New Financing Options from IBM Global Financing Help Companies Step Up to Smarter IT

Deferred Pay, Zero Percent Financing and Economic Stimulus Programs Help Prepare Companies for Growth

ARMONK, N.Y. - As companies look for ways to grow, take market share and become more profitable, IBM Global Financing, the lending and leasing business segment of IBM (NYSE: IBM) is announcing a toolkit of financing offerings to help companies step up to smarter, more efficient technologies. Beginning in October, credit-qualified companies and business partners can take advantage of a smart financing toolkit of opportunities that include deferred payments, zero percent financing and attractive prices on IBM Certified Pre-owned Equipment. Smaller and mid-sized companies can also benefit from a specially configured set of cross IBM solutions that they can acquire at a low monthly price per month, per user.

“For many cash and credit constrained companies, stepping up to Smarter IT can be challenging,” said Dan Ransdell, client financing general manager, IBM Global Financing. “IBM Global Financing is helping to make that evolution even simpler with zero percent financing on IBM software and no-payment deferrals on IBM solutions until 2010.”

IBM, the world’s largest technology solutions provider, has led the charge, helping businesses think differently about their technology infrastructure. New and smarter technology solutions can help make companies more competitive in a down economy. Smarter IT can eventually lead to larger margins and greater profitability for companies.

“Our clients are looking for strategic ways to stretch their IT budget and implement IT solutions that contribute to increased efficiencies,” said Joe Mertens, President, Sirius Computer Solutions. “The products that are part of IBM’s Smarter Planet vision combined with smart financing options from IBM Global Financing are giving us the ability to offer new, game changing solutions to meet our client’s requirements.”

Earlier this year, IGF announced it was making available up to $5 billion in low-cost financing to organizations focused on smart infrastructure projects. Today IBM Global Financing announces new programs to further stimulate global economies, including no payments for 90 days to help clients get projects started quickly on eligible hardware (including IBM Certified Pre-owned Equipment), software and services. Clients can obtain the solutions they need now and begin work on projects tied to IT initiatives such as smarter infrastructure, smart grids, health information technology and smarter transportation, while making no payments until 2010.

IBM Global Financing is also reminding customers in the US that they have a few months left to take advantage of IBM Global Financing’s enhanced IT lending rates and deferrals for hardware made possible by the 2009 Economic Stimulus Act. That law extended accelerated depreciation benefits first introduced by the previous US administration.

Additionally, IBM is announcing a set of “Cost Buster” offerings designed for mid-market clients. The Cost Buster solutions incorporate all of the financing promotions developed by IGF and can express the financing in terms of a simple monthly price broken down to a per user basis on hardware and software. For example, a best credit mid-market company employing the “Collaboration in a Box” solution, built on Lotus Foundations, supporting 25 users with email, remote access, virus protection, web meetings, and more, costs as low as $8 per user per month. Business Partners can see a full range of Cost Buster offerings for the mid-market at the Partner World Cost Buster Website. (IBM Business Partner login required.)

* Monthly payments are estimates based on ’Best’ credit rating, lease rates for installations of qualified products and services in the United States. Actual rates may vary based on your creditworthiness, configuration details, etc. and are subject to credit approval by IBM Credit LLC. For some clients, total software and services is limited to 75% of hardware financed. Other conditions may apply, so please contact your IBM Authorized Business Partner or IBM representative for more information.

The Smarter Financing Toolkit being announced today includes the following programs:

* No Payments for 90 days

IBM Global Financing is offering no payments for 90 days on eligible hardware (including IBM Certified Pre-owned Equipment), software and services. The 90 days are followed by a 36-month fair market value or full payout lease, or software/services financing with competitive rates to qualified clients acquiring IBM and non-IBM hardware, software and services, including IBM Pre-Owned Equipment either directly from IBM or through IBM Business Partners.

The financing structure is a 36-month fair market value or full payout lease, or software/services financing. Clients installing the new solution under these terms make no payments for 90 days, and then make 36 monthly payments. Clients must be credit qualified and finance the eligible components of the solution with IBM Global Financing. Terms and conditions may vary by country. See your local IBM or IBM Global Financing representative for details.

* Zero Percent Financing on IBM Software

IBM Global Financing is extending zero percent financing across its highly-profitable, $22 billion software portfolio in most geographies, including countries in North America, Europe, Japan, and Asia-Pacific. Well credit qualified customers can receive rates as low as 0% on IBM Software Group products and services valued from as little as $5,000 over a 12 month term.

