WebSphere Commerce Summary of Customer ROI Results

January 2007

WebSphere Commerce Customer ROI Page 2 Acme Brick 2 Allen Edmonds 2 American Photo Marketing 2 Anaconda Sports 3 AVNET Channel Connection 3 Bear Creek 4 Bharat Petroleum 4 Bodega y Bebidas 4 Boscov's 5 Boulanger 5 Campmor 5 Carrot Ink 5 Changing Inc 6 Chr Hansen 6 Compass Group 7 Darty 7 D-M-E 7 Dowd 8 Dream Create 8 Drug Trading Company 8 eFollet 9 Findel 9 Firwood Paints 9 Gardena 10 ibm.com 10 ICON 11 Indigo 11 Lakota Schools 11 Macrovision 12 Majestic Wines 12 MediaMarket SP 13 Mercatone 13 Milwuakee Electric Tool 13 Monroe County Tax 14 MTD 14 Nexsys 14 Nilfisk-ALTO 14 Oregon State Board of Nursing 15 Panasonic 15 Qujing City 16 Raja 16 REI 17 Robert Dyas 18 Safilo 18 Senshukai 18 Source Medical 18 Staples.com 18 State of Louisiana 19 State of Michigan 19 Things Remembered 19 Water Sports Supplies 20 Wimbledon 20 Yeck Brothers 20 Other Customer Quotes 21

Acme Brick Since implementing the WebSphere Commerce solution, Acme Brick has seen a reduction in transaction-processing times - from as much as 30 minutes to less than 45 seconds due to integration with POS systems and back-end JDE. This improvement directly and dramatically increased customer satisfaction. Since the application is seamlessly integrated with a payment processor, the company saves nearly US$25,000 per year on third-party credit card processing fees. Overall, the solution improves Acme Brick's ability to process sales, manage internal accounting and track inventory levels in real time. The solution also demonstrates the robust nature of the IBM WebSphere Commerce software when used to power POS transactions and not just as a front-end Web commerce engine. Customer Quotes "Since implementing the IBM WebSphere solution from Shared Vision Group, we’ve really seen a difference in processing speed. More important, our customers appreciate faster and more personalized service." Link to write-up.

Allen Edmonds With integrated e-commerce and ERP systems, Allen-Edmonds personnel no longer need to duplicate product and pricing changes, and this has helped the client increase productivity by 20 percent, and to reduce damages by 30 percent. Link to write-up.

American Photo Marketing The client achieved the following quantifiable benefits: - A ten percent increase in business in the first 2 months of operation (the company anticipates additional growth of 300 percent in the next 12 months) - An elimination of most of its accounts receivable, since the schools, through their own Web sitelet collect fees from parents - Management of 55 percent of its business online, reducing labor costs by 40 percent - Over US$180,000 in donations to schools across Michigan. Customer Quotes "What I like most about WebSphere Commerce is that it's scalable. I can add more schools and more dealers - all of them being unique. We can customize each school with its own colors and logos. Whereas with the other product we were looking at, it would have died after 100 schools....WebSphere Commerce is giving us the tools to change the way business is done in this industry. We broke the mold, and WebSphere Commerce helped us do it." -- Skip Cerier, president, American Photo Marketing Link to write-up.

WebSphere Commerce Customer ROI Page 3

Anaconda Sports Enhanced responsiveness to customers through targeted marketing/campaigns and specialized sites (using extended sites) contributes to 20% increase in online sales only a 3-month period, and an increase in larger league/school district orders from $5,000 to $10,000. Development of the first new Web site took only six weeks, with 70 percent of the solution provided by out-of-the-box functionality WebSphere Commerce. Projected 100% payback within a year or less due to increased sales and decrease in administrative and IT costs. Business users can rapidly create targeted promotions and marketing campaigns in hours and new branded Web sites in 2 days or less -- without IT assistance. The site is scalable to handle 67% increase in unique visitors. Customer Quotes “We were busy answering complaints, handling emergencies and performing wasteful manual tasks to get our orders out. We couldn’t satisfy our customers, so they were going elsewhere.” --Rob Meyer, Director of Internet Services, Anaconda Sports, Inc. “We had lost the ability to meet online customers’ demands because we were busy answering complaints, handling emergencies and performing wasteful manual tasks to get our orders out,” says Rob Meyer, director of Internet services, Anaconda Sports, Inc. “We couldn’t satisfy our customers, so they were going elsewhere. And we didn’t have time to focus on our key objective, which was to get more large-volume league customers and become their exclusive suppliers.” “BladeCenter allows us to accommodate growth simply by adding blades,” says Darrin Nelson, vice president, software and services, SCS. “The ability of WebSphere Application Server to handle large-volume demand is also essential to Anaconda’s growth strategy. With its multithreading capability, WebSphere Application Server is the foundation for building a reliable Web site that easily scales to peak demands.” We know that DB2 on Linux is scalable to four terabytes of RAM,” says Nelson. “That makes it a perfect match for this type of business.” “Over 70 percent of the site came from the out-of-the-box functionality of WebSphere Commerce,” he says. “With our former Web environment, it took us three to six weeks and cost thousands of dollars to implement new sites or even just changes. Now, we can collaborate with our marketing staff, focus on creating the most effective promotions and implement them within hours or days with no additional cost to us,” says Meyer. “We didn’t want to be locked into a particular vendor’s platform and are totally in agreement with IBM’s roadmap for on demand ebusiness,” says Meyer. “The best way for us to protect our investment is by using open standards. That’s what SCS has done by using IBM components, and that’s why we chose them.” “We project a 100 percent payback on our investment within a year,” says Meyer. “What’s particularly gratifying is the increase in league and school district customers with large orders. We’re seeing $5,000 to $10,000 orders more frequently.” “We have the ability to control our destiny now,” says Meyer. “The tools and the bandwidth we need are available to us on demand, thanks to SCS and IBM.” Link to write-up.

AVNET Channel Connection With a more efficient, optimized value net in place, Avnet has experienced staggering improvements in efficiency: It has cut the time it takes to process reseller orders by 93 percent, while the cycle time for processing upstream orders has been reduced by 97 percent. Nearly 60 percent of the distributor’s transactions are fully automated from end to end (from supplier to reseller to end customer). And the company has been able to reduce its server footprint by 18 percent, leading to a 20 percent reduction in overall IT costs through a 30 percent increase in IT staff productivity and more than US$1 million in supportcost savings. In addition to becoming more efficient and cost-effective, the company has achieved an industry-leading growth rate, resulting in part from the appeal of Channel Connection to new resellers. Avnet experienced ROI of 360% in first year.

WebSphere Commerce Customer ROI Page 4 Channel Connection has helped Avnet take advantage of its position at the heart of the supply chain to gain a competitive edge. The solution has improved visibility across the value chain - for Avnet, and for its resellers and suppliers. Resellers now receive more personalized, relevant information on order status, customers and products, and the ability to exchange instant messages with Avnet and suppliers. Suppliers can now detect downstream transaction activity at the reseller level across all transaction phases. And suppliers can exchange feedback about the relative effectiveness of their reseller programs, thereby providing a basis for enhancing marketing initiatives. Customer Quotes “Technology has enabled us to reach out and provide IT support for our resellers and our suppliers—to lift them up and make them more competitive. That’s a big part of how we measure our success, and how we’ve become more on demand.” –Bill Chapman, Chief Technology Officer, Avnet Inc. “We can’t expect our suppliers and resellers to turn their business processes upside down. Our role is to facilitate innovation, not impose it.” –Bill Chapman “We knew IBM delivered on its commitments and that they’d be there over the long haul. In the end, it was a question of longevity, integrity and competency—and IBM has all of those elements.” –Bill Chapman "Our flexibility means we adapt quickly to our customers’ needs, so they can compete better. We see on demand technology as essential to that equation.” –Bill Chapman Link to write-up.

