IBM and PeopleSoft Expand Strategic Alliance; IBM's Dynamic Workplaces Includes PeopleSoft...

Business Editors/High-Tech Writers

Connect 2002 EMEA

ARMONK, N.Y. and PARIS--(BUSINESS WIRE)--Oct. 22, 2002

IBM and PeopleSoft Inc. (Nasdaq:PSFT) today announced an expansion of their strategic alliance to include PeopleSoft's Human Capital Management (HCM) software

IBM's Dynamic Workplaces initiative is designed to offer a broad set of intranet-based collaborative technologies such as eHR, e-meetings, e-learning, and instant messaging that can help companies reduce costs and make employees more nimble. PeopleSoft's pure Internet HCM software will be included in IBM's Dynamic Workplaces set of offerings to help companies manage, connect and align their workforces. PeopleSoft is the leader in the worldwide HR and Payroll applications market, according to industry research firm IDC.

The move comes as companies in the current economy search for technology that can help them simultaneously bolster efficiencies, leapfrog competitors, and strengthen their workforces. Industry analysts estimate key elements of the e-workplace market to be worth almost $12 billion in 2002, rising to $53 billion in 2005. Research firm Gartner predicts that through 2006, 80 percent of successful e-business transformations will include an e-workplace program.

IBM and PeopleSoft have already teamed to help companies such as Safeway, a United Kingdom grocery retailer, to migrate to a centrally managed, web-based human resources system. The system will help Safeway reduce HR-related administration by up to 40 percent, a predicted saving of 3 million pounds per year.

"PeopleSoft brings unmatched industry leadership as a Dynamic Workplaces partner," said Ralph Senst, vice president of IBM Dynamic Workplaces. "This relationship will provide world-class Human Capital Management capabilities that will fundamentally alter the landscape of how companies provide HR support to their employees."

"IBM's Dynamic Workplaces initiative is the industry's most comprehensive set of e-workplace offerings," said Guy Dubois, executive vice president, PeopleSoft International Operations and Global Alliances. "Together, IBM and PeopleSoft are delivering innovative solutions that can turn employee productivity into real savings on the bottom line."

The companies will jointly market the solution globally. IBM and PeopleSoft announced the initiative as PeopleSoft kicks off Connect EMEA, its annual user conference for customers, prospects and partners in Europe, the Middle East and Africa.

About IBM

IBM is the world's largest information technology company, with more than 80 years of leadership in helping businesses innovate. IBM Global Services is the industry's largest business and information technology services provider, with approximately 180,000 professionals serving customers in 160 countries and annual revenue of $35 billion. For more information, visit www.ibm.com.

About IBM PartnerWorld for Developers

PartnerWorld for Developers is the developer resource for IBM Business Partners. It is a worldwide program designed to help software developers reach broader markets, lower their costs of doing business, and take their products to market faster. For more information, visit http://www.ibm.com/partnerworld/developer, or call 800/627-8363 in North America, 770/835-9902 outside North America.

About PeopleSoft

PeopleSoft (Nasdaq:PSFT) is the world's leading provider of application software for the real-time enterprise. PeopleSoft pure Internet software enables organizations to reduce costs and increase productivity by directly connecting customers, suppliers, partners and employees to business processes on-line, in real time. PeopleSoft's integrated, best-in-class applications include Customer Relationship Management, Supply Chain Management, Human Capital Management, Financial Management and Application Integration. Today more than 4,900 organizations in 140 countries run on PeopleSoft software. For more information, visit us at www.peoplesoft.com.

PeopleSoft and the PeopleSoft logo are registered trademarks. All other company and product names may be trademarks of their respective owners.

Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. Factors that may bear on the accuracy of these predictions include economic conditions in the U.S. and abroad, the ability to complete and deliver products and services within currently estimated time frames and budgets, market response to product announcements, and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. Please refer to the Company's periodic reports to shareholders (Forms 10-K and 10-Q) for more information on the risk factors that could cause actual results to differ.