IBM and Acer Group In $8 Billion Technology Agreement

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TAIPEI, Taiwan - 07 Jun 1999: . . . IBM and Acer Group today announced a seven-year procurement and technology alliance.

Under the pact announced today, Acer will purchase hard disk drives (HDDs), microelectronics, networking, and display technology from IBM for integration into its server, desktop, and notebook computer products. The value of these purchases is expected to reach $8 billion over the course of the agreement. Acer will also sell IBM technology including hard disk drives through its distribution channels.

This new technology alliance is an expansion of an already existing broad set of relationships between the two companies. Acer and the IBM Personal Systems Group currently have a multi-billion dollar agreement under which Acer manufactures IBM Personal Computers.

The two companies also plan to explore opportunities for manufacturing collaboration, the exchange of complementary technology and joint development which could result in near term business impact. These include:

Said Acer Group Chairman and CEO, Stan Shih: "Acer has a very broad technology base in the PC industry. There has been a close ongoing business relationship between IBM and Acer, both as a supplier and a customer. This new technology alliance with IBM will allow us to combine the resources and advantages of both companies to provide the industry better service and to offer enabling technology and components to customers in today's PC market and in the coming post PC Age."

"This agreement will significantly expand the relationship between Acer and IBM," said Dr. James T. Vanderslice, senior vice president and group executive, IBM Technology Group. "It is a further proof point of IBM's leadership technology and the ability to integrate this technology into solutions for the marketplace. It is a partnership that combines Acer's strengths with IBM's leadership technologies." Vanderslice commented.

Established in 1976, Acer is the world's third-largest PC manufacturer, offering a broad selection of industry-leading high-end servers, multimedia PCs, notebooks, computer peripherals, components and semiconductors. In addition to Acer branded products, Acer also provides ODM/OEM manufacturing for IBM and other companies. The Acer Group employs more than 28,000 people in 120 enterprises spanning 37 countries worldwide, supporting dealers and distributors in over 100 countries. The Acer Group's revenue in 1998 was US$6.7 billion. For more information about the Acer Group, please visit our web site at

IBM, the world's largest information technology company, has identified services, software and the sale of its leadership technologies as key growth areas for the company. The mission of its Technology Group, formed in the fall of 1998, is to identify and deliver commercial applications for IBM-developed technology in the OEM marketplace.

Earlier this year, IBM closed OEM agreements with Dell Computer Corp., and with EMC, the value of which is expected to reach $19B. The Technology Group consists of IBM's system storage, microelectronics, networking hardware, displays, embedded systems and printing systems units. More information about IBM can be found at

Editor's Note: IBM Corporation and Acer Group will conduct a press teleconference on Monday, June 7, 1999 at 12:00 noon EST to discuss the details of the announcement. Press are invited to attend at the following numbers:

U.S. Press: 800-230-1074

All Others: 612-332-0107

The call reference is IBM/Acer Conference Call.

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