Marketing Announcement August 1, 2000

IBM AS/400e — for Extreme Business Replacement Rebate Promotion

The Offer

For a limited time only, if you have a qualifying AS/400 940x Model B, P, C, T, D, E, F, Y10, 135, 140, 100, 2xx, 3xx, 4xx, 5xx, or non-IBM machine installed and in productive use as of August 1, 2000, and you purchase a new eligible AS/400e -- for Extreme Business 9406 Model 170, 270, 7xx, or 8xx as a replacement for the qualifying machine, you can receive a rebate that is equal to 5% or 10% of the purchase (invoice/bill of sale) price of the replacement machine, depending on the model and processor feature purchased. For a list of eligible products, refer to the Qualifying/Eligible Products section.

Start and/or End Dates

Your order for the eligible replacement machine must be placed on or before December 20, 2000. The Date of Installation (purchase date), as defined in the IBM Customer Agreement or any equivalent IBM agreement, must occur on or after August 1, 2000, but no later than January 15, 2001.

Where is it available?

This promotion is available only in: • the United States (including Puerto Rico) • Canada • Caribbean North countries If you are a U.S. commercial, state or local government, or education customer, you can participate. If you are a U.S. federal government customer, call 800-333-6705 to determine eligibility.

For ordering, contact: Your IBM representative, an IBM Business Partner, or IBM Americas Call Centers at 800-IBM-CALL Reference: AE001

This announcement is provided for your information only. For additional information, contact your IBM representative, call 800-IBM-4YOU, or visit the IBM home page at: http://www.ibm.com.

IBM United States IBM is a registered trademark of International Business Machines Corporation. 300-103 Qualifying/Eligible Products

Qualifying Replaced Products

IBM Machines

Machine Machine Machine Type Model Type Model Type Model

940x B10 940x E45 940x 200 940x B20 940x E50 940x 236 940x B30 940x E60 940x 30S 940x B35 940x E70 940x 300 940x B40 940x E80 940x 310 940x B45 940x E90 940x 320 940x B50 940x E95 940x 4HE 940x B60 940x F02 940x 4HG 940x B70 940x F04 940x 4HL 940x C04 940x F06 940x 4HS 940x C06 940x F10 940x 4SE 940x C10 940x F20 940x 4SG 940x C20 940x F25 940x 4SL 940x C25 940x F35 940x 4SS 940x D02 940x F45 940x 4TG 940x D04 940x F50 940x 4TL 940x D06 940x F60 940x 40E 940x D10 940x F70 940x 40G 940x D20 940x F80 940x 40L 940x D25 940x F90 940x 40S 940x D35 940x F95 940x 400 940x D45 940x F97 940x 41E 940x D50 940x P10 940x 41G 940x D60 940x P20 940x 41L 940x D70 940x P30 940x 42E 940x D80 940x P35 940x 42G 940x E02 940x P40 940x 42L 940x E04 940x P45 940x 436 940x E06 940x T10 940x 50S 940x E10 940x T20 940x 500 940x E20 940x T25 940x 510 940x E25 940x Y10 940x 53S 940x E35 940x 135 940x 530 940x 20S Non-IBM Machines The non-IBM machines listed below qualify as a replaced machine when an eligible AS/400 9406 Model 170/270 or 7xx/8xx is the replacement machine

HP Machines Unisys Machines

3000-9XX A6 9000-T5XX A11 9000-KXXX A12 9000-JXXX A14 9000-8XX/XXX A15 9000-1XXX A16 9000-D3XX A17 9000-VXXXX A18 9000-NXXXX A19 9000-LXXXX B7900 9000-FXXX System/80-15 9000-GXXX System/80-10 9000-HXXX System/80-20 9000-IXXX System/80-50 9000-L2000 V3XX V4XX V5XX 1100/XX 2200/XXX U6000/XX U7000/XX XE5XX

300-103 -2- DEC/ Machines

AlphaServer 2000 ProLiant 3000 AlphaServer 2100 ProLiant 3000R AlphaServer 2105 ProLiant 4000 AlphaServer 4000 ProLiant 4000R AlphaServer 4100 ProLiant 5000 AlphaServer 8200 ProLiant 5000R AlphaServer 8400 ProLiant 5500 AXP10000 ProLiant 5500R AXP4000 ProLiant 6000 AXP7000 ProLiant 6400R AlphaStation 250 ProLiant 6500 AlphaStation 255 ProLiant 7000 AlphaStation 500 ProLiant 7000R AlphaStation 600 ProLiant 8000 FT3000 ProLiant 8500 VAXFT AlphaServer DS20 VAX10000 AlphaServer DS20E VAX11/780 AlphaServer ES40 VAX11/782 AlphaServer GS60 VAX11/785 AlphaServer GS60E VAX4000 AlphaServer GS140 VAX6XXX VAX7000 VAX8XXX VAX9000

Sun Machines

UE3000 UE3500 UE4000 UE4500 UE5000 UE5500 UE6000 UE6500 UE10000

Tandem Machines

Himilaya Non-Stop Integrity Non-Stop Unix The non-IBM machines listed below qualify as a replaced machine when an eligible AS/400 9406 Model 170 or 270 is the replacement machine.

