IBM Purchases Asset Management Company

August 7th, 2006: IBM has confirmed that it is to acquire MRO Software Incorporated, a publicly held company based in Bedford, Mass, in an all-cash transaction at a price of approximately US$740 million.

MRO provides asset and service management software and consulting, used by companies including Hewlett Packard, Intel, DuPont Pharmaceuticals and ExxonMobil to manage how they buy, maintain and retire assets. These assets include production equipment, facilities, transportation and information technology (IT) hardware and software.

IBM's Al Zollar, general manager, IBM Tivoli software, supported the acquisition with the following comments, "In a recent IBM study, 40 percent of CEOs indicated that asset utilisation would be a key focus in strengthening financial performance,". "MRO software is a powerful addition to IBM's portfolio of software and services. This acquisition will provide companies with a single view into all of their assets, helping them to maximize efficiencies, drive productivity, and innovate business processes across the enterprise."

The acquisition of MRO Software will add to the enterprise systems management capabilities of IBM's Tivoli software portfolio and enhance IBM's already strong asset management consulting capabilities in IBM Global Services. MRO Software has produced double-digit growth since the company reported revenues of $199.2 million for the fiscal year ending September 30, 2005.

Following completion of the acquisition, IBM intends to:

• Establish MRO Software's operations as a business unit within IBM'sTivoli software unit.
• Incorporate MRO software technology into IBM's Tivoli softwareofferings.
• Market and sell MRO software products through IBM's and MRO'sworldwide sales channels and IBM Business Partners.
• Further expand the scope and capabilities of IBM's industry-leadingbusiness and IT asset management consulting practices, and deliver servicesfor MRO-based solutions through IBM Global Services.

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