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IBM and Intel Open China's First Energy Competency Center in Beijing

Third in a Series of Worldwide Centers, Enables Oil and Gas Companies to Tap Technologies and Drive Innovation

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BEIJING - 13 Dec 2006: Today, IBM (NYSE: IBM) announced the launch of China's first Energy Competency Center (ECC), a joint effort by IBM and Intel, at a press conference at the IBM China Business Innovation Center (CBIC), located in the Beijing Shangdi Information Industry Base. The ECC Beijing will provide oil and gas companies in China and the Asia Pacific region with the technologies to find and extract hydrocarbon deposits more quickly and efficiently, while controlling costs and reducing risks.

The completion of the center represents a new stage of collaboration between IBM and Intel, who have established two other Energy Competency Centers: one in Moscow in 2002, and the other in Abu Dhabi in 2004.

Today's ECC Beijing opening ceremony was attended by John Brantley, General Manager, IBM Global Chemicals and Petroleum Industry; Edward Yu, Director, Industrial Sector, IBM Greater China Group; Robert Wang, MNC Sales Director, Intel Asia Pacific Region; Steve Chu, Executive, IBM Infrastructure Solutions, IBM Greater China Group; representatives from Schlumberger, Landmark, and several leading Chinese oil and gas companies.

"The fast growth of the oil and gas market in China has been well documented. China's oil consumption is forecast to rise 6.2 percent this year to 7.01 million barrels a day, and it will rely on imports for 77 percent of its oil needs by 2030, according to the International Energy Agency. The mission of the ECC in Beijing is to collaboratively develop technologies and solutions that can help to meet the incredible demand for energy in China," said John Brantley, General Manager, IBM Global Chemicals and Petroleum Industry. "With this center, IBM and Intel will accelerate the availability of a new generation of technologies to allow the oil and gas industry to visualize, virtualize and integrate business processes more efficiently. In addition, the new ECC in Beijing can work globally -- with the Energy Competency Centers in Abu Dhabi and Moscow -- to enable customers to transform their business into the digital world," added Brantley.

The new solutions unveiled today at ECC Beijing include Deep Computing Visualization, which enables the study of huge arrays of geological, seismic and technical data with the help of user-friendly visual data analysis and interpretation tools. Oil and gas companies may select the technical solutions that cater to their needs, and then adjust, test and optimize them. The new center also provides training on the installation and configuration of cluster systems, and other relevant applications.

"At IBM, we place a high value on our joint collaborations with business partners and independent software vendors (ISVs). We have a proven track record of providing world-class industry solutions to both upstream and downstream companies in the oil and gas industry. In cooperation with Intel and our partners, the new ECC Beijing will provide innovative solutions to solve existing business problems for oil and gas enterprises in China and the Asia Pacific region," said Edward Yu, Director, Industrial Sector, IBM Greater China Group.

The ECC Beijing is equipped with an Intel processor-based IBM System x3650, IBM BladeCenter HS21, IBM Storage System and IBM IntelliStation. These are the latest technologies available from IBM, and all are powered by Intel. The ECC will become a key platform for IBM, Intel, oil and gas companies, and industry partners to develop, test, and optimize various technical applications and solutions targeted to the petroleum industry.

"Intel is committed to providing innovative technical platforms and leading solutions that can help industry users achieve their business objectives efficiently," stated Robert Wang, MNC Sales Director of Intel Asia Pacific Region. "Today, the challenges faced by oil and gas companies are more critical than ever before, and this means getting the right match between technology and business needs. Intel and IBM joined hands and consolidated their products and services to build the ECC. This represents an important milestone for the industry. The energy customers of Intel and IBM can demonstrate the business value of acquiring leading technologies, and adopting innovative solutions that satisfy the needs of faster exploration and collection of data."

Schlumberger is a leading software and service provider dedicated to providing application software, information management services, IT infrastructure services and business consulting services to oil and gas firms worldwide. "Now, with the Energy Competency Center established by IBM and Intel, we have the opportunity to conduct benchmark tests and adjustments for the software on the most advanced computing platforms, provide technical solutions that solve the actual business needs of local customers, and help customer conduct the exploration and recovery of oil and gas more accurate and quickly," said Wang Ruixuan, Operations Manager of Schlumberger Information Service.

Other innovative solutions available at the ECC Beijing include Grid Computing, and Virtualization. These technologies deliver business value by accelerating collaboration and communication across the entire exploration and production value chain, in addition to providing unparalleled education resources for the oil and gas industry.

"IBM has rich technical resources, powerful R&D competency, and accumulated long-term experience in Grid Computing, Deep Computing Visualisation and Virtualization. The ECC Beijing will be a bridge between innovative technical solutions and the actual business needs of oil and gas enterprises in China and the AP region," says Steve Chu, Executive of Infrastructure Solutions for IBM Greater China Group.

About Intel Corporation

Intel, the world's largest chipmaker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.

About IBM

For more information about IBM, please visit www.ibm.com/chemicalspetroleum

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