IBM AND LYCOS BRING ONE-BUTTON ACCESS TO THE INTERNET AND DESKTOP APPLICATIONS TO CONSUMERS USING UNIQUE IBM KEYBOARD

E-Lifestyles Become More Fun and Productive with New Keyboard and USB Scanner

Research Triangle Park, NC -- September 1, 1999 -- IBM* announced an expanded portal alliance with Lycos, Inc.** (NASDAQ: LCOS), to deliver content, commerce and community to users of the new Options By IBM Rapid Access* II Keyboard(1). With the touch of a button, keyboard users with an existing Internet account can launch the IBM- and Lycos-developed Internet start page and Web sites which users can customize and personalize to their unique style and interests. IBM also announced today the IdeaScan 2000, a color, flat bed scanner with Universal Serial Bus (USB).

Combining Innovative Technology and Portal Content IBM created a worldwide portal alliance with Lycos for the Rapid Access II Keyboard because of its ability to deliver extensive and diverse content and services worldwide. The keyboard features several programmable Rapid Access Buttons that launch and open co-branded IBM and Lycos Web sites for Internet surfing, shopping and support.

"Working with Lycos, IBM is able to bring the best of the Internet to our customers' fingertips, " said David Nichols, worldwide program director of Consumer Options, IBM Personal Systems Group. "IBM and Lycos are enhancing today's Internet-focused, consumer e-lifestyles by delivering personal Web experiences with the touch of a button."

"By teaming with IBM on the Rapid Access Buttons, Lycos is able to further its commitment to providing the fastest and easiest user experience," said Jeff Crown, vice president of business development, Lycos, Inc. "We are delighted to be able to give keyboard users instant access to some of Lycos' most popular Internet services."

IBM Rapid Access II Keyboard The Rapid Access II Keyboard is a desktop PC keyboard featuring 16 Rapid Access Buttons for immediate access to commonly-used functions and applications. When the computer is on the Internet, pressing select Rapid Access Buttons will launch the browser and access the co-branded IBM and Lycos Web sites for Internet surfing, shopping and support.

In the United States, the Rapid Access II Keyboard will come with an IBM Browser, which is designed by IBM and built by Lycos and NeoPlanet. This browser will be loaded free when the keyboard is installed and includes multiple channels organized for fast browsing. The browser includes an IBM channel with links to valuable IBM Web sites and can be set as the default browser.

The keyboard's Internet button launches a personal Internet start page that can be customized to present information such as local news, sports, and weather and personalized to users' liking -- color, design and layout. In addition, there is a pre-set button for Internet shopping that takes users to a Lycos shopping page with links to books, music, auctions and other shopping sites. Another pre-set Rapid Access Button connects users to valuable IBM and Internet information and resources where they can receive online support. Finally, there is a pre-set Rapid Access Button that launches a Web site where users receive 60 days of free access to World Book Online.

Five of the Rapid Access Buttons can be changed using a simple software interface included with the keyboard. Buttons can be customized to launch applications, open files or access commonly used Web sites online. New labels can be created and printed every time the pre-set Buttons are customized to the user's preference.

In addition, eight additional Rapid Access Buttons bring the best Internet and stereo controls to your desktop. These include: Internet page forward; Internet page back; volume up and down; mute sound; play/pause CD and track forward and backward.

The Rapid Access II Keyboard can be used as a PS/2 or USB device and comes with Windows*** 95, 98 and NT drivers.

Given its unique functionality, the IBM Rapid Access II Keyboard can deliver the same productivity in the office that it does in the home. Businesses can leverage the Rapid Access Buttons to launch applications such as SAP or spreadsheets as well as easily navigate the Internet to track stocks and competitors. The color selections and drivers enable this keyboard to complement many hardware solutions including servers, workstations and notebook PCs.

The IBM Rapid Access II Keyboard is currently available worldwide in stealth black or pearl white for estimated direct prices of $65(2) and $39,(2) respectively. The keyboard can be purchased directly from the ShopIBM Web site (http://www.ibm.com/shop) or computer retailers. The IBM Rapid Access II Keyboard is protected by a one-year limited warranty(3) and service and support available toll free, 24 hours a day, 7 days a week(4).

IBM IdeaScan 2000 The IBM IdeaScan 2000 is a personal, color, flatbed scanner that enables users to create high-quality images they can share with families, friends and co-workers. It features a Universal Serial Bus (USB) interface and five Simple Access Buttons for scan, fax, copy/print, cancel and custom functions with a touch of a button. The IdeaScan 2000 provides single-pass scanning of images as large as 8.5 x 11.7-inches and delivers a 600 x 1200 dpi optical resolution and 9600 dpi enhanced resolution.

The IdeaScan 2000 connects to any Pentium****-based system running Windows 98 that has an available USB port and CD-ROM drive. Printer compatibility issues are minimized since the IdeaScan 2000 does not connect to the system's parallel port.

The IdeaScan 2000 Color Flatbed Scanner comes with ScanSoft PaperPort 6.1 to help manage your files and convert pages to text using Xerox TextBridge Classic OCR. It also comes with the ArcSoft PhotoStudio Suite, which includes PhotoStudio V3.0, PhotoPrinter V2.0, PhotoFantasy V2.0, and PhotoMontage V1.0.

The IdeaScan 2000 is currently available worldwide for an estimated direct price of $169.(2) The IdeaScan 2000 can be purchased directly from the ShopIBM Web site (http://www.ibm.com/shop) or computer retailers in select countries. The IBM IdeaScan is protected by a one-year limited warranty(2) with exchange service and service and support available toll free, 24 hours a day, 7 days a week(3).

"Ease-of-use and easy access are the key innovative features in the IdeaScan 2000 and Rapid Access II Keyboard," said David Nichols, worldwide program director of Consumer Options, IBM Personal Systems Group. "By tailoring these news products to the 'Net Generation', IBM is helping customers to save time and improve productivity on the Internet."

About IBM IBM is a leading manufacturer and developer of hardware and software solutions for the home. IBM's consumer products have been widely recognized for technology innovation, product design and service and support. For the seventh year in a row, consumers have awarded IBM with an "A" rating in PC Magazine's annual "Service and Reliability Survey."

* Registered trademarks of International Business Machines Corporation.

** Registered trademark of Lycos, Inc.

*** Windows and Windows NT are registered trademarks of Microsoft Corporation.

****Pentium is a registered trademarks of Intel Corporation.

All other products and/or company names may be trademarks or registered trademarks of their respective holders.

(1) The Rapid Access II Keyboard is an after-market product from Option by IBM and does not ship with IBM PCs.

(2) Estimated direct price to end users. Actual direct prices may vary.

(3) For information regarding the terms and conditions of IBM's limited warranty, please visit our Web site or call 1-800-772-2227. Copies are available upon request.

(4) Response times may vary depending on call loads. May exclude certain holidays.

IBM news releases are available on the Internet via the IBM Home Page at http://www.ibm.com. For more information about IBM's visual products, visit http://www.ibm.com/options.

The IBM Fax Information Service allows you to receive facsimiles of prior IBM product releases. Simply dial 1-800-IBM-4FAX. For general information about IBM and these or other IBM Options products, dial the IBM Personal Systems Group HelpCenter at 1-800-772-2227.

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