Kaiser Permanente Teams With IBM to Enhance Technology-Powered Health Care

Data Center Operations Support Services for Members, Patients and Physicians

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ARMONK, NY and OAKLAND, CA - 16 Mar 2009: IBM (NYSE: IBM) and Kaiser Permanente today announced they have entered into a strategic agreement designed to ensure the continued leadership of Kaiser Permanente's information technology (IT) capabilities, which support the high-quality health care delivered to the organization's 8.6 million members nationwide. The seven-year agreement was signed on March 13, 2009.

As part of the agreement, IBM will leverage its global technology capabilities to manage Kaiser Permanente's data center operations, including computer systems, storage systems and associated software. Kaiser Permanente will continue to manage applications, including the organization's industry-leading electronic health record, Kaiser Permanente HealthConnect™.

"Kaiser Permanente has led the health care industry in developing and using groundbreaking technology that connects the patient and physician in ways that enhance the quality of care and make health care more efficient," said Phil Fasano, chief information officer for Kaiser Permanente. "This agreement, grown out of our long-standing strategic relationship with IBM, will allow us to build on our leadership in health care technology, staying focused on the safety, satisfaction and privacy of our members and patients and ensuring that our physicians and clinicians continue to deliver real-time, personalized health care."

"IBM sees information-based medicine helping propel health care from its currently unconnected local and regional sectors into a borderless industry that spans the globe," said Chris Nicoletti, IBM vice president, Healthcare and Life Sciences Industry. "IBM is pleased to work closely with Kaiser Permanente's industry-leading IT organization in efforts to make health care more interconnected, more instrumented and more intelligent. We are delighted to expand our long standing relationship by providing IT services that enable real-time health care."

Each day, 14,000 physicians and thousands of other caregivers access KP HealthConnect and related IT systems to support care and service delivery. Additionally, 2.7 million members use My Health Manager on kp.org to access their online personal health record and other services, including secure email and prescription refills. The IBM strategic agreement will help ensure that these systems are available for use when and wherever they are needed.

As a result of the agreement, about 700 positions in Kaiser Permanente's data center operations will be eliminated. Some of the affected employees will be eligible for employment with IBM.

About IBM:
For more information about IBM, please visit www.ibm.com/services.

About Kaiser Permanente:
Kaiser Permanente is America's leading integrated health plan. Founded in 1945, the program is headquartered in Oakland, California. Kaiser Permanente serves 8.6 million members in nine states and the District of Columbia. Today it encompasses Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries, and the Permanente Medical Groups. Nationwide, Kaiser Permanente includes approximately 164,000 technical, administrative and clerical employees and caregivers, and 14,000 physicians representing all specialties. The organization's Labor Management Partnership is the largest such health care partnership in the United States. It governs how more than 130,000 workers, managers, physicians and dentists work together to make Kaiser Permanente the best place to receive care, and the best place to work. For more Kaiser Permanente news, visit the KP News Center at: http://xnet.kp.org/newscenter.

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