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IBM Selects Cerner Corporation For Strategic Alliance To Create 'e-Hospitals' And Transform Healthcare

Goal Is To Help Hospitals Give Patients Better, Faster Care With Fewer Errors

WHITE PLAINS, NY AND KANSAS CITY, MO - 10 Sep 2001: IBM and Cerner Corp. announced a global strategic alliance today aimed at helping create e-hospitals that make better use of information technology to improve patient care and provide faster medical treatment with fewer errors.

Cerner, the worldwide leader in developing clinical, financial and managerial information software for healthcare organizations, and IBM, the leader in e-business technology and networking, say the alliance is a significant step in helping hospitals and medical centers become more efficient. The agreement is effective immediately.

"IBM and Cerner are helping hospitals break the spiral of escalating cost, preventable medical errors and inefficient operations," said Russell Ricci, M.D. and general manager, IBM Global Healthcare. "This alliance will create the only end-to-end solution built on a common architecture. This will enable healthcare delivery in the US and other countries to become more efficient and improve the quality and speed of consumer healthcare."

Patrick O'Hare, chief information officer for Spectrum Health, a large healthcare provider serving 13 counties in western Michigan, adds: "Spectrum is focused on getting the most benefit for its technology investments. We could not ask for better partners in this area than IBM and Cerner. We're looking forward to even better performance and operational efficiencies from this alliance."

The agreement will wrap IBM's worldwide e-business technology, marketing and sales capabilities around Cerner Millennium(TM), the company's acclaimed, clinical, management and knowledge software application systems.

Under the agreement, the Cerner applications will be fully optimized and integrated with the IBM server, storage and infrastructure software. This will enable more information to be given to clinicians faster and with more accuracy.

Such an end-to-end solution will also help drive down the complexity, initial cost and daily operating expenses -- which are key issues for healthcare organizations. With the IBM/Cerner solutions, healthcare institutions will no longer have to cobble together piece parts from different hardware and software suppliers to try and automate their operations.

The integrated Cerner and IBM offerings also will help the healthcare industry minimize medical errors, which are estimated to cause thousands of patient deaths or injuries each year. For example, electronic-based medical records will be available any time to any appropriate hospital department, unlike paper-based records that may be unavailable, lost or misread.

A recent Institute of Medicine report says that considerably wider use of information technology must play a central role in fixing what is now a "disjointed and inefficient healthcare system" in the United States. A Rand Corporation study confirmed that assessment, adding that the US ranks a mere 37th in the world in overall health system performance. Inefficiency and excessive costs are serious problems facing healthcare institutions in many other countries as well.

Globally, more than 1,500 hospitals and other healthcare providers already use Cerner software to collect, disseminate and manage patient data across the continuum of care to pharmacies, insurance companies and even to the home with the highest level of security and privacy.

IBM will use its worldwide marketing and sales force to recommend and promote the more than 46 integrated software solutions that are part of Cerner Millennium. With Millennium, clinical data can be aligned with hospital financial and operational data to automate and streamline inefficient business practices.

For its part, Cerner will recommend and promote IBM to its customers as a leading provider of eServer computers, storage area networks and middleware. Cerner will include IBM's framework for e-business as part of its software development strategy and migrate its application software portfolio to it. Future Cerner development work will be integrated with IBM WebSphere, MQ Series, DB2 Universal database, and other IBM standards-based solutions.**

"IBM's selection of Cerner validates our sound strategy and leadership position in the healthcare technology space," said Cerner President Trace Devanny. "This also is where Cerner's unique Millennium investment pays off. We built a standards-based, open architecture that reduces our time to market with new solutions. It also enables our clients to engage the latest tools and technology, such as IBM, to get the most value and productivity from their systems."

The two companies will coordinate and conduct global marketing and sales efforts to healthcare organizations in the Americas and Europe and Asian markets.
The IBM/Cerner alliance is another example of IBM's commitment to go-to-market with leading independent software vendors through the PartnerWorld for Developers program ( www.developer.ibm.com).

About IBM Healthcare:
IBM e-business consulting, technology, services and implementation expertise are helping improve the quality and efficiency of healthcare delivery, enhance communications, reduce cost and empower patients. To learn more please visit www.ibm.com/solutions/healthcare

Cerner Corporation is the leading supplier of clinical and management information and knowledge systems to more than 1,500 health care organizations worldwide. Cerner is working to transform the health care delivery system by increasing the quality of care, improving efficiencies, eliminating medical error and connecting the individual to the system with innovative information solutions. The following are trademarks of Cerner: Cerner, Cerner's logo and Cerner Millennium. Nasdaq: CERN, www.cerner.com

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** Indicates trademark or registered trademark of IBM Corporation.

This release may contain forward-looking statements that involve a number of risks and uncertainties. It is important to note that the Company's performance, financial condition or business could differ materially from those expressed in such forward-looking statements. The word "goal," "will create," "will enable," "will improve," "will wrap," "will be," "will help," "will use," "will recommend," "will include," and "will coordinate," and similar expressions are intended to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: changes in the health care industry, significant competition, the Company's proprietary technology may be subjected to infringement claims or may be infringed upon, regulation of the Company's software by the U.S. Food and Drug Administration or other government regulation, the possibility of product-related liabilities, possible system errors or failures or defects in the performance of the Company's software, and failure of the parties and the software to achieve the intended benefits. Additional discussion of these and other factors affecting the Company's business is contained in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial condition or business over time.

Contact(s) information

Mike Shore
IBM Media Relations
(904) 278-3234
shore@us.ibm.com

David Oboyski
Cerner
(816) 201-3009
doboyski@cerner.com

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