Pathmark Extends IBM Services Contract

Seven-Year Contract Supports Supermarket's Business Goals

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CARTERET, N.J. & ARMONK, N.Y. - 26 Apr 2005: Pathmark Stores, Inc. has awarded IBM a seven-year IT services contract that extends a full array of vital back office and in-store support to include exciting new innovations like ultra-fast data communications and anti-spam technology. IBM will also expand the disaster-related services it provides Pathmark to allow the supermarket continued use of personal computers and printers.

Operating 142 supermarkets in the New York, New Jersey and Philadelphia metropolitan areas, Pathmark has for the past 14 years worked with IBM to support its in-store and back-office infrastructure, server complex, help desk, network, disaster recovery operations, and software applications. IBM also supports and maintains Pathmark's 1,760 desktop computers.

Under the new contract, IBM will provide anti-spam email security management services to re-route the company's email traffic through filtering centers that intercept and store unwanted emails.

IBM will partner with AT&T to deliver a high-speed Virtual Private Network that will enable Pathmark to handle the increased flow of data between stores and corporate headquarters. Pathmark expects that store managers will be able to use the ultra-fast network to view snapshots of real-time data and perform other tasks.

IBM will also extend the disaster-related services to provide Pathmark access and use of personal computers, printers and local area networks.

"The grocery industry is one of the most competitive businesses in the world, and timely, accurate information is vital to our productivity and cost control," said Robert Schoening, senior vice president, Pathmark. "IBM provides unmatched breadth and depth of service combined with a commitment to innovation that drives business results and allows us to offer new services to our customers."

"Pathmark is skilled at providing customers with the right product at the right price," said Stephen Fenn, vice president, retail industry, IBM Global Services. "Our experience working with Pathmark over the years has given us an intimate knowledge of the supermarket's operations that will help us deploy technology solutions that enhance the customer experience as well as business results."

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