1. © 2007 IBM Corporation IBM System Storage IBM System Storage™ 4Q07 Announcement Highlights

2. IBM System Storage 2 © 2007 IBM Corporation October 2007 Announcement  Breadth of solutions in Mid-range storage  Better margins for our Business Partners!  The fastest storage virtualization solution in the world just got better! The Information Storage Platform for SMB  Delivering Real Business Value to SMB Clients ► Enhancements to the DS3000, DS4000, TS2240 Tape Drive and SAN Volume controller ► Less cost, more capacity, ultimate resilience ► Flexible, affordable and optimized for System x and BladeCenter servers ► Tape half the size, twice the capacity and 25% less power consumption ► Storage Virtualization Leadership Enterprise Class Disk Systems: DS8000  Enterprise Class Innovation ► DS8000 R3 GA value and differentiation ► Optimized for System z! 2X the throughput with less disk ► Faster backup with breakthrough caching technology ► Administrator Simplicity! Consolidated management console to view entire SAN Collaboration:  IBM System Storage Productivity Center ► This exciting new product--a highly functional master console-- will be the strategic management tool across various IBM storage platforms, and will enable your customers to manage IBM and non-IBM storage resources much more effectively Details of announcements available in the Channel Communication section of PartnerWorldPartnerWorld.

3. IBM System Storage 3 © 2007 IBM Corporation October 2007 Announcement Better margins for our Business Partners  New Pricing Grids ► Announced for the DS4000, as outlined in the IBM Business Partner announcement 507-333. ► In support of the virtual special bid process for the DS4000 will provide you increased margins, making it more affordable than ever. ●New DS4000 Virtual Pricing Grid Version 5 1812 Expansion - 50% more frontend margin at average enduser price. 1814 DS4700 - 28% more frontend margin at average enduser price. 1815 DS4800 - 38% more frontend margin at average enduser price. Solution selling for IBM System Storage  Solution Focused Sales Plays (Link HERE for the Storage BP Playbook)HERE ► Take Back Control with SVC (Winning with SVC) ► Protecting Your Data with IBM Storage Tape Encryption ► SAN Made Simple ► IBM Storage Archive and Retention Solution for eMail ("Email Archiving Business Continuity”) Call to ACTION: ► Schedule a win room for each of your key 4Q transactions- ► Examine your install base and propose enhanced DS4000 offerings to replace your customers outdated IBM FAStT and older DS4000 boxes. ► Sell IBM tape encryption--the best solution in the industry and one each of your customers need ► Get educated more on IBM storage solutions and emphasize IBM strengths Business Continuity and infrastructure simplification. See details for IBMers and IBM Business Partners.IBMers IBM Business Partners