============================================================


               HOME COMPUTING ON OS/2

               August 31, 1993

               Wayne M. Caswell
               IBM PSPD







               COPYRIGHT  INTERNATIONAL BUSINESS MACHINES CORPORATION 1993.
               ALL RIGHTS RESERVED.


               ============================================================


               PREFACE


               VISION:

               What's  the  future of computing?  Try 2.5 PCs in every home
               by the end of the  decade.    That's  the  view  of  Channel
               Marketing   Corporation,  the  Dallas  market  research  and
               consulting firm that projects that  more  than  100  million
               computers  will be sold in 1999 (not by 1999).  What are the
               market drivers?    Parents  working  more  at  home.    Kids
               Education.    Hand-held  and notebook PCs.   And interactive
               TV.(1)

               IBM  is  in  a  unique position to take the lead in computer
               growth for the home.  This is because of its  collection  of
               enabling   technologies,   skills   and   alliances.     IBM
               technologies will make  personal  computers  more  portable,
               more  powerful  and much easier to use, expanding their role
               and improving their  benefit.    As  collaborative  business
               systems,  they'll  help  you  stay  in touch with people and
               information, any time and anywhere you happen to be.  And as
               personal agents, they'll act as your  partner  and  advisor,
               letting  you  spend  more  time  with family while improving
               business effectiveness.  You'll have more freedom over where
               and when you work and live.

               This paper is intended to show existing  PC  users  how  IBM
               technologies  can  be applied to home computing applications
               and how OS/2 provides unique  benefits  as  a  PC  operating
               system for the home.  There is still much work to be done to
               make  OS/2  (and  personal  computers  in general) more of a
               consumer product, like the telephone or TV or VCR.    Almost
               every  household  in  America has a phone and TV.  Many have
               several.  Computer technology, however, is  still  too  new,
               lacks  compelling  applications, and is too difficult to use
               for many consumers to be interested.    That's  the  current
               view, but OS/2 is helping to change that view.


               DISCLAIMER:

               The  information  contained  in  this  document has not been
               submitted to any formal IBM test and is  distributed  on  an
               "as  is"  basis  without  any  warranty  either  express  or
               implied.  The use of this information or the  implementation
               of  any of these techniques is a customer responsibility and
               depends on the customer's ability to evaluate and  integrate
               them  into  the  customer's operational environment.   While
               each item may have been reviewed by IBM for  accuracy  in  a
               specific  situation,  there  is  no  guarantee  that similar
               outcomes  will  result  elsewhere.   Customers attempting to
               adapt these techniques to their own environments  do  so  at
               their  own risk.   This information is not intended to be an
               assertion of  future  action  or  a  commitment  to  deliver
               products.


               ----------------

               1   Tom Steinert-Threlkeld, "The Dallas Morning News,"  July
                   3, 1993, p. F1.


               ============================================================


               DIRECT  COMMENTS  CONCERNING  THIS PAPER AND ANY CORRECTIONS
               TO:

               MAIL:          Wayne Caswell
                              Program Manager, Marketing Strategies
                              IBM Personal Software Products Division
                              11400 Burnet Rd.  Bldg.808, Zip 2999
                              Austin, TX  78758

               TELEPHONE:     512-823-1746          /           TL-793-1746
               (external/internal VOICE line)
                              512-823-2733           /          TL-793-2733
               (external/internal FAX line)

               IBM FORUMS:    OS2HOME on IBMPC (IBM internal forum)
               IBMMAIL:       USIB2H7H
               INTERNET:      WCASWELL@VNET.IBM.COM
               PROFS:         WCASWELL at AUSVM1


               The author (and IBM) may use or distribute  any  information
               you supply in any way believed appropriate without incurring
               any obligation whatever.


               ============================================================


               TABLE OF CONTENTS


               HOME COMPUTING ON OS/2
               Operating System/2 Highlights
               A Vision of Home Computing Today
                 Today's Advantages for the Work-at-home Office
                 Choosing Application Software
                 Telecommunications
                   Electronic Mail
                   On-line Services
                   Advanced Telephone Features
                   Voice Mail
                   Facsimile
                   Fax-on-demand
                 Family Advisor
                 Financial Management Software
                 On-screen Reminder System
                 Education and Games
                 Multimedia
                 Music Education
                 Graphics and Photographs
                 Video and TV
                 Special Needs
                 Voice Recognition
                 Language Translation
               A Vision of Home Computing Tomorrow
                 Tomorrow's Promise for the "Electronic Home"
                 Home Network and Automation
                 High Speed Communications
                 Interactive TV
                 Standards and Regulations
                 Developing Applications with Reusable Objects
               Happy Home Computing Requirements
                 Multitasking
                 Compatibility with your PC Hardware and Applications
                 Ease of Learning and Use
                 Ease of Installation
                 Leaving your PC up and running
                 Choosing the location of your PC
                 Choosing the Right Hardware
                 Backup and Recovery
                 Don't forget Insurance
                 Preparing for Scheduling Conflicts
               Who works at Home?
               Technical Tips for OS/2 users at Home
               Can't Microsoft Windows do that?
               OS/2 Awards
               Information Sources
               Ordering Information


               ============================================================


               HOME COMPUTING ON OS/2


               OS/2  has  the  potential  to  change  the  way you use your
               computer, elevating it from hobby status to  home  appliance
               and  tool,  and  increasing its value to you and your entire
               family.  This guide includes a vision of home computing that
               happens when you leave your computer powered on  and  run  a
               multitasking  system  like  OS/2.   It then describes how to
               happily apply OS/2 technology today.  Although OS/2 is known
               as the world's  leading  system  for  enterprise  computing,
               you'll soon discover its potential in the home.


               OPERATING SYSTEM/2 HIGHLIGHTS


               OS/2  2.1  is  the  latest release of IBM's award-winning PC
               operating system.   OS/2 Version  2  was  more  than  a  new
               version.    It was a new vision and a breakthrough operating
               system that exploits the power of today's 32-bit Intel-based
               processors (386, 486, etc.).  It takes your PC  applications
               beyond the limitations of the past and lets you do more with
               them than you ever could with DOS or with DOS & Windows.  It
               also lets you run tens of thousands of DOS, Windows and OS/2
               applications,  and  run  them  concurrently  -- an important
               capability for the work-at-home household.  In other  words,
               true multitasking.

               "But  wait a minute.  Why should I care about multitasking?"
               you may ask.   "I only do one thing  at  a  time."    That's
               because  your PC operating system only lets you do one thing
               at a time.  But is your dinner prepared that way?

                                   1.  Pour a drink.
                                   2.  Wait until finished drinking.
                                   3.  Prepare a salad.
                                   4.  Eat the salad.
                                   5.  Prepare a potato.
                                   6.  Eat the potato.
                                   7.  Prepare the meat.
                                   8.  Eat the meat.
                                   9.  Prepare desert.
                                   10.  ...

               No.  As ridiculous as this scenario is, it makes you  wonder
               why anything would work that way.  A cook sets up each item,
               cooking  and  switching between tasks as he feels necessary.
               A cook handles interruptions, such as a  pot  boiling  over,
               and  switches  attention  as  needed.   The potato and steak
               continue cooking (in the background) while  the  cook  takes
               the  pot  off  of  the  burner  or  prepares the desert.   A
               computer should do the same and can with  OS/2.    And  with
               OS/2 Crash Protection, each running application is protected
               from the next, so if one fails it won't affect the others.

               About  the  only  thing better than how much OS/2 can do, is
               how easily it does it all.  There's a graphical interface --
               the WorkPlace Shell -- that  makes  OS/2  easy  to  install,
               learn  and use.  And OS/2 comes with a collection of support
               services, including a toll-free number.  But maybe the  best
               part  is  that  instead  of  buying  DOS,  Windows and other
               software to get more out of your computer, you get them  all
               with  OS/2.  So for a whole lot less, OS/2 gives you a whole
               lot more.

               That's why over 2 million copies of OS/2  were  sold  during
               its  first  nine months and why hundreds of hardware vendors
               and thousands of software developers are supporting it.  And
               now version 2.1 is available with  even  more  features  and
               even better performance.

               o   OS/2 is Versatile:  It runs virtually all DOS, Windows &
                   OS/2  applications  from a single system.  OS/2 2.1 adds
                   support  for  Windows  3.1  and  Windows  Enhanced  Mode
                   applications.    You  can  even  run  Standard  Mode and
                   Enhanced Mode applications at the same time.

               o   OS/2 is Fast:  It makes the most of your 32-bit hardware
                   (Intel 386 SX and  above).    OS/2  removes  the  memory
                   limitations of DOS and gives your programs more space to
                   grow.    By  using  your  disk drive and virtual storage
                   technology, OS/2 lets your  application  programs  think
                   they each have up to 512 million bytes of memory, and it
                   does  it  automatically.    OS/2 runs the fastest 32-bit
                   applications  and  the  older  16-bit  DOS  and  Windows
                   applications.    In  general,  it  runs  them as fast or
                   faster than under DOS or Windows.

               o   OS/2 is Simple:  OS/2 includes the  Workplace  Shell,  a
                   state-of-the-art  graphical  interface that is easier to
                   learn and use than other  graphical  windowing  systems.
                   But  if you are already a Windows user and don't want to
                   take time learning a new interface, you can start any of
                   your DOS, Windows  or  OS/2  programs  from  a  familiar
                   Windows   interface.    As  you  learn  more  about  the
                   Workplace Shell, however, you'll likely make the  switch
                   to improved productivity.

               o   OS/2 is Technically Superior:  OS/2 has been praised for
                   its   Preemptive   Multitasking,  Overlapped  I/O,  High
                   Performance File System, and Crash Protection.  Although
                   most of the application examples used in this paper  can
                   be done today on DOS and Windows, this paper should show
                   why  OS/2  is  a  superior environment for running those
                   applications.

               o   OS/2  2.1  includes  built-in  Multimedia  Support:   It
                   accommodates popular sound cards and CD-ROM  drives  and
                   includes  software to support audio (record & play), and
                   and software motion video (play).

               If your computer has a 386 SX or better, you should consider
               OS/2 2.1 so you can exploit the 32-bit power you  paid  for.
               With OS/2 you can finally do the only thing you haven't been
               able to do with your computer -- make the most of it.

               OS/2's  reliable  multitasking  lets  you  leave your system
               powered on with your favorite applications just an icon away
               while service applications (such as fax  &  phone  mail  and
               energy  &  security  management) run in the background.  And
               OS/2 runs well on most of the current  systems  being  sold,
               since they are typically 386 or 486-based.


