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IBM #1 in Worldwide Server Revenue, #1 in UNIX Server Revenue

Analyst Firm Reports IBM Leads in Overall Server, UNIX and Blade Server Revenue for 4Q05 and Full Year 2005(1)

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ARMONK, NY - 22 Feb 2006: IDC reported today that in the fourth quarter 2005, IBM is first in worldwide server revenue share for the eleventh consecutive quarter, first in blade server revenue share for the ninth consecutive quarter and first in UNIX-based server revenue.

According to IDC, IBM UNIX-based server revenue was number one in 2005, moving ahead of both HP and Sun, with revenue growth up 11.3 percent year-to-year for the full year and 3 percent for the fourth quarter of 2005. IBM led in fourth quarter blade server revenue with more than 42 percent of the revenue share and led full-year blade server revenue with 40.9 percent revenue share.

Highlights from the IDC report include:

1 Based on IDC Worldwide Quarterly Server Tracker, 4Q05, issued on February 21, 2006