Bear Creek The parent company of Harry & David and Jackson Perkins improves the accuracy of its data and speeds time-to-market of new products, projecting an annual savings of US$140,000 by using IBM WebSphere Product Center, WebSphere Application Server, WebSphere Commerce. Bear Creek will be able to reduce the number of IT and PIM staff dedicated to updating promotional material by 80 percent and 20 percent, respectively, leaving Bear Creek's IT staff better able to address other internal IT projects.

Bharat Petroleum Bharat has a large development team in-house, and it considering using Microsoft products to develop its ecommerce Web site on a Java or Microsoft.NET platform. But, after IBM Business Partner MindCraft Software showed the client a proof of concept (POC) demonstrating how it could build a basic site in less than one week, the company enthusiastically deployed IBM WebSphere Commerce Enterprise V6 software in an IBM AIX 5L environment. With its new e-commerce site in place, Bharat expects to triple its profits in the next three years. Thanks to the ease of use of and the built-in templates included with the WebSphere Commerce Enterprise software, the company quickly built its site and brought in several vendors to post their product offerings. Since vendors are able to post and remove their own products, Bharat is able to leverage its IT technology with a minimum of resources dedicated to maintaining the site. Not only will the e-commerce site enable Bharat to expand into new markets, but it will also help the company reach millions of people and achieve its profit goals. Link to write-up.

Bodega y Bebidas Direct sales have doubled in the year the site has been active, and are expected to continue to grow at the same pace--and profit margins have risen by 40 percent. Due to real-time order, inventory and fulfillment integration, order fulfillment time has been reduced by 50 percent. Through online, self-service capabilities, promotions and e-mail campaigns and integration with loyalty clubs, the direct marketing and customer

WebSphere Commerce Customer ROI Page 5 support costs have been reduced by an estimated 15-25 percent and customer acquisition has increased by 15 percent.

Boscov's Due to the IBM multichannel e-commerce solution, Boscov’s expects to double online orders annually. The new site can be leveraged for Web orders, phone orders and in-store kiosks. Boscov’s can also utilize marketing tactics, similar to those used in stores, to attract new customers and retain loyal customers. The company is also better able to control IT costs by taking advantage of the operational cost savings offered by Linux. The IBM eServer zSeries 900 server, with partitioning capabilities and the ability to provide test and production Linux images, can now handle the volume of transaction hits for browsing and shopping. And with its IFL features, the system provides Boscov’s a technology path to follow as the business grows. Link to write-up.

Boulanger The new WebSphere Commerce/WebSphere Product Center solution allows Boulanger to provide comprehensive, accurate information on 100,000 products, a tremendous improvement on the 2,000 it could handle previously. The company can store and provide information on products that it doesn't sell on a daily basis but that customers can special order, which gives the company a product range far superior to that of its competitors. And with the ability to create, update and distribute information quickly, Boulanger is well positioned to keep its customers abreast of the latest products and discounts as well as to target its content to take advantage of consumer trends or market fluctuations. Boulanger's sales staff can also use the new information system to stay well informed about products and trends, allowing it to better serve customers and develop customized product solutions for their needs.

Campmor Improves the online search capabilities of its e-commerce Web site with IBM WebSphere Content Discovery for Commerce, resulting in – 38 percent increase in revenue based on online searches, – nine percent increase in the percentage of orders placed after an online search – nine percent increase in the average order size of search orders compared to non-search orders. Customer Quotes "WebSphere Content Discovery for Commerce solution delivers the best end-user experience by synthesizing the seeker's request, translating it into an effective response, and organizing the information returned in a manner that makes it easy for our customers to act." -- Daniel Jarashow, chief executive officer (CEO), Campmor Inc. Link to write-up.

Carrot Ink Since implementation of this IBM solution, Carrot Ink has achieved a conversion rate of 8.5 percent through flexible, customer needs-oriented search and navigation (a series of drop-down questions to identify the appropriate cartridge for a given printer), targeted e-mail campaigns (incentivize users to re-order products on a recurring basis, at a time when the customer is likely close to depleting supplies), and flexible order capabilities (customers can see the cartridges they’ve ordered before and reorder quickly/easily). The also achieved and an increase of over 10 percent in average order size through cross-sell and upsell capabilities. All of this has led to a 25% increase in lifetime value for each customer. These capabilities can be easily leveraged by business users – for example, they can implement define promotions, promotion codes, customer segments, discounts, campaigns, cross-sells, up-sells and so forth. They can implement targeted

WebSphere Commerce Customer ROI Page 6 customer promotions in less than a half-hour, a process that used to take days. In addition, new products can be added to the catalog within minutes, allowing Carrot Ink to quickly meet its customers’ needs. Carrot Ink's systems can handle a 20 fold increase in orders per day without with no significant degradation in response time. The reliability and usability of the system means that approximately 94 percent of all orders require no sales representative involvement whatsoever, which lowers Carrot Ink's cost of operations. And the openness of the WebSphere software allows Carrot Ink to integrate and leverage its existing order management solution. Customer Quotes Our new Web site enables us to provide much better customer service while making it easier for our customers to shop. IBM WebSphere Commerce is probably the best investment we’ve made since starting Carrot Ink.” –John Howard, President and Founder, Carrot Ink “IBM WebSphere has really made it much easier for Carrot Ink to run promotions and provide quality customer service. With all of its features, WebSphere Commerce will enable us to increase the lifetime value of each customer by at least 25 percent.” –John Howard “It’s clear that IBM really understands retailing. WebSphere Commerce provides so much business logic that it didn’t require much customization to make it work for our application.” “My goal was to upgrade our Web site so that, if you had ever placed an order with Carrot Ink, the next time you visited we would know who you are and what you had bought previously. Then, if you wanted the same products and quantities, all you would have to do is click the ‘buy’ button and your order would be processed and your products shipped.” Howard also understood the importance of leveraging a customer’s buying habits. “Once we were able to know each shopper’s purchasing history, I wanted to be able to contact repeat customers just before their cartridges were likely to require replacement.” “Right from the start, IBM was incredibly supportive of our entire endeavor. When I purchased WebSphere Commerce Professional Edition, IBM treated us as though we were just as important as a much larger company. I’m delighted with the service I’ve received from IBM.” Link to write-up.

Changing Inc/New Page By automating buying and selling across the 3-tier demand chain, achieved 50% estimated reduction in the cost and time involved in transactions (by both manufacturers and distributors). They improved revenue and loyalty due to time savings and ease of use. And they achieved it all with 90% out of box capability. Customer Quotes "Right out of the box WebSphere Commerce had 90 percent of what we wanted. The other 10 percent we customized." —Karthik Raghavan “Reordering makes up 60 percent of our business. Now members can see all their previous orders and reorder with just a keystroke. The ChangingInc platform becomes a customer relationship management tool. And it builds loyalty. It’s so easy to repeat and increase your orders.” —Karthik Raghavan “I appreciate IBM’s support. As I present this product to prospective members, and watch them get excited, I see that our partnership with IBM and WebSphere is reassuring not only to us, but to manufacturers and distributors.” —Karthik Raghavan Link to write-up.

Chr Hansen By using the open XML standard to access data from their own laboratory system, they have earned a onetime savings of approximately US$230,000. Customer Quotes “The solid knowledge of e-commerce solutions and benefits of using WebSphere was our biggest reason for working with IBM,” says Kristensen.

