IBM TURNS UP THE HEAT WITH DELIVERY OF HOTMEDIA 2.0

New customers, Mac support and support for third party Java applets
highlight new release

SAN FRANCISCO, May 4, 1999 -- IBM today made it easier to add sizzle
to rich media banner ads and Web sites with the release of HotMedia
2.0*. The second release of the plug-in-free Java** tool includes
electronic-commerce-enhancing features designed to attract, retain
and track customer mouse clicks.

At the @d:tech Conference here, IBM also announced support for third
party Java applets, allowing partners to build Java players that can
be incorporated into HotMedia. As an example, IBM and Interactive
Pictures Corporation (IPIX) will support IPIX 360 degree images as
objects in HotMedia files. As part of this relationship, the HotMedia
toolkit will also be bundled with IPIX products.

IBM also announced the addition of several new customers who are
using HotMedia to add rich media to their Web sites, including
Brookstone, CVS Pharmacy, Designer Outlet and Intellicast.

HotMedia technology plays an important role in IBM's strategy to help
marketing communications companies transform their creative and
business processes to become e-businesses. Through use of HotMedia
and other innovative technologies and services, IBM is helping
marketing communications companies generate new revenues and increase
operational efficiencies.

"Rich media makes the Web more natural, intuitive, and useful --
which is good for advertising agencies and other businesses and
consumers," said Armando Garcia, vice president of Internet media at
IBM. "Eliminating the need for plug-ins, providing authoring support
for the Mac community and adding support for third-party Java applets
such as IPIX, make rich media more accessible to designers and the
people they design for."

New Features
Version 2.0 of the HotMedia toolkit, which can be downloaded
free-of-charge at http://www.ibm.com/hotmedia beginning June 1, 1999,
includes the following new features:

* Authoring support for the Mac: While Macintosh users have always
been able to view HotMedia content over the Web, a version of the
HotMedia assembly tool is now available for creating HotMedia content
on the Macintosh platform (HotMedia v1.2 only).

* Java streaming audio: Using the HotMedia 2.0 assembly tool, users
can include 360 degree images into a HotMedia file. HotMedia 2.0
supports multiple 360 degree Java players and features the IPIX Java
applet. Hotspots, including mouse-over audio effects, can also be
added to 360 degree images.

* Java 360 degree images: Using the HotMedia 2.0 authoring tool,
users can include 360 degree images into a HotMedia file. HotMedia
2.0 supports IBM's own 360 degree panoramic Java player, as well as
the IPIX Java panoramic player. Hotspots, including mouse-over audio
effects, can also be added to 360 degree images.

* New user interface for the HotMedia player: An optional user
interface that communicates user-driven actions (animation, audio,
zoom, 3D, audio controls, etc.) enables users to navigate content
more intuitively.

* Advanced tracking: This facility includes hover-time and flexible
tracking parameters, which extend HotMedia's existing tracking
capability. HotMedia's tracking capabilities are designed to easily
work with a Web site's existing tracking system. As part of IBM's
commitment to privacy, HotMedia's tracking features can be disabled
when the content is created, preventing any tracking of user activity.

* TrackSelect: This new feature enables content authors to "label"
the media tracks within a HotMedia file with information such as
target demographics and minimum required network speed. Using this
feature, Web publishers can target individual elements of, for
example, a banner ad to specific target audiences.

* Timing estimation: A 'timing meter' within the HotMedia assembly
tool provides estimated download times for the various objects in a
HotMedia file based on a target bandwidth.

MatchLogic, the Colorado-based leader in digital marketing solutions,
will use the TrackSelect feature to provide highly targeted online
advertising across the Web. "Together with MatchLogic's demographic
databases and our SpeedSelect solution for determining the effective
bandwidth a user is experiencing, TrackSelect can help provide
compelling, targeted, and bandwidth-appropriate content for the end
user," said Michael Healy, Vice President of Business Development at
MatchLogic.

New Customers
New customers using IBM's HotMedia to enhance their Web sites,
include Brookstone, CVS Pharmacy, Designer Outlet and Intellicast.
Brookstone -- This e-catalog uses HotMedia to display and allow viewers to
interact with particular products -- zooming in for a closer view, rotating
products 360 degrees, and actually playing back product audio features,
including multiple tracks of "soothing sounds" of the ocean, rainforest etc.

CVS Pharmacy -- Visitors to CVS' Web site are greeted by a HotMedia enabled
banner, which serves as a unique navigation tool, allowing viewers to
experience different segments of the site, without leaving their homepage.

Designer Outlet -- This online off-price designer clothing store gives
viewers an interactive 3-D experience through the visualization features of
HotMedia, which allow shoppers to unzip a jacket and examine the lining, all
with the click of a mouse.

Intellicast -- The premiere weather forecasting site on the Web is using
HotMedia to allow visitors to track tornadoes and hurricanes.

IPIX Partnership
Demonstrating its ability to integrate third-party Java functions
into HotMedia, IBM announced a business partnership with Interactive
Pictures Corporation (IPIX), the leader in photography for the
Internet. IPIX will bundle HotMedia 2.0 with its IPIX Camera kits
allowing users to incorporate HotMedia features in IPIX images. This
combination provides IPIX users with hotlink, audio and animation
capabilities without the need for a plug-in. The IPIX wizard is also
built-in to the HotMedia 2.0 authoring tool, making it easy for
designers to incorporate IPIX content into their HotMedia creations.
IPIX will distribute HotMedia 2.0 with its entire product line.

"IPIX images have become a new interactive media type on the
Internet. Our partnership with IBM will accelerate awareness of IPIX
technology by providing Web developers and content creators with a
Java-based enhanced multimedia tool to create innovative rich media
and sticky content," said Jim Phillips, chairman and CEO of
Interactive Pictures. "HotMedia 2.0 with IPIX will give the creative
community a powerful e-commerce solution and consumers the added
benefit of new interactive media experiences that are quick, easy and
fun to view."

About IBM
IBM is the world's largest information technology company, with 80
years of leadership in helping businesses innovate. IBM software
offers the widest range of applications, middleware and operating
systems for all types of computing platforms, allowing customers to
take full advantage of the new era of e-business. The fastest way to
get more information about IBM software is through the IBM software
home page at: http://www.software.ibm.com. For more information about
IBM HotMedia please visit: http://www.software.ibm.com/net.media.

Customer & Partner Contacts:
Brookstone
http://www.brookstone.com/cgi-bin/ncommerce3/ProductDisplay?prmenbr=1&
prrfnbr=2258&TOP10=YES
http://www.brookstone.com/cgi-bin/ncommerce3/ProductDisplay?prmenbr=1&
prrfnbr=130&TOP10=YES
Carol Kate
603-880-9500
Sharon Rached (Image 9 Web dev)
212-268-4444, x14

CVS Pharmacy
http://www.cvs.com
Pooja Panjwani
401-765-1500, x3432

DesignerOutlet
http://www.designeroutlet.com/display2_m.cfm?product=218&dosid=990427193...
Lauren Battista
212-367-8561

Intellicast
http://www.intellicast.com
Michael Sikellian
978-670-5186

Interactive Pictures Corporation (IPIX)
http://www.ipix.com
Patricia Fortuna
408-918-0947