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IBM Japan To Establish New Company to Provide IT Outsourcing Services to Japanese Regional Banks


. . - 09 Nov 2000: IBM Japan, Ltd. today announced it will establish a new company thatwill provide IT outsourcing services, including operations management, planning, development, and infrastructure maintenance, to regional banks in Japan.

The new company, to be called Regional Bank Solution and Services Co., Ltd. (RBSS), will be established in Tokyo in December and will begin operations in early 2001. It will be managed by IBM's services arm, IBM Global Services, the world's largest IT services company and a leading provider of outsourcing technology and consulting services to the financial services sector, an industry at the forefront of utilising technology to enhance customer services.

RBSS will start operations as a wholly-owned subsidiary of IBM Japan.As banks outsource information systems to IBM Japan they will invest in RBSS, which will provide the outsourcing services. The organisation will start with a staff of 50 information technology specialists and business consultants and is expected to grow to over 150 employees by the end of 2001.

Currently, Musashino Bank, Daishi Bank, Kanto Bank, Yamagata Bank, Ashikaga Bank and, since November 1, Ryukyu Bank, outsource their IT operations to IBM Japan. Other regional banks, including Hachijuni Bank, Awa Bank, Shinwa Bank, Miyazaki Bank and Ryukyu Bank, are also expected to make capital investments in RBSS.

Mr. Tadayoshi Miyamura, Financial Services Sector Vice President, IBM Japan, said that by sharing information technology and e-business capabilities with one another and IBM, Japanese regional banks will be able to focus on building closer ties with their communities and providing more attentive customer service, including 24-hour, 365-day access.

"By strengthening their system planning and other capabilities, the regional banks will be able to promote strategic utilization of IT, with greater quality and sophistication than ever before," said Mr Miyamura. "As IBM Japan and the regional banks pool their expertise to aggressively deploy and utilize leading-edge IT through RBSS, joint operation of these IT systems will yield economies of scale that will serve to reduce costs."

As it attracts capital and management participation from the regional banks, RBSS will take over the majority of the outsourcing operations work conducted between IBM Japan and the regional banks. By using RBSS to pursue its regionalbank IT outsourcing operations, IBM Japan aims to establish outsourcing agreements with 20 banks or more by 2005, according to Mr Miyamura. The total value of IBM Japan's IT outsourcing business with regional banks is more than US$950 million (Yen100 billion).

IBM Global Services is the world's largest information technology services provider, with 1999 revenues of more than $32 billion. In addition to consulting, IBM Global Services is the world leader in IT outsourcing, hosting and systems services. IBM Global Services employs more than 138,000 professionals serving customers in 160 countries. IBM Corporation is the world's largest information technology company, with 80 years of leadership in helping businesses deploy technology for business advantage. For more information, visit www.ibm.com/services.

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Contact(s) information

Nancy Kaplan (US Contact)
IBM
914-766-4265/mobile: 914-843-4029
nkaplan@us.ibm.com

Hiromi Ishida (IBM Japan)
IBM
03-5563-4307
hiromii@jp.ibm.com

Amanda Garland (IBM Asia Pacific)
61 2 935 44881 or 61 412 254 935
61 2 935 44881 or 61 412 254 935
amandag@au1.ibm.com

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