IBM delivers HRsmarts Human Resources applications to mid-market via new e-business on demand program

When IBM (NYSE: IBM) needed an e-business on demand (ebod) partner to deliver world-class HR applications to small and medium businesses, it chose HRsmart. ebod provides small and medium businesses with affordable HR technology previously available only to the Fortune 500. The solution is part of IBM's global on demand computing" strategy that new Chairman Sam Palmisano presented in a recent speech.

PLANO, TX -- Jan 14, 2002 -- When IBM (NYSE: IBM) needed an e-business on demand (ebod) partner to deliver world-class HR applications to small and medium businesses, it chose HRsmart. ebod provides small and medium businesses with affordable HR technology previously available only to the Fortune 500. The solution is part of IBM's global "on demand computing" strategy that new Chairman Sam Palmisano presented in a recent speech.

IBMs on demand strategy is particularly compelling to medium-sized companies. "It is harder for medium businesses to maintain the skills to keep pace with accelerating technology changes. These companies must also demonstrate an immediate return on their technology investments," said Marc Lautenbach, general manager, IBM Global Small and Medium Business. "e-business on demand addresses these critical skill and cost issues, and delivers the solutions these customers need to improve their businesses." AMI Partners estimates that medium-sized companies will spend more than $150 billion on IT products and services in the next three years.

Why has IBM entered the ATS market?

Its customers are asking for HR solutions. According to Mike Riegel, global marketing executive for e-business hosting at IBM, mid-market customers will see the greatest value from on demand. "They don't have large IT staffs and yet they still need the IT and business process applications. They told us they'd like to start with some of the back-office things, something for HR, CRM, accounting."

How is IBM going to deliver the goods?

IBM is partnering with HRsmart. "We're not in the applications business. Particularly in the mid-market business, the independent software vendors (ISVs) are the cornerstone of the opportunity for us." Referring to the four ISVs in the ebod program, Riegel says "They're all leading-edge ISVs in that they're very easy to work with to adapt their software to the on demand model. These are the vendors our customers are asking for." HRsmart's premium solutions, reasonable prices, and history of providing superior service made it an ideal ebod partner. "The mid-market is being neglected by the current market leaders, but HRsmarts affordable, powerful solution met all the requirements for IBMs 'utility model designed for this market," says Scott Johnson, HRsmarts vice president of strategic partnerships. See the official IBM announcement at: http://www.ibm.com/news/us/2002/11/22.html.

Is ebod just for small and medium businesses (SMB)?

HRsmarts ebod solution targets the underserved SMB marketplace, but the company is also working with IBM to better serve larger clients. Long-time HRsmart client Avis, a wholly owned subsidiary of Cendant Corporation (NYSE: CD), is moving to IBMs new Linux Virtual Services zSeries mainframe managed hosting. This will provide Avis and soon many more of HRsmarts industry leading clients the time-tested performance and scalability of an IBM zSeries mainframe without the high up-front and ongoing maintenance costs. This new IBM e-business on demand offering provides HRsmarts larger clients a uniquely powerful solution at a very affordable price. Some of HRsmarts other clients include Dupont, Sylvan Learning Systems, Sprint, Aramark, and Wyndham International.

About IBM

With 80 years of leadership in helping businesses innovate, IBM is the world's largest information technology company. IBM is a leading provider of e-business solutions and is dedicated to helping companies, Business Partners and developers leverage the potential of the Internet and network computing across a wide range of businesses and industries. The company offers a host of cross-industry and industry specific solutions designed to meet the needs of companies of all sizes.

About HRsmart

HRsmart has provided effective and affordable Human Resources technology to leading organizations since 1994. HRsmart's Online Recruiting and Applicant Tracking System (ATS) significantly reduces Cost-Per-Hire and Time-To-Fill. HRsmart also offers Employee Referral, Performance Appraisal, Career Development & Succession Planning, and Learning Management solutions. HRsmart has more than 1,000 users at industry leaders such as Dupont (NYSE: DD), Sylvan Learning Systems (NASDAQ: SLVN), Sprint (NYSE: FON), Crown Cork & Seal (NYSE: CCK), Cole National (NYSE: CNJ), Aramark (NYSE: RMK), Wyndham International (AMEX: WBR) and Verio (NYSE: NTT), as well as a number of leading small and medium businesses such as Haynes & Boone (http://www.haynesboone.com), The Container Store (http://www.containerstore.com), and Nestle Cafes (http://www.nestlecafe.com).

For more information on HRsmart, please visit http://www.hrsmart.com/ibm.html, call Mike Ariagno at 972-398-6540, or email sales@hrsmart.com.