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IBM Boosts Performance of AS/400e Series

More Than 90 Percent Performance Growth at the Top of the Product Line

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SOMERS, N.Y. - 31 Aug 1998: - IBM today announced faster, more powerful AS/400e series servers capable of delivering all the power customers need to run on-line transaction-driven e-business applications.

IBM strengthened the top and bottom of its AS/400e server line by adding new 8- and 12-way models and entry-level small business servers that offer significantly more memory and up to 94 percent greater performance than previous AS/400e models. All these servers are powered by new IBM 64-bit PowerPC microprocessors.

``We've taken another major step in the transformation of AS/400,'' said Tom Jarosh, general manager, IBM AS/400 brand. ``We offer customers the best of both worlds -- increased scalability, reliability and security, plus the ability to integrate the industry's most advanced new technologies into their businesses.''

The new high-performance model S40 and 650 servers offer 40 gigabytes of main memory, which is twice the system memory capacity of previous e-servers, and 2.1 terabytes of storage, enabling customers to maintain huge amounts of historical data on-line. Two terabytes is enough storage space to hold every U.S. tax return filed since the turn of the century.

IBM beefed up the low-end of the product line with a new, more powerful version of the AS/400e series model 170. This latest version of the popular server for small to medium-sized businesses also uses the new PowerPC AS A50 microprocessor and delivers up to 300 percent more memory and a nearly 45 percent performance improvement over previous models.

IBM further strengthened the AS/400 line by adding new custom servers and significant OS/400 operating system enhancements, enabling new technologies such as Java, native Lotus Domino and business intelligence. With the increased power and performance of current AS/400e servers, customers can take advantage of client/server, interactive computing, or both, all on the same machine.

Additional highlights of today's announcement are:

General Availability

General availability for hardware processors and operating system software is September 11, 1998.

Customers can finance their AS/400e series through IBM's Preferred Rate Financing with rates that start as low as 6.5 percent APR(a). IBM's flexible, Preferred Rate financing offerings make IBM products and services more affordable for customers, with fixed monthly payments that enable them to acquire more technology and conserve capital for other investments. Preferred Rate Financing applies to a wide range of IBM hardware, software, services and maintenance if they are financed with the server. In addition, IBM can finance third-party software and services, offering customers a total financing package for their total solution.

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Product and Company names are trademark or registered trademark of their respective companies.

(a) The actual rates and amount that can be financed are based on a customer's qualifications and subject to credit approval. Preferred Rate Financing is offered by IBM Credit Corporation in the U.S. and IBM's Global Financing organization in more than 40 countries worldwide.

The IBM home page can be found on the Internet at http://www.ibm.com.

The AS/400 home page can be found at http://www.as400.ibm.com.