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IBM and PeopleSoft Expand Strategic Alliance

IBM's Dynamic Workplaces Includes PeopleSoft Applications for Global eHR Solutions

ARMONK, N.Y. & PARIS - 22 Oct 2002: IBM and PeopleSoft Inc. (Nasdaq:PSFT) today announced an expansion of their strategic alliance to include PeopleSoft's Human Capital Management (HCM) software at the core of IBM's eHR component for its Dynamic Workplaces initiative. PeopleSoft becomes the first eHR enterprise application vendor for IBM's Dynamic Workplaces.

IBM's Dynamic Workplaces initiative is designed to offer a broad set of intranet-based collaborative technologies such as eHR, e-meetings, e-learning, and instant messaging that can help companies reduce costs and make employees more nimble. PeopleSoft's pure Internet HCM software will be included in IBM's Dynamic Workplaces set of offerings to help companies manage, connect and align their workforces. PeopleSoft is the leader in the worldwide HR and Payroll applications market, according to industry research firm IDC.

The move comes as companies in the current economy search for technology that can help them simultaneously bolster efficiencies, leapfrog competitors, and strengthen their workforces. Industry analysts estimate key elements of the e-workplace market to be worth almost $12 billion in 2002, rising to $53 billion in 2005. Research firm Gartner predicts that through 2006, 80 percent of successful e-business transformations will include an e-workplace program.

IBM and PeopleSoft have already teamed to help companies such as Safeway, a United Kingdom grocery retailer, to migrate to a centrally managed, web-based human resources system. The system will help Safeway reduce HR-related administration by up to 40 percent, a predicted saving of 3 million pounds per year.

"PeopleSoft brings unmatched industry leadership as a Dynamic Workplaces partner," said Ralph Senst, vice president of IBM Dynamic Workplaces. "This relationship will provide world-class Human Capital Management capabilities that will fundamentally alter the landscape of how companies provide HR support to their employees."

"IBM's Dynamic Workplaces initiative is the industry's most comprehensive set of e-workplace offerings," said Guy Dubois, executive vice president, PeopleSoft International Operations and Global Alliances. "Together, IBM and PeopleSoft are delivering innovative solutions that can turn employee productivity into real savings on the bottom line."

The companies will jointly market the solution globally. IBM and PeopleSoft announced the initiative as PeopleSoft kicks off Connect EMEA, its annual user conference for customers, prospects and partners in Europe, the Middle East and Africa.

Contact(s) information

Dan Morrison
IBM Media Relations
(212) 745-2948
danmorri@us.ibm.com

Steve Swasey
PeopleSoft Inc.
(925) 694-5230
steve_swasey@peoplesoft.com

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