WebSphere Commerce Customer ROI Page 7 “We wanted an integrated solution from a single provider,” he says. “Of all the vendors we evaluated, IBM was unique in its ability to deliver a comprehensive, scalable and cost-effective solution and deploy it quickly. IBM Business Consulting Services provided expert business consulting services, comprehensive technological knowledge and good industry experience. We received remarkable cooperation in working with the IBM consulting team.” “The open standards at the foundation of WebSphere software have allowed us to enhance our Web site with excellent functionality from back-end systems in a way that is less costly than equivalent solutions,” he says. “For instance, by using the open XML standard to access data from our own laboratory system, we have earned a one-time savings of approximately US$230,000.” "Some of our customers wanted to access product information and submit orders at any time of the day or night. If we continued with business as usual, we could see ourselves falling behind and losing some of our market edge and customer base." --Finn Kristensen, Director of e-business, Chr. Hansen "Thanks to IBM, we have strengthened our industry position and our image as an early adopter of emerging technologies and innovations that allow us to provide superior service through multiple sales channels." -Finn Kristensen “The employees now have extra time to devote to value-added customer service and support activities like informing customers of new products and up-selling,”

Compass Group Once implemented, the ezMarket Procurement Manager solution will process up to 60,000 order transactions per hour on a global basis. Once fully implemented, the new ezMarket Procurement Manager solution will help Compass Group streamline and simplify its procurement operations. The automated system will help minimize errors, accelerate customer delivery times and reduce costs. By working more efficiently, the company plans to save £75 million over the next three years. Link to write-up.

Darty Due in large part to the new real-time inventory and shipping/fulfillment integration, sales are projected to increase approximately 150 percent annually, without the need to increase support staff, thanks to the integrated solution Link to write-up.

D-M-E The company achieved: – 23% increase in incremental sales from the Web due to – 83% faster order processing time and customers’ ability to quick-order multiple products at once. – Order processing speed has increased seven-fold – The search capabilities of WebSphere Commerce allow customers to define and limit their searches for better results, which contributed to the 23% increase in online sales. – Another measure of success of the new D-M-E Web site is the absence of customer complaint calls fielded by the IT department. – D-M-E also experienced 50% reduction in application development time with the integrated development environment. – Also contributing to the increase in sales is global expansion enabled with multi-language, multicurrency support. Customer Quotes “We used to get three to four calls a week from customers who had questions or concerns related to the Web site. Now I rarely receive calls,” Oliver notes. “We have not even begun to explore all the possibilities WebSphere Commerce provides,” says Stobbe. “Our marketing department is excited about leveraging the capabilities inherent in the solution, including support for running promotions and executing special

WebSphere Commerce Customer ROI Page 8 offers by automatically presenting targeted cross-selling, up-selling and advertisements to new and existing customers, as well as the analytics and business intelligence tools. WebSphere Commerce gives us the opportunity to explore areas that we didn’t even dream of before and gives us the flexibility to add new applications without a lot of complexity.” “From a development standpoint, there is nothing better than the Application Developer. It’s very robust and is one of the best developer tools I’ve ever seen.” —Todd Oliver “The debugging tool is incredible. If I type a Java statement and make a mistake, the Application Developer catches it right away. And within the development environment, there is a running emulation of WebSphere, so everything can be tested on your workstation.” Adds Stobbe, “This tool cuts our development time by at least half.” "WebSphere Commerce is a great product for small companies like ours because it didn’t require that we have a lot of experience with Java™ technologies and JavaServer Pages." “WebSphere Commerce gives us the opportunity to explore areas that we didn’t even dream of before and gives us the flexibility to add new applications without a lot of complexity.” —Jay Stobbe, Manager of IT Systems and Administration, D-M-E Link to write-up.

Dowd With much lower customer establishment costs, Dowd can now sign up smaller enterprises than it could in the past. With the previous solution, generated revenue was too low to cover the costs of bringing in these types of customers. B2B extended sites, contracts and entitlements enable automated interactions with these small businesses. Customer Quotes IBM managed a complex project and helped us through a real learning curve, proving their experience and expertise. We wanted to work with the best people and the best technology. The whole experience means we are breaking new ground, while creating real business outcomes for ourselves, our clients and their staff. In the long term, we believe our success is hinged on our ability to electronically link our services to our corporate clients' networks, to provide seamless but tailored solutions to their corporate apparel needs. To achieve this complex task, we have established a technology partnership with IBM to not only achieve today's challenges, but to take us into the future as well." -- Christopher Walter, managing director, Dowd Corporation Link to write-up.

Dream Create Dream Create built an e-commerce site at approximately one-third of what it would have cost from competitors evaluated. Construction was also completed very quickly, in less than two months. All of this was to due to pre-integration with the infrastructure (WAS, DB2, etc.), support for open standards, plus site accelerators (store models, wizards, tools) and productive development environment. Link to write-up

Drug Trading Company During implementation, the company appreciated the fact that WebSphere Commerce did not require addons, custom code or additional messaging products, which helped speed implementation and saved the company crucial middleware costs. “The solution is totally integrated, Web-enabled and requires almost no custom code, thanks to the close integration between PeopleSoft and IBM. When we’re in full production, we estimate a TCO reduction of 35 to 40 percent,” says Schwartz. In addition, Drug Trading has been able to reduce its IT resource requirements by more than 25 percent due to the tight b/e integration. Overall, the company expects to realize its return on investment (ROI) in just 13 to 14 months. Customer Quotes “The solution is totally integrated, Web-enabled and requires almost no custom code, thanks to the close alliance between PeopleSoft and IBM. When we’re in full production, we estimate a TCO reduction of 35 to 40 percent,”

WebSphere Commerce Customer ROI Page 9 Link to write-up.

eFollet The Extended Sites capabilities of the solution allow many schools across the country to share the same infrastructure and self-serve storefront creation and management tools allowing them collectively to serve more than 4 million students and 375,000 faculty members across North America. Link to write-up.

Findel With its newly redesigned e-commerce site, Findel is able to trade more effectively online and has a system in place that will allow it to grow as government regulations require and as customer demand increases. Over the last year alone, the new solution yielded a 20 percent increase in revenue by enabling customers to check stock levels, order goods, check the status of their accounts and contact the company to resolve any issues they might be experiencing with their orders. And through the improved functionality of its ecommerce site, such as real time integration with existing b/e SAP ERP systems, the client has realized a 50-percent drop in customer problem calls, allowing the company to significantly reduce its service center operating costs. Among some of its brands, the client has already been able to achieve electronic sales totaling 80 percent. Using e-marketing and merchandising capabilities, the company enjoyed 20% increase in revenue growth. They also experienced 50% reduction in call center costs due to availability of detailed fulfillment information on the Web, through order automation and ERP integration. Extended sites and the fast learning curve for developers enabled them to develop multiple new sites in just 4 weeks. Customer Quotes "We could see the benefit of WebSphere Commerce immediately. IBM gave us the ability to roll out new brands and allowed our business managers to create marketing offers without technical support. It’s a fantastic product." “With WebSphere Commerce, the companies that we acquire have a very positive view of their prospects because they see that we have an established business solution. And we are confident that we can continue to comply with evolving government regulations and meet the needs of our internal and external customers with the strength and support of our IBM e-business infrastructure solution.” –Kim Etheridge “WebSphere supports us with the XML formats that the government is stipulating as its standard for communications.” –Kim Etheridge “Progress OpenEdge and Intershop Enfinity didn’t give us the flexibility and scalability we needed to roll out multiple sites and empower our marketing people with the control they needed,” says Etheridge. After these evaluations, Findel decided to try out IBM WebSphere Commerce, agreeing to a proof of concept. “We could see the benefits of WebSphere Commerce immediately,” says Etheridge. “In terms of flexibility, there was no comparison with the other e-commerce products we evaluated. IBM gave us the ability to roll out new brands and allowed our business managers to create marketing offers without technical support. It’s a fantastic product.” “As many as 90 percent of our educational Web sites are built with the out-of-the-box functionality of WebSphere Commerce,” says Etheridge. “The software is easy to learn. In fact, our developers are now creating new sites in only four weeks.” View write-up.

Firwood Paints WebSphere Commerce – Express helps Firwood to deal with smaller customers easily, at a low cost per transaction, leaving sales reps free to deal with larger clients and scout for new business. By implementing an e-commerce solution based on WebSphere Commerce – Express, Firwood is helping customers to serve themselves and reducing manual processing; staff workload has been reduced, and the company can easily support and increase its large customer base while retaining the agility of a small enterprise.

