WHITE PLAINS, NY -- IBM (NYSE: IBM) and ILS Technology, LLC (a Park-Ohio Holdings company) (Nasdaq: PKOH), today announced a non-exclusive strategic alliance to deliver the first comprehensive e-Diagnostics solutions for the worldwide semiconductor industry. IBM and ILS are teaming to provide e-Diagnostics capabilities to significantly improve performance of today's semiconductor equipment and reduce field service engineering costs. The solutions address present-day quality and volume shortfalls that are common to and costly for the semiconductor industry. The joint solutions enable global, pervasive, real-time collaboration between equipment manufacturers and chipmakers and remote manufacturing locations. Benefits achieved will include improved equipment availability, faster equipment installation, reduced downtime, higher throughput and avoidance of "test" wafers -- or wafers that never reach a customer or generate profit. "Semiconductor companies, equipment OEMs and the vast markets they serve have long sought total e-business solutions that can reduce manufacturing costs, improve product quality and increase returns on capital," said Lorene Steffes, general manager of IBM's Global Electronics Industry. "ILS's industry leading e-Diagnostic applications combined with IBM's technologies, innovation and consulting and integration services can now provide the total solutions they seek: increased efficiency, higher quality and better service for their customers." ILS Technology's e-Centre(TM) e-Diagnostics solutions, built on IBM's DB2 database, WebSphere infrastructure software and eServer systems, are now being deployed in the IBM Microelectronics Division's state-of-the-art 300 mm wafer fabricator. e-Centre enables tool suppliers and chipmakers to rapidly implement effective e-Diagnostic solutions based on an open architecture, thereby avoiding the pitfalls, time loss and costs of self- installation and - integration of custom applications. "IBM Microelectronics is committed to providing customers with advanced semiconductor manufacturing services, combining leading-edge process technologies with the latest operational efficiencies," said Rich Brilla, director of 300 mm operations, IBM Microelectronics Division. "Our work with ILS in our new 300 mm manufacturing facility is designed to maintain tool uptime and throughput, allowing us to meet aggressive customer cost, time-to-market and quality levels. This is one of the many innovations supporting our expansion into high-end foundry, while maintaining the high serviceability levels required by our ASIC and standard product customers." Under the terms of the non-exclusive agreement, the two companies will jointly market and sell e-Centre and ServiceNet(TM). ServiceNet is an ILS solution based on IBM technology that enables the secure transmission and sharing of data. The data are collected from ILS' e-Centre and equipment manufacturers using the new e-Diagnostics solution. In all customer engagements, ILS will lead with IBM's hardware and middleware as platforms of choice. IBM will provide global marketing and integration support for joint IBM and ILS solutions. ILS has consistently developed products, such as e-Centre and ServiceNet, native to IBM technologies. Today's announcement enhances the key relationship allowing IBM and ILS the ability to jointly deliver world-class technology. "IBM has consistently offered the innovative technologies and the global reach needed to support complex semiconductor enterprise applications for e-manufacturing," said Rich Mason, ILS Technology president. "These technologies are crucial to our customers' abilities to deploy mission-critical e-business offerings. The industry has been waiting for a way to collaborate across the globe in order for equipment companies and ICMs to get a consistent return on investment. This is the year the early adopters make their move."