IBM, LOTUS ANNOUNCE AGREEMENT ON IBM TENDER OFFER AT $64 PER LOTUS SHARE IN
CASH

Armonk, NY and Cambridge, MA, June 11, 1995 . . . IBM and Lotus Development
Corp. today announced a definitive merger agreement under which IBM will
pay $64 per Lotus share in cash for all of Lotus' outstanding shares and
preferred share purchase rights. The transaction has a total equity value
of approximately $3.5 billion.

"We're delighted that Lotus and IBM have been able to reach an agreement so
quickly," said IBM Chairman and Chief Executive Officer Louis V. Gerstner,
Jr. "This means we can begin moving ahead rapidly to bring our shared
vision of team computing -- and its many powerful benefits -- to reality
for our customers. I know I speak on behalf of all IBM employees when I
say that we eagerly look forward to working with our future colleagues at
Lotus and its industry partners. We have much to do, and we are anxious to
get started."

"We are excited about this opportunity to partner with IBM," said Jim
Manzi, who will continue in his role as chairman and CEO of Lotus,
reporting to Mr. Gerstner. "We intend to utilize our combined resources to
expand our leadership position in communications software and advance our
desktop software business. After careful consideration, Lotus' Board of
Directors believes it has acted in the best interests of the company's
employees, shareholders and customers. We now look forward to working with
IBM to grow our customer base and set our collective sights on the market
opportunities before us."

Mr. Manzi will be named a senior vice president of IBM and will work hand
in hand with John M. Thompson, senior vice president, IBM Software Group,
to manage the transition and day-to-day interface between Lotus and IBM.
Completion of the tender offer is conditioned on the tender of a majority
of the outstanding Lotus shares and expiration of the Hart-Scott-Rodino
waiting periods.

Additional details on today's announcement will be available on the Lotus
and IBM Internet home pages (Lotus: http://www.lotus.com and IBM:
http://www.ibm.com).

 ============================================================
 From the  'New Product News'  Electronic News Service on....
 AOL (Keyword = New Products) & Delphi (GO COMPUTING PRODUCT)
 ============================================================
 This information was processed from data provided by the 
 company or author mentioned. For additional details, please 
 contact them directly at the address/phone number indicated.
 All trademarks are the property of their respective owners.
 ============================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  U.S.A.
 Email: RBakerPC (AOL/Delphi), rbakerpc@delphi.com (Internet)
 ============================================================
