Texaco Forms Strategic Alliance with IBM Global Services

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WHITE PLAINS, N.Y - 08 May 2000: -- Texaco today announced that it has awarded a five-year, $100 million contract to IBM Global Services to be the company's primary global information technology (IT) service provider. This alliance will assist Texaco in its continuing focus on implementing cutting-edge e-business solutions and IT strategies.

IBM Global Services will be responsible for managing Texaco's 9,000 North American desktops and the company's Local Area Networks. Additionally, IBM will provide remote support for 550 servers located at over 30 locations around the world. Over time, Texaco plans to extend IBM desktop support globally to more than 17,000 users.

James R. Metzger, Texaco Vice President and Chief Technology Officer stated, "To support our rapid growth in e-business, we have selected strategic partners to participate in the delivery and support of a high performance computing infrastructure. The formation of this alliance with IBM is another step in Texaco's strategy to optimize our use of technology across our businesses on a global basis."

"IBM is delighted to continue to provide and expand our IT support for Texaco on a domestic and global basis," said Jim Kast, IBM Global Services Vice President Process and Petroleum Industry. "IBM will provide the flexibility of services and appropriate job skills to enable Texaco to remain a leader in the petroleum industry."

During the past month, Texaco has announced a number of strategic alliances with leading technology companies, including Dell Computer Corp., Concert (AT&T/BT global venture) and Landmark Graphics Corporation. These alliances were established to provide the necessary infrastructure and technology support for the company's expanding internal and external e-business portfolio.

Operating in over 150 countries, Texaco explores for and produces crude oil and natural gas; manufactures and markets high quality petroleum products; operates transportation, trading and distribution facilities; and produces alternate forms of energy for power and manufacturing.

IBM Global Services is the world's largest information technology services provider, with 1999 revenues of approximately $32 billion. Services is the fastest growing part of IBM, with more than 138,000 professionals serving customers in 160 countries. IBM Global Services integrates IBM's broad range of capabilities -- services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. For more information visit http://www.ibm.com/services. http://www.texaco.com

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