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Subject: Re: Press Release: IBM Sold Record Numbers of OS/2 Warp at End of
1995

                                                                              
Press Release: IBM Sold Record Numbers of OS/2 Warp at End of 1995            
               OS/2 Sales Now Top 12 Million Worldwide                        
                                                                              
                                                                              
AUSTIN, Texas, January 23, 1996. . .IBM today announced                       
record sales figures for OS/2* Warp, with one million licenses                
sold in December, escalating the total number of OS/2 Warp                    
licenses to six million and overall OS/2 purchases to more than               
12 million.                                                                   
                                                                              
"We expected OS/2 Warp sales to rise after customers had a                    
chance to try out Windows** 95," said Wally Casey, director of                
marketing and brand management for IBM Personal Software                      
Products. "December brought us proof of this when our sales                   
reached an all-time high, capping what we believe was a very                  
successful year for the OS/2 Warp family of products."                        
                                                                              
"After evaluating Windows 95, I'm not surprised that OS/2                     
sales are up," said Greg Bell, information systems supervisor at              
the Kentucky Department of Property Taxation. "OS/2 Warp                      
delivers superior multitasking, is relatively easy to use and                 
rarely crashes. I certainly wouldn't bet my business on Windows               
95. It is only marginally better than Windows 3.11. In a                      
business environment I'm staying away from Windows 95 and                     
sticking with OS/2."                                                          
                                                                              
Success Breeds Success                                                        
                                                                              
Success of OS/2-compatible applications rose with sales of                    
the operating system. OS/2 developers like SPG Inc., WitchDesk                
Inc., PowerQuest and Computer Data Strategies all experienced                 
strong sales in the fourth quarter of 1995. And Stardock                      
System's OS/2-based Galactic Civilizations was voted Best Game of             
                                                                              
1995 on the Internet PC Games Charts, a site on the Internet                  
where computer game players vote weekly on their favorite PC                  
games.                                                                        
                                                                              
     "We just completed our largest quarter ever," said Brent                 
Bowlby, president of Woodbury, Minn.-based Computer Data                      
Strategies, Inc., which manufactures BackAgain/2 backup and                   
recovery software. "OS/2 provides an open market for small                    
companies, such as CDS, to begin their path to success.                       
Combining this technically sophisticated operating system with a              
growing user base and a growing demand for native OS/2 solutions              
spells success for those developers developing in this market."               
                                                                              
"We began shipping PartitionMagic in March '95, and within six                
months we were running a profitable business," said Eric J. Ruff,             
president of PowerQuest, an Orem, Utah-based company which                    
develops a utility that allows OS/2 users to dynamically create,              
shrink, expand and move partitions on the fly without destroying              
data. "At the start of the fourth quarter, sales were up 20                   
percent. In November we introduced Version 2.0 and sales                      
tripled. And in December sales for OS/2 products were again                   
higher than anticipated."                                                     
                                                                              
More in Store in 1996                                                         
                                                                              
IBM will capitalize on a successful 1995 by connecting                        
computer users to each other and the future with a comprehensive              
offering of OS/2-based products in 1996. The industry-acclaimed               
OS/2 Warp Server will simplify distributed computing for                      
businesses and workgroups of all sizes when it ships this                     
quarter. And the next generation of OS/2 Warp, code-named                     
Merlin, will launch users further into the network-centric world              
of computing with market-leading plans for networking and                     
Internet capabilities, an enhanced user interface and improved                
OpenDoc support.                                                              
                                                                              
                                                                              
    * Indicates trademark or registered trademark of the IBM Corp.            
    ** Indicates trademark of Microsoft Corp.                                 
    All other brand and product names are trademarks or registered            
 trademarks of their respective companies.                                    
                                                                              
IBM news releases are available on the Internet, via the IBM                  
home page at http://www.ibm.com. The IBM Fax Information Service              
allows you to receive facsimiles of prior IBM product press releases.         
Dial 1-800-IBM-4FAX and enter "99" at the voice menu.