1. Systems and Technology Group © 2004 IBM Corporation IBM System x and System Storage Programs and Promotions Summary © 2008 IBM Corporation 1 1Q 2008 Programs and Promotions Table of Contents Page Page Link  Summary Of System x Programs and Promotions System x Short Team Promotions2Click here System x Programs – Available to all Resellers3Click here System x Programs – Higher End Products and Industry Specific4Click here Back up slides6-12Click here

2. Systems and Technology Group © 2004 IBM Corporation IBM System x and System Storage Programs and Promotions Summary © 2008 IBM Corporation 2 System x Short Term Promotions (BP Channel equivalent to ibm.com promotional offerings) Look for promotions announcing on selected System x, BladeCenter, System x software, and Tape products within the next few weeks Back to Contents

3. Systems and Technology Group © 2004 IBM Corporation IBM System x and System Storage Programs and Promotions Summary © 2008 IBM Corporation 3 System x and System Storage Programs – Available to all System x resellers IBM System x and System Storage Growth Incentive – Click for Announcement Ltr 508-441 *Click for Announcement Ltr 508-441 $25K System x sales previous year or previous quarter to qualify. System x products pay:: 85% of target Level 1 =.5%. 100% of target Level 2 = 1%. Overachievement =.5% paid on sales over 100% of target..5% paid on System x sales if BP meets 100% of Storage target and at least 85% of System x target. Storage products pay: L1=.5%, L2= 1.5% and Overachievers = 2.5% on sales over 100% of Storage target. Target is $25K or 6% increase over same quarter previous year for System x and $25K or 25% increase for System Storage. Premier BPs have 70% recovery clause SMB System x and System Storage New Customer Bonus – Click for Announcement Ltr 508-436 *Click for Announcement Ltr 508-436 Earn $500 to $5,000 payments totaling $10,000 in incentives for New System x and/or System Storage customers. Click here to nominate a customer. Eligible products include System x and System Storage. Excludes System x and System Storage Express Seller Models. Earn up to $20,000 ($10,000 for System x new customers and $10,000 for new System Storage customers!!!)Click here to nominate a customer System x and System Storage Express Seller BP Incentive – Click for Announcement Ltr 508-442 *Click for Announcement Ltr 508-442 2% incentive payment on eligible Express model sales after $6K in sales of the eligible products. Incentives paid on end-user reported sales. Incentive includes both System x and System Storage Express product Channel Evaluation Program for Business Partners – Click for Announcement Ltr 508-430Click for Announcement Ltr 508-430 BPs can offer end user customers the opportunity to evaluate IBM products for up to 90 days before purchasing. See the announcement letter for customer limits by product line. Evaluation products are eligible for incentive payments. Returns are assessed a 5% return fee. Eligible products include System x, PWS, System Storage, Options and Blades. Excludes Express Seller models. Available to IBM Resellers. Combinable with Sell More Blue Technology Access Program (TAP) – Click for Announcement Ltr 508-431Click for Announcement Ltr 508-431 Obtain discounted products IBM for internal use, demonstration or development purposes. Eligible products include selected System x, BladeCenter, Intellistation and TotalStorage products. Available to IBM Resellers, Solution Providers and Distributors. * Incentives are paid on end-user reported Sales - Click to report your sales via the WebClick to report your sales via the Web Back to Contents

4. Systems and Technology Group © 2004 IBM Corporation IBM System x and System Storage Programs and Promotions Summary © 2008 IBM Corporation 4 System x Programs - Higher End Products and Industry Specific BladeCenter and System x Enterprise Growth Incentive – Click for Announcement Ltr 508-438 *Click for Announcement Ltr 508-438 BP’s who achieved $25K in 2007 sales or $25K in 2008 previous qtr sales will be been assigned a quarterly BladeCenter growth target. and a quarterly System x Enterprise target. Earn.5% if 85% of target, 1.5% at 100%, and 2.5% on amount of sales over 100% of the target. Contact Trade One at 800-477-6756 for your growth target or go to https://prc2.tradeonemktg.com/login.ssp. Available to all IBM Resellers and Solution Providers who purchase from a Distributor. Earn payments against each product targethttps://prc2.tradeonemktg.com/login.ssp 2007 System x3950 New Customer incentive– Click for Announcement Ltr 508-437 *Click for Announcement Ltr 508-437 2007 incentive will not be renewed in 2008 Selected System x3950 product now counts 3x it’s Bid Index revenue in the 2008 System x and System Storage New Customer incentive 508-436 2007 Blade Chassis withdrawal– Click for Announcement Ltr 508-440 *Click for Announcement Ltr 508-440 2007 incentive will not be renewed in 2008 Selected Blade Chassis product now counts 2x it’s Bid Index revenue in the 2008 System x and System Storage New Customer incentive 508-436 2007 System x EXAct withdrawal– Click for Announcement Ltr 508-445 *Click for Announcement Ltr 508-445 2007 incentive will not be renewed in 2008 Stay tuned for upcoming Enterprise System x EXAct and Blade Business Partner Investment incentive 2007 FVAR withdrawal – Click for Announcement Ltr 508-444Click for Announcement Ltr 508-444 2007 incentive will not be renewed in 2008 Stay tuned for upcoming Enterprise System x EXAct and Blade Business Partner Investment incentive * Incentives are paid on end-user reported Sales - Click to report your sales via the WebClick to report your sales via the Web Back to Contents

