Leading South American Telecom Company Selects IBM For IT Services

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ARMONK, NY - 28 Mar 2008: IBM (NYSE: IBM) and Telefónica Argentina, Chile, Colombia y Perú, a leading private company in the global telecommunications market, today announced they have extended their information technology (IT) services contract.

As part of the contract, IBM will operate and provide technical support for mainframe servers as well as a capacity backup upgrade for high availability and disaster recovery, until year 2011. IBM will provide server support at Telefónica Argentina, Chile, Colombia y Perú’s offices and from an IBM data center in Argentina.

This new $18 million IT services agreement will allow IBM and Telefónica Argentina, Chile, Colombia y Perú to continue developing their long-term relationship while their business initiatives evolve.

The agreement was signed in the fourth quarter of 2007.

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For more information, visit www.ibm.com/services.

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