Additionally IBM Global Financing clients can finance multi-year licensing deals as low as zero percent financing rates for 3 years on most IBM Lotus products and solutions. These offerings can also be leveraged by IBM Business Partners selling IBM Software.

“As companies strive to leverage IT to power and streamline their business operations in the face of capital constraints, demand for software financing will continue to increase,” says Joseph Pucciarelli, Research Director, IDC, a leading provider of IT market intelligence. "IDC expects the software financing market to exceed $28 billion worldwide this year.

IBM Global Financing’s 0% software financing offer can help enterprises improve their return on investment, reduce break-even time, preserve cash and other lines of credit and pay for IBM software with fixed, predictable payments.

Competitive rates on 24-36 month terms are available. Program varies in different geographies and other restrictions apply. All deals are subject to approval. Companies interested should contact the IBM Global Financing representative in their country for more details or visit ibm.com/financing for more details.

* Last chance to Take Advantage of Economic Stimulus Act of 2008 Accelerated Depreciation Enhanced Rates.

As a response to the US Economic Stimulus Act of 2008, IBM Global Financing is offering enhanced rates to customers financing hardware solutions in the US until December 31, 2009. A provision for accelerated depreciation gives IBM Global Financing the opportunity to provide competitive lending rates to customers that lease in 2009. The implicit rates on hardware for best credit US customers can be as low as 1.5%. However, customers must act in this next three months to take advantage of this important toolkit opportunity.

* Attractive Prices on IBM Certified Pre-Owned Equipment

IBM has an extensive portfolio of certified pre-owned equipment, including servers, storage and workstations. Buying IBM Certified Pre-owned Equipment can ease burden on credit and/or cash-strapped companies, while giving them peace-of-mind buying trusted technology from a trusted partner.

Examples of Enterprises Leveraging IBM Global Financing to Step Up to Smarter IT.

North America

* 1-800 FLOWERS.COM, INC: To realize its vision of synergy among its 14 brands and meet ambitious growth goals, 1-800-FLOWERS.COM, INC. -- the world’s largest florist and gift shop -- is deploying a single e-commerce platform financed by IBM Global Financing. The solution, based on IBM WebSphere Commerce, is designed to replace multiple silo-ed systems. The new platform adds flexibility and agility, making it significantly easier to launch new Web commerce brands -- allowing the company to try new business strategies with little risk. IBM Global Financing enabled the client to align their payment stream with the anticipated return of their investment. In addition, the shared platform facilitates cross-selling and information sharing across the enterprise, which helps 1-800-FLOWERS.COM gain maximum benefit from its many business units.
* State of Hawaii, Information and Communications Services Division: IBM Beacon Award-winning Business Partner Sirius Computer Solutions helped the State of Hawaii transform their IT environment and utilize IBM products including IBM System z, IBM System p, IBM Power Systems, IBM System x servers, IBM System Storage and IBM WebSphere and Tivoli Software. The State of Hawaii was able to lower its operating costs, improve performance and increase the availability of its financial accounting applications with a five-year IBM Global Financing lease to adopt Smarter IT.

Europe

* POWEO: A private electric utility in France engages IBM Global Financing to help meet its cash flow needs through the creation of a buyback and eventual a sale and leaseback of its assets, enabling POWEO to leverage IT to support the energy provider’s core business.


Asia-Pacific

* Packer Leather Pty Limited: A leading leather market supplier in Australia with the help of IBM business Partner Computer Merchants, implements an IBM solution that includes IBM BladeCenter, IBM System Disk Storage and IBM SAN file System bundled in an IBM Global Financing deal, providing a reduction in maintenance costs, centralized storage, and a simplified virtualized IT environment that enables the company’s in-house IT team to easily manage; ultimately allowing more time to focus on the company’s business growth.

Japan

* JVC KENWOOD Holdings, Inc: A major electronics retail company in Japan improves the operational and cost effectiveness of its IT operations when it engages IBM Global Financing to financially support the consolidation of its geographically dispersed IT environment by IBM Global Technology Services - Worldwide Strategic Outsourcing to a centralized IBM data center


IBM Global Financing offerings are provided through IBM Credit LLC in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government customers. Rates are based on a customer’s credit rating, financing terms, offering type, equipment type and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice. For more information about IBM Global Financing please visit, www.ibm.com/financing.