IBM Takes Asset Recovery Solutions Global

ARMONK, NY -- 11/08/2004 -- IBM today announced the global expansion of its Asset Recovery Solutions (ARS) program. Previously available only in the Americas, customers throughout the EMEA (Europe, Middle East and Africa) and Asia-Pacific regions will now have a secure, cost-effective way to retire the computer hardware they no longer need.

Building upon 20 years of experience in maximizing value from IBM hardware coming off of lease, ARS extends this experience to any customer for both IBM and non-IBM IT assets, providing a wide range of options to help them realize the full value of their hardware investment. ARS capabilities include:

-- Cash for IT -- IBM Global Financing will buy back eligible assets
based on current market values to put cash in customers’ hands. Customers
have the option of a Fixed Price Takeout, where IBM provides a set price,
paid within 30 days of receipt of equipment. Or, IBM will sell returned
equipment on customers’ behalf via competitive bids, sharing the revenues
upon completion of the sale.

-- No-Cost Option -- For customers with a minimum of 25 units in complete
and good working order, IBM will pack, transport and manage disposition of
assets, at no cost to the customer.

-- Data Overwrite -- IBM will clean hard file data from disk drives with
a three-times overwrite process, making data virtually impossible to
recover. This option meets U.S. Department of Defense 5220-22-m 3-pass
standards. Other data overwrite levels are also available.

-- Logistics Services -- IBM offers a streamlined approach to removing,
transporting and warehousing equipment on behalf of customers.

Items without recoverable value in the U.S., EMEA and Asia Pacific will be disposed of in accordance with applicable laws.
“IBM’s expansion of Asset Recovery Solutions puts us at the forefront of global solutions for managing surplus or obsolete IT hardware,” says Daniel H. Ransdell, General Manager, IBM Global Asset Recovery Services. “Research shows that tracking, managing, controlling -- and ultimately -- retiring technology assets can add up to the single largest part of IT budgets. Many customers do not realize that their surplus equipment can be remarketed. Nor are they fully aware of the risks of not retiring obsolete equipment properly. Now, customers in every geography in which IBM does business can benefit from a service that maximizes the value of remarketable machines and provides cost-effective and secure disposition.”

Business Partner and Customer Incentives

In conjunction with today’s announcement, IBM also announced incentives for both Business Partners and customers. Business Partners in the United States and Canada who recommend IBM Asset Recovery Solutions to their customers will now be eligible to receive a referral fee when their customers contract with and use IBM Asset Recovery Solutions for Cash for IT options or for Data Overwrite Services.

From November 8, 2004 through December 31, 2004, new Asset Recovery Solutions customers in the United States and Canada can receive three-times Data Overwrite at no charge for their PC systems returned to IBM for specified Asset Recovery Solutions services. PCs must be returned to IBM by January 7, 2005.

About IBM Global Financing

As the largest information technology financier in the world, IBM Global Financing offers customers in more than 40 countries leasing, financing and asset management solutions for hardware, software and services acquired from IBM and other vendors. 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 governmental customers. Rates and offerings are subject to change, extension or withdrawal without notice. Other restrictions may apply.

Contact Information

Gina Chew-Holman

Press Contact

IBM

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