IBM completes acquisition of Telelogic AB

New Delhi

April 30, 2008

IBM has announced the completion of its approximately $845 million tender
offer for the shares of Telelogic AB. The tender offer, announced on June 11,
2007, was finalized after IBM obtained acceptance from 98.7 percent of stock
ownership in Telelogic as well as satisfaction of other conditions of the offer,
including necessary worldwide regulatory approvals.

According to Ken King, VP and Telelogic Integration Executive, IBM Software,
“With the acquisition closure, Telelogic now becomes 'an IBM company'. The
integrated product and technology roadmap will illustrate incremental value to
our systems and IT customers across Telelogic and Rational. India has a unique
advantage with this acquisition as we gain not just from the business
perspective but also from the strong skill-set that Telelogic has here.”

Together, IBM, Telelogic, and business partners will help customers deliver
high quality systems to the market faster while reducing costs. Customers will
benefit from the combined technologies and services of both companies, providing
them a wide range of software and system development capabilities, along with
support from a worldwide sales and services organization.

“Telelogic is an important element of our software and systems development
and delivery strategy,” said Dr Daniel Sabbah, GM-Rational Software, IBM.
“Software is at the heart of embedded devices and systems. Whether it's used
to develop the next generation of communication devices or systems for space
exploration, this IBM technology has important implications for society.”

Telelogic will report into the IBM Rational Software unit. Consistent with
IBM's Software strategy, Telelogic clients' and partners' investments in
existing IBM and Telelogic technologies will be preserved, allowing customers to
take advantage of the broader set of capabilities without the need to replace
existing systems.