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IBM And i2 Announce First Customers To Benefit from B2B Solutions On AS/400e

Pemstar and Timken Aerospace and Super Precision Implement Partnership End-to-End Offering

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LAS VEGAS - 15 Aug 2000: IBM and i2 Technologies, Inc. (Nasdaq: ITWO) today announced the first customers to implement i2's eBusiness and TradeMatrix solutions on AS/400e. Timken Aerospace and Super Precision, a subsidiary of the Timken Company, and Pemstar, a contract manufacturer, have recently deployed this new offering and are quickly realizing the benefits of streamlining their supply chain with this collaborative solution from two industry leaders.

The two companies announced i2's intention to run its applications on IBM's AS/400e business servers in late March at the IBM Supply Chain Executive Conference in Las Vegas.

The IBM/i2 initiative, running on AS/400e, gives mid-sized companies new opportunities to participate in business-to-business (B2B) marketplaces and trading communities, such as i2's
TradeMatrix, which provides solutions, marketplace content and a platform required to conduct business profitably. TradeMatrix empowers companies to choose their level of participation in either private or public marketplaces. These value-added services realize quick time-to-value for a low initial investment.

i2's eBusiness and TradeMatrix(TM) solutions allow AS/400e customers to leverage i2's software for operational excellence throughout the extended supply chain -- increasing revenues, reducing expenses, making full use of assets, and increasing responsiveness to customer demand. This solution enables customers to link to comprehensive electronic marketplaces, such as i2's TradeMatrix.com.

Since its inception, AS/400 has delivered integrated solutions which help customers focus on their businesses, not their computers. The new economy has fundamentally changed the way businesses deal with each other. To survive, these businesses must embrace B2B solutions in the new e-marketplace. They can take their total solutions to a higher level of integration by running them on an AS/400e, a powerful, flexible transaction server capable of managing and connecting a company's core business applications to suppliers, distributors and customers over the Web.

"Pemstar and Timken's decision to implement i2's solutions on AS/400e was driven by their need to run today's B2B solutions competitively," said Patrice Mitchell, vice president, AS/400 marketing, IBM. "They need a platform that will implement quickly, cost less to operate, and reliably run today's mission critical solutions such as those provided by i2."

"The i2 solution is another step in Pemstar's dedication to customer satisfaction. By utilizing i2 solutions on AS/400e, we will increase our competitive advantage through operational excellence, customer centricity, and connecting customers to our entire business," said Bob Murphy, executive vice president, corporate operations, Pemstar.

Established in 1994, Pemstar is headquartered in Rochester, Minnesota, with facilities, located in Rochester, MN; San Jose, CA; Dunseith, ND; Guadalajara, Mexico; Tianjin, China; Bangkok, Thailand; Almelo, Netherlands; and Singapore.

The Timken Company is a $2.5 billion manufacturer of highly engineered bearings and
alloy steels. Timken Aerospace and Super Precision, a subsidiary of the Timken Company and one of i2 Technologies' earliest customers, has purchased a worldwide license to implement i2's intelligent eBusiness Solution, Factory Planner, on AS/400e. Timken's decision was based on the highly reliable, cost-effective performance of AS/400e, the tremendous success of its initial i2 implementation, and its proven ability to deliver quantifiable bottom line business value.

About IBM
IBM is the world's leading server company, and IBM AS/400e is the world's most popular multi-user commercial business computer, with 700,000 systems shipped to more than 150 countries.

The IBM AS/400e Model 840 server is powered by the world's first production microchips made of silicon-on-insulator transistors and copper wiring. For more information on the IBM AS/400e server, visit www.as400.ibm.com.

About i2
i2 is creating real value for its global e-business customers through its TradeMatrix solutions, content and marketplace platform. TradeMatrix allows businesses to create both private and public marketplaces, while improving the efficiencies of all participants. i2 provides a wide variety of collaborative e-business services for both the early stages and the next generation of e-business adoption, with each service suppported by decision optimization, transaction management and content management solutions. Founded in 1988, i2's mission is to deliver $50 billion in value to its customers by 2005. i2 is headquartered in Dallas, has more than 5,000 employees and maintains offices worldwide. Visit i2 at www.i2.com.

TradeMatrix facilitates every stage of the product life cycle, with decision-support solutions to assist in the design, buy, plan, sell, fulfill and service functions. These solutions combine with i2's industry-leading content and content management offerings and reside on the TradeMatrix platform, which is built on open standars to allow integration with existing systems, including ERP, CRM and back office systems. In addition, TradeMatrix Network provides access to horizontal logistics, fulfillment and financial services; industry templates for rapid
customization; and an open Applications Program (API) to promote marketplace-to-marketplace connectivity.

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IBM and AS/400e are registered trademarks of International Business Machines Corporation. i2 and the i2 logo design are registered trademarks of i2 Technologies, Inc. TradeMatrix is a trademark of i2 Technologies, Inc. All other trademarks are the property of the respective company.

i2 Cautionary Language

This press release may contain forward-looking statements that involve risks and uncertainties, including customers' ability to implement i2 solutions successfully or to achieve benefits attributable to i2 products. For a discussion of factors which could impact i2's financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to i2's recent filings with the SEC, particularly the Form 10-K filed March 22, 2000 and Form 10-Q filed May 15, 2000.

Contact(s) information

Andrea Minoff
IBM
(914) 766-4209
aminoff@us.ibm.com