HP Machines Unisys Machines

DN10000 MICRO A 3000-3 A1 3000-3X A3 3000-4X A4 3000-5X A5 3000-6X A6 3000-7X A7 3000-8XX A9 9000-E25 A10 9000-E35 System/80-3 9000-DXXX System/80-4 9000-3XX System/80-5 9000-4XX System/80-6 9000-6XX System/80-7 9000-7XX System/80-8 9000-8XX U5000/XX 9000-AXXX 9000-RXXXX 9000 - L1000

-3- 300-103 DEC/Compaq Machines

AlphaServer 400 ProLiant 400 AlphaServer 1000 ProLiant 800 AlphaStation 200 ProLiant 850R AlphaStation 400 ProLiant 1000 AXP 200 ProLiant 1000R AXP 250 ProLiant 1200 AXP 400 ProLiant 1500 AXP2000 ProLiant 1500R AXP3000 ProLiant 1600 DECSTATION-5000 ProLiant 1600R DECSYS ProLiant 1850R MICROVAX ProLiant 2000 VAX11/725 ProLiant 2000R VAX11/730 ProLiant 2500 VAX11/750 ProLiant 2500R PDP11 ProSignia 7XX Server AlphaServer 300 ProLiant ML350 AlphaServer 800 ProLiant ML370 AlphaServer 1200 ProLiant ML530 AlphaServer DS10 ProLiant ML330 AlphaStation XP900 ProLiant DL380 AlphaStation XP1000 ProLiant NeoServer 150 DPW 500AU ProLiant CL380 DPW 600AU The non-IBM machines listed below qualify as a replaced machine when an eligible AS/400 9406 Model 170/270 or 720/820 is the replacement machine.

Sun Machines

Sun Enterprise 220R Sun Enterprise 250 The non-IBM machines listed below qualify as a replaced machine when an eligible AS/400 9406 Model 170/270, 720/820, or 730/830 is the replacement machine.

Sun Machines

Sun Enterprise 420R Sun Enterprise 450

Eligible Replacement Products

Machine Processor Type Model Feature Rebate

9406 170 Any** 10% 9406 270 Any 5% 9406 720 Any 10% 9406 730 Any 10% 9406 740 Any 10% 9406 820 Any** 10% 9406 830 Any 10% 9406 840 Any 10%

**Exceptions: 9406 170 2289 Not eligible for a rebate. 9406 820 2425 5% 9406 820 2426 5% 9406 820 2427 5%

Additional Information/Conditions

At least 50% or more of the workload from the qualifying replaced machine must be migrated to the eligible replacement machine in order to qualify. This promotion can be combined with other applicable IBM discounts or allowances on the eligible products but does not apply to demonstration/development acquisitions. This promotion can also be combined with the IBM AS/400e -- for Extreme Business Tour Rebate Promotion offered to attendees at AS/400e for Extreme Business Tour events. This promotion cannot, however, be combined with other IBM rebates. You agree to acquire hardware products under this promotion for your own use and not for remarketing, leasing or transferring to a third party, unless you are arranging lease-back financing for the hardware products.

300-103 -4- In Canada, you are responsible for all applicable taxes such as Goods and Services Tax (GST), Quebec Sales Tax (QST) and other sales or value-added taxes which are extra. IBM reserves the right to modify or withdraw this promotion at any time. This promotion is subject to the terms and conditions of any applicable Agreements.

Order Now

United States

Use Priority/Reference Code: AE001

Phone: 800-IBM-CALL Fax: 800-2IBM-FAX Internet: ibm— [email protected] Mail: IBM Atlanta Sales Center Dept. AE001 P.O. Box 2690 Atlanta, GA 30301-2690 You can also contact your local IBM Business Partner or IBM representative. To identify them, call 800-IBM-4YOU. IBM Authorized Business Partners may offer terms, including prices, different from those outlined in this announcement. Canada

Phone: 800-IBM-CALL Fax: 1-800-565-6612 Internet: www.can.ibm.com/shopibm Mail: IBM 105 Moatfield North York Ontario, Canada M3B 3R1 Priority Code: TSB0A019

Trademarks

AS/400e is a trademark of International Business Machines Corporation in the United States or other countries or both. AS/400 is a registered trademark of International Business Machines Corporation in the United States or other countries or both. Other company, product, and service names may be trademarks or service marks of others.