5. Systems and Technology Group © 2004 IBM Corporation IBM System x and System Storage Programs and Promotions Summary © 2008 IBM Corporation 5 Appendix A - Eligible Part Numbers for Short-Term Promotions Stay tuned for upcoming February short term promotion announcements ** Upfront price discount from Distributor * Incentives are paid on end-user reported Sales - Click to report your sales via the WebClick to report your sales via the Web Back to Promotions Page

6. System x, IntelliStation, and BladeCenter © 2007 IBM Corporation 2008 Incentives Programs and Promotions Summary January 23, 2008 Brian Kielty bkielty@us.ibm.com Title slide

7. IBM System x – BladeCenter -- IntelliStation 7 2008 System x and System Storage Growth Incentive System x and System Storage Growth Incentive 508-441 Requirements Achieve PartnerWorld Member, Advanced, or Premier level status  Achieve minimum of $25K System x sales in 2007 or previous quarter 2008  Achieve a quarterly EDI end user sales target ($25K or 6% uplift for System x and $25K or 25% uplift for System Storage over previous year same quarter whichever is greater) Reduced from 15% and $50K for System x in2007 Incentive Payments  If 85% of the quarterly 2008 sales revenue target is met, the amount of the quarterly incentive payment will be equal to 0.5% for both the System x target and the System Storage Target (Ability to earn $$$ on both products!)  If 100% of the quarterly 2008 System x sales revenue target is met, the amount of the quarterly incentive payment will be equal to 1% for System x and also earn 1.5% on System Storage for achieving 100% of the System Storage target!  If over 100% of the quarterly 2008 System x sales revenue target is met, the amount of the additional payment will be equal to.5% on the amount over 100% for System x and also earn an additional payment of 2.5% on System Storage on the amount of System Storage over 100% of the System Storage target  Business Partners who meet or exceed their quarterly System x Level One Target and also meet or exceed their quarterly System Storage Level Two target will receive an over-achievement bonus equal to.5% of their reported System x End-User sales for that quarter. Premier Partners Recovery Incentive Premier Partners who meet or exceed the combined sum of their 1 st and 2 nd quarter sales revenue targets by 6/30/2008 but miss one or more quarterly targets will receive 70% of the difference between the quarterly incentive payment they received for the quarter (if any), and the quarterly incentive payment they would have received had they achieved 100% of their quarterly sales revenue targets for 1 st and 2 nd quarter. Premier Partners who meet or exceed the combined sum of their 3rd and 4th quarter sales revenue targets by 12/31/2008 but miss one or more quarterly targets will receive 70% of the difference between the quarterly incentive payment they received for the quarter (if any), and the quarterly incentive payment they would have received had they achieved 100% of their quarterly sales revenue target for 3 rd and 4 th quarter. 2007 offered only an annual look back.

8. IBM System x – BladeCenter -- IntelliStation 8 2008 BladeCenter and Enterprise System x Growth Incentive BladeCenter and System x Enterprise Growth Incentive 508-438 Requirements  Achieve PartnerWorld Member, Advanced, or Premier level status  Achieve minimum of $25K System x sales in 2007 or previous quarter 2008  Achieve a quarterly EDI end user sales target of eligible Blade product and Enterprise System x product equal to 15% uplift or 25K for Blade and 10% uplift or $25K of eligible product for System x over previous year same quarter whichever is greater (was 30% for Blades in 2007) Incentive (separate targets for BladeCenter and Enterprise System x)  If 85% of the sales revenue target is met, the amount of the quarterly incentive payment will be equal to 0.5% (for each product)  If 100% of the 4Q eligible product sales revenue target is met, the amount of the quarterly incentive payment will be equal to 1.5% (for each product)  If over 100% of the 4Q eligible product sales revenue target is met, the amount of the additional payment will be equal to 2.5% on the amount over 100% (for each product)