               ============================================================


               A VISION OF HOME COMPUTING TODAY


               TODAY'S ADVANTAGES FOR THE WORK-AT-HOME OFFICE


               For  the  many  people  who  work  out  of  their home, OS/2
               provides  an  ideal  operating  environment  for  productive
               multitasking.    For others, who buy a home computer so they
               can bring office work home and spend more  time  with  their
               family,  OS/2  offers  the freedom to run the DOS or Windows
               applications that you might already have at home as well  as
               the  OS/2  applications that you run at the office -- or the
               power to try new OS/2 applications at home while your office
               mates still trudge along with DOS or Windows.


               CHOOSING APPLICATION SOFTWARE


               OS/2 comes with a collection of applications and games  that
               provides   instant  productivity.    They  include  a  basic
               spreadsheet,   database,   graphics   editor,    calculator,
               calendar,  daily  planner, communications program, and more.
               And you can choose from  the  vast  selection  of  supported
               software.

                              o   DOS applications (30,000+)
                              o   Windows applications (7,000+)
                              o   16-bit OS/2 applications (2,500+)
                              o   32-bit OS/2 applications (1,300+)

               The  leading  categories  of  application  software  haven't
               changed in years.   The top five (in  order  of  popularity)
               still   include   Word   Processing,   Database  Management,
               Presentation        Graphics,        Spreadsheet,        and
               Accounting/Budgeting.    Application  software  can be found
               today  for  everything  from  writing  a  business  plan  to
               managing  sales,  advertising  and personnel.   Although new
               32-bit applications are available in all  major  categories,
               you  may  have  existing  preferences or a need to run older
               16-bit applications.  OS/2 lets you protect past investments
               while moving forward with new technologies.

               When selecting OS/2 applications some people will choose  an
               integrated package such as PFS: Works.(2) Others will choose
               individual packages from a consistent family, such  as  that
               provided by Computer Associates.(3) And  still  others  will
               select  best of breed packages in each application category,
               such as Lotus 1-2-3 and WordPerfect.(4) But perhaps the most
               exciting applications are those new ones written from ground
               up  to  exploit the advanced 32-bit power of OS/2.  DeScribe
               is such an application.  If you desire an  OS/2  application
               that   combines  advanced  word  processing  functions  with
               powerful desktop publishing features and  extensive  drawing
               capabilities,  there's  really  just  one  word  to  know --
               DeScribe.


               TELECOMMUNICATIONS


               Whether it is facsimile or data, communications  is  one  of
               the   most   compelling   reasons  for  OS/2's  multitasking
               features.  OS/2 lets you send or receive  a  fax,  down-load
               mail  or  programs  from a BBS, and even run your own BBS in
               the background -- all while doing other  PC  tasks  such  as
               writing a letter or printing in the foreground.


               ELECTRONIC MAIL

               Forget   printing,   stuffing   envelopes,  licking  stamps,
               frantically running to  the  post  office,  and  paying  for
               overnight  services  to  meet a deadline.   With a modem and
               E-mail (as with fax) you can send memos, letters, and  other
               information  to  your  clients or suppliers around the world
               and around the clock -- at 3:00 a.m. if you like.    With  a
               press of a key, your message is signed, sealed and delivered
               to  the  right  person, on time.  E-mail can be a real time,
               money and aggravation saver.  You can use services like  MCI
               Mail  to  send  to  large distribution lists of other E-mail
               users and non-E-mail users, in which case  MCI  can  convert
               your  documents  to  fax  or printed form using your company
               letter-head.


               ON-LINE SERVICES

               In addition to sending mail electronically, you can also tap
               into large libraries of  on-line  information  to  read  the
               day's  news, see the latest stock quotes, reserve an airline
               ticket, do your banking,  and  order  anything  from  office
               supplies  to  a new wardrobe.  You can even turn your own PC
               into an on-line service  or  bulletin  board  system  (BBS),
               letting  other  PC  users access your inventory, products or
               information and place orders.   When selecting  a  modem  to
               connect  to  an  on-line service like CompuServe, Prodigy or
               America  On-line,  modem  speed  and  data  compression  are
               primary factors.


               ADVANCED TELEPHONE FEATURES

               You can use your PC and modem to add convenience features to
               your  telephone.  These include auto-dialing, automatic call
               back of busy numbers, activity reporting (especially  useful
               if   billing  for  your  time),  and  caller  identification
               (requires a phone line  feature)  to  display  the  database
               record  of  the  person  who  is  calling  or  to screen out
               unwanted calls.


               VOICE MAIL

               More  of  today's  work-at-home  offices  include  telephone
               answering  machines  (66%)  than include PCs (51.3%).(5) For
               business use, the inexpensive models that record on magnetic
               tape suffer from a lack of important features (e.g.  ability
               to  keep some messages and erase others).  Digital answering
               machines address some of these issues  but  are  costly,  as
               much   as  $200.    With  a  PC  and  OS/2  there's  another
               alternative.  Some of today's modems combine data,  fax  and
               voice  functions  and let the one-person home office compete
               with the big guys.  Voice Mail replaces the  tape  answering
               machine that doesn't cut it for business use.  People expect
               lots of choices ("press 1 for customer service; 2 for sales;
               9  for  world peace").   Data/fax/voice modems are available
               from vendors such as AT&T, Micronix, and IBM(6) (see  below)
               and cost as little as $399 including software.


               FACSIMILE

               Stand-alone  fax machines are another popular investment for
               the home office, but rather than rush out and spend $400 for
               a low-cost fax machine (or up to $3000  for  one  with  rich
               features),  consider  a fax modem instead.  A fax modem does
               everything that regular modems do, like  connecting  you  to
               services  such  as  Prodigy,  CompuServe or bulletin boards.
               But it also sends and receives faxes.   When sending  a  fax
               straight  from  your PC application, however, the quality is
               much better than sending from a fax machine.  It's almost as
               good as a laser printer.   So now your PC  can  serve  as  a
               top-of-the-line  plain-paper  fax machine capable of sending
               dozens of faxes with the push of a button.  And best of all,
               it will cost you less than  a  traditional  fax  machine  --
               under  $150  for  the  software or $300 for adapter card and
               software.

               Some sample products include:

               o   BitFax for OS/2, $99 software from  Bit  Software,  Inc.
                   (408-263-2197)
               o   FaxWorks   for   OS/2,   $149   software   from   SofNet
                   (800-432-9967)
               o   Fax/PM, from Microformatic USA (203-644-1708)
               o   Home Office, $299 retail from Prometheus Products (modem
                   & software)
               o   WinFax PRO, $119 software from Delrina Technology

               These  products  offer  a variety of rich features including
               sending faxes with your letterhead and signatures.   Getting
               them  into  your  system the first time is easy.  Just use a
               fax machine to send  your  stationery  to  yourself.    When
               broadcasting  group  faxes,  each  could  have  a  different
               message on the  cover  sheet  and  the  entire  job  can  be
               scheduled  for  midnight when long distance rates are lower.
               Incoming faxes can be forwarded to another machine when  you
               are  not  there to receive them.  And OCR (optical character
               recognition) software can convert fax images  into  editable
               text  that  takes less hard disk space to store and 50% less
               time to print.

               But there are some (usually minor) drawbacks.  You won't  be
               able  to send original paper documents without also buying a
               scanner and going through the extra  step  of  scanning  the
               document into the PC.  And faxes, especially those with lots
               of  graphics,  takes  up  lots of disk space.  You'll likely
               want to delete fax images once they are printed.  In general
               though, you'll get more fax features with a PC than  with  a
               stand-alone  unit, and you'll be able to do some neat tricks
               that just aren't possible otherwise.


               FAX-ON-DEMAND

               This technology is a merger of telephony, fax, and  database
               applications   and   was   once  only  affordable  by  large
               companies.   Your customers can now dial  into  your  PC  to
               "request"   specific  fax  documents.    Recorded  telephone
               messages prompt the user to select document numbers  through
               the  telephone  key-pad,  then  ask  for the phone number of
               their  fax  machine,  and  finally   faxes   the   documents
               automatically.      Two   examples  of  software  to  create
               fax-on-demand systems include:

               o   FaxForward,   $1,495-2,495   from    Computer    Systems
                   Integration, Inc. (401-331-1117)
               o   Open+Fax, $1,795 from Open+Voice, Inc. (214-497-9022)


               FAMILY ADVISOR


               There  are  many PC programs available that play an advisory
               role.  They cover financial Issues (budgets,  taxes,  estate
               planning,  net worth...), legal Issues (writing wills, lease
               contracts...), medical Issues (first aid, diet and  exercise
               planning...), home Repair, trip Planning, general reference,
               etc.

               Again,  most of these programs can run under DOS or Windows,
               but OS/2's multitasking can make using them more convenient.
               OS/2 can also make it easier to exchange information between
               programs, using techniques such as cut & paste, dynamic data
               exchange (DDE), object  linking  and  embedding  (OLE),  and
               more.    That's  one  reason IBM calls OS/2 "The Integrating
               Platform."


               FINANCIAL MANAGEMENT SOFTWARE


               This is a class of home application that is  used  to  write
               checks, manage budgets, and gather data for taxes.  Examples
               include  Managing  Your Money, Microsoft Money, and Quicken.
               Information is entered only once, instead of  being  written
               on  the  check and then into the check register.  The system
               keeps track of repetitive payments to  make  even  that  one
               entry easier.

               Newer  printers  allow you to insert single checks from your
               check book, so you don't even need special forms if you want
               the computer to print your checks for you.   With the  right
               printer, you won't have to change printer paper.

               Although  this  kind  of  application  can  run under DOS or
               Windows and use any printer, you'll  find  that  it  becomes
               easier  to  justify and a joy to use if you choose the right
               printer and leave the system powered on with  OS/2  and  the
               application started and waiting in the background -- waiting
               to write your next check.


               ON-SCREEN REMINDER SYSTEM


               One  of  the most important things needed for the productive
               home-office is self-discipline.  OS/2 can't  substitute  for
               this  personal  trait,  but it can help.   It comes packaged
               with alarms, a calendar, a daily planner and  an  electronic
               sticky  pad.  And if you are already used to using the basic
               calendar that comes with Windows, you'll find that  included
               with  OS/2 too.   These simple tools can prove useful for an
               individual who has his office at home or a family that needs
               to post messages and reminders to each other.   So, you  may
               never miss another birthday or anniversary.


