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IBM Announces Financing For The On-Demand Era

New Flexible Offering Helps Customers Acquire IT Now, When They Need It

ARMONK, N.Y - 03 Dec 2002: IBM today announced a new financing product designed to meet the on-demand needs of today's e-business hosting customers.

IBM Total Usage Financing was created to complement the corporation's e-business on demand initiative and to help customers redefine how they acquire and manage on-demand information technology (IT) offerings and integrate them into their e-business infrastructure. Total Usage Financing is a financing solution designed to adjust to customers' needs for computing power in real time.

A new combination of financing knowledge, experience and processes from IBM Global Financing, the world's leading IT financier, the on-demand financing offering is a total solution offering. IBM Total Usage Financing combines financing for fixed upfront IT costs -- to spread them out over a project's term -- with a revolving credit line to support and smooth out real-time ongoing variable service charges. The offering is designed to support the needs of an on-demand business to adjust itself in real time and in a highly variable fashion to unplanned peak usage.

IBM Total Usage Financing will be available initially only to IBM to e-business hosting customers in the United States.

"IBM plays a key role in defining how customers pay for their computing," said William C. Doscas, vice president, Marketing and Sales, IBM Global Financing. "Total Usage Financing goes a major step further, by helping companies adjust their IT support in real time, more affordably. Customers now can have the maximum flexibility to use only as much additional financing as they need -- and only when they need it on demand -- to fully support the IT infrastructure of their e-business."

In addition, the new financing product may help IBM customers lower monthly costs and better manage fixed budgets in a variable real-time environment. While helping customers cover potential peak demand, the IBM offering also was designed to better match costs to benefits, potentially helping customers to gain more immediate payback from IT projects.

Additional details on IBM Total Usage Financing are available at www.ibm.com/financing.

Contact(s) information

J. Timothy Ohsann
IBM Media Relations
(914) 765-6647
ohsann@us.ibm.com

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