LEADING BUSINESSES CHOOSE IBM

IBM announced that an increasing number of companies are choosing IBM's DB2 Data Management software over Oracle based on its industry-leading price and performance capabilities. According to industry analysts, DB2 is three to five times less expensive than Oracle8i. Over the past 18 months, more than 1,000 customers have chosen or replaced Oracle with IBM's DB2 Data Management software for their next generation applications. In first-quarter 2001, IBM's DB2 Data Management software grew 36 percent on distributed platforms, three times faster than the industry growth rate and six times faster than Oracle.

One of the most recent companies to choose IBM over Oracle based on price is Schawk Inc, a worldwide leading supplier of electronic digitized high resolution color imaging, digital archiving and distribution services. Schawk chose to implement DB2 because its price and performance features far exceeded that of Oracle8i. With the possibility of upgrading to a faster UNIX processing power in the future, IBM's pricing structure provides a better total cost of ownership (TCO). While IBM offers a straightforward pricing model, Oracle customers encounter steep license fees as they add users and processing power. These fees are difficult to calculate and predict and discourage customers from enhancing their existing systems with either traditional or new technologies.

Schawk uses DB2 for Windows 2000 to store its management and accounting documents across the enterprise. They have implemented an e-business environment that supports their entire North American operations among 16 distributed and one central Web site.

"After evaluating both IBM and Oracle databases, we found that IBM's DB2 database was more than two times less expensive than Oracle's database," said Joseph Kohler, general manager, Technical Center of Excellence, Schawk Corporate. "It was an easy decision for us to go with IBM. IBM's pricing structure is significantly lower than Oracle's. We needed the most cost-effective solution for our enterprise, and IBM's DB2 was the perfect and affordable answer for our database needs."

According to a recent analyst report from D.H. Brown and Associates, "DB2 vs. Oracle8i: Total Cost of Ownership," December 2000, companies running DB2 data management software have a lower TCO -- as much as 52 percent -- than companies that run on competing technology from Oracle. As customers look to increase their database capacity and evaluate various vendor options, they are learning about hidden price points associated with Oracle's database solutions. For example, Oracle retains the right to audit a customer's installation base at any time -- at the cost of the customer -- to be sure they are being charged appropriately. Meanwhile, DB2 customers adopt a straightforward, predictable, and moderate per-processor pricing model. Customers can upgrade their processors and add users without incurring additional licensing fees.

"We have found that an increasing number of customers are switching to DB2 due to its advanced technology and more favorable pricing model," said Janet Perna, general manager, IBM data management solutions. "The price, performance ratio of DB2 is unmatched by the competition."

Additional customers that have recently chosen IBM over Oracle include:

• The Toronto Police Department is in the process of replacing all of their Oracle applications with DB2. The department found that DB2 was less than half the price of Oracle. The company expects to save almost 4 million annually.
• SpotOn.com replaced Oracle six weeks before launch time due to Oracle's hidden price points, such as steep licensing fees.
• Zantaz.com migrated from Oracle to DB2 for many reasons including performance, reliability and scalability. Zantaz.com also chose IBM because of its competitive pricing model, citing Oracle's hidden costs as a major factor.
• Noble Group decided Oracle8i, which was priced about 20 percent higher than DB2, could not justify the price premium.
• State of Minnesota Department of Agriculture chose DB2 over the competition due to better overall price, performance and ease of administration.

About IBM's DB2 Data Management Software

As the 1foundation for e-business, DB2 data management software is the industry's first multimedia, Web-ready relational database management system, strong enough to meet the demands of large corporations and flexible enough to serve medium-sized and small e-businesses. DB2 data management software combines integrated power for business intelligence, content management, enterprise information portals and e-business with industry-leading performance and reliability to drive the most demanding industry solutions. DB2 data management software together with Internet technology makes information easily accessible, available and secure. There are more than 40 million DB2 users from over 300,000 companies worldwide relying on IBM data management solutions. For more information please visit www.software.ibm.com/data.

About Schawk

Schawk Inc, a publicly-held company, is considered a leader in the imaging technology industry. Schawk now has 35 operations divisions throughout the world. Today, Schawk operates in seven countries on four continents and employs nearly 1,650 people worldwide. For more information about Schawk, please visit www.schawk.com.

Contact Lori Bosio, IBM Software Group, 914-766-1408, bosiol@us.ibm.com.