IBM Signs Technology Distribution Agreement with Germany's MCE

European Wholesaler Becomes IBM Technology Group Solutions Partner

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MUNICH, Germany - 22 May 2000: -- IBM today announced that MCE Computer Peripherie GmbH has become an IBM Technology Group Solutions Partner.

The European wholesaler will resell IBM technology solutions across the Europe / Middle East / Africa region.

The agreement is expected to generate more than $3.2 billion in sales over the next four years for MCE.

Today's agreement leverages MCE's established marketing and sales structure in a broad range of product areas represented by IBM's Technology Group. These include LCD panels, network controllers, storage area networks (SANs), network- and server-attached storage (NAS and SAS), hard disk drives, tape drives, LTO-based tape libraries and the revolutionary Microdrive.

"MCE will help deliver IBM innovations to the EMEA marketplace faster and more efficiently," said David Ernsberger, vice president of worldwide sales, IBM Technology Group. "As a leading distributor with a long and successful track record, MCE is perfectly positioned to deliver IBM's technologies to resellers, systems integrators and OEMs."

"This agreement greatly enhances our portfolio, allowing us to bring our customers a much wider range of IBM solutions," said Klaus Reichl, chief executive officer, MCE. "We've always admired and trusted the quality of IBM's products, so this furthers our strategy of offering the very finest storage devices, storage solutions and peripheral offerings."

IBM Technology Group Solutions Partners go beyond the distribution of individual components, focusing on the delivery and support of advanced technology solutions. They provide a support role not only to IBM but also to other distributors and even other Technology Group Solutions Partners. These capabilities will allow IBM's and MCE's customers to effect a rapid evolution of technologies from concept to market offerings.

In January IBM announced a similar agreement with Bell Microelectronics, covering the distribution of IBM technology in the U.S., Canada and Latin America. In 1999, IBM signed a Solutions Partner agreement with GES International, Ltd., covering the distribution of IBM technology in the Asia Pacific region.

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