IBM further strengthened its leadership in high-performance computing with
the introduction of the IBM eServer 326, the only second-generation server based
on the AMD Opteron processor from a major vendor and the first two-way,
rack-dense server to announce support of the AMD dual-core specification. IBM
expects high-performance customers to benefit from the e326’s increased memory
expansion, high speed I/O, and choice of hot swap SCSI or serial ATA hard drives
through greater price/performance, reduced hands-on maintenance and increased
density to reduce critical floor space.

The IBM eServer 326 will begin shipping in September with general availability
on October 15, with prices starting at $ 2,189. The system will support a wide
variety of operating systems including Red Hat RHEL 3.0, Novell SuSE SLES 9.0
and Windows 2003 Server. The systems include additional new features such as 8
DIMM slots, up to 16GB PC3200/2700 DDR1 memory, 2 PCI-X slots at 64/133/100MHz
frequencies and up to two U320 HS SCSI or fixed SATA hard drives.

IBM further strengthened its leadership in high-performance computing with
the introduction of the IBM eServer 326, the only second-generation server based
on the AMD Opteron processor from a major vendor and the first two-way,
rack-dense server to announce support of the AMD dual-core specification.

For the first time, the e326 incorporates IBM’s touted Xtended Design
Architecture, sophisticated, mainframe-inspired features, to provide added
reliable performance for compute-intensive applications such as financial
modeling, digital rendering, life sciences analysis, design automation, database
management and other high-performance business and research tasks.

IBM expects high-performance customers to benefit from the e326’s increased
memory expansion, high speed I/O, and choice of hot swap SCSI or serial ATA hard
drives through greater price/performance, reduced hands-on maintenance and
increased density to reduce critical floor space. The e326’s dual-core
technology design puts IBM in the lead to help customers transition to future
dual-core solutions.

With this announcement IBM is maintaining its focus and innovation on
establishing leadership in the core of the x86 segment, the two-way segment,
which, according to IDC, represented 67 percent of the worldwide x86 server
revenue in second quarter of 2004.(1)

Today IBM is also announcing an enhancement to its AMD Opteron processor-based
clustered system, the IBM eServer 1350, scheduled for general availability in
the fourth quarter. IBM was the first major vendor to offer pre-tested and
pre-configured AMD Opteron-based clustered solutions. The e326 and e1350 build
upon the success of the two-way IBM eServer 325, introduced in August 2003, and
the IBM IntelliStation A Pro workstation, introduced in March 2004, as the first
systems of their class from a major OEM on the market to take advantage of x86
64-bit extensions.

"IBM was our first Tier 1 partner to bring AMD Opteron processor-based servers
to market. The second-generation e326 is IBM’s response to customer demand for
the industry-leading processing power of the AMD Opteron processor," said Pat
Patla, director of AMD Server/Workstation Marketing. "Combined with the e1350
cluster, the IBM e326 is designed for optimal performance."

Since these 32-bit to 64-bit systems access larger amounts of memory, creating
added power, thermal and maintenance requirements, IBM has developed Xtended
Design Architecture, a set of mainframe-inspired technologies that have already
been well received in IBM’s newest x86 server line announced on August 2.
Examples of such technologies include high-speed I/O, system management,
integrated RAID and Calibrated Vectored Cooling(TM), the holistic system design
that allows the e326 to support the increasing thermal demands of dual-core,
64-bit performance.

As the first company to have offered dual-core processor servers, IBM can again
leverage the industry’s best technology portfolio to benefit customers with
extensive experience and understanding of how to optimize for dual core 64 bit
performance.

"Designing for the dual-core specification, IBM has invested to enable our
customers to be more confident with their hardware investments," said Alex Yost,
director of product marketing, IBM eServer. "For organizations with
high-performance computing demands that want investment protection and a
migration path from 32-to-64-bit applications, the eServer 326 provides an
optimum platform for clustering at an affordable price."

The IBM eServer 326 will begin shipping in September with general availability
on October 15, with prices starting at $ 2,189. The system will support a wide
variety of operating systems including Red Hat RHEL 3.0, Novell SuSE SLES 9.0
and Windows 2003 Server. The systems include additional new features such as 8
DIMM slots, up to 16GB PC3200/2700 DDR1 memory, 2 PCI-X slots at 64/133/100MHz
frequencies and up to two U320 HS SCSI or fixed SATA hard drives.

"The IBM eServer 325 is a great addition to our systems development and sales
and has an amazing capability to handle background and real-time editing using
the IBM bit-processing pipeline," Michael Collins, CTO, Linux Media Arts, an IBM
value-added reseller. "We couldn’t be happier with the way our technology
development has grown using the new dynamic-systems architecture."