IBM WILL BEGIN TO USE, SELL MAC SYSTEM SOFTWARE.

Byline: Evan Ramstad Associated Press 

IBM has arranged with Apple Computer Inc. to use and resell the software that runs the basic functions of Apple's Macintosh computer but said Monday that it won't immediately build Macs itself.

The move is designed to help IBM sell the PowerPC microprocessor chips it co-developed with Apple and Motorola Inc. With the Mac software in hand, IBM can approach potential builders of PowerPC-based machines with more of the ingredients needed to build a computer.

Apple and IBM are trying to get other computer makers to create machines based on their alternative to Intel Corp. chips and Microsoft Corp. software, a design IBM created in 1980.

Though expected for some time, the news gave a boost to Apple's stock, which closed up 1-3/4 to 25-5/8, a 7 percent jump on the Nasdaq Stock Market. IBM's shares fell 1-1/8 to 107 on the New York Stock Exchange.

PowerPC chips have become standard in Macintoshes during the past two years and also appear in more powerful IBM systems, car engine controls and other specialized computers.

To some analysts, the licensing step taken by IBM for the Macintosh software means little unless it or some other big manufacturer also begins to make Mac systems. That's because only 10 percent of new PCs sold around the world are Macs.

Executives from the companies said they are still trying to get all the pieces in place to encourage computer makers to take that step. They said VLSI Technology Inc. has developed components and FirmWorks has written basic instructions for new PowerPC-based computers.

``With this announcement, we have an infrastructure to support a broad base of usage,'' said Michael Attardo, the head of IBM's chip manufacturing division.

In addition to using Mac software in PCs it builds, IBM can relicense the program to other manufacturers. Two Taiwanese companies Datatech Enterprises Co. Ltd. and Tatung Co. will be the first to do that. They make main circuit boards for computers.

George Scalise, chief administrative officer of Apple, said IBM has more contacts with companies around the world to make such arrangements.

``This is a vastly expanded opportunity for . . . the operating system to gain much greater acceptance,'' Scalise said.

IBM and Apple have been talking about a software licensing arrangement since 1991, shortly after they started developing the PowerPC. Analysts believe they hurt themselves by taking so long because Intel has developed huge production efficiencies and Microsoft has improved its Windows operating software to the level of Apple's.