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)

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:

• IBM is number one in worldwide server revenue share with 38.4 percent revenue share in 4Q05 and 32.9 percent revenue share in 2005 overall.
• IBM led global UNIX-based server revenue growth of the major vendors, up 3 percent in 4Q05 YTY, grew revenue YTY for the sixth consecutive quarter. In 2005 overall, IBM UNIX-based server revenue led the industry with 31.8 percent revenue share, with revenue up 11.3 percent YTY.
• IBM continued to lead in worldwide blade server revenue and revenue share for the tenth consecutive quarter ending 4Q05, with 42.7 percent revenue share and revenue up 35.7 percent YTY. For the full year 2005, IBM led blade server revenue with 40.9 percent of revenue share, with revenue up 68 percent YTY.

John Crowe
IBM Media Relations
(512) 286-3182
crowejd@us.ibm.com