Some 1200 people worldwide (AstraZeneca employees and contract staff) are currently engaged in the provision of IT infrastructure services to AstraZeneca. All "in-scope" AstraZeneca employees will be offered employment by IBM and detailed consultations are commencing with employees and their representatives.

Jon Symonds, Chief Financial Officer of AstraZeneca, said, "This partnership will enable AZ to sharpen the focus of its Information Services (IS) capabilities on to the strategic opportunities such as e-business and informatics in R&D, and further encourage added value from IS activities. Once finalised, the partnership will give AZ enhanced technical power and provide better opportunities for personal development for these IT professionals, as well as significant cost savings."

Frank Kern, General Manager, Professional Services, IBM Global Services, said, "We are extremely pleased to have been selected by AstraZeneca as the preferred supplier to outsource their IT infrastructure on a global basis.

AstraZeneca is a leading pharmaceutical company, with extensive research capabilities, operating around the globe. We recognise the critical importance of a robust IT infrastructure to support their business, and how this partnership can help AstraZeneca focus on strategic IS opportunities."

Note to News Editors:

ABOUT ASTRAZENECA

AstraZeneca is a major international healthcare business engaged in the research, development, manufacture and marketing of ethical (prescription) pharmaceuticals and the supply of healthcare services. It is one of the top five pharmaceutical companies in the world with healthcare sales of over $15 billion and leading positions in sales of gastrointestinal, oncology, anaesthesia including pain management, cardiovascular, central nervous system (CNS) and respiratory products.

ABOUT IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM offers a wide range of services, solutions and technologies that enable companies to take full advantage of the new era of e-business. IBM Global Services is the world's largest information technology services provider, with 1999 revenues of more than $32 billion.

Services is the fastest growing part of IBM, with more than 138,000 professionals serving customers in 160 countries. IBM Global Services integrates IBM's broad range of capabilities - services, hardware, software and research - to help companies of all sizes realise the full value of information technology.

For more information on IBM, visit www.ibm.com.