IBM Maximizes Network-Centric Investments With New PC Server Options and
Reduced Server Prices

New IBM PC Server Racks

SOMERS, N.Y., January 23, 1996 . . . IBM today announced new options for
its PC Server family that will make it easier for customers to install,
manage and add PC Servers to their network-centric environments. These
options include new rack enclosures and new storage expansion units. IBM
also reduced suggested list prices* up to 20 percent across the PC Server
product family in the United States and Canada, effective immediately.

New IBM PC Server Rack Enclosures are designed to provide customers a
highly-functional and "space-smart" cabinet for consolidating multiple
Servers in one place. The Rack Enclosure provides customers with an easy
way to bring together servers that now may be distributed throughout their
company.

"The efficient management of space and assets, as well as the capacity to
handle current and future solutions, is of growing importance to IT
professionals," said Angelica Horaitis, worldwide director of marketing,
IBM PC Servers. "These options allow customers to enhance and expand their
PC Server-based networks, maximizing their IT investment."

IBM PC Server Racks

The IBM PC Server Rack Enclosures hold up to four Servers and are designed
for a monitor, keyboard and mouse to be shared by up to eight Servers.
With integrated cables, self-locking sliding shelves and rugged design,
the Rack Enclosures can be used with all IBM PC Server Models 300, 320,
500, 520 and 720. They also can be used by the PC Server Models 85 and
95.

The IBM PC Server Rack Enclosures are preconfigured and prewired with all
necessary shelves, cables and switches. Customers need order only the base
unit and one Mounting Plate per Server they want to install. If customers
require SVGA, the Enhanced Video Cable option is recommended.

Storage Expansion Options

The Enterprise Expansion Enclosure and the SCSI Multi-Storage Enclosure
both provide options for scalable expansion of SCSI storage by allowing
additional hot-swappable disk drives to be added to PC Server systems. By
allowing all data to be stored external to PC Servers, these units also
can offer a low-cost fault-tolerant storage alternative for customers'
business-critical data.

The Enterprise Expansion Enclosure provides space for more than 40GB of
storage expansion with 18 hot-swappable drives and two device bays. The
SCSI Multi-Storage Enclosure provides seven external expansion bays, five
hot-swappable disk drive bays and two half-high SCSI device bays. Both
units can be managed remotely by IBM's NetFinity RAID Management
Services.

First Quarter Price Reductions

Continuing its competitive pricing strategy for its PC Server family, IBM
reduced prices in the United States and Canada ranging from 4 percent to
20 percent. These new prices continue to reflect IBM's aggressive strategy
to be priced competitively with other vendors.

For example, the suggested list price for the PC Server 310 is now $2,769,
reduced from $3,259. The PC Server 320 now begins at $3,779, reduced from
$4,249. The PC Server 520 starts at $7,380, reduced $7,699. The PC Server
720 now starts at $13,159, reduced from $16,049.

Financing for IBM PC Servers can be arranged through IBM Credit
Corporation, which offers customers an array of convenient and flexible
financing. For more information on IBM financing, contact an IBM Credit
Corp. marketing representative.

IBM product information can be accessed via the Internet at
http://www.ibm.com. The IBM PC Server home page can be accessed directly
at http://www.pc.ibm.com/products/C50347.html/servers/. Compatibility
information for IBM PC Servers is now available at
http://www.pc.ibm.com/compat.html. For more information on IBM products
and services, contact 1-800-IBM-3333.

                  Pricing and Availability

                                             Price*    Available
IBM PC Server 24-

IBM PC Server 85/95 Mounting Plate              59      1/31/96
IBM PC Server Series 300 Mounting Plate         69      1/31/96
IBM PC Serv

IBM SVGA Enhanced Video Cable option            69      1/31/96

IBM Enterprise Expansion Enclosure            2239      1/31/96
IBM SCSI Multi-Storage Enclosure              1269      2/29/96

* Suggested manufacturer's dealer price.  Dealer prices may vary.

EDITOR'S NOTE:  The IBM Fax Information Service allows you to receive
facsimiles of prior IBM product press releases.  Simply dial
1-800-IBM-4FAX and enter "99" at the voice menu.

Please Note:

Questions about the content or currency of this press release should be
directed to your local IBM representative.
 
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