IBM First Major Server Vendor to Ship Compact 16-Way Intel Processor-Based System

IBM surpasses HP as revenue leader in high-end, eight-way Intel-based servers; pushes to extend lead with new eServer

ARMONK, N.Y. - 18 Dec 2002: IBM today announced that powerful new 16-processor models of its award-winning IBM eServer system, which enables customers to add computing power on a "pay-as-you-grow" basis, are now shipping in volume.

IBM grew revenue nearly three times faster than Dell in Intel processor-based servers in the third quarter of this year compared with the third quarter of last year and also outpaced HP in revenue growth, according to industry analyst IDC's Worldwide Quarterly Server Tracker (1). IBM also surpassed HP as the revenue leader in eight-way Intel processor-based servers in the third quarter of this year, gaining more than 26 points in the third quarter compared to the third quarter of last year, according to the same IDC data (2).

Mohawk Industries, Prudential Financial, TXU, Stock SpA and GEHE AG are among the many customers worldwide who have selected the eServer x440 for their core e-business workloads.

"The IBM eServer x440 has helped us reduce costs by consolidating some of our mission-critical applications onto a single, powerful server," said Jevin Jensen, director of technical services for Mohawk Industries, a leading supplier of residential and commercial flooring. "Based on the results we've seen, we're very interested in having the ability to scale to 16-processor eServer x440 models."

The eServer x440 is a groundbreaking Intel processor-based server designed to meet the performance, reliability and scalability requirements of corporate data center customers. Built with IBM Enterprise X-Architecture technology, the server helps customers adapt to unpredictable business growth through a flexible, "expand-on-demand" approach that allows them to add computing capacity as they need it, up to 16 processors.

IBM is the first major server vendor to offers customers a highly compact, rack-dense 16-way server based on the Intel Xeon processor MP. While a competitive Unisys 16-way system requires its own rack and takes up 40U (nearly six feet) of space, a fully configured 16-way eServer x440 fits into an industry-standard rack and takes up only 8U (14 inches) of space -- one-fifth the space of the Unisys machine.

"Customers in a variety of industries worldwide rely on the eServer x440 for their business-critical, data center workloads," said Deepak Advani, vice president, IBM eServer xSeries. "While Dell and HP have yet to make generally available eight-way machines based on the latest Intel Xeon processor MP, IBM continues to drive innovation in industry-standard servers with mainframe-inspired 16-processor systems that are designed to provide outstanding database performance for enterprise customers."

Since its introduction earlier this year, the eServer x440 has earned accolades from leading industry publications, including:

• Winner of Network and Enterprise Hardware category of PC Magazine's 19th Annual Awards for Technical Excellence.

• Winner of Network World's World Class Award and Best of the Tests Award for Enterprise Servers.

• Winner of Enterprise Hardware and Overall Best of Show categories of PC Magazine's Best of PC EXPO awards.

The new 16-way x440 models are available worldwide today, starting at $81,332 (3). IBM eServer xSeries systems support Linux or Microsoft Windows.

About IBM
IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key Business Partners, the company offers a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of the new era of e-business. More information is available at http://www.ibm.com.

(1) Source: International Data Corporation (IDC) Worldwide Quarterly Server Tracker 3Q 2002, November 2002. Comparing the third quarter of 2001 with the third quarter of 2002, IBM grew revenue at 22 percent while Dell grew at 7.5 percent.

(2) Source: IDC Worldwide Quarterly Server Tracker 3Q 2002, November 2002.

(3) IBM list price as of Dec. 18, 2002. Priced system includes 16 Intel Xeon processors MP, 8GB memory and two 18GB hard drives, and does not include an operating system. Price is in U.S. dollars and valid in the U.S. only. Price does not include tax or shipping and is subject to change without notice. Reseller prices may vary.

IBM, the e-business logo, eServer, X-Architecture, xSeries and x440 are trademarks or registered trademarks of International Business Machines Corporation.

Intel and Xeon are trademarks or registered trademarks of Intel Corporation.

Microsoft and Windows are trademarks of Microsoft Corporation in the United States, other countries, or both. Linux is a registered trademark of Linus Torvalds.

All other trademarks, registered trademarks and service marks are the property of their respective owners.