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..new program offers greater options, will enable more
customers to deploy software throughout an entire enterprise
and increase business partner reward opportunities..

IBM today announced the launch of Passport Advantage II, a
software volume licensing program designed to provide
business partners with easier program administration, as
well as offer greater flexibility for customers in product
category options. The new program also allows business
partners to extend volume licensing to smaller organisations
and provide academic institutions with simplified suggested
pricing on eligible IBM* and Lotus** workstation software.

"Passport Advantage II enables customers who want to acquire
e-business technology to benefit from volume pricing and
better support from our business partners," said Cathy Daum,
vice president EMEA Partner Sales, Lotus IBM/Partner
Organisation. "The program provides a very compelling
opportunity for end user customers, large or small, to reach
value-price levels, while offering them greater flexibility
in how they acquire software and services. Customers can
take advantage of large discounts on up-front acquisitions,
and smaller customers can reap many of the benefits of
volume licensing without making an ongoing commitment."

"The enhancements to Passport Advantage offers our company
the opportunity to add significant customer value and profit
capabilities through a variety of pre-sales and post-sales
support," said Mark Pearson, vice president of
Profitability, Corporate Software & Technology in Norwood,
Massachusetts, an IBM and Lotus Business Partner. "In
addition, Passport Advantage II is especially beneficial
because it allows CS &T to extend the offerings of software
volume licensing to a broader customer set, enabling us to
further penetrate the lucrative small-and-medium size
market."

The new features in Passport Advantage II make it much
easier for customers to deploy software across an
enterprise, and point requirements have been lowered to make
it easier for small- to medium-size businesses to become
eligible for the program. Under Passport Advantage II,
companies with as few as five workstations can benefit from
suggested volume pricing.

Passport Advantage II provides enhancements in each of the
purchase options. In the Complete Enterprise Option (CEO),
customers can now mix and match product categories that are
focused on specific functional needs. And, since product
categories now carry point values, all acquisitions
aggregate to determine the Suggested Volume Price (SVP)
level. Also, Contract Option (CO) customers who are making a
project decision with a significant acquisition at the start
of the contract period can qualify for an agreement-wide SVP
level that is generally the most favorable CO pricing.

Volume Purchase Option (VPO) now makes volume licensing
available to a wider range of organisations by lowering the
entry level to an initial order with a minimum point value
of 10 (down from 25). Under the point requirement formula,
each product has an assigned point value and the accumulated
points determine the customer's SVP level. The VPO offering
for academic institutions has been simplified and enhanced
to provide qualifying academic institutions of all sizes
with a single suggested price point for eligible IBM and
Lotus software.

Within the Passport Advantage II program, the Annual Support
for Designated Callers price structure has been simplified,
aligning IBM branded products more closely with IBM Global
Services' new Support Line offering.

For more information on the IBM and Lotus Passport Advantage
II program, visit the Web site at:
http://www.lotus.com/passportadvantage.

ABOUT IBM

IBM is the world's largest information technology company,
with 80 years of leadership in helping businesses innovate.
IBM software offers the widest range of applications,
middleware and operating systems for all types of computing
platforms, allowing customers to take full advantage of the
new era of e-business. The fastest way to get more
information about IBM software is through the IBM software
home page at http://www.software.ibm.com.

ABOUT LOTUS

Lotus Development Corporation, founded in 1982, is a
subsidiary of IBM Corporation. Lotus sets the standard for
truly innovative software products and services that reflect
the company's unique understanding of the new ways in which
individuals and businesses must work together to achieve
success. Lotus is redefining the concept of conducting
business through practical knowledge management, e-business
and other ground-breaking ways of connecting the world's
ideas, thinkers, buyers, sellers and communities via the
Internet. Lotus markets its products in more than 80
countries worldwide through direct and extensive Business
Partner channels. The company also provides numerous
professional consulting, support and education services
through the Lotus Professional Services organisation.


* Indicates trademark or registered trademark of
International Business Machines Corporation. ** Indicates
trademark or registered trademark of Lotus
DevelopmentCorporation.

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For more information, or to arrange an interview, please
contact: ShanSood IBM Tel: 0181 818 4459 e-mail:
soods@uk.ibm.com

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