               EDUCATION AND GAMES


               Freedom  of  choice  is an advantage when selecting business
               software and an for  educational  software  and  games  too.
               While  you use the PC for business, your children can use it
               to create their own music videos, take imaginary trips  down
               the  Amazon,  or  practice  economic  skills  by  running  a
               dinosaur theme park.  All this in the name of education.

               Textbook  publishers  are  starting  to   produce   software
               alternatives  as  big states like California and Texas begin
               allowing textbook budgets to be spent on software.   Optical
               Data's   Windows   on  Science,  a  videodisc-based  science
               program, was adopted by the state of  Texas  in  1990  as  a
               textbook   alternative.    And  California  has  put  out  a
               framework for  education  that  requires  technology  to  be
               integrated with any printed material, especially in math, by
               1995.

               Unlike  school  software,  however,  home education products
               must compete with all other things a kid could be  doing  --
               like  watching TV, playing video games, even reading a book.
               Home software must be fun or it will become shelfware.    By
               exploiting  today's computer hardware, advanced graphics and
               sound, new programs (like  Davidson's  Math  Blaster,  which
               lets kids solve math problems by blasting numbers out of the
               sky)  have  given  birth  to  the  new term "edutainment" to
               describe software that both teaches and entertains.(7)


               MULTIMEDIA


               Two of the most exciting technologies  to  affect  education
               are  multimedia  and the optical compact disk (CD-ROM).  The
               CD-ROM drive can play music from  audio  CDs  and  can  also
               access up to 600 MB of data on computer CDs.  With access to
               so   much   storage,  the  games  and  educational  software
               delivered on CD are rich in exciting images, digitized voice
               and  music,  animated  graphics,  and  even  TV-like  video.
               Because  entire  multimedia  encyclopedias  can now fit on a
               single compact disk, more electronic encyclopedias are  sold
               today than printed ones.

               OS/2  is an ideal environment for running your DOS games and
               multimedia applications, especially if something else  needs
               to  run  as  well  (like fax or voice mail).  It effectively
               supports the heavy demands of sound,  image,  animation  and
               video  that  weren't  even  considered when DOS was written.
               Unlike word processors  and  other  business  software  that
               gracefully   wait  until  their  turn  to  use  the  central
               processor,  multimedia  applications  can't  tolerate delays
               without a loss in  presentation  quality.    Video  must  be
               delivered fast enough to not appear jerky, and sound must be
               synchronized  with  the  action.    OS/2 supports preemptive
               multitasking  that  can  guarantee  responsiveness  to  your
               multimedia  applications  so you don't have to dedicate your
               computer to running a single program.

               With  the  release  of  OS/2  2.1,  Multimedia  Presentation
               Manager/2  (MMPM/2)  is  packaged with OS/2.   It supports a
               wide variety of CD-ROM drives and sound cards and  can  even
               handle  concurrent  use  of the sound card by game and music
               software so you can listen to Mozart and the  sound  effects
               of  your  action game at the same time.  And it comes with a
               collection of sounds that are associated with system  events
               such  as opening or closing a window, picking up or dropping
               an  object,  and  information  or  warning  messages,   thus
               transforming  the  OS/2  desktop  into  a multimedia-enabled
               workplace.


               MUSIC EDUCATION


               You would  like  Johnny  to  learn  piano,  so  you  buy  an
               electronic   piano  keyboard,  and  a  software  package  is
               provided which teaches music theory  &  composition,  stores
               songs, prints sheet music from the score, and electronically
               scans  in  sheet  music  converting  it  to MIDI formats for
               editing and playback in CD quality.(8)  (see below)


               GRAPHICS AND PHOTOGRAPHS


               OS/2 can help when working with computer graphics.   Graphic
               files  with  high resolution and lots of colors can be quite
               large.  Editing them can require lots of storage, often more
               than DOS allows, especially if you have any  special  device
               drivers.    OS/2  gives your DOS applications access to more
               storage, making new functions  possible  and  improving  the
               performance    of   existing   functions.      OS/2-specific
               applications have access to even more memory and can benefit
               from 32-bit performance and virtual storage.

               The  Kodak  Photo-CD  lets  you  take  your  35mm film to be
               processed and get back the prints and an optical  disk  with
               digitized  images.   The images can be read from a CD-ROM XA
               drive and displayed on your computer.   You  can  even  edit
               copies  of  the  pictures  and print them or include them in
               documents.   With Kodak's  exciting  new  technology  and  a
               CD-ROM  XA  drive,  the  power of multimedia is available to
               anyone with a camera.


               VIDEO AND TV


               Add-on  products  like  IBM's  PS/2  TV  let  you  view   TV
               broadcasts  in  a  window  or  full  screen on your computer
               monitor.  You can simultaneously connect to  your  telephone
               and  TV  cable  to  check  the  morning  news and weather on
               Prodigy while watching The Today Show in a TV window.

               OS/2 2.1 includes built-in support of a new type  of  video,
               called  digital video, with no need for additional hardware.
               In contrast to analog video (e.g.  TV  broadcasts),  digital
               video  lets you electronically retrieve and play video clips
               from your hard disk or CD, access digital interactive TV for
               education and games, or participate in  a  video  conference
               with   someone   anywhere   in  the  world.     Advances  in
               communication speeds promise to make  video  conferencing  a
               mainstream  application,  letting  you  spend more time with
               your family or giving you more choice over where you live.


               SPECIAL NEEDS


               For most people, technology makes things easier.    For  the
               disabled,  technology  makes things possible.  The PC can be
               the window to much of the world for  the  blind  and  others
               with  vision  problems,  and it offers new hope to the deaf,
               the voiceless, slow  learners,  the  mentally  retarded,  to
               people  with  brain injuries, and -- most dramatically -- to
               those  contending with severe mobility problems.(9) When the
               appropriate equipment is attached to a PC, these people  can
               control  their  environment  and  communicate with virtually
               anyone with little or no assistance.

               A  wide array of products already exist to aid the disabled,
               including systems that talk, listen, teach, communicate  and
               translate for the user.  Although most of these products are
               designed  for  DOS,  OS/2 lets them work together with other
               applications.   Grandfather,  for  example,  has  difficulty
               reading a news paper because of his failing eye sight.  With
               OS/2  and Prodigy, he can download and read his personalized
               "electronic" newspaper, specially enlarged and displayed  on
               a  big  screen  that  has  been customized with his favorite
               colors and large fonts.

               Combined with voice recognition  and  home  automation  (see
               Home   Network  and  Automation),  the  PC  also  recognizes
               Grandfather's spoken commands so he doesn't have to  get  up
               to turn on the lights or make a phone call.


               VOICE RECOGNITION


               IBM's   desktop   dictation  technology  provides  the  most
               accurate and sophisticated speech  recognition  capabilities
               available  today.    Featuring  a 20,000 word vocabulary, it
               takes dictation at a throughput of more than  70  words  per
               minute.    What  makes  it  unique  is  its  use of advanced
               algorithms, developed by IBM Research, to analyze acoustical
               data  and  word  sequences  to  correctly   choose   between
               like-sounding  words, such as "to," "two" and "too" or "our"
               and "hour," and to recognize the start  of  a  sentence  and
               provide   capitalization.      In  addition,  IBM's  desktop
               dictation technology has navigation capabilities  which  let
               users  use  voice  commands  to  move  around  within  their
               document or the system while dictating.  You can control the
               operation of your PC using voice commands and  a  microphone
               (next is telephone and intercom).

               With voice recognition you can dictate your letters (or even
               a  book)  instead  of typing them.  When combined with voice
               synthesis software, you could call your computer to  request
               that  your  electronic mail or faxes be read to you over the
               phone and then dictate your response, which is  sent  as  if
               you had typed it.


               LANGUAGE TRANSLATION


               Within  five  years,  we'll  also start to see the impact of
               real-time language translation.  This future technology will
               let you talk to someone  in  Mexico  who  doesn't  speak  or
               understand  English.   The computer will be your translator.
               But this is FUTURE and belongs in the next section.  OS/2 is
               TODAY.


               ----------------

               2   PFS: Works for OS/2, from Spinnaker Software Corp, takes
                   full  advantage of OS/2's power and function and retails
                   for just $149.

               3   Computer  Associates  has a popular line of productivity
                   and business  software  for  Windows.    Although  these
                   packages  can  already  run under OS/2, CA is rebuilding
                   their entire line to better exploit the power of OS/2.

               4   Again  you  will  find that the DOS and Windows versions
                   run under OS/2, but the  OS/2  versions  exploit  unique
                   OS/2  functions  for added power and convenience.  As an
                   example, WordPerfect 5.2  for  OS/2  comes  filled  with
                   best-of-breed  features  and  advanced  Workplace  Shell
                   integration.     And  with  OS/2,   you   can   exchange
                   information  between applications that never knew they'd
                   be working together, so the new ones you buy  will  work
                   with the old ones you already have.

               5   Link Resources.

               6   For just $399, the IBM Mwave  WindSurfer  Communications
                   Adapter  utilizes  Mwave  technology  to consolidate the
                   separate data/FAX modem and voice messaging &  telephone
                   answering  functions  into  a  single  add-in  card with
                   supporting software  for  the  DOS/Windows  environment.
                   Even greater benefits for the home-office, however, will
                   come  with  planned OS/2 support and the programmability
                   of the Mwave Digital Signal Processor (DSP) developed by
                   IBM, Texas Instruments and Intermetrics.    Because  the
                   DSP  is  programmable,  the  WindSurfer  can acquire new
                   functions through software upgrades.  Functions such  as
                   higher   speed   modems,   stereo  sound,  MIDI,  speech
                   recognition,            text-to-speech,            image
                   compression/decompression    and   even   motion   video
                   acceleration are possible without changing the hardware.

               7   "Computer Letter," May 24, 1993, v9 n17, p. 1-7.

               8   The IBM WindSurfer provides CD quality stereo sound with
                   sample rates up  to  44.1  KHz.    Its  state-of-the-art
                   Musical  Instrument Digital Interface (MIDI) sound comes
                   from digital samples of actual  instruments  instead  of
                   the  combination  of  noises  to  make  music,  a common
                   technique used in today's sound boards.

               9   IBM's  National  Support   Center   for   Persons   with
                   Disabilities  was  created  to  help  professionals  and
                   others learn how computers can enhance the work and life
                   styles of people with disabilities.  To visit the Center
                   or for more information, call 1-800-426-2133 (voice)  or
                   1-800-284-9482 (TDD).


