May 16, 2008 10:20 ET

IBM Signs Services Deals With Clients in Brazil

ARMONK, NY--(Marketwire - May 16, 2008) - IBM (NYSE: IBM) today announced it has signed services agreements in Brazil with a major entertainment company and a development bank. The agreements include:

--  The Rede Brasil Sul de Comunicacao (RBS) Group - A major entertainment
    enterprise in Brazil selected IBM to implement a Networked Interactive
    Content Access (NICA) solution.  This solution, developed by IBM, is used
    for digital file management of printed and on-line media content. The RBS
    Group is the first Brazilian company to acquire the solution, which will
    include a twenty-four-hour IBM support service.  The NICA solution from IBM
    is already in use worldwide at other large media groups.
    NICA accelerates interaction between all production steps of a
    publishing medium. Picture requests are entered into the system and
    sent to the photographers, who create the images and upload them into
    NICA. The solution will integrate both the agenda and editing systems
    of the newspaper or media site. The software program will also
    centralize and integrate all picture files of the Group, so that
    whenever a picture is retrieved from the records, the journalist or
    photographer will also be able to know when it was used, on which
    occasion and for which of the eight RBS newspapers and sites.  The
    agreement was signed during the first quarter of 2008.
--  Banco Nacional do Desenvolvimento Econômico e Social (BNDES) - IBM
    signed an agreement with BNDES for access to IBM's alternative data
    processing center to assist in disaster recovery, as well as, security
    services for the collection, delivery and custody of BNDES's external
    security tape library. BNDES's mission is to promote Brazil's development
    by boosting the Brazilian economy's competitiveness, prioritizing the
    reduction of both social and regional inequalities, and maintaining and
    creating employment opportunities. The agreement is for twenty-four months
    and R$8,450,000 (BRL currency). It was signed in the second quarter of

"These services agreements reflect the strength of IBM's global business model and our unmatched track record in business and IT transformation," said Gonzalo Escajadillo, general manager, Global Technology Services, IBM Latin America. "Brazil is a key growth market for IBM and we are uniquely positioned to effectively integrate local and global capabilities to help our Brazilian clients succeed."

IBM recently reported that during the fourth quarter of 2007, the company generated sixty-five percent of its business outside the United States. Today's agreements further indicate that IBM's strategic focus on delivering technology and services to growth markets, such as countries in Central and South America, is gaining momentum.

In 2007, IBM reported that BRIC countries -- Brazil, Russia, India and China -- represented twenty-two percent of IBM's revenue base.

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