Amway Extends Outsourcing Contract with IBM in Germany

PUCHHEIM, Germany and STUTTGART, Germany - 29 Apr 2009: Amway GmbH and IBM today announced they have renewed and expanded a EUR 3.2 million outsourcing contract for three additional years. The direct selling company has outsourced a part of its information technology (IT) infrastructure to IBM in Germany since 2004.

The expanded agreement provides an on demand model that enables Amway to flexibly adjust its use of IT resources to meet its business requirements. The on demand model utilizes a shared environment with the latest IBM Power Systems platforms at the IBM computing center in Ehningen, Germany. The new agreement will allow Amway to benefit from IBM technology innovations and the accompanying performance boost.

Thomas Heinemeyer, IT Manager Europe at Amway, "As one of the world's largest direct selling companies we need a reliable partner. We receive around 15,000 orders a day from our business partners in 26 European countries. With IBM Power Systems running IBM's i operating System and using POWER6 chips, we are sure that our IT backend system runs safely and steadily and is able to handle this enormous volume."

"IBM's delivery model and technical and services excellence make us particularly strong in terms of helping clients transform their business, drive innovation and reduce IT infrastructure cost and risk," said Stefan Riedel, IBM Germany, Vice President Strategic Outsourcing. "By leveraging IBM's dynamic infrastructure and industry expertise, Amway will be able to focus on their core competencies and optimize efficiency to reduce costs and adapt quickly for future growth."

The agreement was signed in the first quarter of 2009.

About Amway

Amway is one of the worldwide leading direct selling companies and was founded in 1959 in Ada, USA. Today the company is operating in over 50 countries and generated record sales of $8.2 billion in 2008. Over 3 million independent Amway business owners distribute the products worldwide. Since 1975 Amway has been operating successfully in Germany. 260 employees work in the European headquarters and the German affiliate in Puchheim near Munich. Over 85,000 Amway business owners distribute the products across Germany.

Amway sells over 450 products with a focus on beauty, wellness and household that can be ordered exclusively through Amway business owners. Among the brands are NUTRILITE™ nutrition supplements, the cosmetic brands ARTISTRY™ and E. FUNKHOUSER™ NEW YORK as well as L.O.C.™ household cleaner.

About IBM

For more information, visit www.ibm.com/services.

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