e-business to business intelligence to highly scalable, mission-critical applications. One such customer is Prudential Insurance Company of America, which uses DB2 Universal Database for a data warehouse that helps calculate cash reserves required for more than 18 million life insurance policies.

"We need to build a very large data warehouse on a massively parallel processing environment," said Jane Landon, systems executive, Prudential Insurance. "Very few companies play well in that world, and most are proprietary. DB2's open architecture, massively parallel processing capability, and scalability were the driving forces behind our decision."

Today's announcements underscore IBM's commitment to deliver leading-edge technology while supporting Web-based applications for customers moving to e-business. Highlights include:

- DB2 Universal Database, winner of numerous industry awards, has been further enhanced, making it easier to use and support more complex data warehousing, data mining and on-line analytical processing (OLAP) requirements. Version 5.2's enhanced Java support and integration with the Standard edition of IBM's WebSphere Application Server allows developers to design a range of new and exciting e-business applications. In addition, its Web Control Center, based on Java, has increased ease of administration, enabling users to manage DB2 Universal Databases from any Web browser, anywhere.

Linkage to IBM's VisualAge for Java allows Java developers to easily extend existing applications to the Web and e-business.

- The powerful DB2 Universal Database now supports SCO UnixWare7, SGI Clients and Microsoft Windows 98 platforms, and will be extended to Linux later this year. Also, DB2 Universal Database for OS/390 begins a customer beta program this month as scheduled.

- Visual Warehouse(a) Version 5.2, IBM's quick and easy data mart/data warehouse builder, now integrates industry-leading transformation technology with DB2 Universal Database. IBM's delivery of metadata management allows customers to integrate the products necessary to build, manage and analyze a data warehouse. The combination of IBM's Visual Warehouse with specialized technology from partners, such as Brio, Business Objects, Cognos, ETI, Hyperion and Vality, offers customers a broader choice of business intelligence tools and applications.

- Also announced today are data mart bundles designed to address specific industry needs -- including banking, human services and retail -- as well as a cross-industry package.

These bundles, comprised of IBM data management software solutions on a Windows NT platform running on IBM Netfinity(a)

servers, will be made available later this year.

- Intelligent Miner(a) for Data Version 2.1, IBM's data mining software, is now available on Windows NT and OS/400(a). Also running on IBM OS/390 and AIX(a) and Sun Solaris, Intelligent Miner features a new Java user interface and mining algorithm.

This mining solution helps companies gain valuable, previously unknown, insight into customer buying patterns and trends by analyzing information from warehouses across the company and the Internet.

- The IBM DB2 OLAP Server, Version 1.0, featuring performance and load enhancements, has added Sun Solaris and Hewlett-Packard HP-UX platform support to AIX, OS/2(a) and Windows NT. The DB2 OLAP Server supports a wide range of multidimensional planning, analysis and reporting applications.

New Technology - Siebel Systems and IBM have formed a development partnership that will bring Siebel's Enterprise Relationship Management solutions to DB2 Universal Database. For the first time, DB2 Universal Database customers will be able to rapidly deploy Siebel's integrated family of sales, marketing and customer service products to increase sales productivity and enhance customer satisfaction.

- IBM has acquired the IW(a)Manager technology from Tanning Technology Corporation. IBM plans to integrate this technology into the DB2 family of products to enhance query management.

- The KnowledgeX Workgroup Edition, available in October, will provide a visualization tool to help customers more easily navigate all forms of digital content. DB2 Universal Database is a core element of KnowledgeX, providing a robust server for storing and managing the mapping information.

"IBM's biggest advantage is its proven track record of service and support as well as a powerful set of data management software that's constantly evolving to meet changing business requirements," said industry analyst David McGoveran, president, Alternative Technologies. "With DB2 Universal Database's enhanced Java support and new platforms, customers can further extend their investments and develop a wide range of e-business applications to support additional hardware platforms."

"The database is central to e-business, since it houses information about business transactions, customer interactions, products and many other corporate assets," said Janet Perna, general manager, data management, IBM Software Solutions. "Supporting business on the Internet requires a database that is highly reliable and accessible to users.

While some companies are just talking about extending their database products with Internet capability, there are thousands of IBM customers today who are using DB2 as the basis for e-business."

Education and Training IBM continues to invest heavily in training programs and education and offers the broadest and deepest data management education portfolio in the industry. Along with authorized training partners, IBM provides education in more than 2,500 classrooms in 1,000 locations in the U.S. and Europe.

To meet growing demand, IBM has invested an additional $30 million, taking the total to $70 million, in its DB2 Scholars program. To date, more than 700 colleges and universities worldwide are participating in this program. In addition, demand for DB2 Universal Database education is up 29% year-to-year and to date more than 22,000 students have been trained in IBM's data management solutions.

Pricing and Availability DB2 Universal Database Version 5.2 pricing starts at $999 per server and $199 per user. A single-user desktop is available at $369. The solution is generally available in 14 languages and 22 user platforms, including IBM AIX and OS/2, Hewlett-Packard HP-UX, Microsoft Windows NT and Windows 98, Sun Solaris, SCO UnixWare7 and SGI Clients. Linux support will be available later this year.

About IBM IBM, the world's largest information technology company, creates, develops and manufactures the industry's most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics. IBM offers complete information about the company, its products, services and technology to Internet users throughout the World Wide Web. The IBM home page is located at http://www.ibm.com. More information on the IBM data management portfolio can be found at http://www.software.ibm.com/data For more information, call 914/766-1750.