OPTUS AND IBM PARTNER TO DELIVER ON DEMAND SOLUTIONS

Optus and IBM Global Services today announced a partnership that would deliver on demand software applications and pay-by-use IT and networking services to the business market.

Optus' Online Office solution allows mid-market businesses to acquire technology on-tap via the internet without up-front costs.

The partnership enables businesses to acquire software applications on a utility basis. By deploying a lower variable price structure, the cost for critical business solutions will significantly be reduced, allowing clients to focus on running their business rather than their technology.

Bill Leakey, Director Optus Business said IBM's on-demand technology leadership combined with Optus' commitment to client service sets Optus Online Office apart from the competition.

"This is great news for Optus, IBM's experience in technology and business innovation will complement our highly skilled delivery team and our capability for hosted solutions," Mr Leakey said.

"Together we will provide relevant and cost effective solutions, taking away the headache of IT that many business owners just don't want to deal with."

Optus Online Office comprises a range of productivity solutions and business applications, such as virus scanning, content filtering, email, Microsoft Office and database on demand services.

IBM and Optus intend to expand the solution over the coming months to include Lotus software, video conferencing and applications from international and local independent software vendors and other ondemand IT services.

Optus Online Office enables businesses to respond quickly to changing market conditions by scaling the number of users to suit demand. The solution can significantly benefit businesses that have many office locations and limited IT support staff – for instance medium-sized companies.

Medium-sized companies require easy to deploy solutions that provide their businesses a competitive edge and an immediate return in today's competitive environment, said Janet Matton, Director - IBM e-Business Hosting Services.

"It is harder for medium-sized businesses to maintain the skills to keep pace with accelerating technology changes. These companies must also demonstrate an immediate return on their technology investments.

Optus Online Office, hosted by IBM Global Services, helps address critical skill and cost issues, and delivers the solutions on demand without upfront costs.

"We are very excited about working together with Optus," added Ms Matton. "While Optus and IBM have been doing business together since 1992, the Optus Online partnership provides a new way for both companies to continue to lead in the On Demand era."

Under the terms of the partnership, IBM will manage and support Optus Online Office, deliver the applications on demand and develop new products and services for the Optus Online Office platform. Optus will remain the primary point of contact for all customers.

Note to editors:

According to market intelligence and advisory firm, IDC, the Australian medium business market (100-499 employees) was just over AU$6 billion dollars in 2003 with the software and services sector the fastest growth area, this trend is expected to continue in the next few years providing plenty of opportunities but also challenges for vendors.

About Optus:

www.optusbusiness.com.au

About IBM:

IBM Global Services is the world's largest information technology services and consulting provider, generating record revenue and signings in 2003 of $42 billion and $55.5 billion, respectively. Some 180,000 professionals in more than 160 countries help clients integrate information technology with business value - from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. Leveraging IBM's unequalled scope and scale, IBM Global Services delivers integrated, flexible and resilient processes - across companies and through business partners - that enable clients to benefit from the on demand business model by saving money and transforming their businesses to be more competitive. For more information, visit www.ibm.com/services

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