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REF NO.: 311

SUBJECT: IBMstrengthens ties with MemorialUniversityin agreement valued at up to $15 million
DATE: April 28, 2005

Memorial University of Newfoundland and IBM Canada Ltd. today announced a five-year strategic relationship to update and streamline the university’s technology systems and to install a campus-wide voice-over-IP (VoIP) system.

“IBM’s relationship with Memorial University has continued to evolve over the past few years,” said John Kutcy, education industry executive, IBM Americas. “By simplifying and updating the university’s information technology systems, and by installing a campus-wide VoIP system, we’ll help Memorial operate more efficiently and effectively. We also look forward to working closely with Memorial in targeted areas of research, where we believe our joint interests and strengths can result in some exciting accomplishments for both organizations.”

“Memorial is expanding its teaching and research activities, which require state-of-the-art infrastructure,” said Dr. Axel Meisen, president of Memorial University. ”It is invaluable partnerships such as this one with IBM Canada, which will provide our students and faculty with the tools to become evermore effective and innovative.”

“We came to the decision to partner with IBM Canada after an exhaustive evaluation process which began in the fall of 2004. Both parties worked very hard to reach what we feel is a mutually beneficial agreement,” added Kent Decker, vice-president (administration and finance) at Memorial University. “We fully expect that IBM will work with local partners in St. John’sto provide top-quality service.”

The new VoIP system uses the Internet network to make telephone calls, and other forms of communications such as fax and e-mail, through digital transmissions. The agreement also expands existing research collaborations between IBMand Memorial in the areas of Deep Computing Visualization and Life Sciences. IBM will be assisting Memorial in an information technology upgrade that will include a consulting project to help develop better ways to deliver technology services and processes to Memorial’s staff and students. This technology improvement is expected to include the addition of xSeries servers, virtualization servers, and a new storage system, including hardware and software. This new technology will help reduce maintenance costs, increase speed and ensure greater efficiency of technology resources.

As part of the agreement, IBM will also implement a Cisco-based campus-wide IP Telephony solution to provide high-quality voice services and support rich-media applications. In addition to providing greater organizational independence and efficiencies, the Cisco/IBM solution will support Memorial's evolving teaching and research. It will provide improved communication services to all stakeholders – students, faculty, staff and the community.

About Memorial University of Newfoundland

The only university in Newfoundland and Labrador, Memorial is Atlantic Canada's largest university, with a student enrolment of approximately 17,700 as well as 900 permanent faculty and 1,400 permanent staff. It has campuses in St. John's, Corner Brook and Harlow (England). The Labrador Institute in Happy Valley-Goose Bay provides university services in Labrador. Memorial has several specialized teaching and research facilities, including the Ocean Sciences Centre near St. John’s, the Bonne Bay Marine Station on the west coast of Newfoundland and a language institute on the French island, St. Pierre. A comprehensive university, Memorial University provides its students with a wide range of programs, including many professional programs. Its more than 55,000 graduates are highly valued nationally and internationally. Research and scholarly activities are broad-based, while focusing on Newfoundlandand Labrador's human and natural resources, unique culture and geographical location in the North Atlantic.

About IBM

IBM is the world's largest information technology company, with over 85 years of leadership in helping businesses innovate. For more information about IBM, visit www.ibm.com.

Note: A group photo of representatives from IBMCanada and MemorialUniversityis available at www.mun.ca/univrel/photos.html.

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