IBM Wins Georgia Services Contract

State to Save Millions on Managing Assets

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ATLANTA, GA - 21 Feb 2006: IBM today announced it won a contract with the state of Georgia to manage its information-technology assets, as well as its fleet and facilities inventory. IBM also will document and process Georgia's surplus assets and inventory.

As part of the Enterprise Asset Management System project, IBM will implement and integrate software designed by MRO Software (NASDAQ: MROI) of Bedford, Mass. That software, Maximo Enterprise Suite (MXES), will help the state optimize the longevity and productivity of its assets, as well as manage its fleet inventory of more than 21,000 vehicles.

Earlier, the governor's Commission for a New Georgia tagged the state's asset-management program as a source of inefficiency. That board, comprised of business leaders, recommended ways to gain efficiency and reduce costs in certain government agencies.

The commission's fact-finding task force reported that the current processes and programs for managing assets were outdated and inconsistent. It recommended that Georgia shift to a system of 21st Century technologies and management techniques that are proving "best practices" for the private sector and for other states.

A report issued by the commission estimated the state would save more than $35 million in asset and fleet-management costs over the next four years. The bulk of that -- an estimated $25 million savings -- will be realized just in fleet-management costs during the first year alone.

Funding for the Enterprise Asset Management project was appropriated by the state legislature in the 2005 session.

IBM Corp. earned the top score in a competitive bidding process, based largely on its successes with similar projects in other states and in the private sector.

MRO Software's enterprise asset and service management solutions are used in numerous government agencies and facilities, including the Ronald Reagan Federal Office Building in Washington, D.C., the Pentagon and NASA, among others. The ARC Advisory Group analyst firm has ranked MRO software the market leader in enterprise asset management four years in a row.

In addition to its experience and demonstrated success working with state governments, IBM and MRO Software scored strongly on a plan to train the state's purchasing staff. This effort will result in the state's ability to take over at the end of the year and sustain the system into the future.

The contract is worth an estimated $2.9 million for the eight-month project.

IBM employs more than 7,500 persons in Georgia.

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