               ============================================================


               A VISION OF HOME COMPUTING TOMORROW


               TOMORROW'S PROMISE FOR THE "ELECTRONIC HOME"


               The  previous section covered what can easily be done today.
               In this section, we'll look at the future of home computing,
               knowing that some of the applications are already in use  by
               early   adopters   today   and  that  others  are  still  in
               development.


               HOME NETWORK AND AUTOMATION


               Children studying for school on the PCs in their room  share
               information  with  the master PC in the den.  From their PC,
               they can print on the downstairs printer, or use  its  modem
               to  access  Prodigy  and dial into vast libraries, or access
               its CD-ROM drive and multimedia encyclopedia.   Today,  they
               may  use  DOS  or  Windows on desktop PCs and connect via an
               unused phone line, but soon they'll use sub-notebook systems
               and wireless networks.   You too will  use  sub-notebook  or
               hand-held  computers and wirelessly connect to mail services
               or your home computer, keeping in touch anytime and anywhere
               you happen to be.

               But your home network can connect more  than  just  personal
               computers.    It  can  also  include an array of intelligent
               devices for complete home automation.   As  appliances  gain
               computer   intelligence,  the  differences  between  PC  and
               intelligent  device  will  blur.    You'll  likely  see   PC
               technology  in  televisions and could even see it built into
               the refrigerator door.  Wouldn't it be neat to network  your
               bathroom  scale  to  the refrigerator, automatically locking
               the fridge door if your weight exceeds a preset limit?   I'm
               just  kidding, although that may not be a bad idea.  Here is
               a sample of what "is" possible with today's technology.

                    Adrian, our 9 year old, is watching the TV in  the  den
                    while  gathering  goodies  from  the kitchen.   When he
                    takes his snack to his room, the TV in his  room  turns
                    on  to  the  same  channel, and the TV in the den turns
                    off.  When it's study time, he's not allowed access  to
                    the  TV  at  all.    The  rest of the time he can watch
                    programming that has been selected for him, such as The
                    Discovery Channel.  And certain channels, such  as  HBO
                    or  MTV  have  been reserved as rewards, to be paid for
                    with earned credits.  If Adrian doesn't get  home  from
                    school  on  time and enter his security code, we get an
                    automatic phone call.

                    During  the week, Yvonne and I go to bed about 11:00 PM
                    after watching the news.   Before retiring,  we  use  a
                    telephone  key pad (or intercom with voice recognition)
                    to start a script of commands that turns  off  the  TV,
                    arms  the security system, puts the lighting into sleep
                    mode, and sets the thermostat.   If Yvonne gets  up  at
                    2:00  AM  to  get  a  cold  drink from the kitchen, the
                    security system tracks her movement and turns lights on
                    in front of her and off behind her.  If the system  had
                    detected  an unexpected presence (a potential burglar),
                    it would have tripped an alarm and announced the likely
                    point of break in.

                    In the morning, a second script  starts  at  a  pre-set
                    time,  turns  up  the  thermostat and hot water heater,
                    turns on the bathroom lights, opens the curtains to let
                    the light in, and wakes Yvonne and I with our  favorite
                    music.    I  respond  with a command, "Computer, Access
                    Calendar," and voice recognition software  responds  to
                    my  command  to  access  today's  activities,  and then
                    "reads" them through the intercom  speaker.    I  might
                    then ask for yesterday's articles on IBM, the status of
                    stocks I'm tracking, or a summary of my net worth.

                    I control the operation of my house the same way that I
                    control other PC programs.  For example I might use the
                    mouse,  icon  objects,  and drag & drop capabilities of
                    OS/2's WorkPlace Shell to  re-program  home  automation
                    tasks.    First I click on the House icon, which brings
                    up a scanned-in picture of our  floor  plan.    Then  I
                    click  on  the master bedroom, which zooms in with more
                    detail so I can select both lamps on either side of the
                    bed.  The right mouse button shows the functions of the
                    lamp  objects  in  the  same  way  that  it  shows  the
                    functions  of  all  other objects in OS/2.   Instead of
                    using a mouse, I could also control my PC or house with
                    a keyboard, touch screen or voice commands.

                    The computer  now  acts  as  my  partner  and  advisor,
                    letting me spend more time with family while helping me
                    improve  business  effectiveness.    And  I  have  more
                    control of where and when I work and live.

               These Home Automation benefits have long been available  for
               technofanatics  willing  to pay $20,000 to $200,000.  Now it
               is possible, at reasonable prices,  to  link  once  separate
               systems    (telephony,    security,    voice    recognition,
               heating/cooling,    lighting    and    appliance    control,
               audio/visual,  etc.)    into  an  integrated whole -- a Home
               Network.  And Home Automation saves money,  cutting  utility
               bills an average of 20% - 30%.(10)

               If  the  PC  plays  a  role  in home automation today, it is
               typically just to program a  stand-alone  controller  device
               and  then disconnect.  That's because of the relatively high
               cost of dedicating a PC to control and monitoring functions.
               But with a multitasking operating system  (OS/2)  and  a  PC
               that  is  already  purchased for other functions, it becomes
               easier to justify having the PC play a greater  role.    One
               advantage  of  using the PC as home automation controller is
               the ability to include artificial intelligence  features  so
               your  system learns your habits and acts accordingly, making
               useful suggestions.   Another advantage is  the  ability  to
               access more information (e.g. weather and utility rates that
               may  change  hourly)  so  it  can better determine the least
               expensive time to water the  lawn  or  run  the  washer  and
               dryer.


               HIGH SPEED COMMUNICATIONS


               Key  to  our  nation's  success  in the Industrial Age was a
               transportation system that moved raw materials to  factories
               and   then  on  to  consumers.    As  we  move  through  the
               Information Age, our success  depends  on  a  communications
               system based on an "information highway," as proposed by the
               Clinton  Administration.   High speed communications will be
               one of the most important technologies for the future.    It
               will  affect how we live, where we live and the landscape of
               our cities, just as electricity did in the early 1900s.

               Our grandparents may have had  electric  lights,  but  there
               were  few  electric motors.   Nothing to spin the laundry or
               run the dish washer or play  the  VCR.    So  they  couldn't
               imagine  how  air  conditioning  and  elevators  would bring
               people together into tall buildings.   Today,  we  are  just
               starting  to  imagine  the  impact of personal computing and
               high speed communications.

               The nation is being rewired with fiber optics.  When you see
               cable companies digging up the street, you can bet they  are
               laying new fiber, and the same goes for telephone companies.
               We  expect  to  see  multi-gigabit/sec  phone  lines  in the
               mid-90's and speeds measured in  terabits/sec  by  the  year
               2000.    (At  1  Tbit/sec,  you  could ship the Encyclopedia
               Britanica in 1.5 milliseconds!).


               INTERACTIVE TV


               The fiber that eventually finds its way into your home  will
               carry   all   kinds   of  information  services  (telephone,
               newspaper, home shopping, home banking, mail, etc), but  the
               most compelling application is likely to be Interactive TV.

               Cable  companies  want  to  replace  movie rental companies,
               giving you the ability to select from  thousands  of  titles
               for  viewing  when  you  want  to  instead  of when they are
               broadcast, pausing for breaks when you want  to  instead  of
               when  the  networks decide to.  As you might imagine, rental
               companies like Block Buster Video and networks like CBS  and
               NBC  view this as competition and opportunity.  But consider
               the benefits to the consumer:

               o   ELECTRONIC TV GUIDE:  Downloaded to your PC once a week,
                   the electronic TV guide helps you find your way  through
                   the  greatly expanded collection of programming that has
                   become available.  You search through available programs
                   by key word and schedule automatic video taping of  your
                   favorites.  You'll be guided along by your computer with
                   new  user  interfaces  that make programming today's VCR
                   seem like programming computers in COBOL,  and  your  PC
                   will   learn   your  preferences  and  make  appropriate
                   suggestions.

               o   INTERACTIVE TV EDUCATION:  Students can  participate  in
                   interactive education through their TV, having access to
                   the  world's  best  specialists in their field of study.
                   Teachers can reach  more  students,  and  students  have
                   access  to more teachers and subject experts. Multimedia
                   and the ability  to  pull  the  best  teachers  together
                   electronically  can  enrich  the  learning  process  and
                   better prepare our  children  to  compete  in  a  global
                   society and do this at less cost.

               o   SEARCH,  CUT  &  PASTE:   Johnny can search for specific
                   still images or video clips for a book report using  key
                   words and hyperlinks.  He then pastes the image or video
                   into   his   document.      His  "report"  is  submitted
                   electronically, and the teacher clicks  on  an  icon  to
                   view the video.

               o   JUST-IN-TIME  EDUCATION:   You can view portions of "how
                   to" videos right when you need them and  without  having
                   to view the entire video, just the part about fixing the
                   leak  under the sink.  If you need more help, you can be
                   connected to an expert through video conferencing.

               o   VIDEO CONFERENCING:   You initially were  excited  about
                   the  potential  need  for  less business travel, but you
                   discover that the real benefit is your ability to  bring
                   collections  of  experts  together  more quickly.   This
                   gives you a competitive edge -- from your home, which is
                   now on the beach or in  the  mountains.    Some  of  the
                   experts  you include in your conference don't even speak
                   English, but their PCs translate for them.  You  realize
                   that  you  are no longer constrained to hire talent from
                   within a limited geography but have access to the world.
                   The  result  is  that  nations  who   succeed   in   the
                   Information Age are the ones who had vision and invested
                   in infrastructure -- "The Information Highway."

               "Wo  ha!   Let's get back down to earth!  Is all this really
               going to happen?" you say.  Yep... and more, but  your  mind
               may already be spinning (mine is).


               STANDARDS AND REGULATIONS


               Change  of  this  magnitude brings large challenges, many in
               the area  of  standards.    IBM  is  committed  to  industry
               standards   and   currently  sits  on  over  3500  standards
               committees around the world.  With all of the arguments over
               standards and who has access to the fiber, the FCC still has
               not yet decided who will get the right to bring it into your
               home and what services will be allowed on it.  The  politics
               are  overwhelming,  as  are the opportunities.  At stake are
               the fortunes of companies and the viability of nations.


