IBM® and Bell Atlantic Team Up to Deliver Home Networking Solutions to Consumers

Home PC Networks, Shared Video Sources Among Services Planned as Bell Atlantic Becomes an IBM Authorized Home Systems Integrator

Research Triangle Park, NC / New York - February 2, 1999 - IBM and Bell Atlantic Communications and Construction Services, Inc. (BACCSI), a subsidiary of Bell Atlantic, today announced that they have joined forces to deliver IBM Home Director home networking systems to homeowners throughout the northeastern United States. Now consumers throughout the Bell Atlantic operating area will have access to some of the most advanced home networking technology * including in-home PC networking * from two names they can trust.

By combining their respective expertise in home-networking technology and knowledge of the home marketplace, IBM and BACCSI are working to transform the way homeowners, builders and developers implement and access advanced telecommunications infrastructure systems. Soon consumers will be moving into new homes wired with some of the most advanced home networking technology available.

"Working together with BACCSI, IBM is expanding its reach in delivering technology solutions that match consumers' lifestyles and needs," said Mike Braun, general manager, IBM Consumer Division. "With nearly 3000 service trucks on the road, BACCSI has an outstanding field support organization that we are proud to team with to install our Home Director System. Homeowners can rely on receiving the best in home networking technology as well as superior services and support for years to come."

"This agreement further positions BACCSI as the nation's largest premises infrastructure provider," said Robert Burich, president of Bell Atlantic Communications and Construction Services, Inc. "Our agreement with IBM supports Bell Atlantic's broad product offerings and solutions in the fast-growing and increasingly competitive residential communications marketplace."

The addition of BACCSI to IBM's nationwide family of Authorized Home Systems Integrators reinforces the importance that home networking is beginning to play in people's lives. Recent developments in technology, such as the rapid expansion of the Internet, growing numbers of intelligent devices and new transmission methods like ADSL make the delivery of home networking solutions a natural fit for BACCSI. As a result, homes equipped by BACCSI and IBM will be able to network their PCs, distribute the signal from a single VCR or DVD player to any TV, share an internet signal and be equipped to take advantage of future home networking advances and devices.

BACCSI has established itself as a leader in working to change the residential communications infrastructure market from simply delivering basic telephone service to bringing a wide array of broadband and networking capabilities into the home. IBM Home Director is rapidly becoming a standard feature in new homes across the United States and Canada. By working together, IBM and BACCSI are able to leverage each other's strengths to deliver home networking capabilities that ultimately benefit homeowners.

The foundation for the IBM Home Director System is the Home Network Connection Center, the in-home hub for a complete structured wiring network solution. The Connection Center brings together the various wiring types in the home including coaxial, category 5, and telephone * and allows data to flow across the network. As the centerpiece of the current agreement, IBM will supply co-branded Home Network Connection Centers to BACCSI, thus enabling future network applications and helping protect homes from technology obsolescence.

To help deliver even greater value in home networking systems IBM recently introduced the first of what is planned to be a series of applications which take advantage of the infrastructure that IBM and BACCSI are delivering. Presently this includes the IBM Home Network Controller, an integrated home management application. IBM has plans to add other applications that run on a home networking infrastructure in the future that will be distributed through a variety of channels including the IBM Authorized Home Systems Integrator program.

The agreement between IBM and BACCSI is effective immediately, covering activity throughout the Bell Atlantic region from Maine to Virginia and has the potential to expand further into other markets where BACCSI has a presence. In addition, IBM and BACCSI will work together on market development, advertising and research, as well as sales and technical support.

For more information on IBM Home Director, IBM's home networking products, or the location of the nearest IBM Authorized Home Systems Integrator, visit the IBM Home Director Web site at www.ibm.com/homedirector or call 1-800-426-7144.

For more information on the BACCSI representative nearest you please call 1-888-947-3782.

Bell Atlantic is at the forefront of the new communications and information industry. With more than 42 million telephone access lines and more than eight million wireless customers worldwide, Bell Atlantic companies are premier providers of advanced wireline voice and data services, market leaders in wireless services and the world's largest publishers of directory information. Bell Atlantic companies are also among the world's largest investors in high-growth global communications markets, with operations and investments in 23 countries.

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