IBM And Terra Lycos Sign Multi-Million Dollar Strategic Relationship

Enterprise-wide Accord Includes IBM eServer and Software, Collaboration with IBM Research, and Exploration of Joint Marketing

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ARMONK, NY & WALTHAM, MA - 26 Jul 2001: IBM and Terra Lycos, a global Internet network, today announced a two-year agreement intending to establish IBM as the premier provider of servers, enterprise software and services for Terra Lycos' worldwide e-business infrastructure. The IBM systems are expected to enable Terra Lycos, which currently serves approximately 100 million unique Web visitors each month, to handle more customers while substantially reducing operating costs.

Today's announcement begins a new relationship for IBM as Terra Lycos' strategic technology partner. The two companies have also agreed to explore marketing collaboration
opportunities that leverage the strengths of both companies.

In a separate agreement, IBM intends to advertise on the Terra Lycos network of sites.

According to Terra Lycos, the IBM systems will serve as the foundation of Terra Lycos' global IT infrastructure, tying together the company's Web-serving, enterprise resource planning, and customer relationship management and systems. Terra Lycos also plans to work with scientists at IBM Research to develop new technologies and applications.

"Today's announcement creates a powerful relationship between IBM and Terra Lycos," said Joaquim Agut, executive chairman of Terra Lycos. "The pairing of the two global leaders provides a platform for technology exchanges and collaboration on strategic projects."

The Breadth of IBM
"Having built a successful e-business, Terra Lycos understands the importance of selecting a technology partner that can provide the best products, the most experienced services organization and the most innovative research team," said Bill Zeitler, senior vice president and group executive, IBM Server Group. "IBM is proud to provide Terra Lycos with the robust solutions that will power the company's next-generation e-business infrastructure."

The infrastructure component of the agreement covers a broad spectrum of IBM products, such as:

Also, Terra Lycos Chief Technology Officer Tim Wright will join IBM's Advanced e-Business Council, a group of IBM customers on the leading edge of e-business innovation working with IBM to identify emerging trends and issues.

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