               DEVELOPING APPLICATIONS WITH REUSABLE OBJECTS


               Hardware technology is coming at us so fast that one thing's
               for sure:  Software will have a hard time keeping up  if  we
               develop  it  like  we  have  in the past.   Fortunately, the
               industry  is   moving   to   the   use   of   reusable   and
               interchangeable  objects (e.g. object-oriented programming),
               much like interchangeable  parts  for  cars.    Objects  can
               represent  program  segments  (such as a video player), data
               files (the compressed video), or hardware  devices  (e.g.  a
               wall  switch).   You can combine objects to make new objects
               to perform specific services, such  as  downloading  various
               pieces   of   information  from  Prodigy  each  morning  and
               presenting it in the format you like, or making it available
               for programmed tasks (e.g. water the lawn at 4:00 AM  if  it
               is dry and no rain is predicted).

               We'll  soon see tools that make it easy for many PC users to
               create their own applications, simply  by  dragging  objects
               around on the screen and connecting them.  You'll be able to
               combine  your  favorite  word  processor object and favorite
               spell  checker  (from  different  vendors  and  written   in
               different   computer  languages).    You'll  then  select  a
               graphics  conversion  utility  and  a  drawing  tool  and  a
               business   graphics   engine   that   can  be  linked  to  a
               spreadsheet.  With access to hundreds of fonts and clip  art
               from  several  types of libraries, you put your presentation
               together to be shown with  a  presentation  tool  from  even
               another  vendor.    It all snaps together seemlessly and you
               have made your customized version  of  --  Lotus  Freelance.
               Lotus  and  WordPerfect and others will sell class libraries
               of reusable objects so you can pick and choose.   You'll  be
               able to access objects that are stored on your own system or
               ones  that  are  stored on some remote system on a different
               kind of computer.

               IBM has a powerful, open, distributed  object  strategy  for
               the  future  and  a  defined  platform  in  OS/2  for object
               exploitation today with the Workplace Shell,  System  Object
               Module  (SOM) and Distributed SOM (DSOM).  Our technology is
               being developed with partners like Apple,  HP  and  Sun,  is
               being  shared  with standards bodies, and is consistent with
               CORBA of OMG (Common  Object  Request  Broker  Architecture,
               endorsed by the Object Management Group).


               ----------------

               10  "Smart Houses: Getting Switched On," Business Week, June
                   28, 1993, p.128.


               ============================================================


               HAPPY HOME COMPUTING REQUIREMENTS


               This  section  describes how to implement the dream with the
               least effort.  IBM's vision of the future of home  computing
               isn't  that  much  different  from  that  of  a  dozen other
               companies.   What is different is  how  it  takes  you  from
               today's realities to tomorrow's promise.  OS/2 is a key part
               of  IBM's  software  plan  for delivering that promise.   It
               improves the quality of the journey by eliminating  many  of
               the  pains,  migrations,  upgrades,  and relearning that you
               might otherwise expect.


               MULTITASKING


               Because users should not have to  turn  off  their  fax  and
               voicemail applications or shut down their security system in
               order  to write a letter, this is the #1 requirement for the
               Vision  portrayed  here.     OS/2  offers  fast   and   safe
               multitasking  so you don't have to wait on your computer and
               so you can make these visions become real.


               COMPATIBILITY WITH YOUR PC HARDWARE AND APPLICATIONS


               Because people don't like too much change, however, any  new
               operating  system  must be compatible with existing hardware
               and applications.  For this reason, IBM has tested  OS/2  on
               hundreds  of  32-bit  IBM-compatible  computers and offers a
               money-back guarantee if it won't run on yours, given  enough
               memory  and  disk.    OS/2  comes with more than 260 printer
               device drivers for all of the leading printers.  It supports
               all of the most popular CD-ROM drives and  their  associated
               SCSI  adapters.    Leading  audio/sound  adapters  are  also
               supported.(11)

               OS/2 excels  in  application  compatibility  too,  with  its
               ability  to  run  virtually  any  DOS  or  Windows  or  OS/2
               application.  It also has a strong evolutionary future  that
               lets  you  expand  your  system without constant upgrades to
               application software.


               EASE OF LEARNING AND USE


               The user interface  must  be  intuitive  and  easy  to  use,
               because  the  biggest barrier to wide-spread use of personal
               computers has  been  the  effort  to  learn  and  apply  the
               technology.    We've  come  a  long way since the DOS prompt
               (C:>),  with  graphical user interfaces.   OS/2 goes further
               still and sets new standards for ease of learning  and  use,
               with  its  object-oriented  user interface.   Objects on the
               OS/2 desktop (folders, files, printers, disk  drives,  etc.)
               act  just like everyday objects.  To print a file, just drag
               it over to the printer; to put  it  away,  drag  it  into  a
               folder;  to  delete it, drag it to the shredder.  OS/2 users
               LOVE OS/2!

                    "I find this system so convenient and uncomplicated  to
                    use  that  most  of  my time is spent fighting my SEVEN
                    YEAR OLD son for control of my computer.   I feel  that
                    IBM has once again proven that it is not only the front
                    runner  of microcomputer technology, but also the trail
                    blazer of times to come!" DONALD K. CHAMPINE,  SECURITY
                    PACIFIC AUTOMATION COMPANY, INC. IN SEATTLE, WA.


               EASE OF INSTALLATION


               New  system  software  should  also  be easy to install with
               minimal training.    Ideally  there  would  be  no  training
               required  for  family  members,  and  OS/2  lives up to that
               ideal.  It is important, however, to have someone  technical
               enough  to  take  charge  of  installing  and setting up the
               system for other family members.  When installing  OS/2  for
               the first time, some have described the experience like that
               of  moving into a new house.  "There are always a few things
               that take a while to find, but the pain of  moving  is  soon
               forgotten and well worth the benefit."

               OS/2  2.1  ships on over 20 diskettes (or on CD-ROM), and no
               matter what IBM does, this still seems overwhelming to  many
               potential  users.    IBM  is  evaluating various options for
               turn-key packages for the  home  markets,  recognizing  that
               delivering  the  Vision of this paper requires more computer
               skill than we'd like.

               Currently, the easiest way to  install  OS/2  is  to  buy  a
               system  that has it pre-installed.  If you are buying from a
               retail store  today,  the  systems  you'll  find  with  OS/2
               pre-installed may be IBM systems, but we are now seeing more
               PC  manufacturers  willing  to pre-install OS/2 upon request
               and hope to see this as a standard practice in the future.


               LEAVING YOUR PC UP AND RUNNING


               Rather than turning on your PC,  running  your  application,
               and turning it off, you might decide to just keep it on with
               your  favorite  applications  already  started  and running.
               This is especially attractive when running  a  sophisticated
               system  like  OS/2  (or  DOS  with Windows and lots of other
               extensions) because of the time to boot up.


               CHOOSING THE LOCATION OF YOUR PC


               Where you put your computer depends on its intended use  and
               users.  Because 75% of PC-owning households are work-at-home
               households, many people put their PC in a home-office.  That
               can  be  a  spare  room, a corner of a room, or even a large
               closet.  A home-office can provide privacy and a way to hide
               office  clutter  while  protecting  equipment  and  work  in
               process.  And when company calls, just close the door.  This
               works  especially  well  if you are the only person who will
               use the system and may be required if you want  to  take  an
               income tax deduction for home-office expenses.

               If,  however,  you put your system out in the open (e.g. den
               or kitchen)(12) and leave it always powered on and ready  to
               use,  you should find new uses... and new users -- the whole
               family.  This is ideal if your objective is kids  education,
               family  entertainment, managing health and finances, or home
               automation.


               CHOOSING THE RIGHT HARDWARE


               SIZE -- One way to save space and avoid conflicts with  home
               decor  is with the new notebook PCs.  They can also be moved
               into a quiet room for privacy, possibly eliminating the need
               for a dedicated home-office.  Besides being  portable,  they
               are  smaller,  quieter,  and consume less power than desktop
               PCs;  and  they  have suspend/resume features.   Rather than
               close your OS/2 applications and turn off the power, you can
               simply close the cover of the notebook, putting  the  system
               into  "suspend  mode"  and saving energy.  Opening the cover
               brings the system back to life with all of your applications
               loaded and running, just like you left them.  Newer  desktop
               PCs may have similar suspend/resume features that cause them
               to use less power during periods of inactivity and "wake up"
               when input is sensed (from keyboard, mouse, fax, etc).

               Many  people will choose desktop PCs instead of notebook PCs
               because of larger hard disks, more expansion slots or  lower
               cost  (especially  when  fitted with a color monitor).  Some
               will  choose  to  have  both  and  may  even  want  them  to
               communicate in a network.

               MEMORY & DISK -- OS/2 offers a lot of power and function but
               does require more memory and disk than native DOS.  OS/2 can
               support   simple  DOS  applications  with  as  little  as  4
               megabytes (MB) of memory, but Windows  users  will  be  more
               satisfied with 8MB or more.  And OS/2 needs 15 to 40  MB(13)
               of  available  disk  space  for all of its function, on-line
               documentation,  built-in  applications,  and  scalable  type
               fonts.    Almost  all  systems  sold  today are already OS/2
               capable, and some have OS/2 pre-loaded.

                    "I was reluctant to move to OS/2 2.0, but now  I  can't
                    imagine  using  anything else.  If you have the horses,
                    you're crazy not to try it, folks, no matter what  they
                    say.    It  takes  55  minutes  to install, and if your
                    hardware can handle it, the  software  is  rock  solid,
                    just  like  the  OS/2  nutballs say it is...   It's not
                    particularly fun to tell  these  guys  that  they  were
                    right." JOHN C. DVORAK, PC MAGAZINE, AUGUST 1992.

               PROCESSOR -- By "horses," John Dvorak is referring to memory
               and  disk  storage,  as  OS/2  doesn't  have  the  voracious
               appetite for processor speed that  Windows  has,  thanks  to
               genuine  preemptive multithreading.  Processor speed is less
               of an issue when you don't have to wait for one  application
               to complete before moving on to the next and when background
               applications   don't   interfere   with  the  useability  of
               foreground applications as they do with Windows.  While some
               people always want the fastest computer they can buy, others
               believe that because of OS/2, the muscle computer  could  go
               the way of the muscle car.

                    "Today it's not important how well your automobile runs
                    at  120  MPH,  but  how  well it does at 55.  OS/2 will
                    allow  productivity  to  be  measured  in  multitasking
                    versatility,  not  sheer  velocity."  EDWIN BLACK, OS/2
                    PROFESSIONAL, NOVEMBER 1992.

               SUPPORT -- When users run their home-office or  entire  home
               on  a  PC, support can become critical and vendor reputation
               deserves strong consideration.  Now you can buy PCs from IBM
               and Apple at Sears instead of Zeos and Gateway  through  the
               mail.


