Michelin Signs an 8-Year Partnership Agreement With IBM Valued at 1 Billion Euros

ARMONK, N.Y.--Dec. 1, 20031, 2003--

Michelin Leverages IBM Global Services' Unrivaled Worldwide Capabilities and Experience to Transform Its IT Infrastructure

Michelin, the worldwide market leader in tires, and IBM announced today that they have signed a partnership agreement valued at 1 billion euros. According to this 8-year agreement, IBM will take over the management and maintenance of Michelin's IT infrastructure in North America and Europe. This agreement is part of Michelin's continued commitment to quality in all aspects of the company's activities. This commitment includes a focus on achieving optimal financial results through the application of best practices in terms of technology adoption and utilization as well as access to the best skills available in the domain of information technology.

It is expected that about 600 current Michelin employees worldwide will join IBM beginning in first-quarter 2004. Under the terms of this agreement, IBM will be responsible for the following Michelin IT infrastructure activities: IT production operations and management, user support, technical support, solution industrialization and distribution of servers, workstations, PCs, software and production applications.

About Michelin

Michelin produces and sells tires for all kind of vehicles, including passenger cars, light and heavy trucks, motorcycles, bicycles, aircraft, agricultural equipment, earthmover vehicles and the space shuttle. In addition to tire production, Michelin also develops suspension and anti-vibration systems. Michelin has 80 production sites on five continents, 130,000 employees and sales operations in over 170 countries. The Group achieved EUR 15.6 billion in sales in 2002.

About IBM Global Services

IBM Global Services is the world's largest information technology services and consulting provider, generating over $36 billion in 2002. Approximately 180,000 professionals serve customers in over 160 countries, providing the entire spectrum of customers' e-business needs - from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. IBM Global Services delivers integrated, flexible and resilient processes - across companies and through business partners -- that enable customers to maximize the opportunities of an on-demand business environment.