Human Resources: IBM Using Internet's Virtual World to Train Thousands of New Employees in

Armonk, NY - November 14, 2006 -- IBM announced today that it is using
video game technology and the virtual world of the Internet as a global
onboarding tool for thousands of new employees in burgeoning technology
markets such as the U.S., India and China. By combining play with
learning, IBM is making it easier and faster to train a huge influx of new
employees -- allowing them to quickly develop the company's cultural
values,decision-making regimens and technical skills they need to be
productive. The program will be part of IBM's $100 million investments in
new technologies, to be announced by IBM Chairman and CEO Sam Palmisano in
China, on Tuesday November 14.

Developed by IBM's Learning business unit in conjunction with IBM Research,
the world's largest IT research organization, this first-of-a-kind employee
program, called IBM[at]Play, takes advantage of the Internet's
three-dimensional virtual world that runs on platforms such as Second Life
and India's Planeshift, where people interact via life-like digital
personas, or "avatars."

The program was developed to accommodate thousands of geographically
dispersed new employees who work or reside in remote areas that are
significant distances from centralized IBM facilities.The idea is to engage
the social network capabilities of the Internet to break down the barriers
of distance and satellite office environments. IBM will expand the programs
next year to train new employees across the company's global workforce.

"New IBM employees separated by thousands of miles will be able to mingle,
interact and share ideas in the virtual world before their first day on the
job." said Ted Hoff, IBM Vice President, Learning. "They can learn
real-life working skills such as signing up for benefits, developing code
as part of a global team, and ramping up sales skills before they meet with
IBM clients."

Businesses have long used role-playing games and simulations as learning
tools, but with this new approach, IBM employees can immerse themselves in
a digital realm where learning, collaborating and play are all part of the
work environment. Hoff says that video game play adds a new dimension to
corporate training because people don't perceive game play as learning --
which makes them more willing to take risks, more flexible in their
thinking, and faster at connecting with others to help solve complex
problems.

The virtual world marks the next frontier for IBM's learning initiatives,
which offer IBMers a wide variety of ways to improve their skills in
technology, management, sales and business development. Approximately fifty
percent of IBM employees already conduct their learning online, so IBM[at]Play
will provide employees from across the world with another flexible way to
learn while accommodating their work and personal schedules. Last year IBM
spent more than $700 million training its workforce, with employees
spending more than 18 million hours -- or 55.5. hours per employee -- on
training.

New IBM programs include:

In India -- which boasts IBM's second-largest workforce next to the U.S. --
IBM has begun using virtual worlds to help onboard thousands of new
employees who work in geographically dispersed offices. Employees can log
on from their homes and client sites to gain a global perspective of IBM,
help them understand IBM's policies, cultural, products and services, and
build out their social networks. New hires can interact with characters
they don't know, quickly analyze new situations and solve problems quickly.
The program began in August.

In China, IBM is starting a global program called Fresh Blue for interns
who plan to join IBM after they graduate college. The interns can
acclimate to IBM before their official start date and become productive
much sooner. It gives them a jump-start on sharing code, discussing
experiences and role playing --- from simple tasks like submitting an
expense report to complex business scenarios, such as how to deal with
clients. The program will launch in 2007.

Also launching in China, IBM will use virtual worlds to train hundreds of
new salespeople on how to sell products and service in the real world.
Since relationship-building is critical in Chinese culture, virtual worlds
will help IBM salespeople connect with other employees and learn sales
techniques while competing for virtual points and prizes. The program,
called Sales Quest, will launch in 2007.

In the U.S., IBM will use the virtual world for former IBMers -- both
retirees and those still working -- to mentor new hires through speed
mentoring, group meetings, and more. The diverse pool of IBM talent among
alumni and employees in the U.S. will help new and recent hires draw upon
former IBMers' collective intelligence and skills, discuss new projects,
connect and collaborate about their working experience at IBM, build skills
and understand customer needs so they can be more productive. This program
will launch next year as part of the "Greater IBM" virtual world project,
which already represents the largest presence in the virtual world by a
Fortune 500 company.

"The 3D virtual world presents a new way for IBM's to train thousands of
new, geographically dispersed employees," according to Hoff. "Through
technology innovation, IBM is finding new ways to help employees connect,
form social networks and collaborate to solve business challenges."

Laurie Friedman
IBM Corporate Communications
914-499-4608 (t/l 641)
laurie1[at]us.ibm.com