IBM's Printing Systems Division Becomes InfoPrint Solutions Company

    Billion-Dollar Joint Venture Poised for Growth With Investments in R&D
and Professional Services

    BOULDER, COLO., June 4 /CNW/ - InfoPrint Solutions Company (IPS), the
joint venture printing company announced earlier this year by IBM (NYSE:   IBM)
and Ricoh, has begun operations with 1,200 employees around the world.

    The company was formerly IBM's Printing Systems Division. With the
closing of the agreement, Ricoh now owns 51 percent of the joint venture and
will progressively acquire the remaining 49 percent over the next three years
as the joint venture becomes a fully owned subsidiary.

    InfoPrint Solutions Company has operations in Argentina, Australia,
Brazil, Canada, China, France, Germany, Hong Kong, Italy, Japan, Mexico, Peru,
Singapore, Spain, Switzerland, Taiwan, the UK and the U.S., and has plans to
expand to other countries in the third quarter of this year, subject to the
completion of local information and consultation processes.

    The joint venture, based on IBM's printing operations which generated
approximately $1 billion of revenue in 2006, will continue to benefit from
access to IBM's powerful worldwide distribution and sales network. IBM client
teams, business partners and dealers will continue to offer InfoPrint printing
and output solutions, and InfoPrint Solutions Company will be IBM's preferred
global print solutions provider. The InfoPrint product brand and IBM's
extensive printer development capabilities are also part of the joint venture.

    IBM will provide maintenance services to InfoPrint Solutions Company for
one year under a services agreement, after which more than 1,000 IBM printer
maintenance specialists may join the new company, subject to local business
conditions and completion of local information and consultation processes.

    "With this launch, we have created a billion-dollar enterprise with the
backing of two undisputed industry leaders, IBM and Ricoh. Together, we will
drive the next generation of innovation in output solutions," said Tony
Romero, CEO and President, InfoPrint Solutions Company. "Our plans for the
joint venture include greater investment in research and development,
enhancing our professional services capabilities, and increasing the size of
our sales and support organization. Our intense focus on strategic output
management means our current and future customers will benefit from a new
level of products, services, and solutions built to address their business

    InfoPrint Solutions Company, launching with 40 years experience in the
printing industry and more than 20 years of joint innovation and development
between IBM and Ricoh, offers output solutions for general office, industrial,
enterprise and commercial printing environments for customers of all sizes -
from small businesses to large enterprises. The investment from Ricoh will
increase the company's portfolio with new product and solutions offerings in
both the production and general office markets.

    "Today is an historic moment both for IBM and Ricoh and more importantly,
an industry first. The creation of InfoPrint Solutions Company brings together
the best of two industry leaders, and greatly enhances the Ricoh portfolio of
offerings," said Norio Tanaka, Corporate Senior Vice President of the
Production Printing Business Group at Ricoh Company Ltd. "This unique
combination puts IPS ahead of its competitors and positions the company to
lead the market by focusing on the goal of creating true operating
efficiencies and value for customers."

    Since the initial agreement in January 2007, new and existing customers
have demonstrated their commitment to the joint venture across industries.
Today, InfoPrint Solutions Company also announced a major customer engagement
with 21st Century Insurance Group, a leading insurance company based in the

    Said Jim Chalker, Director of IT at 21st Century Insurance Group:
"Working with a company that has the entrepreneurial drive of a start-up yet
the support and global backing of two market leaders has meant great things
for us as a customer. InfoPrint Solutions Company is helping us reduce output
costs and increase efficiency, meaning we can pass these savings on to our own
most important asset - our customers."

    "From an industry perspective, we believe that this alliance is built on
a long-standing relationship between these two partners and it will create
great market opportunities for InfoPrint Solutions Company as it continues to
provide leading-edge output solutions for customers," said Charlie Pesko,
President, InfoTrends, Inc., the industry analyst firm. "The marketing power
of both Ricoh and IBM puts the joint venture in a very healthy competitive

    IBM received $725 million in cash at the closing. The cash received was
consideration for the initial 51 percent acquisition of the joint venture by
Ricoh as well as a prepayment for the remaining 49 percent to be acquired and
certain royalties and services to be provided by IBM to InfoPrint Solutions
Company. Final consideration for this transaction will be determined at the
end of the three-year period based upon the participation in the profits and
losses recorded by the equity partners. As a result of the transaction, IBM
expects to record a second quarter pre-tax gain of approximately $80 million
and a total pre-tax gain of approximately $250 million over the three-year
period. Both gain amounts are pending final valuation of the agreements signed
with the joint venture as well as final determination of transaction-related
expenses. Further details will be included in IBM's second quarter earnings
report and Form 10-Q filing.

    "The creation of InfoPrint Solutions Company grows out of IBM's long and
successful relationship with Ricoh and our belief in its ability to grow this
business," said Nicholas M. Donofrio, IBM executive vice president, Innovation
and Technology. "Our customers and partners will continue to receive the best
solutions and technology from IPS and our former Printing Systems Division
employees join a company focused on innovation and leadership in the printing

    About InfoPrint Solutions Company

    InfoPrint Solutions Company, headquartered in Boulder, Colorado, brings
to market the advantages IBM and Ricoh have in the development, manufacturing,
marketing and building of strategic solutions for customers, creating a
growth-oriented global enterprise that is strategically focused on the output

    The InfoPrint Solutions Company portfolio includes solutions for
production printing for enterprises and commercial printers as well as
solutions for office workgroup environments and industrial segments. The
company offers customers the highest quality output solutions that optimize
productivity by providing efficient workflow and, at the same time, delivering
low cost of ownership and high return on investment. The heritage of InfoPrint
Solutions Company includes the development of the IBM Advanced Function
Presentation (AFP) Architecture - now an industry standard - and Intelligent
Printer Data Stream (IPDS), which has since become the standard for mission
critical business printing. The company also leads the industry in print
management solutions with both InfoPrint Process Director and InfoPrint
Manager. Please visit for more information.

For further information:

For further information: Media and Industry Analysts: InfoPrint
Solutions Company: Peter Lazaroff. 303-924-0521 or Breakaway
Communications for IPS Gemma Craven, 212-616-6005

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