Wave Issue 0309 3/28/03 Article 2-01

***IBM and NVIDIA Form Strategic Alliance
(March 26)

IBM and NVIDIA today announced the two companies have formed a
multi-year strategic alliance under which IBM will manufacture
NVIDIA's next-generation GeForce graphics processing units
(GPUs).

As part of the agreement, NVIDIA will gain access to IBM's suite
of foundry services and manufacturing technologies, including
copper wiring, and a roadmap that leads to 65nm in the next
several years, giving the company the necessary tools to advance
its GPUs.

IBM plans to begin manufacturing the next generation GeForce
graphics processor this summer at IBM's state-of-the-art 300mm
plant in East Fishkill, N.Y. The new IBM $2.5 billion chip-
making facility combines IBM chip-making technologies such as
copper interconnects, silicon-on-insulator (SOI) transistors and
low-k dielectric insulation on 300mm wafers. The new facility
began operation last year, and will ramp up in capacity
throughout 2003.

IBM also offers an automated management system that not only
controls production on the factory floor, but provides a
connection for customer and supplier systems and processes.
According to NVIDIA, IBM's automated management system provides
opportunities ranging from improved operation to greater
efficiency, while using e-business techniques to adapt to real-
time, on-demand influences from the marketplace.

IBM Microelectronics develops, manufactures and markets
semiconductor, ASIC and interconnect technologies, products and
services.

NVIDIA Corporation is a developer of graphics and communications
processors, which are incorporated into a variety of computing
platforms, including consumer digital-media PCs, enterprise PCs,
professional workstations, digital content creation systems,
notebook PCs, military navigation systems and video game
consoles.