IBM #1 in Worldwide Server Revenue, #1 in UNIX Server Revenue

IDC reported today that in the fourth quarter 2005, IBM is first in worldwide server revenue share for the eleventh consecutive quarter, first in blade server revenue share for the ninth consecutive quarter and first in UNIX-based server revenue.

According to IDC, IBM UNIX-based server revenue was number one in 2005, moving ahead of both HP and Sun, with revenue growth up 11.3 percent year-to-year for the full year and 3 percent for the fourth quarter of 2005. IBM led in fourth quarter blade server revenue with more than 42 percent of the revenue share and led full-year blade server revenue with 40.9 percent revenue share.

Highlights from the IDC report include:

--  IBM is number one in worldwide server revenue share with 38.4 percent
    revenue share in 4Q05 and 32.9 percent revenue share in 2005 overall.
--  IBM led global UNIX-based server revenue growth of the major vendors,
    up 3 percent in 4Q05 YTY, grew revenue YTY for the sixth consecutive
    quarter. In 2005 overall, IBM UNIX-based server revenue led the industry
    with 31.8 percent revenue share, with revenue up 11.3 percent YTY.
--  IBM continued to lead in worldwide blade server revenue and revenue
    share for the tenth consecutive quarter ending 4Q05, with 42.7 percent
    revenue share and revenue up 35.7 percent YTY. For the full year 2005, IBM
    led blade server revenue with 40.9 percent of revenue share, with revenue
    up 68 percent YTY.

About IBM

IBM is the leading server vendor in the world. For more information about IBM, visit www.ibm.com.

1. Based on IDC Worldwide Quarterly Server Tracker, 4Q05, issued on February 21, 2006

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Media Contact: John Crowe IBM Corporation 512-286-3182 crowejd@us.ibm.com