Delta Technology Selects IBM for IT Infrastructure Services

Reliable and Flexible Infrastructure Enables Delta Technology to Focus on Delta Air Lines Core Business Needs

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ARMONK, NY - 21 Aug 2006: Delta Air Lines, Delta Technology, Delta's wholly-owned subsidiary, and IBM (NYSE: IBM) today announced a seven year, Information Technology (IT) infrastructure services agreement to help support the airline's ongoing IT needs as it restructures its operations and progresses toward emergence from bankruptcy in the first half of 2007.

Under the agreement, IBM will partner with Delta Technology to provide Delta with comprehensive IT mainframe and mid-range services. By outsourcing the airline's IT infrastructure management, Delta will realize a significant cost savings over the term of the agreement.

"Delta and Delta Technology are partnering with IBM to provide the airline with a flexible, responsive and cost-effective service delivery model," said Shirley Bridges, Chief Information Officer of Delta Air Lines. "IBM demonstrated that it has the industry knowledge and technical expertise to meet the demands of a major airline. By working together, we will achieve our goal to reduce costs on a long-term basis while ensuring a positive customer experience."

"Leading companies such as Delta are increasingly using strategic outsourcing to transform their IT infrastructure into an environment that enables both efficient cost management and a high standard of customer service and satisfaction," said Dwayne Ingram, Vice President Travel & Transportation, IBM Global Technology Services. "By working with IBM, Delta gains access to our extensive experience in the airline industry and can leverage state-of-the-art computing capabilities to bring innovative solutions to safely transport passengers and cargo."

Delta has sought bankruptcy court approval of the agreement.