August 26, 2005 00:01 ET

IBM #1 in Worldwide Server Revenue

Analyst Firm Reports IBM Takes Top Spot in UNIX Revenue, Leads in Blade Server Revenue(1)

ARMONK, NY -- (MARKET WIRE) -- August 26, 2005 -- IDC reported today that in the second quarter 2005, IBM is first in worldwide server revenue for the ninth consecutive quarter, first in UNIX®-based server revenue and first in blade server revenue for the eighth consecutive quarter.

According to IDC, IBM overtook the top position in UNIX-based server revenue, growing nearly seven points year-to-year. IBM also led second quarter 2005 blade server revenue with more than 40 percent of the revenue share.

Highlights from the IDC 2Q05 report include:

--  IBM is number one in worldwide server revenue with 31.9 percent
    revenue share, up 4 percent in revenue year-to-year (YTY).
--  IBM claimed the number one position in global UNIX-based server
    revenue share, gaining 6.9 points YTY, up 31.8 percent YTY.
--  IBM continued to lead in worldwide blade server revenue and revenue
    share for the eighth consecutive quarter ending 2Q05, with 40.9 percent of
    the revenue and total revenue up 76.1 percent YTY.
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(1) Based on IDC Worldwide Quarterly Server Tracker, 2Q05, issued on August 25, 2005

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