IBM and Peregrine Systems® Forge Infrastructure Alliance

IBM Bolsters Infrastructure Resource Management Practice; Provides Infrastructure Hosting for Peregrine's Get2ConnectSM Trading Community

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SAN DIEGO & ARMONK, N.Y - 01 Aug 2001: - Peregrine Systems®, Inc. (NASDAQ: PRGN) and IBM today announced a strategic alliance in which the two companies will help customers accelerate the transformation of their enterprise workplace assets into reliable, scalable and flexible business environments.

Under the milestone initiative, IBM Global Services will provide Peregrine's Infrastructure Management software and systems integration services as a combined offering in its newly launched Infrastructure Resource Management (IRM) practice. IBM Global Services will certify several hundred consultants to support the implementation of Peregrine Infrastructure Management applications, as well as deliver lifecycle management consulting services for an end-to-end solution.

In a second major component of this initiative, IBM will provide the network infrastructure for enhancing the growth of Peregrine's Get2Connect global trading community, which processes nearly 1.2 million e-Commerce transactions daily at a value of $280 billion annually.IBM will also host Peregrine software applications offered as an Application Service Provider (ASP) model for customers seeking a hosted, subscription-based offering.

"The synergistic alliance between IBM and Peregrine not only will enable both organizations to focus on their core competencies, but also help customers realize a return on investment of their technology implementations utilizing best practice models," said Michele Hudnall, senior research analyst, Meta Group.

"Our expanding relationship with IBM will help our customers reduce the frictional cost of doing business," said Steve Gardner, chairman and CEO of Peregrine. "We are delighted that IBM will be teaming with us to offer Infrastructure Management solutions. The combined offering will help customers achieve much higher productivity and return on invested capital by better managing their global infrastructures. Additionally, the agreement to use IBM's network infrastructure will allow Peregrine to offer our 44,000 Get2Connect customer connections an enhanced and scalable operational environment globally, while continuing to manage our e-Business applications for customers."

Bob Zapfel, IBM Global Services' general manager of Strategic Outsourcing & Integrated Technology Services, said, "By teaming with Peregrine, and leveraging our collective strengths, we bring to market solutions that manage the end-to-end lifecycle of the infrastructure assets. In doing so, we will help them decrease costs and increase availability. We understand that agile businesses need a technical base that supports processes as a whole, not in segments. We know that the right infrastructure solution today takes tomorrow into account."

The two-pronged initiative will produce key benefits for customers:

IBM will offer complete end-to-end global infrastructure solutions, leveraging Peregrine's Infrastructure Management software, to lower asset management costs for customers and improve the availability of core infrastructure assets. Peregrine applications provide industry-leading infrastructure tools and IBM Global Services provides expert resources in best practices lifecycle management, delivering rapid return on investment in the management of infrastructure assets, from acquisition to disposition.

In addition, IBM will offer Peregrine software with a range of complementary services to assist Peregrine customers in achieving an available, capable and affordable infrastructure to support their core business. These services are multi-platform and are offered on a worldwide basis with a variety of flexible payment options.

This IBM initiative complements an existing relationship between Peregrine and IBM Software Group in which Peregrine's B2B technology is built into WebSphere Partner Agreement Manager.

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