9. IBM System x – BladeCenter -- IntelliStation 9 2008 System x and System Storage SMB New Customer Bonus 2008 System x and System Storage SMB New Customer Bonus (NCB) 508-436 –Incentive to sell to New System x and System Storage SMB Customers throughout the year Registration and approved nomination required (www.ncbprogram.com) No (or less than $25K) System x and System Storage revenue in last 12 months Selected BladeChassis revenue counts 2x Bid Index revenue Selected System x3950 revenue counts 3x Bid Index revenue –Enable greater SMB Expansion and Reseller Participation Incentive payouts begin at low clip level ($10K) Enterprise License Agreements (ELA) and System x Express Seller Incentive products are not eligible Revenue and Incentive payment Schedule Earn up to $20K for System x plus System Storage new customer sales! System x or System Storage Total SMB new customer System Storage 2008 sales Incremental Total Incremental Total revenue target PaymentPayment Payment Payment $ 10,000 $ 500 $ 500$ 500$ 500 25,000 500 1,000 500 1,000 50,000 500 1,500 500 1,500 100,000 1,500 3,000 1,500 3,000 250,000 2,000 5,000 2,000 5,000 500,000 5,000 10,000 5,000 10,000

10. IBM System x – BladeCenter -- IntelliStation 10 2008 System x and System Storage Express Seller System x and System Storage Express Seller IBM08-442 Requirements Meet a $6,000 sales target for EDI or Web-based reported End User sales of eligible new System x and System Storage Express products. Incentive Incentive = 2% (on eligible System x and System Storage Express product) The 2% incentive is paid based on Bid index price at the time of invoice to the end user

11. IBM System x – BladeCenter -- IntelliStation 11 2008 Channel Evaluation Program Channel Evaluation 508-430 Program Overview Eligible IBM Business Partners can offer their End Users an on-site evaluation of System x, BladeCenter, IntelliStation, System Storage products, and options Maximum evaluation period of up to 90 days from the date the evaluation is approved by IBM. Business Partners can receive incentive payments for reported sales of channel evaluation products, except express models Business Partners can use existing inventory to fulfill evaluation requests, or order channel evaluation products directly from an authorized IBM U.S. Distributor. Incentive Structure Evaluations per Business Partner Enterprise will be governed by a quarterly ticket release system. Each evaluation ticket will be active for a predetermined number of evaluations based upon the quarter in which it is released. Tickets expire when channel evaluation products are returned to IBM, or when the predetermined number of evaluations is reached. Return fee reduce from 10% to 5% for 2008 Two sales rewards tickets will be released per BP at the close of the first, second and third quarters if at least 75% of their year-to-date evaluations have resulted in a sale to an End User. System x Express models are excluded.  U.S. Federal, State, or Local government entities are excluded from incentives payments but will be eligible for special bid consideration. System x Express Seller models are excluded. Channel Evaluation may be combined with Sell More Blue The amount of the incentive payment will be equal to: Percentage of the regular published IBM Web price of the product, on the date the product was approved for evaluation, as follows: Incentive payment % Product description of Web price IntelliStation workstations 15% System x high-performance server x3950+ 30% (includes scalable systems) System x high end servers 30% System x low end servers 15% System x Blade and BladeCenter 30% System Storage products 15% Options 20%

12. IBM System x – BladeCenter -- IntelliStation 12 2008 Technology Access Program (TAP) TAP 508-431  The Technology Access Program (TAP) offers selected PartnerWorld members the ability to purchase System x Servers, BladeCenter products, IntelliStation,selected System Storage products, and options at discounts off the IBM web price minus bid index % for internal use, demonstration or development purposes.  TAP rebate plus bid index allowance equals eligible percentage off list. Discounts are as follow: Discount* Minus Options Product Groups QTY Bid Index% Per Unit System x Servers & Blades (1) 1-2 40% 8 (4) (Any standard model) (5)(6) 3-12 20% 8 IntelliStations (2) 1-6 40% 8 (Any standard model) 7-46 20% 8 Monitors 1-2 40% T117 17" TFT (494317U) T119 19" TFT (494419U) System Storage (3) Part Qty DISC* Per Unit Description Number 3-12 20% 8 DS3200, DS3300 & DS3400 1726xxx 1-2 40% 8 3-12 38% 8 DS4000(TM) EXP810 181281H 1-2 45% 8 3-12 38% 8 DS4800 Model 82 181582H 1-2 45% 8 3-12 38% 8 DS4800 Model 84 181584H 1-2 45% 8 3-12 38% 8 DS4800 Model 88 181588H 1-2 45% 8 3-12 38% 8 DS4800 Model 80 181580H 1-2 45% 8 3-12 38% 8 DS4700 Model 70 Express 181470H 1-2 45% 8 3-12 38% 8 DS4700 Model 72 Express 181472H 1-2 45% 8 3-12 38% 8