Some IBM Speeds and Feeds:

Did you know?

IBM is the world's largest information technology company, as well as the world's largest hardware company ($37.7B); IT Services ($33.2B) and IT rental and financing ($3.5B) company.

Corporate headquarters, Armonk, N.Y.

Business operations in 164 countries

For the sixth straight year, IBM reported record revenue - $88.4B in 2000, up 1% (4% in constant currency) versus 1999 revenue of $87.5B.

IBM's net income for 2000 was $8.1B or $4.44 per diluted common share, compared with net income of $7.7B, or $4.12 per diluted common share in 1999.

ENTERPRISE SERVER GROUP

About 70% of the world's business data and business transactions are managed by IBM servers.

The IBM eServer z900 is the world's first self-managing "living and breathing" server, dynamically shifting workloads within the server, according to priorities set by the customer.

The IBM eServer z900's operating system, z/OS, features the ability to execute up to 9 billion transactions a day (clustered) or 300 million/day (stand alone).

The IBM eServer iSeries model 840 is the industry's leading Lotus Domino server, capable of handling more than 100,000 simple mail users on a single server - a world record.

In the largest commitment to Linux by any server company, IBM Linux-enabled its entire server platform.

e-BUSINESS

IBM customers can access more than 14,000 IBM products and solutions on ibm.com.

At YE2000, 96% of IBM procurement invoices (400,000 per month) were handled on the Web.

At YE2000, IBM was conducting e-procurement with 24,000 suppliers globally.

IBM logged more than 99 million self-service transactions over the Web in 2000, more than double those in 1999.

SOFTWARE IBM's

e-business strategy is being fueled by the world's largest portfolio of software patents (approximately 6,000). More than 1,000 of these IBM software patents were granted in 2000.

IBM is devoted to advancing open Internet standards and applications.

WebSphere, IBM's e-commerce middle ware, tripled growth in 2000 over 1999.

IBM's WebSphere software platform has nearly 35,000 customers worldwide and is used by:

• 90% of the top commercial banks in the US
• 15 of the top Wall Street brokerage firms
• Seven of the eight largest US telecommunications companies
• 80% of the top US healthcare companies.

More than 40 million users and 300,000 companies rely on IBM data management solutions. The world's largest-known commercial databases sit on DB2. There are more than 1 million DB2 licenses. DB2 Universal Database has been adopted by more than 6 million users worldwide. DB2 is the most scalable database available on Linux today.

Lotus Notes is the industry leader with more than 80 million users worldwide.

GLOBAL SERVICES

IBM is the world's largest business and technology consultancy.

IBM has a global network of nine e-business Innovation Centers staffed to help customers take their franchises to the Net. IBM Global Services' Business Continuity and Recovery Services is the largest continuity provider in the world, with more than 12,000 customers in 76 countries. It has helped more than 300 clients recover from disasters including hurricanes, tornadoes, bombings, ice storms and power failures.

IBM's e-business Testing Center in Gaithersburg, Maryland, is the largest of its kind in the world. The Center stress-tests customers' technology infrastructures to see if they can handle day-to-day operations. More than 500 customers have already used its services.

PERSONAL and PRINTING SYSTEMS

IBM won five BusinessWeek Industrial Design Excellence Awards in 2001.

90% of IBM's personal computing products were new or refreshed in

2000, as the Personal Computing Division introduced the TAXI series of ThinkPads and the NetVista line of desktops.

Some 220 miles above Earth, 10 IBM ThinkPads allow astronauts and cosmonauts to control various functions on board the International Space Station Alpha. IBM has been computing in space since Explorer I in 1958 - and has participated in the Mercury, Gemini and Apollo missions that culminated in man's first landing on the moon.

TECHNOLOGY

IBM Storage has pioneered every significant development since it invented magnetic disk storage four decades ago.

IBM was first to ship hard drives with magnetoresistive (MR) and giant magnetoresistive heads in the '90s, making hard drives faster, more reliable and higher capacity.

In 2000, IBM tripled the capacity - but not the size - of the world's smallest and lightest hard disk drive. This Microdrive's capacity went from 340 megabytes to 1 gigabyte. This drive holds up to 1,000 high-resolution photographs, 1,000 novels 200 pages long or nearly 18 hours of CD-quality music, while remaining smaller than a matchbook.

