BW0243  OCT 13,2000       11:31 PACIFIC      14:31 EASTERN


( BW)(CA-ESRI/IBM) IBM, ESRI Alliance Targets Fast-Growing Government Marketplace for Geographical Information Systems


    Business Editors & High-Tech Writers

    REDLANDS, Calif.--(BUSINESS WIRE)--Oct. 13, 2000--IBM and Environmental Systems Research Institute Inc. (ESRI) Friday announced a global strategic alliance designed to serve the emerging marketplace for Geographical Information Systems (GIS).
    The demand for these systems is expected to increase as the marketplace grows to more than $60 billion, by 2005, quadrupling the current opportunity, according to multiple sources.
    IBM and ESRI will take advantage of this growth as both companies jointly market the industry's first enterprise-wide GIS solution. Initial target industries include government and telecommunications.
    GIS offers policy makers, industry planners, academic researchers and others sophisticated spatial analysis to visualize enterprise information. It is a computer-based tool that combines data visualization, spatial analysis and mapping with database management system integration to help users understand relationships, enhance decision making and solve problems faster.
    This technology proved invaluable with the Geospatial Multi-Agency Coordination Group (GeoMAC). During the past summer, federal wildland fire managers were faced with the worst fire situation in decades.
    With more than 25,000 firefighters and every available resource allocated to fight more than 80 large fires in Idaho and Montana alone, it was difficult to visualize the big picture. There were numerous critical situations reported and additional resources requested.
    The Great Basin Multi-Agency Coordination Group, one group responsible for prioritizing the allocation of critical firefighting resources in the Western United States, saw the need for a better tool to aid in making these decisions.
    "With the use of the IBM-ESRI GIS solution, GeoMAC was able to provide much needed spatial information within a week's time," said John Guthrie, technical coordinator for GeoMAC. The Web site demonstrating this effort can be reached at http://wildfire.usgs.gov.
    "This strategic alliance takes our 10-year relationship with ESRI to the next level," said Todd Ramsey, general manager for IBM Global Government Industry. "ESRI will supply the GIS technology and IBM will provide the wide array of hardware, software and professional services critical to making these applications enterprise-ready. It's a go-to-market strategy that works."
    Under the terms of the agreement, both companies will jointly market, sell and provide integration services for ESRI Enterprise Solutions for local government and telecommunications customers. The GIS Enterprise Solutions will include ESRI's GIS software technology combined with IBM software, hardware and services.
    Specifically, GIS enterprise technology from IBM will include DB2(a) Universal Database with Spatial Extender, WebSphere(a), operating on IBM eServer(b)s -- pSeries(b), xSeries(b) -- or Intellistations(b), integrated by IBM professional services. ESRI will promote IBM as a leading solution provider for Enterprise GIS.
    In return IBM Global Services will establish a Global GIS Consulting Practice. Current plans call for the further integration of data mining and statistical technologies to make the joint solution applicable for both CRM and supply chain scenarios.
    "GIS is a powerful tool for designing and implementing enterprise data strategies," said ESRI President Jack Dangermond. "By teaming up with IBM, we can move GIS into the mainstream computing, making it more accessible and available to a broader range of customers. From mainframes to pervasive devices, we are well positioned to take advantage of this emerging marketplace."
    The IBM-ESRI deal builds on IBM's strategic alliance strategy. Under this initiative, leading software vendors, such as ESRI, Siebel and i2 gain access to new customers and revenue opportunities through IBM's extensive marketing and sales resources. At the same time, Business Partners lead with IBM's key middleware products, server platforms, storage and Global Services resources.

    About IBM

    Software application developers receive support from IBM's PartnerWorld for Developers (www.developer.ibm.com) -- a worldwide program designed to help software developers reach broader markets, lower their costs of doing business and take their products to market faster.
    IBM Global Government Industry is dedicated to providing solutions for the demands faced by governments around the world and has a broad portfolio of capabilities and products, including: consulting, systems integration, availability services managed operations, as well as software and computing products.
    IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. The fastest way to get more information about IBM is through the IBM home page at http://www.ibm.com.
    (a) Denotes a trademark of the IBM Corp.
    (b) The IBM eServer brand consists of the established IBM e-business logo with the following descriptive term "server" following it.
    Note to Editors: The IBM e-business logo, pSeries, xSeries and Intellistations are all trademarks of the IBM Corp. All others are trademarks or registered trademarks of their respective companies.

    --30--KA/np* KM/np

    CONTACT:  ESRI, Redlands
              Kevin Daugherty, 909/793-2853
              kdaugherty@esri.com
              or
              IBM
              Mike Azzi, 212/745-6508     
              azzi@us.ibm.com

    KEYWORD:  CALIFORNIA
    INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS HARDWARE SOFTWARE 
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