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IBM Introduces Standards Based Systems for Next Generation Telecommunications

tekVizion Helps VarTec Telecom Lower Operational Costs via IBM BladeCenter Solution

ARMONK, NY--(MARKET WIRE)--Jun 22, 2004 -- IBM today announced an integrated set of products and services based on open standards that helps telecommunications companies provide faster and more economical telecom services for their customers. The new IBM eServer Integrated Platform for Telecommunications (IP-T), provides customers with proven hardware solutions based on the eServer BladeCenter and eServer BladeCenter T running carrier grade Linux and supported by IBM Global Services.

In addition to the IP-T, IBM also plans to offer the Integrated Platform for Telecommunications - Extended Offering, which includes the integrated features of IP-T, combined with middleware such as IBM WebSphere, DB2 and Tivoli. The IP-T platforms have been developed to assist customers as they transition from their existing proprietary systems to an open standards based technology. This is an increasingly common situation as the data, voice and enterprise networks converge and Next Generation Network datacenters are deployed.

IBM also announced that VarTec Telecom, a leading provider of local and long distance service to residential and small business customers in the United States and around the world, has deployed IP-T enabled eServer BladeCenter and BladeCenter T systems to power their telecom networks operation. VarTec worked with tekVizion PVS, Inc (www.tekvizion.com) to develop a customized network solution utilizing IBM technology. tekVizion's ongoing role of providing network operations support to VarTec was expanded to provide additional solution testing, integration, software development and support services for the BladeCenter solution. The new Linux-based system is expected to help VarTec deliver new services to their customers faster, more easily and at lower costs.

"VarTec uses innovative technologies and strategic vendor relationships to ensure we can provide value-added services and affordable local and long-distance calling to our rapidly growing customer base," said Kevin Hausler, chief technology officer, VarTec. "IBM's BladeCenter platform coupled with tekVizion's depth of industry experience provides us with a cost-effective solution that allows us to continue to offer innovative call services at some of the lowest rates in the industry."

IBM is the world's leading vendor of blade systems (1), and customers such as VarTec can choose from perhaps the industry's most extensive portfolio of blade server systems, modules and options as they deploy their telecommunications infrastructures. (2)
"IBM is leveraging its industry leadership in blades and Linux to deliver an open, integrated approach to network delivery for telecom companies," said Jim Pertzborn, vice president IBM eServer telecommunications solutions. "By utilizing this IPT solution, telecom providers can reduce the time required to introduce new services, reduce their total costs and more importantly improve their customer experience."

IBM is further expanding upon its focus on the telecommunications industry by announcing that the IBM TotalStorage FAStT600 and the IBM TotalStorage EXP700 have been issued a Certificate of Conformance by National Technical Systems, Inc., for conformance to Network Equipment-Building System requirements for Level 3 type 2 and 4 equipment (NEBS 3). The NEBS standards represent the telecommunications industry's stringent requirements relating to the ability of network equipment to survive severe environmental conditions, including high temperature, violent shaking, lightning strikes, airborne contaminants, fires, and electrostatic discharge.

Additionally IBM announced the new eServer xSeries 343, a powerful NEBS-compliant rack server designed specially for the telecom industry. The xSeries 343 features dual Intel Xeon 2.4/533 processors, 12 GB, fast 266 MHz PC2 100 memory and two hot-swap Ultra 320 SCSI x 144 GB storage capability.

The eServer Integrated Platform for Telecommunications and eServer Integrated Platform for Telecommunications - Extended Offering are currently available with pricing based on solution requirements. The eServer xSeries 343 is expected to be available in August with pricing to be announced.

About IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key Business Partners, IBM offers a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of the new era of e-business. For more information about IBM, visit www.ibm.com.

About VarTec Telecom, Inc.

VarTec has built a billion-dollar business in consumer telecommunications by developing opportunities that larger public companies often neglected. Founded in 1989, the company pioneered the US dial-around business with the lowest cost of customer acquisition in the industry. VarTec is continuing its legacy of profitable growth by competing in the local phone service market, as well as expanding rapidly into Europe. In 2002, VarTec found a unique opportunity to acquire and reinvigorate Excel Telecommunications and leverage its low cost network marketing and high customer loyalty to grow the business even more rapidly in the U.S., Canada and Europe. VarTec is also further developing its VarTec Solutions subsidiary to provide enterprise and wholesale services. VarTec has its own switching and network infrastructure in the US and Europe. It has also taken a large ownership position in ProTel, which provides network services on a wholesale and retail basis in Mexico.

IBM, BladeCenter, BladeCenter T, eServer, xSeries and the IBM e-business logo are trademarks or registered trademarks of International Business Machines Corporation. For a list of additional IBM trademarks, please see www.ibm.com/legal/copytrade.shtml.

Intel and Xeon are trademarks or registered trademarks of Intel Corporation.
All other company/product names and service marks may be trademarks or registered trademarks of their respective companies.

Statements concerning IBM's pricing, future development plans and schedules are made for planning purposes only, and are subject to change or withdrawal without notice.

(1) For the second consecutive quarter, IBM was the worldwide leader in blade server shipments and blade server revenue (fourth quarter 2003 and first quarter of 2004). Source: IDC's Worldwide Quarterly Server Tracker, May 2004

(2) IBM is the only company providing customers a choice of blades with BladeCenter systems possessing 64-bit PowerPC technology (eServer JS20), or highly scalable 2-way and 4-way BladeCenter systems with 32-bit Intel Xeon processor technology (eServer HS20 and eServer HS40). IBM's BladeCenter-T, offers a specialized chassis, which is hardened to meet the demanding needs and NEBS requirements of the telecom, defense and aerospace industries.

Contacts:
  Chris Rubsamen
IBM Media Relations
(914) 766-4728
rubsamen@us.ibm.com