IBM SHOWCASES LATEST IN PC HARDWARE AT PC EXPO
Newest Introductions Highlighted at Show

NEW YORK -- June 28 . . . Culminating two months of new product
introductions that brought the latest innovations to its lines of PC
desktop, mobile and server products, IBM Corp. will showcase its new
spring lineup at the PC Expo show here this week. With new lines of
product within its ThinkPad, ValuePoint and PS/1 brands, and strategic
additions to its PS/2 and Server families, IBM brings the latest
technologies designed to address today's customer requirements.

                        Mobile

Leading off with last week's introduction of the ThinkPad 510Cs color
subnotebook and ThinkPad Dock II, and the recent refresh of the entire
line of ThinkPad mobile computers, IBM's award-winning family of notebooks
continues to set standards in technology for the mobile computing
industry.

The new ThinkPad 510Cs brings crisp color, faster processing, video
acceleration and an impressive array of software in a 4-pound package, and
the new ThinkPad Dock II, offers ThinkPad users a Plug-and-Play-ready
desktop docking solution.

As a follow-on to its ThinkPad 750 Series, IBM also recently introduced the
ThinkPad 755 Series, offering improved multimedia capabilities, more
powerful/upgradeable processing, local bus video for better quality
graphics, built-in microphone and greater storage. The ThinkPad 755C was
also just awarded best laptop/notebook in PC WORLD' s "World Class" awards
to be given this week at PC Expo.

The new ThinkPad 360 incorporates the premium family's innovative modular
design and options in a popular-priced notebook; and the ThinkPad 730T is
a lightweight (3.5 pounds) yet powerful pen-based tablet, designed for
on-the-go, forms-based applications, with a battery life of up to 10
hours.

                          Desktop

ValuePoint

IBM recently unveiled the ValuePoint Performance series of X86-based PCs
featuring the latest in PC innovations, including one of the first systems
to use the 100/50 MHz IntelDX4 processors and implement 64-bit graphics on
the motherboard. The systems also incorporate IBM's own unique
technological design called SelectaBus which allows customers to choose
and upgrade the system's local bus to support either VESA or Peripheral
Component Interconnect (PCI).

In addition to the IntelDX4 processor, customers can choose from a variety
of processors including the Intel486SX 33MHz to the 486DX2 66MHz
processors. Performance series systems are offered in desktop, space saver
and minitower configurations and range in price from approximately $1,400
to $3,000 (IBM PC Direct pricing).

PS/2

Demonstrating support for its advanced Micro Channel bus architecture, IBM
unveiled in June upgrades to its popular PS/2 76 and 77 models. Processors
include Intel486SX 33 MHz, Intel486DX2 66/33MHz and IntelDX4 100/33MHz,
and are Pentium Overdrive Processor upgradeable. The new PS/2 77 Ultimedia
multimedia models bring full-screen, full-motion video to the commercial
desktop inexpensively, using a new system board-based feature called
"MediaBurst" Movie.

In addition, the systems feature IBM's exclusive Power on Error Detect
function for local area networks (LAN) attached systems. This
patent-pending feature, used in conjunction with IBM's NetFinity systems
management software product, alerts a LAN administrator or support staff
of power-on errors with detailed error and configuration information from
the problem system.

PS/1

Rounding out new desktop offerings, IBM recently delivered on its
commitment to serve the consumer marketplace with the introduction of new
easy to use PS/l systems for family and small business users. The new
PS/1s range from 486SX 33MHz to 486DX2 66/33MHz systems with hard drive
storage capacities spanning 170MB to 720MB.

The new PS/1s come equipped with IBM Online Housecall, an innovative online
troubleshooting capability that puts service and support only a modem call
away. It comes in addition to Express Maintenance and IBM technical
support, available during the warranty period, 24-hours-a-day,
7-days-a-week, via a toll-free number. Each PS/1 also features the
IBM-patented Rapid Resume, eliminating the need to exit each program
before shutting down. Users simply hit the power button, and when the PS/1
is turned on again, it will automatically return to exactly the spot where
the user left off.

IBM's online services for it PC products were expanded last week with the
addition of a technical support forum available through PRODIGY for
ThinkPad users that allows them to communicate and exchange information
and provides a direct link to IBM support. Also adding to its existing
online offerings available through PRODIGY, the company has made
navigation through its services easier with a new icon-based interface. In
addition to PRODIGY, IBM PC customers can also access online support and
information from America Online and CompuServe.

                         Servers

Responding to the increasing number of small businesses and departmental
workgroups that rely on networked computing, IBM recently announced a new
PCI/EISA-based server -- an attractively priced, industry-standard server
designed specifically for standalone local area networks. The IBM PC
Server combines proven i486DX2/66MHz and Pentium 60 MHz microprocessors
with the advanced PCI bus and a new IBM SCSI-2 Fast PCI adapter for future
growth.

Priced from $2,499 to $4,999, and available in models with and without a
hard disk, the PC Server provides resellers and their customers with a
flexible and affordable networking solution.

In addition, IBM announced NetFinity 2.0, an enhanced version of its server
and client management package. NetFinity, IBM's hardware management
application package for clients and servers in LAN environments, now
manages Windows clients and NetWare servers in addition to its current
support for OS/2. NetFinity provides powerful system monitoring and
management features and an easy-to-use graphical user interface (GUI) that
enables LAN administrators to identify, isolate and resolve problems on
distributed systems. NetFinity Services, priced at $115, reside on each
system, and NetFinity Manager, priced at $850 (includes one copy of
Services), resides on the LAN administrator's system, will be available in
July.

International Business Machines Corp
IBM Personal Computer Company
Route 100
Somers, NY 10589

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