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Platform Solutions, Inc. Files Anti-Trust Claims Against IBM.

Alleges Unfair Competition; Denies IBM's Claims

SUNNYVALE, Calif. -- In a written response to an earlier lawsuit by IBM([R]), Platform Solutions, Inc. (PSI) announced today that it has filed its own claims against IBM in the United States District Court for the Southern District of New York alleging antitrust violations, unfair competition, and business torts. In its response, PSI also strongly denied IBM's claims.

PSI's response is based on IBM's efforts to maintain its monopoly power and to prevent the development of a competitive alternative to IBM's mainframe products. The company is seeking damages based on the harm that IBM's conduct has caused and is causing to PSI, as well as an injunction and/or remedies to prevent IBM from harming PSI in the future.

"PSI believes it has a compelling legal position and that it will prevail in court," said Christian Reilly, vice president product management and marketing. "This conflict is really all about the fundamental values of consumer choice and competition benefiting customers throughout the world who use mainframe computers to run and manage mission-critical applications."

This case has broad implications because mainframe computers are essential for all key industries in our economy. Because the last remaining competing manufacturers of "plug-compatible mainframes" exited the market in 2000, PSI's products provide the only viable alternative to IBM - in a market where IBM has held a monopoly position for decades.

"IBM's lawsuit against PSI is part of a concerted effort to eliminate competition for mainframe computers, and its refusal to provide the operating systems needed to run mainframe computers to PSI customers is blatantly anti-competitive," Reilly said. "IBM's claims also reflect a reversal of its long-standing practice of licensing its intellectual property on reasonable and non-discriminatory terms - a policy that it trumpeted on its web site until last year. What IBM is trying to do here would be the equivalent to a hypothetical situation in which Microsoft had monopoly power in the markets for both PC's and PC operating systems and then refused to license Windows([R]) to HP([R]), Dell([R]), or other PC manufacturers to maintain and sustain its monopoly position."

Reilly additionally stated that, "IBM's predatory business practices have affected our company, but PSI's open mainframe computers have been well received by customers who value us as the only alternative supplier in the marketplace."

In today's counterclaims PSI alleges that IBM has committed extensive anticompetitive practices, including the following:

* Tying its mainframe operating systems to its mainframe computers by conditioning sales of its operating systems on the purchase or continued use of only those IBM-compatible mainframe computers that are manufactured by IBM;

* Refusing to supply its operating systems to end-user customers who choose to purchase PSI's IBM-compatible mainframe computer systems;

* Restricting PSI's access to interface information and specifications needed to remain compatible with IBM's operating systems;

* Unreasonably discontinuing its long-standing practice of licensing any applicable intellectual property rights on reasonable and non-discriminatory terms;

* Disseminating Fear, Uncertainty and Doubt concerning the reliability, compatibility and viability of PSI's products; and

* Interfering with PSI's ability to complete fundamental transactions with its business partners.

"PSI is determined to return competition to the marketplace and will vigorously fight and defend our right to provide customers with choice," Reilly said.

About PSI

Platform Solutions, Inc., (PSI) develops Open Mainframe Computers[TM] compatible with the broadest set of datacenter environments and operating systems, including IBM z/OS([R]). The new PSI systems are based on proven systems architecture spun-off from Amdahl Corporation and industry standard Dual-Core Intel([R]) Itanium([R]) 2 processor technology, and provide customers true choice and flexibility in mainframe computing. The company was launched in 2003 and is funded by leading venture and strategic investors, including Blueprint Ventures, Goldman Sachs, Intel Capital, Interwest, and Investcorp. The company is based in Sunnyvale, California.

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Publication:Business Wire
Date:Jan 22, 2007
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