               BACKUP AND RECOVERY


               Your  PC  is likely the most important piece of equipment in
               your home-office, so take care of it and backup your  system
               faithfully.    Neglecting this important rule is common with
               DOS and  Windows  users,  because  when  backup  is  running
               nothing  else  does.   With OS/2 it is easier.  As expected,
               OS/2 comes with backup and restore utilities.   They can  be
               used  to backup parts of your system while you work actively
               on other parts.  Or you can choose add-on products that make
               backup even easier and support a wide  variety  of  devices,
               such as diskette, 4mm Digital Audio Tape, 8mm tape, and 3.5"
               rewritable optical disks.(14)


               DON'T FORGET INSURANCE


               Another way  of  protecting  yourself  and  your  home-based
               business  is  with insurance.  Homeowner and renter policies
               can cover your computer equipment and software for a  modest
               additional  premium.    They  are often limited to $5,000 or
               $10,000 which should be enough for most home offices but may
               may  not  be  enough  for a sophisticated one, including its
               software.  In any case, check with your insurance company.


               PREPARING FOR SCHEDULING CONFLICTS


               You can  encourage  PC  use  and  increase  PC  benefits  by
               matching  convenience with the excitement and power of OS/2.
               Even small families, however, should prepare for  scheduling
               conflicts  as described by OS/2 users.  They say it's like a
               late model sports car with  an  innovative  new  body  on  a
               racing chassis and with an awesome new turbo-charged engine.
               As  such, it surpasses the popular windowing systems such as
               Microsoft Windows that simply put  a  new  body  over  DOS's
               Volkswagen  engine.  When you get familiar with working with
               OS/2 and past the "ah-ha" stage, you too will find that OS/2
               is a dream to drive.  And just like the conflict  when  your
               son wants to borrow your car but you need it to run errands,
               expect  scheduling  conflicts with your PC.  You may need to
               plan your home-office  time  so  it  doesn't  conflict  with
               school  and  entertainment time (or even include a second PC
               in a network for your kids and spouse).

                    "I write to you now as a last resort.  You see, I  have
                    lost  my  boyfriend to OS/2.  For the last two weeks he
                    as been locked in the computer room as if he was a  mad
                    scientist  on  the  verge  of a momentous discovery.  I
                    knock, I pound, I whimper into  the  keyhole,  I  slide
                    notes  under the door; and to no avail...  I could hear
                    him cackling with glee and often I  heard  awe  in  his
                    voice  that sounded as if he were witnessing the second
                    coming...  I must go in after him.  Clearly this man of
                    mine cannot help himself.   The temptation of  OS/2  is
                    too  great.    He is hooked and I am the only chance he
                    has left...   If  you  can't  beat  em,  join  em!"  L.
                    CHRISTIAN CANDELMIRE, UNIVERSITY OF CA AT BERKELEY.


               ----------------

               11  Kevin Maier, "What's New in OS/2 2.1," Personal Software
                   Technical Newsletter, Issue 1 1993, p.3.

               12  A computer for  the  den  or  breakfast  room,  however,
                   should  be  small, quiet, and fit into the room's decor.
                   And a computer used for home automation to  save  energy
                   should  itself  be energy efficient.  IBM's new PS/2E is
                   an example of the first "Green PCs" to ship this summer.
                   It consumes just 23 watts of peak power and 16 watts  in
                   suspend  mode  (vs  180 watts for the average PC), so it
                   needs no noisy cooling fan.  It comes with a 10.4"  flat
                   color display (active matrix LCD, 256 color VGA) and can
                   operate  vertically  in  a  book shelf or be hung on the
                   wall.  And it's made of recyclable materials.

               13  Two   products   have   been   announced   that  support
                   "on-the-fly" disk compression.   STACKER  2.0  (by  Stac
                   Electronics)   is   available   now,   and  DCF/2  (Disk
                   Compression Facility for OS/2, by Proportional Software)
                   will be available in the second  half  of  1993.    Disk
                   compression  of  up to 50% is possible.  This means that
                   OS/2 might take just 8-20MB, and all other  applications
                   and  files  would be compressed as well.  The difference
                   between the two packages is that Stacker compresses  the
                   entire  disk  partition  (easiest), while DCF/2 lets you
                   tune  performance  by  choosing   what   is   compressed
                   (fastest,  but  slightly  more  complex).    Stacker was
                   designed for DOS and is  being  ported  to  OS/2,  while
                   DCF/2  was  designed  for OS/2 and supports both FAT and
                   HPFS file systems.

               14  Sytos  Plus,  by  Sytron Corporation, is a complete OS/2
                   backup soluiton capable of  handling  HPFS  files,  long
                   pathnames  up to 260 characters and Exteneded Attributes
                   of OS/2 files.   A  companion  product,  Sytos  Rebound,
                   extends  recovery  even further.  To find out more, call
                   1-800-3IBM-OS2 (1-800-465-7999 in Canada).


               ============================================================


               WHO WORKS AT HOME?


               When  the  bureaucracy of a large company makes it difficult
               to buy new  software  or  when  users  don't  have  time  to
               experiment, the home PC takes on a new and hidden role -- as
               a  place  to  learn  new  computer skills and to try out new
               software applications.  Even though IBM's heritage has  been
               solving  the business computing needs of large corporations,
               there is a need to understand the interests and  motivations
               of the home worker.  This is partially because user opinions
               and  preferences that affect corporate standards often start
               at home.  But interest in this market isn't just limited  to
               its  affect  on  large  corporations.    Its an exciting and
               growing market where IBM can apply leadership technologies.

               The following is from the 7th  survey  of  2,500  households
               done by  Link  Resources.(15)  It  covers  the  work-at-home
               market segment but ignores other home uses of PCs.

               THE   NEW   ENTREPRENEUR   (12.1  M  individuals  in  9.6  M
               households) -- These self-employed, full-time workers depend
               on the business they run out of their home for their primary
               income.  For this reason, they tend to spend  more  on  home
               PCs,   fax   machines   and   telephone   services  than  do
               moonlighters and corporate homeworkers.   Owning  the  right
               home-office equipment is important, and if they believe OS/2
               or  any  other  new  product  will  help bring in more cash,
               they'll buy.

               A subset of New Entrepreneur is the person who's  home-based
               business  is  fulfilling  a life long dream.  Because making
               money is relatively unimportant to them, they  tend  to  buy
               equipment  impulsively  with  little regard to its financial
               justification.

               THE CONTRIBUTOR (11.7 M individuals in 9.2 M households)  --
               This    segment    includes   people   who   are   part-time
               self-employed, who are moonlighting,  or  who  do  freelance
               work.    They  contribute  to  family income and increase in
               numbers during hard economic times in  order  to  help  make
               ends  meet.  With less earning power than New Entrepreneurs,
               Contributors tend to buy more portable PCs, but they  invest
               more cautiously.

               THE CORPORATE EAGER BEAVER (8.4 M households) -- These days,
               many  corporate employees bring work home from the office in
               the evenings or on weekends so they can compete  with  their
               peers  while  spending  more  time with their family.   Link
               Resources reports that 54% of them have a PC  at  home,  but
               since they also have access to equipment at the office, they
               tend  to  buy  only  the essentials for home.  Although some
               corporations help Eager Beavers  fund  equipment  purchases,
               most are on their own.

               A  subset  of  Corporate  Eager  Beavers  are principals and
               senior executives with large corporations.  Financially well
               off, they occasionally work from home  rather  than  in  the
               office  for  reasons  of  convenience, productivity and life
               style.  Although spending levels may vary by  industry,  PCs
               and advanced communications are essential.

               THE  TELECOMMUTER (6.6 M individuals in 4.9 M households) --
               More and more companies are allowing employees to  work  out
               of the home at least 1 day a week.  This cuts down on travel
               time,    improves   productivity   by   eliminating   office
               distractions, and lets the company keep  valuable  employees
               (such  as  new  mothers)  who  might  otherwise  quit.    By
               supporting telecommuting, companies may also have access  to
               a   larger  skill  base,  because  they  aren't  limited  by
               geography.  They often save on expensive real  estate  costs
               and  can  support a larger customer base with fewer offices.
               With a strong need to stay in touch with the company  office
               and customers, communications is extremely important.

               THE   CASUAL  HOMEWORKER  (77.3  M  individuals  in  48.7  M
               households) -- This  larger  group  brings  work  home  only
               occasionally.  Because their interest in a home PC is driven
               by  motivations  other  than work (such as kids education or
               family finance), they  are  not  included  in  most  of  the
               analysis of the Link Resources study.

               ----------------

               15  Thomas E. Miller, "Home Office Overview," Report #01358,
                   Link  Resources  Corp.  (a  New  York based research and
                   consulting firm), March 1993.


               ============================================================


               OTHER INTERESTING HOMEWORKER STATISTICS --

               o   39.0  M Americans (out of 124.5 M USA worker population)
                   work at home part time or full time, rising to 49  M  in
                   1996.
                      -  primary self-employed   (12.1M)
                      -  part-time self-employed (11.7M, e.g. moonlighting)
                      -  corporate after-hours   (8.4M, e.g. bring work
                         home)
                      -  company telecommuter    (6.6M, e.g. formal
                         arrangement with employer)
               o   75%   of   PC-owning   households   are   "work-at-home"
                   households,  going  to  80-85% by 1995.   This has major
                   implications for applications & packaging.
               o   Home PC demand will likely be driven by:
                      -  Government incentives or requirements favoring
                         telecommuting
                      -  Corporate downsizing creating new opportunities
                         for small business
                      -  Baby boom workforce  demographics reaching prime
                         work-at-home age (35-54)
                      -  Economic  pressures to supplement income through
                         moonlighting
                      -  Family time pressures on dual-income families
                      -  Desire for more flexibility and control of family
                         and work life
                      -  Continued  ease-of-use improvements & increasing
                         computer literacy
                      -  Increases  in  portable computing and wireless
                         communications
                      -  Price/performance curve (e.g. low cost 486 systems
                         vs expensive people)
                      This  will  drive  demand  for more PC households and
                      more PCs per household.
               o   Many small businesses start in the home, and paradigms
                   start here.
                      -  20% of businesses located in office or industr ial
                         areas started in the home, including such  well
                         known companies as Apple, Dell, and Ford.
                      -  56% of ALL US businesses have less than 5
                         employees!!! (3.6 M)
                      -  20% have 6-9 employees (1.3 M)
                      -  25% have 10-100 employees (.8 M)
                      -  .01% have > 1000 employees (.006 M)
               o   1st time buyer motives:
                      70.2% for business work-at-home.  They need
                        "application suites"
                      38.5% for home finance/budgeting/taxes
                      33.7% for children's education, with increasing need
                        for multimedia
                      17.3% to learn more about computers
                      13.5% because of improved price/performance
                      11.5% because it's important to have a PC at home
                      Satisfying these demands requires bundled,
                        plug-n-play solutions (e.g. IBM PS/1, Mwave,
                        CD-ROM, and OS/2 apps).
               o   2nd time buyer motives:
                      43.9% out-growing current system capabilities
                      36.4% improved price/performance
                      Satisfying these demands requires compatibility with
                        current applications, devices & skills.
               o   Many experts say $1000 is the key price point, but
                      -  1989 average home PC = $1550
                      -  1992 average home PC = $1875, plus $962 for
                         peripherals and $416 for software ($3253 total).
                      -  PC spending increases with time spent working at
                         home
                      -  $12.3 Billion market for home-office PCs, up 27%
                         from $9.7 Billion in 1991.
                         This discounts other home PC use.
               o   Home information products now comprise 25% of ALL
                   consumer electronics.
               o   28% PC penetration (in '92), going to 32% (in '95)
               o   55% penetration for  incomes > $100K (only about 4M
                   households), but interest in PCs is increasing for lower
                   incomes ($30-100K).
               o   62.2% of home-office users run DOS applications.
               o   28.3% of home-office users run Windows applications, up
                   from 25.1% in 1991.  83.2% of Windows users said they
                   actually use it.
               o   4.0 M households have either  a  standalone or PC fax
                   device, up 82% from 2.2 M in 1991.


