FIAT And IBM Expand Collaboration With New Agreement

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Turin, Italy - 30 Jun 2005: IBM and FIAT Group today announced an information technology agreement worth almost 200 million euro a year for 9 years. Under the agreement, IBM will manage key areas of FIAT Group's IT activities and business process transformation projects and will assume full control of Global Value, the equal joint venture founded by FIAT Business Solutions and IBM Italia in 2001.

The new agreement will assure FIAT of the governance of its IT activities, as it benefits from the innovative use of state of the art technology and specialist consulting from IBM, and resulting in operational flexibility, cost reductions and improved efficiencies.

IBM will transform FIAT's current IT infrastructure, through hardware consolidation and optimisation, implementing an on demand environment. The Turin Integrated Delivery Centre will be able to run standardised operations with benefits in terms of costs and efficiency.

FIAT will have direct access to IBM's global experience and also will benefit from IBM's expertise on best practices and solutions for the automotive industry developed by IBM's research laboratories and International Automotive Competence Centres.

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