IBM Invests US$2.2 Million to Expand Linux Technology Center in Brazil

Investment in Labs and University Collaboration Makes Linux Technology Center in Brazil One of Company's Five Largest Worldwide

SAO PAULO, BRAZIL - 23 May 2006: Linux World Conference -- IBM today announced the company will invest US$2.2 million in 2006 to expand its Linux Technology Center (LTC) in Brazil.

Developers at IBM's Linux Technology Center in Brazil will work to make Linux better as part of the open source community specializing in developing Linux with cell, power and virtualization technologies.

The investment will be used to complete construction of a Linux development laboratory in Hortolândia and expand a second lab in Campinas, on Brazil's Unicamp campus. It will assist with upgrading lab construction and equipment, furthering software development projects with Linux, and expanding student internships and job opportunities for recent graduates as a result of a collaboration between IBM and Brazil's Unicamp campus.

"IBM's Linux Technology Center team in Brazil is rapidly becoming a worldwide leader for driving innovative Linux and Open Source technologies into emerging markets," said Jeff Smith, vice president, Open Source and Linux Middleware, IBM. "The Center is helping customers gain a competitive edge from Linux-based solutions by working with Brazilian universities to advance educational opportunities for students, and stimulate technology and economic development in the region."

With today's announcement, The Linux Technology Center in Brazil will now become one of the five largest Centers of its kind in the world. IBM Linux sales in the key emerging markets of Brazil, Russia, India and China, "BRIC" countries, grew 75% from 2005 to 2006.

Investment Supports Innovative Linux and Open Source Projects

The investment will enable engineers and developers at the Linux Technology Center in Brazil to work on the following new projects:

Advances Collaboration Between IBM and Unicamp
Many of the developers working at the Technology Center are recent graduates of Unicamp, a university in Brazil. At the Campinas laboratory, for instance, IBM will provide scholarships for Unicamp students. As part of a partnership between the University and IBM, researchers at Unicamp are collaborating with IBM computer scientists in Brazil to help train recent graduates at the University's Computer Institute. IBM also contributed laboratory equipment and software, scholarships for students, and professional mentors to help manage project development.

Expands IBM's Commitment to Linux Technology Centers Worldwide
The IBM Linux Technology Center is a worldwide organization with teams in approximately 40 locations. It comprises some 600 engineers worldwide, of whom more than 300 work full-time on Linux as part of the open source community. The investment to expand Linux development in Brazil complements ongoing work at IBM's Linux Integration Centers, Linux Innovation Centers and Linux Competency Centers, all of which help customers port applications to Linux. IBM now ranks number one in overall Linux-based server revenue worldwide. [1]

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1 [1] Based on Gartner's Worldwide Server Quarterly Statistics for 04Q05, issued on February 21, 2006.