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IBM and Catapulse Alliance Targets Fast-Growing e-business Infrastructure Industry

Companies To Deliver Hosted Software Development and Systems Integration Services

Somers, NY, & Cupertino, CA - 01 Nov 2000: -- IBM and Catapulse Inc. today announced a comprehensive business alliance to deliver world-class tools and services for professional solution integrators and software development teams. IBM Global Services has selected Catapulse's Hosted Development Service as its preferred software development platform. Catapulse has selected IBM as its preferred provider for Web hosting, hardware, software and systems integration services for its hosted development service.

"The Catapulse business model is built on the realization that software development is increasingly performed by dispersed teams working against extremely demanding schedules," said Frank Roney, general manager of Business Innovation Services, the consulting unit of IBM Global Services. "By combining Catapulse's hosted services with IBM's business transformation expertise, we can move even faster to help customers deploy critical e-business applications and win in the marketplace."

"The alliance with IBM will accelerate our plans at Catapulse to create a powerful Internet-based infrastructure for systems integrators and software development teams," said Paul Levy, chairman and CEO of Catapulse. "No company can match IBM Global Services' understanding of core business issues and IT infrastructure management. With IBM as our preferred web hosting provider, we can offer a highly secure and scalable environment that consistently delivers high performance, regardless of where the development teams are located."

The IBM-Catapulse alliance is aimed at servicing the world's 14 million professional software developers. It addresses a fast-growing segment of the e-commerce infrastructure industry -- IDC estimates that the market for enterprise software directed at e-business infrastructure will grow from $42 billion in 1999 to $174 billion in 2003.

Finding enough skilled professionals to take on system integration and software development projects is an on-going dilemma for IT managers. IT industry analysts report that organizations of all sizes are turning to offshore companies due to skills shortages in the United States, the rising costs of domestic labor and the proliferation of Internet technologies. All these factors increase the demand for disparate developers to work as virtual teams. The IBM-Catapulse alliance provides customers with the ability to develop and deploy the systems and software needed to compete in today's economy.

The Catapulse service hosts software tools from leading vendors and provides a collaborative framework for systems integrators and software professionals to work on projects regardless of their geographic location. IBM Global Services expects to equip the first of its professional software development teams with the Catapulse offering in the first half of 2001. Initially available in the U.S., the companies are exploring options to deliver the Catapulse service worldwide on IBM technology.

About Catapulse

Founded in October 1999, by Paul Levy and Mike Devlin, the original co-founders of Rational Software, Catapulse is leveraging the Internet to provide an unprecedented range of resources designed to change the nature of software development. Through a robust, secure and integrated platform, Catapulse enables professional software teams to work and collaborate more effectively - allowing software-driven products and services to be delivered faster, at lower cost and with higher quality. Based in Cupertino, in the heart of California's Silicon Valley, Catapulse is backed by Rational Software and Benchmark Capital. For more information, visit http://www.catapulse.com/

About IBM Global Services

IBM Global Services is the world leader in e-business transformation and infrastructure services. Business Innovation Services, the consulting unit of IBM Global Services, is the largest consultancy in the world, with 1999 revenues of $9.7 billion. With its global network of more than 175 data centers, IBM Global Services is also the world leader in e-business hosting. With 1999 revenues of $32 billion, IBM Global Services employs more than 142,000 professionals serving customers in 160 countries. IBM Global Services integrates IBM's broad range of capabilities -- services, hardware, software and research -- to help companies of all sizes deploy information technology for competitive advantage. For more information visit http://www.ibm.com/services

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Contact(s) information

IBM

Laura Croker
914-766-4529
lcroker@us.ibm.com

Catapulse Inc.

Russell Brady
408-342-3811
russellb@catapulse.com

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