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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 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 industry's 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 www.ibm.com/eserver

Ref: 01/143

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Notes to Editor:

About IBM
IBM is a world leader in providing end-to-end business solutions for
small and medium sized businesses. Through its Global Small and Medium
business organisation, IBM offers a host of cross-industry and
industry-specific solutions designed to meet the real-world needs of
growing businesses. IBM is also the leading provider of electronic
business solutions and is dedicated to helping customers, Business
Partners and developers exploit the potential of network computing
across a wide range of businesses and industries.

For further information on IBM please visit www.ibm.com/smallbusiness/uk

*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:

Chris Middleton
UK PR Manager, Small/Medium Business
Tel: 020-7202-3632
Cmiddlet@uk.ibm.com

Adrian Bridgwater/Joanna Lane
Brodeur Worldwide
(On behalf of IBM)
Tel: 01753 790700
abridgwater/jlane@uk.brodeur.com



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