WebSphere Commerce Customer ROI Page 10 The new solution also gives Firwood a multi-channel route to market, and enables better differentiation between client types – helping staff make the most of each sales opportunity, reducing the cost of client management, and improving the overall customer experience. Most importantly, the solution gives Firwood greater reach than its status as a company with 50 employees would suggest. Customer Quotes “When customers place orders online, the system now generates all the necessary internal documentation automatically – avoiding errors, saving time, and giving us a clearer audit trail and more powerful analysis tool than we have ever had. “Smaller customers are able to browse and select by product type, pack size and availability, while existing trade accounts can view their purchase history and place repeat orders. The WebSphere Commerce solution not only enhances the customer experience, but also facilitates product marketing and promotes the Firwood brand.” "In tandem with traditional sales, the iSeries and xSeries solution has opened up a multichannel route to market, enabling us to expand the Firwood brand without a corresponding increase in costs." -- Managing Director, Firwood Paints “With this solution from IBM and CSI, we are finding it much easier to attract new customers and provide them with the services they need – we can put our entire product range in front of them in a way which was never possible before. The WebSphere Commerce solution is a cost-effective way of dealing with our existing client base, and enables the whole enterprise to react efficiently to customer demands.” "The iSeries server is ideal for our business – giving us a totally robust environment that requires very little management." "It was essential to fully integrate the new Web-based systems with our tried-and-trusted back-end systems, and only IBM WebSphere gave us the confidence that we could do this cost-effectively and reliably. Managing our back-office systems on the iSeries helps us to ensure high security and availability for data." Link to write-up.

Gardena The company reduced the content update time for its e-commerce B2B shop from one hour to ten minutes using the product management tools of WC. Link to write-up.

ibm.com In the first year, ibm.com's overall customer satisfaction rose by nearly four points. In addition, customers who do business with ibm.com and its closest industry competitor, rate ibm.com higher by more than eight points. Together with eSupport enabled IBM to reduce its inbound calling volume by 20 percent. ibm.com operates in 83 countries and 31 languages. The site serves over 300 million visits annually. With WebSphere Commerce were able to consolidate its 59 portals down to one, while expanding coverage to 83 countries. The portal, which now runs on a standardized, triply redundant architecture built with IBM's WebSphere, DB2 and Tivoli software running on IBM eServer pSeries servers, has achieved 100 percent availability. Customer Quotes "We needed to make it easier for customers to do simple transactions--such as buying PCs--by leveraging our phone and Web capabilities. This addressed a customer pain point by making IBM easier to do business with, and it helped us by reducing the costs associated with face-to-face resources." --Rich Fennessy, General Manager, ibm.com "We need to know what customers are trying to do so that IBM can deliver the right content and function to the right person at the right time. The key question is what are the specific objectives of the visit. IIf we can determine this, then we can provide a relevant experience and improved goal attainment every time the customer comes to our site." Lee Dierdorff, Vice President, Web Strategy & Design, ibm.com “

WebSphere Commerce Customer ROI Page 11 When customers deal with IBM they want to get some research, shop, buy, receive support--either technical or professional--they don't see what's behind the curtain. This is what on demand is all about: teaming, breaking down silos that exist between groups and organizations that keep us from being customer-focused." --Linda Sanford, SVP Enterprise on demand Transformation and Information Technology. “One of the major challenges was how to create an infrastructure that was secure enough for customers, and also had the standards that would allow it to be efficient and scalable...The fact that we had lots of content developed in lots of different places following lots of different formats was a key barrier to having a real 'one IBM' experience." --Susan Watson, Vice President of Tele Web Transformation, IBM "By linking the Web and telephone together, we have increased satisfaction and made agents more responsive and productive." --Rich Vazzana, Vice President, ibm.com Support and Enablement

ICON ICON's annual revenue increased by between US$50 million and US$60 million using the targeted marketing and promotions features. The IBM eServer iSeries platform also helped ICON realize this achievement by helping to establish cost-effective, efficient management of a promising - but complex and multifaceted - revenue channel. The reliability and performance of the iSeries systems achieved 24x7 availability of ICON's e-commerce sites. Even during drastic traffic increases, ICON can adapt with IBM Capacity On Demand technology and dynamic resource allocation to keep its sites up and running, without paying for a large but infrequently used infrastructure. IBM WebSphere software gives ICON the ability to tailor its Web presence to customer needs, creating a conveniently interactive and informative browsing and ordering environment for online shoppers. The WebSphere software's open-standards-based technology allows the client to develop and incorporate new Web sites and applications. This scalability lets ICON continue to maximize its online revenue channel by adding Web site enhancements and bringing new brands quickly into the fold of its e-commerce system. Link to write-up.

Indigo The software's rich and robust order and integration capabilities and improved vendor interfaces will streamline returns processing to save an anticipated CA$300,000 per year.

Lakota Schools Through automation, time savings and better collection rates, the district achieved 100 percent ROI within the first two weeks of school, alleviating budget concerns. - During payment periods, more than 300 elementary school teachers save approximately one hour per week - Reduced average processing time for payments from several hours to a few minutes - Results in greater program funding and participation Customer Quotes “WebSphere Commerce—Express offers us proven functionality for putting our merchandising operations on the Internet with store catalogs for each building. And with its openness to Java and other industry standards it also enables us to grow in whatever environment we choose for the future.” –John Laws, Director of Technology, Lakota Local Schools “WebSphere Commerce – Express has everything we need to enable parents to manage their children’s accounts flexibly and easily,” says Craig Jones, assistant treasurer, Lakota Local Schools. “A major concern for our parents was the security threat to their credit card information. When we examined it closely, we had no doubt that WebSphere Commerce – Express would provide a secure solution.” The resulting online fee-processing solution is easy for parents to use and saves the school district hundreds of hours of time, which can now be spent on more productive teaching and administrative tasks. “At the elementary school level alone, we have the

WebSphere Commerce Customer ROI Page 12 potential to save one hour of classroom time per week for each classroom when academic fees come due at the beginning of the year,” says Jones. “When combined with the savings in administrative time, we can justify the cost of our investment in two months.” “IBM software and IDI expertise have enabled us to drive innovation that makes a difference in our students’ school experience, while making life easier for parents,” says Jones. “We are positioned to increase employee productivity, reduce operating costs and improve parent satisfaction,” says Jones. “And the affordability, security and stability of the WebSphere Commerce – Express solution make it very easy to live with. We’ve gotten rave reviews from parents and expect that we can continue to make this a popular resource as we add more features to it.” Link to write-up.

Macrovision Immediately after implementing the IBM solution as its e-commerce platform, Macrovision began to achieve return on investment (ROI). Specifically, it will be able to rapidly increase the on-boarding of its business partners to its e-commerce Web site and quickly customize the offering. This reduction of the on-boarding backlog produced immediate results to its top and bottom lines. Macrovision expects to achieve a 20 percent increase in customer satisfaction and a 15 percent increase in new business by offering its customers enhanced convenience. This solution will enable the company to increase, streamline and automate customers' self-service commerce capabilities, thereby allowing Macrovision to realize a potential increase in operational efficiency of 15 to 20 percent. The WebSphere integration software will provide a foundation for 400 to 800 of Macrovision's existing businesses, as well as for any new acquisitions. The platforms will allow the company to pursue additional avenues in providing self-service business at a customer's convenience. Macrovision is now able to make rapid changes to its e-commerce Web site, thanks to the flexibility and scalability of the IBM solution. The company is poised for current and future success with its Web site and, instead of focusing on an inefficient system, it is able to focus on increasing its customer base and keeping its customers happy. Link to write-up.