-5- 300-103 IBM AS/400e — for Extreme Business Replacement Promotion Rebate Request Form

To qualify for your rebate, you must have had a qualifying AS/400 940x Model B, P, C, T, D, E, F, Y10, 135, 140, 100, 2xx, 3xx, 4xx, 5xx, or non-IBM machine installed and in productive use as of August 1, 2000, and purchased a new eligible AS/400e -- for Extreme Business 9406 170, 270, 7xx, or 8xx as a replacement for the qualifying machine. The rebate is equal to 5% or 10% of the purchase (invoice/bill of sale) price of the replacement machine, depending on the model and processor purchased.

Qualifying Replaced Products

IBM Machines

Machine Machine Machine Type Model Type Model Type Model

940x B10 940x E45 940x 200 940x B20 940x E50 940x 236 940x B30 940x E60 940x 30S 940x B35 940x E70 940x 300 940x B40 940x E80 940x 310 940x B45 940x E90 940x 320 940x B50 940x E95 940x 4HE 940x B60 940x F02 940x 4HG 940x B70 940x F04 940x 4HL 940x C04 940x F06 940x 4HS 940x C06 940x F10 940x 4SE 940x C10 940x F20 940x 4SG 940x C20 940x F25 940x 4SL 940x C25 940x F35 940x 4SS 940x D02 940x F45 940x 4TG 940x D04 940x F50 940x 4TL 940x D06 940x F60 940x 40E 940x D10 940x F70 940x 40G 940x D20 940x F80 940x 40L 940x D25 940x F90 940x 40S 940x D35 940x F95 940x 400 940x D45 940x F97 940x 41E 940x D50 940x P10 940x 41G 940x D60 940x P20 940x 41L 940x D70 940x P30 940x 42E 940x D80 940x P35 940x 42G 940x E02 940x P40 940x 42L 940x E04 940x P45 940x 436 940x E06 940x T10 940x 50S 940x E10 940x T20 940x 500 940x E20 940x T25 940x 510 940x E25 940x Y10 940x 53S 940x E35 940x 135 940x 530 940x 20S Non-IBM Machines The non-IBM machines listed below qualify as a replaced machine when an eligible AS/400 9406 Model 170/270 or 7xx/8xx is the replacement machine

HP Machines Unisys Machines

3000-9XX A6 9000-T5XX A11 9000-KXXX A12 9000-JXXX A14 9000-8XX/XXX A15 9000-1XXX A16 9000-D3XX A17 9000-VXXXX A18 9000-NXXXX A19 9000-LXXXX B7900 9000-FXXX System/80-15 9000-GXXX System/80-10 9000-HXXX System/80-20 9000-IXXX System/80-50

300-103 -6- HP Machines Unisys Machines

9000-L2000 V3XX V4XX V5XX 1100/XX 2200/XXX U6000/XX U7000/XX XE5XX

DEC/Compaq Machines

AlphaServer 2000 ProLiant 3000 AlphaServer 2100 ProLiant 3000R AlphaServer 2105 ProLiant 4000 AlphaServer 4000 ProLiant 4000R AlphaServer 4100 ProLiant 5000 AlphaServer 8200 ProLiant 5000R AlphaServer 8400 ProLiant 5500 AXP10000 ProLiant 5500R AXP4000 ProLiant 6000 AXP7000 ProLiant 6400R AlphaStation 250 ProLiant 6500 AlphaStation 255 ProLiant 7000 AlphaStation 500 ProLiant 7000R AlphaStation 600 ProLiant 8000 FT3000 ProLiant 8500 VAXFT AlphaServer DS20 VAX10000 AlphaServer DS20E VAX11/780 AlphaServer ES40 VAX11/782 AlphaServer GS60 VAX11/785 AlphaServer GS60E VAX4000 AlphaServer GS140 VAX6XXX VAX7000 VAX8XXX VAX9000

Sun Machines

UE3000 UE3500 UE4000 UE4500 UE5000 UE5500 UE6000 UE6500 UE10000

Tandem Machines

Himilaya Non-Stop Unix Integrity Non-Stop Unix The non-IBM machines listed below qualify as a replaced machine when an eligible AS/400 9406 Model 170 or 270 is the replacement machine.

