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IBM Increases Server Market Share by 3% Points in Asia Pacific

- IBM takes No.1 position in overall server market with 22% revenue share -

The latest figures released by IDC show IBM as the leading server vendor in the Asia Pacific </span><br /><span>region during the first half of the year - 28 Sep 2000: which was an 18 percent increase
over shipments during the first half of 1999.

IBM's share of the overall market in terms of the total value of shipments was slightly more than
22 percent, a 3.1 percentage point increase compared to 1999's first half.

In the first half of 2000, IBM achieved the following milestones in Asia Pacific, according to IDC:

- No. 1 in overall server value of shipments, increasing share from 19.1% in the first half of 1999
to 22.2%.
- No.1 in the value of high-end servers shipments, up from No. 3 in the first half of 1999,
increasing share from 21.3% to 32.0%.
- No.1 in the value of midrange server shipments, increasing share from 24.6% in the first half
of 1999 to 25.5%.
- Strong UNIX growth resulted in a faster growth rate of 50.3% than the industry's 35.3%
on a year-to-year comparison, increasing share from 13.0% to 14.5%.

IDC said IBM performance in Japan was particularly strong.

- Up from the first quarter of 2000, IBM was No. 1 in the value of overall server unit shipments in
the second quarter of 2000,
- Share increased from 13.8% in first half of 1999 to 18.9% in the first half of 2000, narrowing the
gap against the market leader Fujitsu from 7.2% points to 3.9% points.

- Up from the first quarter of 2000, IBM was No. 1 in the value of high-end servers shipments in
the second quarter of 2000.
- Share increased from 17.2% in the first half of 1999 to 29.2% in the first half of 2000.

"Our strong growth in overall server product lines are the proof points that our investment in
server technology and solutions are well accepted by our customers across the region,"
said Mark Hennessy, vice president, IBM's Enterprise Systems Group, Asia Pacific.
"IBM continues to provide server products with leading technology and a wide spectrum of e-business solutions. Combined with its leading technology incorporated across its server
lines, we continued to add value to customers across the industry."

"In the first half 2000, IBM increased its revenue and market share in the overall servers market in Japan, Korea and India. UNIX servers contributed largely to this growth, though S/390 servers did well in Japan and AS/400 did well in Korea, Hong Kong and Taiwan. In PRC, IBM became the No. 1 vendor by units and revenue in the first half 2000, due largely to its good performance in the standard Intel architecture server(SIAS) market," said Avneesh Saxena of IDC Asia Pacific.
"The revitalization in IBM's UNIX and AS/400 product lines, along with a renewed focus in its
SIAS business, has helped IBM gain the success it has achieved in the first half 2000."

* Source: Q2, 2000 IDC
** Avneesh Saxena, Associate Director, IDC Asia/Pacific

Contact(s) information

IBM,
Kwangwon Kim
822 3781 6948
kwangwon@kr.ibm.com

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