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MicroStrategy and IBM Announce e-Business Alliance

Companies To Deliver Highly Personalized Customer Information Solutions

Vienna, Va. And Armonk, N.Y. (August 18, 2000) -- MicroStrategy (NASDAQ: MSTR) and IBM Corporation (NYSE: IBM), two leading e-business solutions providers, have formed an alliance to provide information broadcasting and narrowcasting solutions for Business Intelligence (BI) and Customer Relationship Management (CRM). The agreement is an extension of a long-standing relationship between the two companies. IBM Global Services will assemble a large team from across IBM to focus on the sale, integration and implementation of MicroStrategy software to their enterprise customers.

MicroStrategy 7™, the company’s core Intelligent E-Business Platform™, is optimized for IBM’s DB2 database. MicroStrategy 7 provides an open XML-based, web-centric architecture, which enables companies to develop applications that analyze large customer-centric data warehouses. It provides critical business insight to potentially millions of users. MicroStrategy 7 also allows companies to deliver personalized messages to their individual customers via multiple interactive channels including telephone, wireless, fax, email and web. Additionally, customers may define preferences that filter information, enabling them to see only the information they want, when they want to see it.

Under the agreement, MicroStrategy will incorporate IBM's Application Framework for e-business components, such as WebSphere* Application Server, DB2* Universal Database and MQ Series* messaging software, into its technology platform. The IBM Application Framework for e-Business is a technology roadmap -- based on industry standards -- that helps developers integrate Internet technologies with traditional information technology. In addition to adopting IBM’s strategic middleware, MicroStrategy will adapt its offerings for IBM platforms, including RS/6000, Numa-Q and Netfinity servers.

"This expansion of IBM’s relationship with MicroStrategy will add valuable capabilities to our portfolio of e-Business Intelligence offerings,” said Mike Fuller, vice president, Business Intelligence Consulting and Services, IBM Global Services. “Many of our clients are asking IBM Global Services to help them leverage their vast data assets in this new ‘e-world.’ We are excited about the expanded joint relationships IBM and MicroStrategy can develop as part of this wide-reaching partnership.”

“IBM and MicroStrategy have been a strong team for years and we are excited to announce our expanded offerings together,” said Sanju Bansal, chief operating officer for MicroStrategy Incorporated. “Through solutions developed by IBM and MicroStrategy, companies can expand their relationships with current and prospective customers and streamline interactions with suppliers and partners on the Web.”

IBM Global Services has a number of service offerings that allow for the integration of MicroStrategy’s platform with products from IBM and other partners. One of the first joint solutions to be implemented will involve the use of MicroStrategy technology to allow telecommunications applications to be monitored remotely without human interaction.

IBM Global Financing offers qualified MicroStrategy customers flexible financing options, enabling them to quickly and easily acquire and implement their e-business solutions. IBM Global Financing is the world’s largest IT financier and provides one-stop financing for hardware, software and services from IBM and other vendors.

This alliance is part of a developer initiative in which IBM forms relationships with leading solution developers. Under the initiative, developers gain access to new customers and revenue opportunities through IBM’s extensive marketing, sales, and solutions resources. At the same time, ISVs commit to lead with IBM’s middleware, server platforms and services.

About MicroStrategy

MicroStrategy is a leading worldwide provider of Intelligent E-Business™ software and related services. MicroStrategy’s technology platform is creating a new generation of one-to-one e-business solutions that enable global 2000 organizations to build personal relationships with their partners, supply-chains, and customers. MicroStrategy delivers these solutions via web, wireless, and voice. In addition to its industry leading technology, MicroStrategy also offers a comprehensive set of consulting, training and support services for its customers and partners. MicroStrategy has approximately 1,000 customers across such diverse industries as retail, finance, telecommunications, dot-com, insurance, healthcare, pharmaceuticals and consumer packaged goods. MicroStrategy also has entered into relationships with more than 270 systems integrators, application development and platform partners. For more information, visit MicroStrategy’s Web site: http://www.microstrategy.com.

About IBM
IBM is the world's leading e-business company, offering a wide range of services and solutions that help businesses take full advantage of emerging innovation like smart technologies. IBM Global Services is the world's largest information technology services provider, with 1999 revenues of more than $32 billion. Services is the fastest growing part of IBM, with more than 140,000 professionals serving customers in 160 countries. IBM Global Services integrates IBM's broad range of capabilities --services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. For more information on IBM, visit www.ibm.com.

This press release may include statements that may constitute “forward- looking statements,” including its estimates of future business prospects or financial results and statements containing the words “believe,” “estimate,” “project,” “expect” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results of MicroStrategy to differ materially from the forward-looking statements. Factors that could contribute to such differences include: MicroStrategy's ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of MicroStrategy to implement and achieve widespread customer acceptance of its MicroStrategy 7 software and Strategy.com network on a timely basis; adverse reaction by MicroStrategy's employees, investors, customers, vendors and lenders to the restatement of MicroStrategy's financial results or its future prospects; MicroStrategy's ability to recognize deferred revenue through delivery of products or satisfactory performance of services; continued acceptance of MicroStrategy's products in the marketplace; the timing of significant orders; delays in MicroStrategy's ability to develop or ship new products; market acceptance of new products; competitive factors; general economic conditions; currency fluctuations and other risks detailed in MicroStrategy's registration statements and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, MicroStrategy undertakes no obligation to update these statements for revisions or changes after the date of this release.

* denotes trademark of the IBM Corporation

MicroStrategy, Intelligent E-Business, MicroStrategy 7 are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.