REPORT: IBM Software Leads Power Generation and Energy Delivery Industries

Market Wire, May, 2007

IBM (NYSE: IBM) today announced that in a new Energy Insights report, IBM software was cited as a leader in Work and Asset Management for both the Power Generation and Energy Delivery industries.

According to the two separate "Industry Short Lists" that evaluated vendors in the Work and Asset Management for Energy Delivery and Work and Asset Management for Power Generation, IBM's Maximo® solution was a leader in both reports. The reports cite Maximo's historic strength and leadership in these industries, as well as the solution's deep functionality and industry-specific capabilities.

Energy Insights' methodology assesses vendors on two major criteria: "Fit to Market Need" and "Ownership Confidence." In both categories for both industries Maximo was named a leader in the short list report format.

"These results from Energy Insights' latest reports further demonstrate IBM's deep commitment and experience in working with customers to deliver solutions to help transform the energy industry," said Bill Sawyer, vice president, Maximo operations, Tivoli Software group. "We're building on our leadership position, and have committed significant development resources to ensure that we are leaders in the work and asset management field well into the future."

Energy Insight's Industry Short List results are based on three principles: fact-based research, industry focus, and evaluation transparency. Vendors are assessed on two main criteria. The "fit to market" analysis examines the product's strength in terms of feature/functionality, interoperability, architecture, quality of service and support, and cost. The "ownership confidence" addresses the soundness of a supplier's strategy, financials, commitment to an industry, and customer satisfaction. More information can be found at www.energy-insights.com .

About IBM

For more information on IBM, please visit www.ibm.com . Additional information on IBM's Maximo can be found at http://www.maximo.com .

Maximo® is a registered trademark of IBM, Inc.

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Media Contact: Vaughn Harring IBM 781 280-6855 vharring@us.ibm.com