Majestic Wines The company has continued annual sales growth of 50% with improved conversion rate. Improved responsiveness to customers has fueled Web site traffic growth. Enhanced processing capacity positions company for future growth. Variable, pay-as-you-go price structure helps avoid high fixed costs and aligns IT expenses with revenues. By outsourcing IT infrastructure, company can focus on core business and devote more time to marketing issues, such as development of new cross-selling, up-selling offers . Elimination of manual Web publishing tasks enables staff to work more productively. Ability to scale to 100,000 page views per day during peak holiday period, a two-fold increase Customer Quotes "As costly as our infrastructure was, it was still inadequate to meet our peak demands. We needed a solution designed for fluctuating demand so that we could serve our customers while still controlling costs." --Jeremy Palmer, E-commerce Director, Majestic Wine “With Capacity on Demand, we can double the number of processors we use without paying for the additional capacity until it’s needed. After the peak season, we can return to our baseline, reducing our costs and aligning IT expenses with revenues." -Jeremy Palmer “Since our overall IT expenditure is less, we have more money to invest in marketing to generate demand, which we then meet simply by expanding our capacity. This is exactly what we did during the last holiday period, when we were able to handle half a million hits to our site. As a result, our Web site traffic has increased this year, largely because of our flexible, on demand IT solution. And our revenue growth has continued to increase at an annual rate of 50 percent, with an improved conversion rate due to the new Web site.” “We’ve had the personalization and publishing capabilities for a while, but didn’t have the time to use them. One of the great benefits of the new IBM WebSphere solution is that it gives us back the time that we were spending on solving our scalability problems,”

WebSphere Commerce Customer ROI Page 13 says Palmer. “There’s always a limit to capacity, and we’re pleased that our previous IBM online commerce solutions brought us the explosive growth that we have experienced,” says Palmer. The new WebSphere and iSeries infrastructure has handled transactions unfailingly as daily Web page views to the Majestic site increased almost two-fold during a recent holiday period. “The page views peaked at 100,000 per day,” says Palmer. “WebSphere and the iSeries performed to perfection.”

MediaMarket SP Thanks to the increased performance and availability of its pSeries-based infrastructure, when the solution went live, Mediamarket was able to easily support a 50 percent increase in online sales compared to the same time the previous year.

Mercatone Sales have risen by approximately five per cent and customer satisfaction scores are up by 20 percent through We-store integration. Mercatone Uno customers are able to browse, buy and place delivery instructions online, as well as check stock status at stores before making a visit. Supply chain costs have fallen by around three per cent. When customers browse for products, they are searching data from Mercatone Uno's enterprise resource planning (ERP) system, effectively allowing customers to view inventory from their homes. For larger items where people wish to see the furniture in-store, rather than visiting several stores to find the right product, customers can locate the items online ahead of time. At the back-office, this online location facility has reduced the need to ship products between stores, reducing supply costs by an estimated 3 per cent. Customer Quotes "As the site's success grows, with IBM solutions Mercatone Uno can offer more products online, converting the company into a true multichannel retailer." “The site allows the customer to have the traditional shopping experience they would enjoy in the actual shop itself, despite them being on a website - so all the stock, promotions, payment methods are displayed exactly as they would be in the shop. “We chose the IBM WebSphere solution because it allows us to offer choice to customers in exactly the same way as we do in the stores. The combination selling and discount management facilities are excellent, and we felt re-assured that we could offer every type of client equal levels of guarantee in terms of service, goods availability and delivery.” Carlo Visani, Senior Software Engineer at Tecla, comments, “Deploying the Web site on the open and affordable Linux operating system ensures a secure, reliable e-commerce environment, while the IBM WebSphere solution's open-standards technology enables a seamless integration into the company's backend systems.” Link to write-up.

Milwuakee Electric Tool The company achieved Up to 96% less time to receive claims reimbursement and the ability to free up 60% of claims-processing staff within first year, with full redeployment to other value-added tasks within 2 years. They also heightened responsiveness to independent service station operators, since service managers can devote 10% more time to them within first year and 20% more time by end of second year. Within 2 years, 100% of all claims will be processed over the Web--a 57% reduction in claims processing costs equaling tens of thousands of dollars in annual savings. Total savings of hundreds of thousands of dollars compared to other prepackaged solutions by leveraging existing infrastructure and rich functionality of IBM WebSphere® Commerce software Customer Quotes "Our service centers had to complete a preprinted, multipage warranty reimbursement form that we’d manually sort and review. It would take three to four weeks before the service station received its compensation." --Cindy Thoenes, Business System Manager, Milwaukee Electric Tool Corporation

WebSphere Commerce Customer ROI Page 14 "We’re responding to our service centers’ need for faster reimbursements with a process that is also less costly to them ... Within two years, we’ll be able to process all of our claims over the Web--that’s a 57 percent reduction in claims-processing costs, or tens of thousands of dollars saved annually." --Cindy Thoenes “The openness of Java technology, along with open-standards support in WebSphere software, made it relatively fast to integrate the claims-processing application into the existing architecture.” “For Milwaukee, we’ll free up 60 percent of our claims-processing staff within the first year and by the second year, we’ll be able to fully refocus this staff to customer service-enhancing activities.”

Monroe County Tax By leveraging a Property Tax Management solution enabled by IBM WebSphere software, Monroe County has leveraged a powerful Web-based solution that delivers crucial information to employees and allows citizens to make tax payments around-the-clock. It enables villages and towns within Monroe County to conduct their property tax-related work through a single server environment and eliminates the need for maintenance and support on 20 different tax billing and collection systems. Monroe County estimates that the online payments capability provided by the EZ-TAX collection subsystem will eliminate 13,000 transactions that would have previously required human intervention. Thus, the solution provides a concrete means by which employees can be redistributed to other tasks without degradation to the performance of the office. In addition, the ability to make tax payments online has improved citizen satisfaction. Link to write-up.

MTD - A 20 percent increase in Web site shoppers due to the enhanced "look and feel", e-marketing campaigns and support for multilingual and multicurrency requirements - A 30 percent increase in customer response time due to the overall site performance increase - A reduction in costs by enabling full self-service for dealers (order placement, pricing information, order tracking)

Nexsys Value Added Distributor (VAD) Nexsys has seen many business improvements as a result of the IBM solution. For example, before deploying the new WebSphere-based solution, customers and distributors had to wait an average of three days to receive proposal information. Now, with automated RFQ negotiations it takes less than a day. Nexsys completes 35 percent of its billing through the WebSphere Commerce solution, and that amount is increasing steadily because the solution is simple, efficient and highly accurate. Link to write-up.

Nilfisk-ALTO - Reduced the expenses of distributor service by 25 percent by adopting centralized product information management and automated contract pricing -- in ten languages, and with support for local taxation, currency and item assortment requirements - Differentiated the company among competitors by enhancing convenience for dealers - Increased dealers’ ability to up-sell and cross-sell through the merchandizing features of WebSphere commerce integrated with the product information management features of WebSphere Product Center. Customer Quotes "Our new Web site gives our dealers complete and comprehensive information on our products and solutions. Dealers are now able to take what they know about their customers' needs and match those needs with a complete Nilfisk-ALTO cleaning solution. Dealers can more effectively cross-sell and up-sell customers, which satisfies our dealers as well as our customers. "Not only are

WebSphere Commerce Customer ROI Page 15 we saving costs, we are also doing a better job of delivering information to our dealers and our customers with our IBM e-commerce platform.” "WebSphere Product Center and WebSphere Commerce enable us to manage every aspect of our business from a product perspective, creating a better customer experience while addressing the exact needs of each and every customer. "Besides communicating with our ERP system, the WebSphere solution also integrates with our logistics system to help dealers operate more efficiently in arranging shipping with our customers. We were also impressed with IBM's commitment to make the solution work and their favorable pricing. "We needed a productivity-enhancing, flexible system for managing product information on a highly scalable, secure e-commerce platform. Together, WebSphere Product Center and WebSphere Commerce form the foundation for building such an e-business solution." -- E-business Manager, Nilfisk-ALTO Link to write-up.

