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IBM Provides New Product Lifecycle Management Service to Lam Research Corporation

First-of-Its-Kind PLM Service Enables Flexibility as Marketplace Needs Fluctuate

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ARMONK, NY - 17 Jun 2004: IBM today announced that Lam Research Corporation, a leading supplier of semiconductor fabrication equipment, is the first client to select a new, Web-based product lifecycle management (PLM) service from IBM to help improve efficiency in product lifecycle processes.

The service is the first utility offering of its kind for PLM. Under the terms of the agreement, IBM plans to provide Lam with a comprehensive network-based solution for managing and archiving product design documents and processes, including knowledge management and collaboration features, in a security-enhanced environment.

"The new on demand service from IBM will help Lam streamline processes and enable collaboration with our customers and suppliers," said Steve Newberry, Lam's president and COO. "Utilizing IBM's services will allow for faster realization of business value and maximum ROI on this IT investment, in addition to responsiveness and flexibility to move with the market."

IBM's new on demand PLM service facilitates standardization of design practices and enables collaboration throughout the Lam value chain, helping increase product quality, improve market responsiveness and lower cost of production. Lam will tap into the service on an as-needed basis, paying only for the resources used. The service allows Lam to eliminate upfront capital expenditures and reduce deployment time, compared to a traditional implementation where Lam would install the infrastructure and manage the application in-house.

IBM also intends to offer this service to the member companies of the CapOneSource Alliance, of which Lam is a founding member. Member companies that contract with IBM for this on demand PLM service will have the opportunity to achieve savings and other benefits as a result of sharing the utility among multiple companies in the Alliance.

CapOneSource Alliance, LLC is a not-for-profit alliance of providers and consumers of common corporate services. Members and providers share in the vision of reducing costs and increasing productivity by aggregating demand for services through a single, highly capable supplier. The inspiration for CapOneSource began with an outsourcing initiative at Lam Research Corporation.

"By tapping into the IBM product lifecycle management service, Lam will have a method for streamlining processes that are vital to the company's success," said Marilyn Stemper, IBM Business Consulting Services Partner for Electronics Industry PLM.

With this service, IBM is combining e-business Hosting Services with IBM Business Consulting Services, which provided PLM strategy, and business process transformation and implementation services. This combination provides a comprehensive PLM on demand service for manufacturers around the world, and is a compelling proposition for any company that creates complex products with multiple parts, such as aerospace and defense, electronics, medical device, and semiconductor companies.

Specifically for Lam, this new IBM PLM service is being built on PTC Windchill's application software suite, including PDMLink and ProjectLink Version 7, and is expected to be utilized in late summer of 2004. IBM expects to offer a similar service for other PLM applications by year end.

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