In 2001, IBM introduced the world's quietest high capacity mobile disk drive used in laptop computers. With reduced noise levels, faster speeds, high performance and a top capacity of 48 GB, IBM's new Travelstar family provides storage solutions for data, music, video, digital photo and streaming media.

IBM's 1-inch Microdrive continues its capacity leadership in the removable storage market. The 1GB hard drive was used by NASA to capture images on two missions (Atlantis and Discovery) to the international space station.

In 2001, IBM introduced the Deskstar 75GXP, with 75 GB capacity in a desktop hard drive - used for storage-intensive video editing and animation tasks for digital media environments.

In 2000, IBM announced its fifth-generation of 10,000 RPM disk drives for servers, the Ultrastar 73LZX. This drive will hold about 36.5 million pages of text. A single, one-inch-thick Ultrastar 73LZX can store the equivalent of a single stack of text pages as tall as Mount Fuji (12,389 ft.).

IBM Microelectronics is the single largest contributor among IBM divisions to the IBM patent total, accounting for roughly one-third of the IBM total.

RESEARCH/INTELLECTUAL PROPERTY

IBM Research is the world's largest information technology research organization, with more than 3,000 scientists and engineers at eight labs in six countries. (Locations include New York, San Jose, Austin, Zurich, Haifa, Tokyo, Beijing and Delhi.) IBM has produced more research breakthroughs than any other company in the IT industry. In addition, IBM maintains more than two dozen development labs around the world, employing 125,000 technologists.

For the eighth consecutive year, IBM received the most U.S. patents - 2,886 U.S. patents in 2000 - topping the next closest competitor by more than 850 patents. IBM owns nearly 35,000 patents worldwide, including more than 20,000 in the U.S. IBM has employed a total of five Nobel laureates. Two are still active employees.

IBM was awarded the 2000 U.S. National Medal of Technology for its ongoing record of innovation in storage technology. This is the seventh time that IBM and its scientists have been awarded the nation's highest award for technological innovation, more than any other company or organization. IBM researchers have also been awarded four National Medals of Science.

Global Financing

IBM Global Financing, the largest IT financier in the world, delivers financial services to nearly 125,000 customers in more than 40 countries. IBM Global Financing offers businesses of all sizes, flexible leasing and financing programs that enable them to acquire hardware, software, services and to deploy e-business solutions.

IBM Global Financing provides financing to more than 2000 remarketers and 150 manufacturers/suppliers in the US alone for both IBM and other vendor products. Our e-business tools were used by 72% of our Business Partners in 2000.

By assets, IBM Global Financing would be a top 25 commercial bank or a top 10 diversified financial company.

Notable Recognition

In the March/April 2000 issue of Business Ethics, IBM ranked #1 in the list of "100 Best Corporate Citizens," which looks at corporate service to four key groups including stockholders, community, employees and customers.

Addressing the "digital divide," IBM announced in March 2000 it would offer schools, faculty and students discounts up to 50% on PCs and networking hardware, a gift valued at $50 million, through the United Negro College Fund.

In February 2001, a Special Technology Offering was made available to the United Way of America and will provide discounts on PC's and other technology and software, including the Young Explorer Early Learning System, to more than 1,400 United Ways and 45,000 service agencies in communities across the U.S.

IBM's largest ongoing corporate commitment remains the grant program Reinventing Education - which has the potential to touch one in five children in U.S. public schools, as well as thousands of children in seven other countries, including Singapore, site of our latest grant. IBM provides research and technical expertise, as well as equipment and cash contributions, to improve teaching and learning and raise student achievement.

In 2000, IBM appointed its first Chief Privacy Officer - - Harriet Pearson - - a senior executive charged with guiding all policies and practices and to advance workable protections of consumer and citizenry privacy.

In 2000, IBM became the only company chosen for 13 consecutive years by Working Mother Magazine to be on the Top Ten List of the 100 Best Companies for working mothers.

In May 2000, former President Clinton presented the Ron Brown Award for Corporate Leadership to IBM for its Reinventing Education initiative. IBM is the first company to have received this award twice.

In February 1999, former President Clinton presented IBM Chairman Lou Gerstner with the first Ron Brown Award for Corporate Leadership in recognition of the company's long-standing commitment to workforce diversity.