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IBM today announced two new eServer* systems that offer small and medium size businesses access
to mainframe and self-healing technologies at entry-level prices. The new IBM eServer xSeries
232 and 342 include intelligent management features that support IBM's Project eLiza initiative,
a multi-billion dollar program aimed at creating a world of self-managing servers requiring
little or no human interaction with the goal of making computing networks as easy to manage as
today's kitchen appliances.

In addition, both systems feature up to two of the latest Intel® Pentium® III processors at 1.13
GHz (1) and will support a wide range of applications running on either Microsoft® Windows® or
Linux®.

Small and medium size businesses now have access to self-healing and self-protecting management
tools such as Software Rejuvenation and Light Path Diagnostics ä that help predict, identify and
repair problems before performance is ever affected. IBM Software Rejuvenation, a component of
IBM Director, identifies and predicts pending software problems due to "ageing", a major issue
related to Intel-based servers. During the ageing process, small programming errors may
accumulate and absorb ever increasing amounts of a computer's resources, eventually leading to
server downtime. Software Rejuvenation enables a system to automatically schedule a time to
reset -- or rejuvenate -- its software, rather than allow the software to continue ageing and
potentially crash the server.

IBM's Light Path Diagnostics leads IT personnel quickly to trouble spots so they may be accessed
and viewed without removing the system cover. This not only speeds problem diagnosis, but also
protects other system components from being compromised by any individual failures. Paths of
lights leading to serviceable components help minimise downtime by allowing quick visual
diagnosis of system problems.

"As the complexities of running an e-business infrastructure intensify, businesses of all sizes
need access to the benefits of self management technologies," said Greg Burke, Director, IBM
Project eLiza. "With these new systems, IBM is giving customers the power to manage their
business effectively and at a reasonable cost."

Servers for Businesses of Every Size

Powered by Intel's new Tualatinä Pentium III-S processors with 512K Cache and a speed of
1.13GHz, the eServer x232** is a powerful low-cost system that can be easily deployed in
minutes. As a general-purpose 2-way server, the x232 is able to perform a wide-variety of
business applications, including financial, file-and-print serving, e-mail, messaging and
Internet access. Supporting up to nine hot-swap hard disk drives, five PCI adapters and ten
overall media bays, it can be expanded easily, giving businesses a true "pay as you grow"
capability.

The IBM eServer x342 is a powerful 2-way system designed for medium and larger enterprises that
need high availability features in a compact 3U rack design for space constrained environments.
The latest Intel Tualatin processors, a large L2 cache and an integrated systems management
software solution supported by IBM Director allow the x342 to provide consistent
high-performance in the face of heavy fluctuating workloads.

IBM also announced the availability of Tualatin on the award winning eServer x330, the industrys
most powerful 1U server.

eLogic, a Web site and e-commerce developer for companies such as Variety and Red Herring, is
deploying these new eServer systems to power eLogic Platformä, a combination of custom web-based
publishing tools. eLogic provides customers with news syndication services, Web personalisation,
e-commerce tools and newsletter applications that require a high-degree of system availability
due to the time sensitive nature of the content.

"When we're providing customers with real-time publishing of over 100 million page-views per
day, from over 200,000 daily news feeds, we can't afford to worry about availability," said Dan
Kempka, vice president, Marketing at eLogic. "eLogic Platforms require a powerful e-business
infrastructure that offers unsurpassed quality, reliability and scalability for our customers.
IBM eServer systems are the answer."

New Server Appliance Technology

IBM has also enhanced the eServer x130 and x135 server appliances with new system management and
Web site development features. Both appliances provide a streamlined web-hosting platform for
either Microsoft Windows or Linux and will now incorporate industry-leading re-provisioning
technology to enable customers to quickly change content.

Re-provisioning, a feature of the IBM Advanced Appliance Configuration tool, offers businesses
the ability to quickly duplicate the image of a server and copy that image to another server -
providing ease in new server setup or replication. ISPs and ASPs who support numerous clients
from a single network will be able to easily re-deploy their network to meet sudden changes in
client usage, ensuring maximum availability.

IBM customers, such as Turning Stone Casino Resort, which operates an automated casino,
convenience stores, a hotel and RV park, are choosing the enhanced technology eServer appliances
running Linux to replace their existing Compaq servers.

"We evaluated both the x135 and the Sun Netra," said Jason Tedford, Senior System Engineer for
Turning Stone Casino Resort. "The x135 simply offered much more in the way of superior
technology. Our servers have to run 24/7, and we bought them for their availability. The x135 is
so dependable that if we ever did have a server go down, we can rebuild it in 20 minutes with
the new IBM re-provisioning tool. That's key when a down server means lost profits."

New eServer x380 now available

The new eServer x380 is IBM's first Itanium-based server and designed as the industry standard
reference platform for IA-64 development efforts is available now in Europe. Available with up
to four processors, the x380 delivers increased performance for data intensive applications such
as data mining and data warehousing, online transaction processing and security applications. In
addition, the x380 is available with up to 64GB(1) of memory permitting in-memory processing of
data intensive applications, which helps avoid bottlenecks. System also includes hot swap and
redundant fans and four power supplies, along with hot-swap PCI technology.

New eServer Options

Expanding upon its industry leading options, IBM unveiled new memory, rack
and tape drive options for Intel-based systems including:

· The IBM 40/80GB Half-High DLTVS Tape Drive, a space-saving, cost-effective entry point into
the DLT tape drive family, featuring 40GB native or 80GB compressed capacity(2)

· Two new IBM 73.4GB hard disk drives with speeds of 10,000RPM featuring
the highest capacity of any IBM hard disk drive on the market today.

· The IBM NetBAY42 Standard Rack, a 42U rack capable of holding more than 14TB of storage
systems, and the NetBAY25 Standard Rack, a 25U rack storage system. Both offer space savings
combined with improved cable management and a fan-free design to increase airflow.

For additional information, please visit http://www.ibm.com/eserver

- ends -

Notes to Editor:

About IBM

IBM is the world's largest information technology company, with 80 years of leadership in
helping businesses innovate. IBM creates, develops and manufactures the industry's most advanced
information technologies, including computer systems, software, networking systems, storage
devices and microelectronics. The fastest way to get more information about IBM is through the
IBM home page at http://www.ibm.com.

About IBM PCD

A leader in terms of performance, technology and service, IBM's Personal
Computing Division (PCD) designs, manufactures, markets and finances industry-standard personal
computers for individuals and businesses of all sizes throughout all sectors of activity. PCD's
award winning PC line up has been recognised for its quality, design, ease-of-use, performance,
manageability, durability and reliability.

*The IBM eServer brand consists of the established IBM e-business logo with the following
descriptive term "server" following it.

**IBM, the e-business logo, xSeries, Light Path Diagnostics and IBM Director are trademarks of
IBM Corporation.

Microsoft and Windows are registered trademarks of the Microsoft Corporation.
Linux is a registered trademark of Linus Torvalds.
Intel, Tualatin, Pentium and Pentium III are trademarks or registered trademarks of Intel
Corporation.

All other trademarks are property of their respective owners

(1) MHz/GHz only measures microprocessor internal clock speed; many factors affect application
performance

(2) When referring to storage capacity, GB equals one billion bytes and TB equals one trillion
bytes; accessible capacity may be less

Media Contacts:

Clare Behling
PR Manager, IBM PCD UK and Ireland
Tel: 0207 202 3259
clare_behling@uk.ibm.com

Ghezala Beg/Joanna Lane
Brodeur Worldwide
(On behalf of IBM)
Tel: 01753 790700
gbeg/jlane@uk.brodeur.com
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