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Subject: Internet Telephone:  IBM Statement of Direction

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Internet Telephone:  IBM Statement of Direction                               
                                                                              
IBM is announcing its intent to enter into the Internet multimedia            
communication market by bringing software telephony applications to the       
world of the Internet as well as private TCP/IP networks.  Anyone             
using the Internet will enjoy being able to hold voice communications         
with friends, relatives, and business associates using their existing         
Internet access connection.                                                   
                                                                              
This software is an evolution of IBM technologies already developed in        
its research labs that provides Simultaneous Voice and Data (SVD)             
capabilities. It will enable people to talk with each other with voice        
quality comparable to a good cellular system.                                 
                                                                              
IBM customers have expressed this need to combine voice                       
communications and the transmission of data on a single telephone line        
via the Internet. The graphical user interface will make it easy to use,      
even for the Internet beginner.  IBM employees world-wide are trying it       
now and it will go on the market in a few months.                             
                                                                              
Since today's Internet telephone products and technologies do not             
interoperate among one other, IBM is announcing, effective immediately,       
the intention to establish a consortium of technology developers and          
suppliers to address interoperability among the various industry              
offerings.  Parties interested in joining this consortium should contact      
the IBM Internet Division.                                                    
                                                                              
This software will come preloaded on IBM multimedia PCs.  The                 
technology will be included in IBM's OS/2 Warp operating system, as well      
as other IBM software and hardware products.  Future product directions       
include integration with other IBM leading technologies such as security      
encryption, conference calling, and connection from the Internet to any       
telephone worldwide, opening up a wide range of opportunities for             
Internet users.                                                               
                                                                              
IBM will demonstrate this Internet telephone technology at CeBIT              
in Germany and Computer Telephony Expo '96 in Los Angeles in                  
March, 1996.