               ============================================================


               TECHNICAL TIPS FOR OS/2 USERS AT HOME


               I  started  my  son, Adrian, with Early Games by SpringBoard
               Software when he was 2  years  old.    I  made  a  cardboard
               template  to  cover  all but the numeric keys.  First topic:
               recognize shapes (6 vs 9, 3 vs 8, 1 vs  7)  and  names  (I'd
               pronounce   each  new  number  when  it  appeared).    Next:
               recognize values (9 is larger than 6) by counting the number
               of blocks and choosing the corresponding key.  Adrian is now
               9 and is an OS/2 user.

               Most agree that OS/2 sets new levels in ease of learning and
               use (especially for kids) and is fairly forgiving.    It  is
               still  wise,  however, to have someone set up the system for
               the rest of the family.    Here  are  some  tips  that  I've
               learned from experience and from talking to others:

               o   Small  children  make  wrong  choices on purpose (to see
                   what happens), like holding  down  the  keys  until  the
                   keyboard  buffer  fills  and the system beeps endlessly.
                   They aren't intimidated by computers.

               o   Watch out for miscellaneous objects  inserted  into  the
                   diskette  drives.   Watching me insert diskettes, my son
                   inserted keys, coins, candy, and other objects.   Assume
                   that  he'll  try  to do anything he watches you do.  The
                   diskette problem went away with  parental  guidance  and
                   computer literacy (age 3-4 in my case).

               o   Get  rid of the shredder.  Put it in the "Dad" folder or
                   delete it completely.  You don't need  it  anyway  since
                   the   right-mouse-button   menu   includes   a  "delete"
                   function.

               o   Hide things in the OS/2 System  Folder  that  you  don't
                   want  the  rest  of  the family using, such as Shredder,
                   Templates, and other items the install process  puts  on
                   the  desktop  for you.   It gets them out of the way and
                   makes the desktop cleaner.

               o   Set-up all the folders for  the  kids  and  spouse  with
                   shadows  of  the program objects.  This way even if they
                   delete  the  shadow  object,  they  won't   delete   the
                   original.

               o   Have  the  system come up with the GAMES folder open and
                   set it up with icons that children know.  I "window" the
                   DOS session long enough to "cut"  out  a  representative
                   graphics and "paste" into the icon editor.

               o   Make unique folders for each child with attractive icons
                   that let them know that this is the part of the computer
                   they  are  allowed and encouraged to use.  Put the icons
                   in an obvious place, and make the resulting folder large
                   enough to cover most of the desktop.

               o   Teach  your  child how to "shut down" and scold him when
                   he forgets.   Some  have  even  made  a  "turn  off  the
                   computer"  icon.    At  risk is that some of your system
                   changes may not be saved or that  disk  output  may  not
                   have completed yet.  Shutting down is most important for
                   users  who've  chosen  the  High Performance File System
                   (HPFS), but it's not that big of a deal  to  wait  while
                   recovering  the  Swap  file if young ones do forget, but
                   they quickly learn the rule.

                   Chuck Brazie agrees that shutting down is not a problem.
                   "My 4 year old  likes  Reader  Rabbit,  Mixed  up  Fairy
                   Tales,  the  puzzle  applet, and even playing with Corel
                   Draw.  She can shutdown the system like a champ, and she
                   waits for the 'little box to  turn  into  the  big  box'
                   before  powering  off.   The 10 year old likes Operation
                   Neptune, the Carmen  San  Diego  Series,  Mario  Teaches
                   Typing, Oregon Trail, Mahjong, and even experiments with
                   Basic and Rexx programs."

               o   Protect  your  .INI files.   Gene Fine warns that OS/2's
                   ease of  use  can  cause  curious  side  effects.    "My
                   daughter  gets  a  blast  out  of bringing up the scheme
                   palette, with the help  of  my  son,  and  changing  the
                   colors  to  those  of her likings.  One night I booted a
                   screen with Barbie colors (yuk!), a pink background, and
                   other changes."  This can be avoided by maintaining  and
                   restoring  backup copies of .INI files.  (e.g. add XCOPY
                   of .INI files in STARTUP.CMD).    There  are  also  free
                   utilities  available  on  dial-up  bulletin  boards that
                   protect against any change in the workplace shell.

               o   Pat Hammond uses multiple icons and folders to encourage
                   shared use.   "One of the games  that  our  6  year  old
                   really  likes  is  one of the coloring programs.  I have
                   set it up so two players can take turns.   All it  takes
                   is  Alt-Esc to switch between sessions.  I'm not sure if
                   she can set this up by herself or not, but once it is up
                   she  can  handle  the  switching.     I  have   separate
                   directories  for  each  child's  pictures  and  separate
                   program icons that point to each directory."

               o   One of the really nice things that can be done with OS/2
                   is  setting  up  associations,  special  links   between
                   program objects and data-file objects.  For example, you
                   can  link  the program object for a spreadsheet to every
                   spreadsheet object.  Associations can be  made  by  file
                   type or by file name (including wildcards).  You can set
                   up  *.PCW  for PC Write and *.WKS for spreadsheets.  Now
                   all the user has to do is double click on the data file,
                   and the system opens the program with data file  already
                   loaded -- true object oriented.

                   Each  family  member can have a folder with private data
                   files and won't have to worry about what command or path
                   is needed to start an application.  To work on a  letter
                   file, simply double click on the document.  To work on a
                   spreadsheet, double click.  Similarly, *.X10 can be used
                   for  appliance  controllers to let you "click" a lamp on
                   or off.


               o   From Ray Dixon:  "The AUTOSTART statement will allow you
                   to prevent things from being automatically restarted  at
                   boot  time.  Say your son had about 10 games going under
                   DOS full screens, and he didn't exit them before doing a
                   shutdown.   When you reboot,  if  AUTOSTART=PROGRAMS  is
                   set,  then all 10 copies will be restarted.  You may not
                   want that, as it  can  cause  your  boot  time  to  seem
                   longer.    To prevent this, remove the PROGRAMS from the
                   AUTOSTART statement in CONFIG.SYS."

                        SET AUTOSTART=PROGRAMS,TASKLIST,FOLDERS

               OS/2 has the power and flexibility to work like you  do,  so
               you'll  likely  discover your own setup preferences.  If you
               discover some interesting tips of your own,  please  forward
               them to the author.


               ============================================================


               CAN'T MICROSOFT WINDOWS DO THAT?


               Yes.    And  No.    Windows 3.1 can likely do any one of the
               applications described in this guide, but it has  difficulty
               doing several at the same time.

               o   WORD  PROCESSING:  Long running tasks can interfere with
                   keyboarding, making text entry painfully slow.  Examples
                   include  distributing  a  fax,  formatting  a  diskette,
                   backing  up your system, down-loading a file from a BBS,
                   or simply printing.    While  performing  any  of  these
                   tasks,   delays   in   Windows  multitasking  can  cause
                   characters to display several seconds  after  you  enter
                   them,  if at all.  The user interface becomes completely
                   unresponsive and you give up and decide to  go  out  for
                   dinner.    With  OS/2,  you  can  have many active tasks
                   running, and the user interface still responds like like
                   a  champ.    You  keep  on  typing   and   admire   your
                   productivity improvement.

               o   SPREADSHEETS:   Your PC-attached CD-ROM drive is playing
                   stereo music through the sound card of your PC when  you
                   start up an Excel macro.  You wonder why the sound stops
                   (and  starts, and stops again...).  It's because Windows
                   does a poor job of multitasking compared to OS/2.   With
                   OS/2, you could have several audio sources piped through
                   the  same  or multiple sound cards while other tasks are
                   running and the music never skips a beat.

               o   GAMES:  Your 12 year old son is playing Space Quest V, a
                   DOS  game  with  impressive  graphics,  animation,   and
                   digital  sound.    The phone rings and it's an in-coming
                   fax.  While receiving the fax, the responsiveness of the
                   game goes down the toilet and your  son  hasn't  a  clue
                   why.   He starts messing around with system settings but
                   even finds that difficult and slow, so he  re-boots  the
                   system.  So much for your fax.

               o   GENERAL PROTECTION FAULT:  You've been working for hours
                   on   a   document,  spreadsheet,  or  presentation  with
                   graphics when you start another task and get the  famous
                   "General   Protection   Fault."     The  Windows  memory
                   protection feature warns you that a program  erroneously
                   accessed  memory  outside  of its own address space, but
                   this time it doesn't give you the advertised  option  of
                   closing that one application because some system control
                   blocks  were changed.   The system is locked up now, and
                   your only option is to re-boot without  the  ability  to
                   save your work.  It has been reported that Windows users
                   tend to get used to re-booting and losing data, but OS/2
                   users  often  run  for  weeks  or  months  without  even
                   shutting  down.    OS/2's  "crash  protection"   is   an
                   advantage for both home and enterprise environments.

