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Dell, IBM Announce Information Technology Services Agreement

Estimated $6 Billion Pact Matches Capabilities of Two Industry-Leading Companies

NEW YORK - 27 Sep 1999: -- Dell Computer Corporation (Nasdaq: DELL) and IBM (NYSE: IBM) today announced an agreement that will make IBM Global Services a strategic provider of computer-related services to Dell customers.

The agreement could be worth $6 billion over seven years. Additional terms were not disclosed.

The arrangement pairs the complementary capabilities of the world's leading direct computer-systems company with the largest provider of information-technology services. This strategic agreement formalizes and expands the scope of a pre-existing services relationship between the two companies. It also builds on the $16-billion strategic technology agreement announced by IBM and Dell last March. Believed to be the largest of its kind in the IT industry, the technology contract gives Dell broad access to components based on IBM's leading technology.

Early next year, Dell will start offering its U.S. corporate, government and education customers a range of installation and onsite warranty services from IBM Global Services for Dell's desktops, notebooks, workstations, network servers and data-storage products. The intent is to extend the services to other international markets beginning next year.

"The capabilities and scale of IBM Global Services are highly regarded," said Kevin Rollins, Dell vice chairman. "The combination of IBM's services portfolio; our own extensive range of services; those of our existing global service partners, Unisys and GetronicsWang; as well as our award-winning products, makes for an extraordinary value proposition to Dell customers. The relationship enhances Dell's global services reach and offers customers more choice in selecting IT solutions."

"Information technology is now at the heart of all businesses, whether they're large corporations or Internet start-ups," said Samuel J. Palmisano, senior vice president and group executive, IBM Global Services. "This agreement will help ensure that Dell's customers' products are up, running and operating at peak efficiency."

Ranked No. 78 among the Fortune 500 companies and No. 210 in the Fortune Global 500, Dell Computer Corporation is the world's leading direct computer systems company, based on revenues of $21.7 billion for the past four quarters. Dell designs, manufactures and customizes products and services to customer requirements and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained through its toll-free number 1-800-388-8542 or by accessing the Dell World Wide Web site at http://www.dell.com.

IBM Global Services is the world's largest information technology services provider, with 1998 revenues of approximately $29 billion. Services is the fastest growing part of IBM, with more than 130,000 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 realize the full value of information technology. For more information visit http://www.ibm.com/services.

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Contact(s) information

Brian Doyle
IBM
(914) 766-4644
bddoyle@us.ibm.com

Lynn Neillie
Dell Computer Corp.
(512) 723-2987
lynn_neillie@dell.com

David Caplan
IBM
(914) 766-4529
caplan@us.ibm.com

Adrianne MacPherson
Dell Computer Corp.
(512) 728-1531
neisha_frank@dell.com

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