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IBM Establishes $500 Million Fund to Help Net Generation Companies Grow


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NORTH CASTLE, N.Y - 14 Jan 2000: -- IBM today announced the establishment of a $500 million global fund that will significantly enhance its Net Generation financing program and expand IBM's support to fast-growing business-to-business Internet companies.

IBM Global Financing will team with select venture capital firms to provide financing for IBM hardware, software and services to emerging Net Generation companies that have already completed their first round of venture capital financing. IBM intends to expand its relationships with venture capital firms that have Internet companies in their portfolios, and will offer these companies access to additional capital for growing their IT infrastructure.

"We recognize that Net Generation companies have unique requirements, and we are committed to delivering flexible, creative financing options that will support their needs and enable them to grow their businesses," said William Doscas, vice president, financial products and sales operations for IBM Global Financing. "In view of demonstrated customer acceptance and a growing demand in the Internet marketplace, IBM Global Financing is making additional funds available to help qualified Net Generation companies acquire IBM hardware, software and services."

"Aggressive financial support programs are just one way IBM is helping Net Generation companies establish their business and become profitable," said Jim Corgel, general manager, IBM Global Net Generation Business. "Drawing on resources throughout the company, IBM is developing and delivering the products and services that Internet start ups need to take advantage of the tremendous opportunity before them."

In addition to the new fund announced today, IBM offers a broad array of financial alternatives specifically for Net Generation businesses. In aggregate, IBM has more than one billion dollars committed to Net Generation companies. These key IBM programs include:

- funding in venture capital firms that specialize in developing Net Generation companies;
- acquisition of start-up ventures that meet a specific business need;
- an incubator program that provides qualified Internet start ups with technology and services valued at approximately $1 million at no cost for six months;
- flexible leasing, financing and rent-to-own offerings.

Serving customers in more than 40 countries as the largest IT financier in the world, IBM Global Financing offers businesses of all sizes leasing and financing solutions for hardware, software and services acquired from IBM and other vendors. With approximately $40 billion in annual financing originations, IBM Global Financing also provides flexible commercial financing for inventory, accounts receivable and acquisitions. In the U.S., IBM Global Financing customers are served by IBM Credit Corporation.

For more information on Net Generation financing, call 1-877-477-1255. For more information on IBM's strategy, visit http://www.ibm.com.

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