Oregon State Board of Nursing Now, 79 percent of license renewals now handled online, resulting in: •

Revenue increased from $264,365 in 2004 to projected $1.4 million in 2006

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Applications complete the first time – follow-up on incomplete applications no longer required

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$23,660 annual savings in mailing costs for paper renewals

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$1,200 annual cost avoidance for deposit transactions

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30 percent decrease in insufficient funds incidents

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Reduction in resources needed to process renewals– full-time paper renewal technician now a parttime position; ability to do other work

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Streamlining of business processes: –

Multiple staff can access an online application simultaneously

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Increased flexibility in assigning work and completing tasks

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Redirection of work - customer service staff working with phone and walk-in customers to get them into the online renewal process

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Increased security and tightened internal controls around financial transactions

Customer Quotes “Since our very first day using SecurePay,” said Miles, “there has never been a day without a renewal being submitted via SecurePay through the Internet.” Link to write-up.

Panasonic Through integration of WC and WPC, product information is now delivered in 50% less time which led to - €1 million yearly cost savings through greater process efficiency - Annual sales increased by 3.5% due to earlier product awareness Also through the use of extended site and integrated, real-time order entry, processing and b/e integration, Panasonic eliminated 80 percent of order-processing and call-center costs. They experienced 100 percent payback of investment in less than one year, and customer service ratings showed marked improvements.

WebSphere Commerce Customer ROI Page 16 Moreover, due to extended site and the developer tooling, development time and costs for new Web sites has been reduced by 92 percent. 80% lower order-processing and call-center costs through tight integration with corporate b/e database and order systems, status visibility across these systems and a single platform for all online orders (B2B buyer sites, global sites, consumer sites). 100% payback in less than one year; improved customer satisfaction; 92% reduction in new Web site development time and costs through use of extended sites -- reduced the development time for new Web sites from three months to one week Customer Quotes "To achieve economies of scale in terms of development time and software costs, we needed a single Web application server. Maintaining separate Microsoft and IBM platforms would not be a cost-effective strategy." --Eric Keil, Director of e-business, Panasonic "Because of the reusable Java code supported by WebSphere Application Server, we’ve reduced the development time for new Web sites from three months to one week, saving 92 percent of the time and costs." --Eric Keil "IBM is always more than a single product. It’s a company that provides a technology direction, which enterprises like Panasonic can use to optimize their own development plans." --Eric Keil “We couldn’t integrate our Microsoft sites with our backend because Microsoft Commerce Server wouldn’t talk to our corporatestandard databases and integration solutions,” says Eric Keil, director of e-business at Panasonic. “Also, we wanted fully automated e-commerce functionality for all our sites, which dictated enhancements across the board. To achieve economies of scale in terms of development time and software costs, we needed a single Web application server. Maintaining separate Microsoft and IBM platforms would not be a cost-effective strategy.” Link to write-up.

Qujing City - 50 percent boost in productivity, making services for constituents faster - 30 percent reduction in total cost of ownership (TCO) Since deploying the IBM solution, Qujing City has reported a 50 percent increase in its productivity and capabilities to provide enhanced services. Now, the client has an enterprise-scale e-business platform to support all of its internal business processes and the services it provides to its citizens and local businesses. Now, when a company wants to do business in Qujing City, it can submit its application and the related documentation to the city via the WebSphere e-business site. The system automatically routes the company's application through the appropriate government departments for approval and the company is notified via the Web site if its application was approved or if a certain department requires additional information. The e-business Web site also contains information about Qujing City's laws and regulations, business ordinances and government services. The new Linux operating platform provides Qujing with an open, scalable and secure operating environment for its e-business solution. Compared with its previous Microsoft Windows operating environment, the client's Linux infrastructure offers a lower total cost of ownership (TCO), a superior price/performance ratio and improved security.

Raja 100% payback in less than 1 year; volume of Web-based business increased by 200% after launch of new site, expected to expand by an additional 300% within the next year due to targeted marketing capabilities and globalization/localization. Customer Quotes

WebSphere Commerce Customer ROI Page 17 “Our Web site featured only 30 percent of the items in our catalog,” Roulleau explains. “It was not searchable, provided no account management or order tracking capabilities and didn’t integrate with our backend systems. It could not expand to accommodate growth, and it furnished no means of capturing valuable business information from online purchases. We needed to respond more dynamically to our customers’ needs.”.... Customers let us know they were disappointed." --Romain Roulleau, e-business Manager, Raja "Our customers are delighted with how easy it is to submit orders and manage their accounts in realtime. Less than a year after implementation, we have received full return on our investment at all five national sites." --Romain Roulleau “We were immediately impressed with the superior selling functionality, business intelligence capabilities and scalability of the IBM On Demand Business solution,” Roulleau observes. “As a multinational company, we felt confident adopting a solution that was backed by the strong global market presence and technological leadership of IBM.” “IBM’s versatile e-business technologies help us satisfy the requirements of numerous industries, business cultures and local economic environments,” he explains. “For example, the advanced multicultural support built into WebSphere Commerce lets us easily provide price, tax and shipping calculations in the required currency format and language, while reinforcing our brand identity with a uniform look and feel. And by supporting customized discount programs for our key accounts, it permits us to flexibly manage our pricing structures and maximize our profitability.” “The speed and ease with which we can update the Web sites is inspiring us to produce agile, aggressive, focused marketing initiatives, such as our new flash clearance sales on the Web,” Roulleau says. “We are also looking at ways to make use of the advanced business intelligence capabilities of WebSphere Commerce to build targeted promotions and campaigns that respond to specific customer behavior.” Roulleau concludes: “Our Web initiative began with the belief that On Demand Business could transform our business by heightening our visibility and helping us to efficiently identify and fulfill our customers’ needs. Now, thanks to IBM and NLE, we are achieving those goals faster and more extensively than we thought possible.”

REI More than 40 percent of the company’s Web orders are now picked up in a retail store – thanks to the buy online-pick up in store functionality enabled by the IBM solution. Approximately 31 percent of those customers who come in to a store to pick up an item also purchase at least one additional item. This generates an estimated one percent annual increase in total store sales. REI found that dual-channel shoppers spend 114 percent more per customer than single-channel shoppers, and tri-channel customers spend 48 percent more than dual-channel customers. Customer Quotes "WebSphere Commerce and the WebSphere software platform have helped us build a robust, scalable multi-channel retailing environment which is enabling us to maximize revenues, increase customer lifetime value and offer customers a consistent experience across channels." --Joan Broughton, Vice President of Multi-Channel Programs, Recreational Equipment, Inc. "The success of our current e-commerce transformation is aided by the open standards-based, flexible and extensible e-commerce and multi-channel platform we implemented. It has enabled us to create a unique business model that is serving our members very well, as we continue planning new enhancements into the future." --Joan Broughton “Our decision to implement on the WebSphere software platform was based on the extensibility of the platform and its support for integrating Web applications with our other channels and our back-end fulfillment system,” says Joan Broughton, vice president of multi-channel programs, REI. “WebSphere Commerce and the WebSphere software platform have helped us build a robust, scalable multi-channel retailing environment which is enabling us to maximize revenues, increase customer lifetime value and offer customers a consistent experience across channels.” “The WebSphere e-commerce platform has turned our Web site into a powerful marketing tool, enabling us to enhance our multichannel integration for the ultimate benefit of our customers,” says Joan Broughton, REI’s vice president of multi-channel programs. Link to .

WebSphere Commerce Customer ROI Page 18

Robert Dyas The client's previous e-commerce solution was unsustainable - it could not scale to meet increasing demands and it was highly labor-intensive due to its inability to integrate with backend systems. With the WebSphere Commerce solution, Robert Dyas' Web site has grown to generate more revenue than any single physical Robert Dyas store.

Safilo The IBM solution is more comprehensive than the competitor’s solution (Oracle) and was less expensive to implement, with a total cost that equaled just the up-front licensing fees of the competitor.

Senshukai Expanded access to Web ordering via mobile devices has increased the available customer base, allowing the company to increase the purchase unit price. The company acquires about 500,000 new members annually, and the purchase unit price has risen by about thirty percent.

