IBM to Open Largest Software Campus in Massachusetts, Enhancing Investment in Bay State High Tech Talent

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BOSTON, MA - 14 Aug 2007: Continuing its pattern of growth, IBM (NYSE: IBM) today announced it will open the largest software campus in Massachusetts in 2008. The software campus, comprised of sites in Littleton and Westford, Massachusetts, will bring together 3,400 of IBM's top technical talent in the state.

Two-thirds of IBM's nearly 5,000 employees in the state focus on the software part of IBM's business. IBM predicts that its highly profitable software unit will represent 50% of IBM's overall profit by 2010.

Since 1995, IBM's software business has grown organically and through strategic acquisitions. IBM has acquired nine Massachusetts-based companies including Lotus Development Corp., Rational Software Corp., Ascential Software Corporation, and most recently Watchfire Corporation based in Waltham, MA.

"IBM is committed to nurturing the human talent, and economic strengths of the Massachusetts community," said Michael Rhodin, senior state executive and general manager, Lotus Software, IBM. "The state-of-the-art software campus will become a magnet for new and existing employees to innovate, create software and foster their career growth with IBM."

Currently, IBM employees are spread across eight sites throughout Massachusetts. Once the transition to a new campus is complete, IBM's Massachusetts presence will consist of four sites in Cambridge, Waltham and the new Littleton/Westford software campus.

IBM is committed to environmentally friendly construction and technology. The new IBM software campus will be renovated to create a state-of-the-art software lab that fosters collaboration and allows for organic growth and acquisitions.

About IBM in Massachusetts
IBM has long been a key economic contributor to the state of Massachusetts. IBM's Labs in Massachusetts have developed ground-breaking and innovative technologies to the marketplace that have changed the way people work and collaborate. Since 1995, IBM employees in Massachusetts were awarded 2,773 patents.

IBM has partnered with more than 100 Venture Capital backed, small technology companies in Massachusetts, and has more than 1,600 business partners in New England.

IBM is focused on giving back to the Massachusetts community and sponsors many leading programs. For example, IBM Massachusetts employees in the last two years donated more than $1.5 million in cash and technology equipment and contributed more than 43,000 volunteer hours to schools and local organizations. Recognizing IBM's contributions to the state, the Associated Industries of Massachusetts presented IBM with its John Gould Award for Education & Workforce Development, and the Boston Globe recently highlighted IBM as number one in the Globe National 25 which ranks publicly-held companies based outside Massachusetts with a major presence in the state, ranked by composite performance. No other technology company made the top five.

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