The State of Georgia Selects IBM for Technology Services Agreement

IBM to Provide Reliable Infrastructure for State Services

IBM (NYSE: IBM) today announced that the State of Georgia has awarded IBM a contract, valued by the State at $873 million, for information technology (IT) outsourcing services over eight years. The contract also includes two additional one-year optional extensions. The announcement was made by Governor Sonny Perdue of Georgia at a news conference in Atlanta this afternoon.

The contract will support Governor Perdue's initiatives to better serve Georgia residents by consolidating 11 independent IT environments into an integrated and reliable operation. The agreement was signed on November 20, 2008.

"Georgia's technology investments have not resulted in a reliable, recoverable and secure system that ensures data is protected and needs are being met," Governor Perdue said. "We have one of our nation's most respected technology companies on board for this transformation, and I look forward to our partnership in providing the state better services than we have today at a cost savings to the taxpayer."

IBM will provide the State with a range of data center services including mainframe and midrange system management, service desk, disaster recovery and IBM Internet Security Systems will supply security services. In addition, the agreement will enable the State to replace an aging infrastructure and migrate older technologies onto newer IBM technology platforms. As subcontractors to IBM, Dell will update and manage the state's client systems utilizing its desktop management platform and provide service desk support. Print services will be provided by Xerox (NYSE: XRX).

Anticipated benefits of the data center consolidation and outsourcing services agreement include standardizing service levels across the State, proactive management and diagnosis of technology issues, improvement of disaster recovery capabilities and the creation of a consistent information security solution.

"This initiative demonstrates the State of Georgia's commitment to the smart and strategic use of information technology to better serve its citizens," said David Liederbach, General Manager, IBM Global Technology Services, Public Sector. "IBM will help the State enhance its end user services and transition to an efficient, stable and flexible infrastructure, capable of handling Georgia's future information technology needs."

The agreement addresses career opportunities for state employees who currently perform data center services, with close to 300 state employees being offered positions at IBM, Dell or Xerox.

About the State of Georgia

For more information, visit www.georgia.gov.

About IBM

For more information, visit www.ibm.com/services.