Source Medical Through realtime product data and personalized buying experiences, in less than one year of operating the new site, Source Medical's online sales have increased from 2.5% to 4% of total revenues. The saved more than CA$400,000 annually with IBM financing and hosting offering; achieved 5% percent reduction in IT spending due to self service tools for catalog, content and marketing plus real time ERP integration; 100% ROI in one year. Customer Quotes “IBM WebSphere Commerce, IBM hosting, IBM Software Services for WebSphere, and IBM Business Partner MRS Company have provided us with a solution that gives us the confidence to focus on our business objectives and rapidly add new capabilities to improve our competitiveness.” --John O’Connor, Chief Information Officer, Source Medical “We expect our WebSphere Commerce site to achieve 100 percent payback within one year. Going forward, we will continue to expand our B2B offering, thereby improving our customers’ experience and maintaining their loyalty.” –John O’Connor “We had a strong Web site, but we wanted to make it more flexible and more compliant with industry-standard technologies to keep pace with this fast-changing industry,” says John O’Connor, chief information officer for Source Medical. “We also wanted to lower costs over the long run while speeding up the delivery of our value offerings.” “Our catalog meets all of our requirements, and we did it using the tools that come with WebSphere Commerce Business Edition,” says Anna Saulnier, director of e-business and technical services for Source Medical. WebSphere Commerce is a powerful e-commerce engine and marketing tool. It gives us additional capability to leverage functionality that we did not have before.” Link to write-up.

Staples.com Time to Value - 18-24 month time to market - major transformation of high volume web business on Microsoft Infrastructure to WebSphere. It had to be designed and validated for significant growth estimates that MS legacy could not handle. Processes over 35,000 orders per day with 40-50% YTY growth expected. Not positive we can share this w/customers - please only use as absolutely necessary. Link to write-up.

WebSphere Commerce Customer ROI Page 19

State of Louisiana Currently provide more than 20,000 electronic answers to questions on state services each month, many of these originating through the E-Mall. Each question that is answered electronically saves the state and its constituents one or more time-consuming phone calls. There are similar — and substantial — savings in time in other transactions such as the purchase and shipping of booklets, maps and other products. Additional benefits involve the flow of payments and the calculation of taxes. Louisiana has one state tax but more than 300 taxing authorities within the state. With E-Mall transactions, the taxation and who receives the revenue is determined automatically. Customer Quotes “We were responding to an Executive Order from the Governor to leverage technology and provide improved service to our citizens,” says Ed Leachman, Louisiana’s Director of Electronic Services. “We wanted to bring substantial improvement to the way citizens interact with state government, and the Internet provides a way to control how that takes place. "Even though they (the agencies) use a common infrastructure, the agencies control their participation. “Each agency has a servicelevel agreement with IBM for the E-Mall services they are going to utilize. Some post everything, some just use the payment gateway, and some just use the directory link to a function hosted on an agency server. But the solution works very well. It’s scalable, functional and seamless to our citizens.” -- Ed Leachman, Director of Electronic Services

State of Michigan The state is pleased with the reliability of the site, which has achieved almost 100 percent availability even as the average daily volume of traffic to www.michigan.gov has increased more than tenfold. And by consolidating the state's Web-based resources on a single platform, IT staff have been able to retire or repurpose servers, thus reducing ongoing support costs. The efficiency of the new infrastructure has reduced costs for hardware, software and development resources across the board. The state of Michigan's e-government portal has received numerous awards for excellence and is consistently well-ranked in technology studies conducted by Brown University and the Center for Digital Government. IBM implemented an intuitive, user-friendly portal solution within the State of Michigan’s 90-day deadline. The portal offers citizens and businesses a single point of access to Michigan's government resources. The solution meets the State’s requirements for ease of use and intuitive navigation. The extended sites capability enables the State to launch new sites without developing new code. Since the introduction of the new portal, the average daily volume of traffic to www.michigan.gov has increased more than tenfold. With more citizens and businesses finding information via the portal instead of by mail or phone calls, the State is saving money through higher employee productivity and reduced mailings. Link to write-up.

Things Remembered The company projected 50% annual increase in conversion rate due to highly personalized experience, targeted marketing, promotions and real-time order and inventory integration with sales partners. Anticipate 8-10% rise in average sales transaction value for these reasons. Also experienced significant reduction in inventory risk and overhead expenses for Things Remembered and trading partners through the Web Services integration. Customer Quotes "We sought to improve the customer experience and add new trading partners, which would have an immediate, positive impact on our bottom line." --Mark Fodor, Director of e-business, Cole National "Our Web services solution will improve our ability to deliver responsive, personalized, high-quality service to our customers and trading partners. IBM has strengthened our ability to succeed." --Mark Fodor

WebSphere Commerce Customer ROI Page 20 "We were impressed by the considerable success that Things Remembered had already gained from its IBM technology-based ebusiness infrastructure, so we naturally came back to IBM with our new challenge." --Mark Fodor Link to write-up.

Water Sports Supplies Using WebSphere Commerce – Express and IBM WebSphere Commerce – Express Developer Edition, MQIS implemented the new site in three months, and watersportsupplies.com went live in time to catch the end of Australia’s summer season and within three months, watersportsupplies.com gained the geographic spread Savage had wanted. Based on its experience so far, the company expects to increase gross sales by 40 percent in a six-month period which includes its next summer season. They have also raised productivity by 20 percent and have reduced the cost of sales by approximately 8 percent. The company also expects to make back his investment in two years. Customer Quotes “We needed an e-commerce software product that was economically priced for a small business and had multilanguage and multicurrency support to enable our expansion into Asia,” says Sloan. “The only product that fit our criteria was IBM WebSphere Commerce – Express. We were also impressed with the links to third parties such as eBay, the product’s comprehensive reporting ability and IBM’s ongoing investment in WebSphere Commerce.” “The IBM software made it fast and easy to configure the automatic e-mail applications and the tax calculations, which are unique to Australia,” says Sloan. “Other than that, WebSphere Commerce – Express provides us with a solution that is 95 percent usable right out of the box.” “Our marketing employees can publish targeted offers on the site and segment our customer list for e-mail campaigns,” says Savage. “Those marketing campaigns are working very hard for us because they are propelled by intelligence derived from IBM WebSphere Commerce Analyzer.” “With WebSphere Commerce, it’s a short time from planning to deployment,” says Savage. “For example, we might decide to include diving equipment in our catalog. If we do, we can have a new product on our Web site within a week of our signing with a distributor. The IBM commerce software loads the catalog dynamically and automatically makes changes to the database so that the new information is available to all the commerce functions.” “WebSphere Commerce gives us a technological advantage,” says Savage. “It’s a low-maintenance solution with a low total cost of ownership. And we know that our IBM platform will scale to match the high rate of growth that we expect in the next few years.” Link to write-up.

Wimbledon Improves funding for players of the future by developing global business opportunities, particularly in Asia and the US via the online shop. Customer Quotes It is IBM's insight that has helped us reach new audiences using channels that were not feasible just a few years ago.” -- Chris Gorringe, chief executive of The All England Lawn Tennis and Croquet Club McCowen says: “ Previously, we developed business opportunities based on awareness created through our TV coverage. Increasingly, new business opportunities arise through interest generated by our web site. This is particularly relevant in the US and Asia. Companies in Japan for example are learning more about Wimbledon, leading to new revenue streams”

Yeck Brothers Since the implementation of the IBM solution, Yeck Brothers reduced by 10 percent the time spent processing phone orders. And as the site reaches full utilization, employee efficiency and productivity are

WebSphere Commerce Customer ROI Page 21 expected to increase by 30-40 percent. The IBM solution replaces the outdated order fulfillment system, so Yeck Brothers no longer experiences constant IT woes. And because it is easy to deploy and customize, the solution also helps Yeck Brothers to respond quickly to customer demands and to capitalize on new market opportunities. With these newfound abilities, Yeck Brothers anticipates a significant increase in revenue generation while keeping its costs low and its employees focused on their core responsibilities of order fulfillment and marketing. Link to write-up.

