IBM WebSphere Application Server on IBM eServer iSeries
i890 SingleNode Configuration Price Sheet

                                                   Extended        Maintenance
                                                    Price         Price (Monthly)
Subtotals                                      ________________  _______________

Server Hardware                                USD 3,026,218.00  USD    7,500.00
Server Software                                USD   560,616.00  USD    1,140.00
Network Components                             USD         0.00  USD        0.00
                                        Total  USD 3,586,834.00  USD    8,640.00

                     3-Year Cost of Ownership  USD 3,897,874.00


Hardware Details
                                                   Extended        Extended
Product           Description            Qty       Purchase         Maint      Term
________  ____________________________  _____  ________________  ____________  ____

9406-890  ISERIES                           1        100,000.00      1,900.00  Mth
    0041  DEVICE PARITY PROTECTION-ALL      1               N/C
    0198  MODEL 890 32-WAY PROCESSOR        1      1,650,000.00      5,200.00  Mth
    0367  OPERATIONS CONSOLE PCI CABLE      1            125.00
    0829  #4318 LOAD SOURCE SPECIFY         1               N/C
    1025  MODEM CABLE - US/CANADA           1               N/C
    1301  200-240V 14-FT LINE CORD          2               N/C
    1454  200V 12A 14-FT TL LINE CORD       1               N/C
    1463  2M SPCN CABLE                     1               N/C
    1482  3.5 M HSL-2 CABLE                 2          1,100.00
    2760  PCI 1GBPS ETHERNET UTP IOA        1          1,820.00
    2843  PCI IOP                           1          1,925.00
    2924  ENGLISH                           1               N/C
    3015  8GB MAIN STORAGE                  4        589,824.00
    3016  8GB MAIN STORAGE                  4        589,824.00
    4318  17.54GB 10K RPM DISK UNIT        45         63,000.00
    4430  DVD-RAM                           1          1,600.00
    4778  PCI RAID DISK UNIT CTLR           3         18,000.00
    5000  SW PRELOAD REQUIRED               1               N/C
    5029  SOFTWARE VERSION V5R2             1               N/C
    5107  30-DISK EXPANSION FEATURE         1          9,000.00        400.00  Mth
    5544  SYS CONSOLE ON OP CONSOLE         1               N/C
    9094  BASE PCI I/O ENCLOSURE            1               N/C
    9730  BASE HSL-2 PORTS-4 COPPER         1               N/C
    9793  BASE PCI 2-LINE WAN W/MODEM       1               N/C
    9887  BASE HSL-2 BUS ADAPTER            1               N/C
    9943  BASE PCI IOP                      1               N/C
                                               ________________  ____________
          Serial: N/A                   Total  USD 3,026,218.00  USD 7,500.00  Mth

5372-IS5  VERSION 5 SOFTWARE PRELOAD        1               N/C
    0890  MODEL 890 ROUTING CODE            1               N/C
    1000  OS/400 (5722-SS1)                 1               N/C
    2924  ENGLISH U/L SBCS PRIMARY          1               N/C
    3520  VERSION 5 RELEASE 2.0             1               N/C
    5000  PRE-LOAD                          1               N/C
                                               ________________  ____________
          Serial: N/A                   Total                                     

Software Details
                                                   Extended           Lic
Product            Description            Qty       Price       Term  Type
________  _____________________________  _____  ______________  ____  ____

5722-SS1  OPERATING     SYSTEM/400           1             N/C
    0619  BASE OTC (P50)                     1             N/C
    2924  ENG U/L SBCS PRIMARY               1             N/C
    3434  PRELOAD SOFTWARE PRODUCT           1             N/C
    5819  IBM OPERATING SYSTEM/400 V5R2      1             N/C
    8002  OS/400 BACKUP & RECOV V5R2         1           25.00  OTC   B
                                                ______________
          Serial: N/A                    Total       USD 25.00  OTC

5733-SW3  SW SUBSCRIPT  3-YEAR               1             N/C
    3272  PG P50 OTC                         1      131,471.00  OTC   B
                                                ______________
          Serial: N/A                    Total  USD 131,471.00  OTC

Passport Advantage(1):

D5ALULL   WASAE 4.0 ISERIES LIC W/MNT2YR     1      362,048.00  OTC  
E1ALVLL   WASAE 4.0 MAINT RENEWAL            1       67,072.00  OTC      
                                                ______________
          Serial: N/A                    Total  USD 429,120.00  OTC

Note: DB2 UDB for IBM iSeries is included in OS/400 at no additional cost.

Service Details
                                              Extended
Product            Description           Qty   Price    Term
________  _____________________________  ___  ________  ____

6942-31D  AS/400 SYSTEM ALERT (/MO)        1       N/C
    9000  AS/400 ALERT WEEKLY NOTIFY       1     45.00  Mth
6942-62D  IBM SUPPORT LINE                 1       N/C
    5202  OS/400 SUPPORT GROUP             1       N/C
    5206  SUPPORT LINE OS/400              1       N/C
    5318  24X7 EXTENDED COVERAGE           1       N/C
    5484  24X7 OS/400 GROUP R              1  1,095.00  Mth
6942-CON  CONTRACT COVERAGE (N/C CODES)    1       N/C
    0098  SERVICESUITE ADVANCED            1       N/C
6942-HMA  HARDWARE MAINT. (N/C CODES)      1       N/C
    0025  MA HOURS OF COVERAGE-DEFAULT     1       N/C
6942-TCS  TERMS (N/C CODES)                1       N/C
    0050  REQUEST PROPOSAL FOR PRICES      1       N/C
    0053  PREPAY BILLING 3 YEAR            1       N/C


All components are immediatelty available.
All prices are in US dollars (USD).

Pricing sources:
	IBM Configurator for e-business (e-config)
	IBM Direct 1-800-426-2255 for Passport Advantage(1)
Effective date: 09/04/2002.

The following submitter: IBM guarantees the accuracy of the supplied pricing
data for a minimum of 60 days from 09/19/2002, and accepts the responsibility
to provide revised pricing data to SPEC during the first 90 days should the
price increase by 2% or more.

(1) WebSphere Application Server pricing based on Passport Advantage Agreement.
This is a standard offering from IBM and includes 24x7 software support.  There
is no charge to become a Passport Advantage customer.