HP Machines Unisys Machines

DN10000 MICRO A 3000-3 A1 3000-3X A3 3000-4X A4 3000-5X A5 3000-6X A6 3000-7X A7 3000-8XX A9 9000-E25 A10 9000-E35 System/80-3 9000-DXXX System/80-4 9000-3XX System/80-5 9000-4XX System/80-6

-7- 300-103 HP Machines Unisys Machines

9000-6XX System/80-7 9000-7XX System/80-8 9000-8XX U5000/XX 9000-AXXX 9000-RXXXX 9000 - L1000

DEC/Compaq Machines

AlphaServer 400 ProLiant 400 AlphaServer 1000 ProLiant 800 AlphaStation 200 ProLiant 850R AlphaStation 400 ProLiant 1000 AXP 200 ProLiant 1000R AXP 250 ProLiant 1200 AXP 400 ProLiant 1500 AXP2000 ProLiant 1500R AXP3000 ProLiant 1600 DECSTATION-5000 ProLiant 1600R DECSYS ProLiant 1850R MICROVAX ProLiant 2000 VAX11/725 ProLiant 2000R VAX11/730 ProLiant 2500 VAX11/750 ProLiant 2500R PDP11 ProSignia 7XX Server AlphaServer 300 ProLiant ML350 AlphaServer 800 ProLiant ML370 AlphaServer 1200 ProLiant ML530 AlphaServer DS10 ProLiant ML330 AlphaStation XP900 ProLiant DL380 AlphaStation XP1000 ProLiant NeoServer 150 DPW 500AU ProLiant CL380 DPW 600AU The non-IBM machines listed below qualify as a replaced machine when an eligible AS/400 9406 Model 170/270 or 720/820 is the replacement machine.

Sun Machines

Sun Enterprise 220R Sun Enterprise 250 The non-IBM machines listed below qualify as a replaced machine when an eligible AS/400 9406 Model 170/270, 720/820, or 730/830 is the replacement machine.

Sun Machines

Sun Enterprise 420R Sun Enterprise 450

Eligible Replacement Products

Machine Processor Type Model Feature Rebate

9406 170 Any** 10% 9406 270 Any 5% 9406 720 Any 10% 9406 730 Any 10% 9406 740 Any 10% 9406 820 Any** 10% 9406 830 Any 10% 9406 840 Any 10%

**Exceptions: 9406 170 2289 Not eligible for a rebate. 9406 820 2425 5% 9406 820 2426 5% 9406 820 2427 5%

300-103 -8- At least 50% or more of the workload from the qualifying replaced machine must be migrated to the qualifying replacement machine in order to qualify. 1. The rebate is valid only for eligible AS/400 replacement machine purchases made on or after August 1, 2000, but no later than January 15, 2001. 2. As proof of purchase, send a copy of the invoice or bill of sale for the eligible replacement AS/400 9406 Model(s) to the IBM Redemption Center at the address listed below. • Your invoice/bill of sale must be either typewritten or computer-generated. Handwritten or altered documents will not be accepted. • The name and company appearing on this form must match the information provided on the invoice/bill of sale. 3. To qualify for the rebate, this form and requested documentation must be received on or before March 15, 2001 at: IBM Redemption Center Carlson Marketing Group 12755 State Highway 55 Mail Stop 8280 Minneapolis, MN 55441-4442

Fax number: 800-936-3602

Attn: IBM AS/400e -- for Extreme Business Replacement Rebate Promotion To receive a confirmation of receipt of the rebate request, you should provide your e-mail address in the space provided on this request form. To check on the status of a rebate request, you should call 800-599-0285 and reference the “AS/400e — for Extreme Replacement Rebate Promotion.” 4. Any Rebate Request forms lost or misdirected by the Postal Service or other delivery service are not the responsibility of IBM or the IBM Redemption Center. 5. Allow up to eight weeks for your rebate check to arrive. 6. This promotion is void wherever prohibited or restricted by law. 7. IBM reserves the right to modify or withdraw this promotion at any time. To receive your rebate please complete the following:

Replacement Machine Acquired

Machine Serial Purchase Price Type Model Number U.S. Canada

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Replaced Machine

Machine Serial Vendor Type Model Number

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-9- 300-103 Name (please print): ———————————————————————————————————————————————

Company (if appropriate): ———————————————————————————————————————————

Address: ———————————————————————————————————————————————————————

Mailing Address (if different): ——————————————————————————————————————

City: —————————————————————————————————— State Province: ——————————

Zip/Postal Code: ——————————————————————————————————————————————— e-mail Address: ——————————————————————————————————————————————————

Daytime Phone: ——————————————————————————————————————————————————— At your option your rebate check can be made payable to someone else, such as, an Authorized IBM Business Partner. Provide the appropriate information below.

Make Check Payable To: ————————————————————————————————————————————

Address: ——————————————————————————————————————————————————————— I certify by my signature that the information I have entered on this Rebate Request is accurate and complete and that submission of this form is in accordance with the Rebate Request instructions. I also certify that the eligible replacement AS/400 Model(s) replaced a qualifying machine that was installed and in productive use as of August 1, 2000.

Signature: —————————————————————————————————— Date: —————————————

Year 2000 Readiness Disclosure

Statements made in this announcement regarding Year 2000 are “Year 2000 Readiness Disclosures” under the Year 2000 Information and Readiness Disclosure Act of 1998, a U.S. statute enacted on October 19, 1998.

300-103 -10-