1. ® © 2006 IBM Corporation IBM Software Group IBM content not to be shared outside your company IBM Business Partner Channels Enablement Processor Value Unit Licensing for Middleware July 11, 2006

2. IBM content not to be shared outside your company IBM Software This Project is particularly sensitive given it involves changes to our software licensing structure. While the intent of the licensing structure change is to have no impact on current pricing, external knowledge of the pending Announcement may cause concern within the market relative to our pricing. Inaccurate speculation on our pricing could result in delays, or worse losses, of deals and ultimately cause a negative impact on our financial results. Therefore, knowledge of this Project should be restricted to those that truly have a need to know in order to prepare for the Announcement or who may have other announcements, plays or promotions that might be impacted by the Announcement. Your Cooperation Required

3. IBM content not to be shared outside your company IBM Software IBM Business Partner Channels Enablement Timeline Announce July 25 JulyAugust 1)Distributor Pre- Announce 2)Distributor Skills Training IBM Think!Thursday Kickoff Web Conference July 27 (By Geo: July 5 – 21) IBM Business Partner Skills Training (July 31 – Aug 10 ) 75-day legacy PA p/n overlap / availability October

4. IBM content not to be shared outside your company IBM Software IBM Business Partner Communications  IBM Think!Thursday email to be sent to IBM PartnerWorld members on July 10 th  “Addressing Multi-core Processor Technologies with Software Licensing”  IBM PartnerWorld site updated, and, PartnerWorld member email to be sent day of announce i.e., July 25 th  IBM Software Think!Thursday Web Conference Kickoff July 27 th at 11 AM ET USA (NYC) Processor Value Unit Licensing for Middleware Sales Training to be scheduled between July 31 st – Aug 10 th 1.5 hour call to cover following topics: Licensing and Technology Sales Scenarios

5. IBM content not to be shared outside your company IBM Software Software Sales Deliverables (available July 25 th )  Passport Advantage Program Page  Announcement Letter  Processor Value Unit Licensing for Middleware Kickoff  Presentation and audio replay available 3 days after call  Processor Value Unit Licensing for Middleware Skills Training  Presentation and audio replay available 3 days after call  Brochure  White paper  Selling Focus Guide  FAQs  PA Online for Resellers  Value Unit Calculator http://www-142.ibm.com/software/sw- lotus/services/cwepassport.nsf/wdocs/paresellershttp://www-142.ibm.com/software/sw- lotus/services/cwepassport.nsf/wdocs/paresellers

6. IBM content not to be shared outside your company IBM Software Call to Action  Attend the Distributor Pre-Announce, and, Skills Training calls scheduled in your geography  Visit the IBM Software distributors website to review the sales deliverables prior to the July 25 th announcement (website available until July 21 st )  AMG http://www-142.ibm.com/software/sw-lotus/services/cwepassport.nsf/wdocs/americas_br_vad_enablement http://www-142.ibm.com/software/sw-lotus/services/cwepassport.nsf/wdocs/americas_br_vad_enablement  AP http://www-142.ibm.com/software/sw-lotus/services/cwepassport.nsf/wdocs/ap_br_vad_enablement http://www-142.ibm.com/software/sw-lotus/services/cwepassport.nsf/wdocs/ap_br_vad_enablement  NE & SW IOT http://www-142.ibm.com/software/sw lotus/services/cwepassport.nsf/wdocs/europe_br_vad_enablement  Invite your Value Add Resellers (VARs) to the July 27 th IBM Think!Thursday with the email invitation template previously provided  Listen to the July 27 th Think!Thursday replay available on the IBM Virtual Innovation Center if unable to attend the live call  Direct questions to your IBM Business Partner sales rep, or, local eCare team.

7. IBM content not to be shared outside your company IBM Software Worldwide Channel Enablement Contacts  Marsha Thomas – SWG BP Channels Management mthomas1@us.ibm.com US 724-940-6504 (T/L: 363-6504) mthomas1@us.ibm.com  Michael Ryan – WW Business Partner Sales and Technical Enablement meryan@us.ibm.com, US 972-280-1233 (T/L: 542-1233) meryan@us.ibm.com