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IBM Chief Procurement Officer transition to Budapest, Hungary

December 2, 2011

Dear Supplier:

I would like to inform you that I am relocating the Chief Procurement Office from Shenzhen, China, to Budapest, Hungary.

In relation to IBM's recent investments in growth markets such as Africa and the creation of a new procurement center in Ghana, this move will help align my office closer to our suppliers in Eastern Europe and Africa and will allow me the opportunity to share our expertise and accelerate business with our newer clients in those areas.

By relocating the office of Chief Procurement Officer (CPO) to Hungary, IBM Global Procurement is taking the next logical step toward developing a more geographically-distributed executive structure, and it is a strong testament that much has been achieved in the last six years since IBM first moved its Procurement headquarters to China from which we have grown a strong, mature supplier base in the Asia Pacific region. With this move, we intend to continue our focus and strategy of maintaining and building long-term supplier relationships.

I thank you for your support. Please direct any questions you may have to your IBM relationship manager or council chair counterpart in Procurement.

John Paterson
Vice President and Chief Procurement Officer