IBM #1 IN HIGH SPEED PRINTER SEGMENT

Boulder, CO — May, 2005 — InfoTrends/CAP Ventures today
announced that IBM ranked  number one in the U.S. for 2004 in high-speed, black
& white roll-fed printers.In a newly-released report, titled “2003-2004 U.S.
Production Copying & Printing Placements: Summary and Trends,”
InfoTrends/CAP Ventures highlighted IBM’s strong performance in 2004 and noted a
14% increase in market share to displace Océ from the lead position and capture
nearly half of the black & white roll-fed market in the United States.
 According to InfoTrends/CAP Ventures, the equipment, service and supply revenue
in the U.S. production digital segment of the marketplace, including
print-on-demand, data processing and production copying environments, will
approach $15 billion in 2008.

“Placements of black & white roll-fed devices showed a surprising
improvement in 2004, due in large part to a very good performance from IBM’s
Printing Systems Division,” said Charlie Corr, group director,
InfoTrends/CAP Ventures.  “IBM built on its core data center market and also
expanded its reach into a number of direct mail customers in 2004.”

“2004 was a good year – and we saw our commitment to innovation and on
demand printing solutions pay off,” said Karen Fukuma, Vice President,
Production Solutions, IBM Printing Systems Division.  “Our performance in
the InfoTrends/CAP Ventures’ analysis reflects the emphasis we’ve placed on
providing IBM customers with integrated end-to-end output solutions.”