Other Customer Quotes Amcor Sunclipse "IBM has created a best-of-breed commerce solution that offers almost everything we need right out-of-the-box." IBM built this product right. No other vendor could have done what IBM has done for this kind of solution. IBM is the clear market leader in the e-commerce space."--Bob Goldstein, Vice President of IT, Amcor Sunclipse Build a Bear “There’s a lot of theatre that goes on in the retail store,” said Kathryn Valk, Group Business Director at Build-a-Bear Workshop. “We wanted a website that would provide the same experience online for returning customers and to allow customers in other cities to experience the magic of attending a Build-a-Bear Workshop.” “The Build-a-Bear Workshop web store developed in the US was based on Microsoft® Commerce Server. However, our existing technology investments here were based on IBM WebSphere. We needed something that could easily integrate and align with our existing technology such as our point-of-sale system. That was more important than getting a ‘quick win’ by adopting the US commerce site,” said Valk. “IBM WebSphere Commerce gave us a scalable, flexible and robust foundation on which to build our commerce site,” said Valk. “Across the company, we are focused on developing skills in WebSphere and other Java 2 Enterprise Edition (J2EE) products. This meant it was a better long-term investment to implement the commerce site using a standard skill set that we are using for other application needs.” “Looking at the bigger picture, this investment will pay for itself as we launch new stores and expand our reach around the country,” said Valk. “It provides a great base to build for the future.” Danier "Technology is changing so rapidly. Our IT department doesn't have the time to research and assess all the opportunities we hear about on a day-to-day basis. But IBM seems to really understand our long-term goals. The team we work with is creative and flexible while helping us satisfy our needs. We rely on them to keep us in the loop and assist us in assessing the relevance and applicability of the technological advancements out there. IBM's involvement is critical to Danier remaining competitive in the online arena as we strive to optimize our customers' experiences when they visit the site." "We are committed to enhancing our relationship with our customers, and that's precisely what this relationship with IBM is enabling us to do." -- Kevin Strachan, vice president of e-commerce, Danier Leather, Inc. Forrest2market “We matched a sound business idea with rock-solid IBM technology and ?awless execution by Shared Vision. Not once has any part of the solution—server, software or code—failed. The total cost of maintenance of the solution is less than we ever expected.” –Peter Stewart, President and CEO, Forest2Market “WebSphere Application Server handles the volume of requests for information with 24x7 reliability. It stays up and running to keep the service always available.”–Michael von Bodungen, CTO, Shared Vision “Because we already have an infrastructure we’re not always starting from scratch. When we work with IBM, we get the results we want, and that the customer wants, for building a business into the future.”–Michael von Bodungen Link to write-up.

WebSphere Commerce Customer ROI Page 22 John Lewis PLC "The use of IBM WebSphere Commerce software for the Greenbee site gave us a solid foundation for the development of the platform based on an early set of requirements which were likely to change. The key area of interest from our business's perspective was the comprehensive set of marketing tools that are available within the package and specifically the targeted marketing options." -- Nigel Randall, Web development manager, John Lewis Partnership "John Lewis sees the Greenbee Web site as not only a key revenue generator but also a mechanism to interact with our customers. The use of [IBM WebSphere] Commerce [software] provides us with a comprehensive set of features that allow us to provide our customers with tailored content and offers based on their registration details and information within our own customer database." -Justin Van Derpant, head of operations Link to write-up.

Gyldendal "We are very excited about deploying the WebSphere Commerce Solution, giving us new possibilities in targeting our customers" -Marketing Manager, Gyldendal Book Clubs IFM "Our WebSphere software-based e-shop will help us reduce order- processing and management costs. It will also enable us to reach new global markets where we currently have limited presence." --Thorben Petersen, Manager Information Technology, ifm electronics Interface "Our new B2C e-commerce Web site is a core part of Interface's strategy to build and drive our residential Heuga brand, and Salmon has helped us to engage more directly with our customers online. The site is not just a basic online catalog shopping site, but an interactive experience that will help Heuga customers enjoy the maximum benefit of our industry-leading flooring." -- Patrick Riley, managing director, Heuga Home Flooring Jewelry.com "By providing the type of rich, informative shopping experience that WebSphere Commerce enables, we lay down a trail of quality that leads directly to the retailer’s door." --Kristian J. Chronister, Vice President, Andin International "When I heard that WebSphere Commerce would run on iSeries, everything came together," says Andin Vice President Kristian J. Chronister. "Utilizing our existing platform and skills would enable us to go with what we trusted. And the cost was one-half the cost of the Oracle/Sun/BEA solution." "Andin has always liked IBM," says Chronister. "There’s no way we wanted a new operating system, new support teams and three different vendors for the database, middleware and servers. With WebSphere Commerce, I can build off an infrastructure I already have and I get to stay with Big Blue, which has never let us down in 12 years." OMROM "IBM did a good job installing the system, delivering ahead of schedule and exceeding expectations." -- Randy Smith, chief information officer, Omron Electronics LLC Resolution "The WebSphere solution has provided us with unprecedented levels of integration and functionality. Not only can we now deliver a new level of responsiveness and value to our clients, we also have strengthened our position in the marketplace. Thanks to IBM, this whole project has been hugely successful." --Bruce Wallingford, V.P. of Information Technology, Resolution "The WebSphere Commerce platform’s extraordinary agility in managing multiple sales channels and the ease with which a layperson can make updates to Web site content were major deciding factors. Our first implementation exceeded all expectations and, not only did our client’s business grow beyond expectations in the first quarter following the launch, so did our fulfillment business." --Bruce Wallingford V.P. of Information Technology, Resolution Roche Diagnostics

WebSphere Commerce Customer ROI Page 23 “We knew that IBM would be the best technology partner for us. IBM has expertise with the latest technology and offers a great deal of innovative services and solutions. - Erich Weyrauther, Roche Diagnostics’ head of e-business at global informatics “Once the system was developed and implemented we wanted to make sure we were working with a company that could roll out our system globally,” says Weyrauther, “IBM understood that processes, infrastructure, supporting applications and legal requirements differ from country to country. IBM knew what was needed to provide total customer satisfaction.” “Customers really like the system. They’ve discovered that ordering is much more convenient. It’s available any time and due to features like favorite lists and customer profiles, the whole process is easier with fewer errors being made,” she says. “Because of the new system, customer loyalty has increased are they are more likely to stay with us, instead of switching to a competitor.” “We’ve had an extremely successful partnership with IBM,” says Weyrauther, “IBM helped us develop a rock solid solution on exceptionally reliable hardware. The IBM team we’ve worked with are competent, committed and cooperative people. We’ve been able to rely on their expertise in planning, development and implementation. We plan to continue our relationship for a long time.” Sterling Fluid Systems "We saw the direction that IBM was taking the WebSphere platform in as very favorable, and we saw IBM Global Services as being best equipped to help us extract the most benefit from the technology." “We were looking for a platform that was versatile enough to handle our e-commerce needs while at the same time provide a way to integrate both inside and outside the company. We also were extremely concerned about scalability, since the solution will ultimately be deployed more widely and more deeply over time.” —Graham Terry, Sterling Fluid Systems "Overall, we’re extremely happy with the way the WebSphere platform is architected. IBM and Digital Union have met our expectations and have immense depth of technical and business expertise. The success of this project is substantially a result of the performance of our selected partners." Source One SourceOne set up its online store, imported catalog items and started accepting orders in less than 60 days. The WebSphere solution's open-standards-based technology enables seamless integration into the company's back-end systems to streamline the ordering processes. And its scalability provides full support for future growth. Standard Charter Bank "WebSphere is a fast growing product which offers multiplatform support. It has been a very good decision to use WebSphere and IBM because of its one-stop support." -- V. Chandasekar, Regional Head, Information Technology & Systems, Middle East & South Asia, Standard Chartered Bank