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Nexant to Acquire Chem Systems from IBM

Nexant Expands Technical Capabilities and Global Reach While IBM Takes a Stake in Nexant; Both Plan Co-Marketing Activities and to Work Together to Support Their Mutual Customers

White Plains, New York & San Francisco - 10 Jul 2001: IBM and privately held Nexant, a leading technology and consulting firm in the energy field, today announced they have entered into a definitive agreement for Nexant's purchase of IBM's Chem Systems business unit. The deal will transfer all of Chem Systems employees and virtually all its assets from IBM to Nexant, including a noted online Global Industry Simulator initiative.

The deal substantially increases Nexant's customer base and strengthens its technical capabilities and global reach within the chemical industry. It provides Chem Systems with a management and operational framework that is focused on its specific business strategies, while providing IBM with a broader services base, particularly in the energy and process industries.

"By combining our services and products, Nexant and Chem Systems offerings will span the full range of power, oil, gas, refining, petrochemicals, and chemicals," said Basem Sarandah, Nexant president and CEO. "Both entities are firmly positioned as technology and experienced-based solutions providers with a highly complementary client mix. By adding Chem Systems market conduct experience to our process technology expertise, Nexant will be elevated to the role of dominant provider of marketing consulting and technology services to the worldwide chemical industry."

"IBM looks forward to a continued, close relationship with Chem Systems as it joins the Nexant family as this will provide us with a broader base of services in the energy and process industries," said Eric Leon, general manager, IBM Chemical & Petroleum Industry. "Nexant will provide the necessary focus and industry sensitivities which Chem Systems needs to attain the next level of its growth and development."

In the U.S., Chem Systems will continue operating from its existing offices in White Plains, New York. In the U.K., Chem Systems and Nexant will combine their operations in London at a new location to be announced shortly.

Founded in 1964 as Chem Systems, Inc., and acquired by IBM in April of 1998, Chem Systems ( www.chemsystems.com) is a leading provider of consulting services for various industry segments, including many of the world's largest chemical companies through offices in London, New York, Tokyo and Bangkok. Chem Systems helps clients increase business value through consulting assistance in all aspects of business strategy.

Contact(s) information

Elliot Luber
IBM Media Relations
(212) 745-5094
eluber@us.ibm.com

Bob Burdett
Nexant
(415) 912-2125
bburdett@nexant.com,

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