UPDATE on IBM Network Station NOW

Business Wire, Feb 27, 1997

MIAMI BEACH, Fla.--(BUSINESS WIRE)--Feb. 27, 1997--

EDITOR'S NOTE: The IBM Network Station NOW program begins

March 28, 1997.

IBM Business Partner Executive Conference (BPEC)... Responding to burgeoning customer interest in its versatile, new network computer, the IBM Network Station(a), IBM today announced that its Business Partners can now more easily include the device in their IBM server offerings. IBM Business Partner solution packages that combine IBM servers with at least five IBM Network Stations, are eligible for attractive financing at below prime rate from IBM Credit Corporation.(c) Similar offerings are available outside the U.S. with local IBM financing.

IBM also announced that through June 30, 1997, it will pay a maximum of $1,000 (U.S.), per customer enterprise, to each of the first 750 Business Partners worldwide that install eligible IBM PC Server systems or IBM AS/400(a) Advanced Entry business computers with at least five IBM Network Stations. This is to encourage Business Partners to develop the skills for delivering network computer support services to their customers.

These new initiatives, which comprise the IBM Network Station NOW program and are effective March 28, can help IBM Business Partners assemble customized, cost effective solutions attractive to businesses of all sizes who want to begin using network computers. Business Partners can install WinCenter(b) software from Network Computing Devices, Inc. of Mountain View, Calif. so that customers using IBM PC servers can run familiar Windows(b) applications.

The packages also create an additional business opportunity for IBM Business Partners by providing an environment for their existing applications, as well as those optimized with Java(b) or adapted for intranet use.

"Feedback on the IBM Network Station from our customers and Business Partners has been uniformly positive and enthusiastic, so the next logical step is to make this exciting, new product an even better value," said Bob E. Dies, general manager, IBM Network Computer Division. "We believe that more fully integrating the IBM Network Station with server offerings will prove profitable to our Business Partners, the primary distributors of the product, and be attractive to our mutual customers."

Early interest in network computers is high; in fact, 65% of businesses surveyed by the Yankee Group plan to buy network computers (NCs) within two years. The Gartner Group predicts that approximately 20% of desktop clients sold in a few years will be NCs. And the INPUT research firm estimates that the worldwide market for NCs will reach $12.5 billion by 2001.

IBM is helping to create a new breed of network client. Industry experts say NCs have about half of the long-term costs associated with PCs, and make it possible to instantaneously deploy and upgrade applications to multiple desktops. These devices, which complement PC clients within an enterprise, can help reduce complexity on the business desktop and enhance productivity.

Users at any IBM Network Station location can access their personal desktop, which may include productivity applications, Web browsers, Lotus Notes(b), intranet and server-based software. And the flexible IBM Network Station, which enables concurrent access to applications on both IBM and many non-IBM servers, allows users to run Java and Windows applications, as well as traditional, host-based programs.

IBM's network computer uses only seven watts of electricity (about the power of a nightlight), which means substantial savings for large companies with many users.

IBM Network Computer Division

IBM formed its Network Computer Division in November 1996, providing a focal point for the development, management and delivery of cost effective, versatile network clients. According to the Gartner Group, IBM, with the IBM Network Station, has a "significant edge in terms of ability to execute," particularly with its "strength in channels, marketing and server support."

(a) Trademark or registered trademark of International Business Machines

Corporation. (b) Trademark or registered trademark of their respective companies. (c) IBM Credit Corporation's offerings are available to commercial and

state and local government customers in the United States. Lowest

rates apply to best-credit customers. Rates are subject to change.

Editors' Note: IBM Network Station slides are available. Please contact Ari Fishkind, TSI for IBM, at 212-696-2000, x232, or afish@tsipr.com

The IBM home page can be found on the Internet at http://www.ibm.com, with information about the IBM Network Station at http://www.internet.ibm.com/networkstation

CONTACT: John Reilly

IBM, (914) 766-3537

jcreilly@vnet.ibm.com