IBM AND PICTURETEL TO EXPAND RELATIONSHIP

IBM will Market PictureTel's Enterprise-Wide Videoconferencing Systems
Globally

PictureTel to Provide Videoconferencing for OS/2 Warp

SOMERS, N.Y., and DANVERS, Mass., October 12, 1995 -- IBM and PictureTel
Corporation today announced that IBM will sell PictureTel's full line of
videoconferencing systems and related products and services worldwide.
Today's announcement expands on an existing agreement in which IBM
remarkets PictureTel products in Europe. Currently, IBM is the leading
distributor of PictureTel's PC-based desktop videoconferencing systems
systems in Europe.

Under the terms of the expanded agreement, the IBM Global Network will
offer its communications network services with PictureTel video-
conferencing technology. Together IBM and PictureTel will provide:
videoconferencing systems and multipoint control units (bridges);
installation and maintenance services; network design and consulting; and
network transmission services.

In addition, PictureTel will port its award-winning PictureTel LIVE* PCS 50
desktop videoconferencing system to IBM's OS/2** Warp operating system.

"Our customers demand standards-based conferencing offerings to solve a
variety of enterprise-wide problems," said Jim Gant, vice president,
solution developer operations, IBM. "This expanded agreement satisfies
IBM's worldwide clients who require both room and desktop
videoconferencing systems. Today's announcement, coupled with other IBM
conferencing offerings, provide our customers with the industries'
broadest range of conferencing solutions."

PictureTel chairman and CEO, Norman E. Gaut, said the expanded remarketing
relationship between PictureTel and IBM is just the latest example of
PictureTel's ongoing strategy of forging relationships with leaders in the
computer and communications industries.

"Both IBM and PictureTel have reaped the rewards of our work together in
Europe. With this new agreement, IBM will use its global presence to bring
the benefits of PictureTel's full line of enterprise-wide
videoconferencing solutions to its customers throughout the world.
PictureTel, as a market and technology leader in videoconferencing, is
proud to broaden our relationship with IBM, a world leader in information
network services."

The IBM Global Network is one of the world's largest providers of
integrated data, voice and video services, with 25,000 customers in more
than 850 cities in over 100 countries worldwide. IBM offers a broad range
of solutions such as network outsourcing, value-added telecommunications
services, Internet services and network enabled applications.

Today's announcement is another example of IBM's network-centric computing
strategy -- IBM's plan to enable people to receive, use and share
applications and services across worldwide voice and data networks.

OS/2 Warp is the third generation of IBM's award-winning, 32-bit operating
system. It features new usability features, slimmed-down system
requirements and comes with a BonusPak of more than a dozen exploitive
OS/2 applications, including easy access to the Internet and CompuServe.
Nearly 4 million copies of OS/2 Warp have been sold in the last year. The
OS/2 installed base is now 10 million users worldwide.

PictureTel Corporation (NASDAQ: PCTL) is a world leader in developing,
manufacturing and marketing a full range of visual telecommunications
solutions that are "Redefining the Way the World Meets." The company's
products serve videoconferencing needs from the desktop to the boardroom.
PictureTel also markets network products and a comprehensive portfolio of
enterprise-wide services.

For Internet users, IBM offers complete information about the company, its
products, services and technology on the World Wide Web. The IBM home page
is at http://www.ibm.com.

Recent PictureTel news releases are available in the U.S. by calling
800-758-5804, ext. 698175.
 
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