IBM Completes Acquisition of Internet Security Systems

ISS Becomes Business Unit of IBM Global Services

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ARMONK, NY - 20 Oct 2006: IBM (NYSE: IBM) today announced it has completed its acquisition of Internet Security Systems, Inc. (ISS) (NASDAQ: ISSX) of Atlanta, GA.

IBM announced a definitive agreement to acquire ISS, an industry leader in preemptive enterprise security, on August 23, 2006. IBM acquired ISS to bring its unique ahead-of-the-threat security approach to a broad range of customers worldwide. ISS provides security solutions to thousands of the world's leading companies and governments, helping to proactively protect against Internet threats across networks, desktops and servers. ISS software, appliances and services monitor and manage network vulnerabilities and rapidly respond in advance of potential threats.

This acquisition advances IBM's strategy to utilize IT services, software and consulting expertise to automate labor-based processes into standardized, software-based services that help clients optimize and transform their businesses. IBM and ISS have been working together since 1999.

"For the past 12 years, ISS has provided thousands of customers with leading-edge, innovative and effective security products, services and intelligence," said Val Rahmani, General Manager, Infrastructure Management Services, IBM Global Services. "Incorporating ISS' proactive, integrated security platform into IBM's portfolio will provide customers with the protection they expect from an industry leader."

"ISS has been a part of the security industry since its inception, pioneering both vulnerability assessment and intrusion detection/prevention technologies and setting the security agenda for many of the world's largest organizations, including the U.S. government," said Thomas Noonan, ISS General Manager at IBM and former CEO of ISS. "Today's acquisition is about bringing trusted security to additional organizations around the world. Being a part of IBM will propel ISS' preemptive security vision to a much wider audience."

As an integrated business unit within the Infrastructure Management Services organization of IBM Global Services, ISS will retain its offices in Atlanta, GA and be led by Noonan.

IBM plans to expand sales and development of the ISS Proventia® product line and ISS Managed and Professional Security Services, integrating capabilities with IBM offerings when applicable and developing new, integrated solutions over time. ISS provides more than 11,000 customers with a comprehensive, integrated and extensible platform of technologies and services, which are designed to protect critical infrastructure and assets from unwanted intruders. Its line of network, desktop and server protection products and services complement IBM's security and privacy portfolio.

The ISS X-Force® research and development team will also play a key role in this acquisition. IBM will link the expertise of the X-Force with its own world-class research organization and grow this capability by continuing to recruit and train leading security specialists.

ISS threat protection systems complement IBM's Tivoli identity and access management software, addressing and managing customer security and privacy needs.

About IBM

For more information about IBM, go to

About Internet Security Systems, Inc.

Internet Security Systems, Inc. is the security advisor to thousands of the world's leading businesses and governments, providing preemptive protection for networks, desktops and servers. An established leader in security since 1994, the ISS integrated security platform is designed to automatically protect against both known and unknown threats, and helps to keep networks up and running and shields customers from online attacks before they impact business assets. ISS products and services are based on the proactive security intelligence of its X-Force research and development team -- a world authority in vulnerability and threat research. The ISS product line is complemented by comprehensive Managed Security Services and Professional Security Services.

Internet Security Systems is a trademark and Proventia and X-Force are registered trademarks of Internet Security Systems, Inc., an IBM Company. All other companies and products mentioned are trademarks and property of their respective owners.

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