               As  a  DOS-extender,  Windows  3.1  adds  some  amazing  new
               function to the 13-year old DOS that it relies on for input,
               output and other system functions.  OS/2, on the other hand,
               is a replacement for DOS (and Windows).   OS/2 was  designed
               for  today's  multitasking environments and provides its own
               system services.  It generally runs Windows applications  as
               fast  or  faster than Windows does and runs them with better
               safety.  Unlike Windows 3.1 or Windows NT, OS/2 lets Windows
               users run  Standard  Mode  and  Enhanced  Mode  applications
               concurrently,   taking  the  full  screen  or  participating
               seemlessly with other windowed applications on the  desktop,
               and  running in a separate session for maximum protection or
               with other Windows  applications  in  a  single  session  to
               conserve   system   resources.     Running  DOS  or  Windows
               applications under  OS/2  has  many  other  advantages  over
               running  them  in  their native environments.  Most of those
               benefits won't be discussed in this paper,  however,  except
               to contrast with what Windows did to extend DOS.

               o   MEMORY  MANAGER:    Windows  provides  a  memory manager
                   function so DOS applications can access more than 640  K
                   of  memory.    OS/2,  on the other hand, doesn't have to
                   contend with the out-dated memory schemes found in  DOS,
                   which  requires  that  programs  be  written  in  64  KB
                   segments (the register size of early Intel  processors).
                   OS/2 improves support for DOS applications with up to 32
                   MB  of  EMS/XMS  memory  and  512  MB of DPMI memory per
                                                                        ___
                   application.   And OS/2 applications are  free  of  page
                   segments with the ability to address memory contiguously
                   and  the  ability  to use 32-bit instructions to exploit
                   your 32-bit hardware.

               o   GRAPHICAL PROGRAM LAUNCHER:   Windows adds  a  graphical
                   user  interface (GUI) to DOS, but OS/2 advances the user
                   interface a generation beyond the GUI found  in  Windows
                   3.1   or  Windows  NT.    OS/2  has  an  object-oriented
                   interface, the WorkPlace Shell, where each icon  on  the
                   "desktop"  represents  an  object  (printer, disk drive,
                   program, folder, file,  etc).    The  metaphor  is  more
                   life-like  and  new  users find it much easier to learn.
                   Even experienced Windows users find OS/2 easier to  use,
                   because  most operations can be completed with one mouse
                   click.  To print a document, simply drag to the  printer
                   instead  of  (in  Windows)  opening the program manager,
                   then  the  word  processor,  then  selecting  File   and
                   Directory  and  File  Name just to open the document and
                   finally selecting Print and Print Location to finish the
                   printing task.   (And don't forget  to  close  the  word
                   processor.)

               o   WINDOWING  TASK SELECTOR:  Windows 3.1 lets users switch
                   back  and  forth  between  running  applications,   even
                   between  DOS  and  Windows  applications, that appear in
                   overlapping  windows.     It  also  includes   ways   of
                   exchanging  information, with Cut & Paste, DDE, and OLE.
                   But multitasking under Windows  is  limited  because  it
                   sits  on  DOS, which was never designed to run more than
                   one  thing  at  a  time.   DOS suffers from a single I/O
                   buffer that forces all I/O operations to  be  serialized
                   (one at a time), and since Windows relies on DOS for its
                   I/O,  Windows  suffers too.   OS/2 on the other hand was
                   designed    specifically    to    support     preemptive
                   multitasking.   This allows applications to better share
                   system resources and all run at the same time.  OS/2 can
                   also support several overlapped I/O  operations  due  to
                   multiple, shared I/O buffers.

                              WHAT ARE YOUR GROWTH OPTIONS?

               There  is  one  last issue with Windows, and that's where do
               you go from  here?    Microsoft  is  already  talking  about
               Chicago (a code name for Windows 4.0), which is not expected
               until  sometime in 1994.  Chicago hopes to solve some of the
               problems  Windows  users  have  today  by   by-passing   DOS
               completely  and  doing its own I/O and by adding support for
               32-bit applications.  To exploit Chicago,  you  will  likely
               have  to  upgrade all of your Windows applications again, as
               you've done in the past going from one release to another.

               With  OS/2,  you  can  run  your  16-bit  DOS  and   Windows
               applications  and  add  new 32-bit applications when you are
               ready.  As in the past, when moving to  new  OS/2  releases,
               your old applications should still run fine because of IBM's
               long-term  commitment  to protecting customer investments in
               hardware, system software, and applications.


               ============================================================


               OS/2 AWARDS


               Over  2  million copies of OS/2 2.0 were sold in its first 9
               months, and OS/2 continues to garner  international  acclaim
               from   the  computer  industry's  leading  publications  and
               delighted end users.

               Since November, 1992, IBM OS/2 2.0 has won  15  awards  from
               the computer industry's leading U.S trade publications -- PC
               Magazine,  PC  Computing,  PC  World,  Information Week, and
               Corporate Computing -- honoring OS/2 in categories  such  as
               technical  excellence,  most  promising new product and best
               operating system/environment.   Specific honors  and  awards
               presented to IBM OS/2 2.0 include:

               o   PC Magazine - December 22, 1992
                   "Technical  Excellence" Award Winner, "Operating Systems
                   and Software Standards"

               o   InformationWeek - December 22, 1992
                   "1992 Top Products -- The 10 Most Likely to Succeed"

               o   PC Week -- December 28, 1992
                   "Top Products of '92"

               o   PC World - December 1992
                   "PC Industry  Achievement"  Award  for  "Most  Promising
                   Newcomer, Software"

               o   PC/Computing -- December 1992
                   "Most  Valuable  Product"  (MVP)  Award  for  "Operating
                   System/Environment"

               o   Corporate Computing -- January 1993
                   "Best Buy for 1993"

               o   PC Magazine (Italy) -- February 3, 1993
                   "PC Technology" Award

               o   Software noviny (Czechia) -- February, 1993
                   "Product of the Year 1992"

               o   Datamation -- February 15, 1993
                   "Product of the Year," PC Software category

               o   Computer Language -- February 23, 1993
                   "Jolt Cola" Award for "Product Excellence 1992"

               o   PC Magazine (Spain) -- March 1993
                   "Product of the Year"

               o   InfoWorld -- April 26, 1993
                   "Software Product of the Year"

               o   InfoWorld -- April 26, 1993
                   "Overall Product of the Year"(16) (see below)

               o   Soft et Micro (France) -- April 1993
                   "1993 Must-Have"

               o   Ziff-Davis (Europe) -- 7 June 1993
                   "Software Excellence Award", "Environment  and  Desktop"
                   category


               ----------------

               16  The most important thing regarding this award is that it
                   comes  from the readers and users, not just the decision
                   of a publisher or committee.


               ============================================================


               INFORMATION SOURCES


               o   TELEPHONE:    You  can  get  more information on OS/2 by
                   calling IBM at 1-800-3IBM-OS2 for a free  demo  diskette
                   or  to order your copy of OS/2.  They can also refer you
                   to  a  local  PC  dealer  equipped   to   give   you   a
                   demonstration.

               o   WHERE TO FIND OS/2 APPLICATIONS:  The "OS/2 Applications
                   Solutions    Directory,"   lists   thousands   of   OS/2
                   applications from  independent  software  vendors.    To
                   order your copy, call 800-READ-OS2.

               o   FOR  INDEPENDENT VENDORS PROVIDING PRODUCTS AND SERVICES
                   THAT SUPPORT OS/2:  To order "The I.V. League"  catalog,
                   call 800-342-6672.

               o   IBM  COURSEWARE  AND EDUCATION:   Skill Dynamics, an IBM
                   Company, call 800-IBM-TEACh, ext.137.

               o   FAX:    Call  800-IBM-4FAX  and  request  an  index   of
                   documents.    Use  your  touch-tone  phone to request by
                   document number.

               o   BOOKS & MAGAZINES:   Over 35 OS/2 books  are  in  print,
                   with  three  of the top-10 computer books being on OS/2.
                   They range from a paperback-sized "10  Minute  Guide  to
                   OS/2  2.1"  to the larger "OS/2 2.1 Unleashed," which is
                   over 1,000 pages.

                   -   "OS/2 Professional" magazine, by I.F.Computer Media,
                       call 301-770-4OS2 to subscribe.
                   -   "OS/2 Monthly" magazine,  by  JDF  Publishing,  call
                       800-365-2642 to subscribe.
                   -   "OS/2  Computing" magazine, by Miller Freeman, Inc.,
                       call 415-905-2200 to subscribe.
                   -   "OS/2 Developer" magazine, by IBM, call 800-WANT-OS2
                       to subscribe.

               o   ON-LINE INFORMATION:   On-line  documentation  contained
                   within  OS/2  2.1 is so extensive that, even compressed,
                   it takes up 2.5 megabytes of your hard disk.  If it were
                   printed, it would be over 2,000 pages.  With such a vast
                   library of information available, IBM  has  taken  great
                   pains  to  make  it easy to access and navigate through.
                   Helps   are   context-sensitive,   and   often   contain
                   hyper-links to more detail if needed.

               This  is  just  a  small  subset  of  the  many  sources  of
               information on OS/2.


               ORDERING INFORMATION


               The suggested retail price of OS/2 is $249, including all of
               the functions of  DOS  and  Windows  and  more.    During  a
               promotional period (which ends September 15, 1993), however,
               existing DOS users can upgrade for just $99 (CD-ROM version)
               or $119 (diskette version).  OS/2 users can send in a rebate
               coupon worth $30, getting the price down as low as $69!

               To  order your copy today and participate in the promotional
               pricing, call IBM at 1-800-3IBM-OS2.


               ============================================================


               TRADEMARKS:


               IBM,   OS/2,   WorkPlace   Shell,  Crash  Protection,  Skill
               Dynamics, Multimedia Presentation Manager/2, MMPM/2,  Mwave,
               WindSurfer,  DataFax, PhoneFX, SOM, DSOM, PS/1, PS/2, PS/2E,
               PowerPC, PS/2 TV, SNA, and Rexx are trademarks or registered
               trademarks of International Business Machines Corporation.

               Adobe Type Manager is a trademark of Adobe Systems, Inc.

               America Online is  a  registered  service  mark  of  America
               Online, Inc.

               BitFax is a trademark of Bit Software, Inc.

               CompuServe  is  a  registered  trademark  of  the CompuServe
               Corporation.

               DCF/2 is a trademark of Proportional Software.

               DeScribe is a registered trademark of DeScribe, Inc.

               FaxForward is a trademark of Computer  Systems  Integration,
               Inc.

               Fax/PM is a trademark of Microformatic USA.

               Lotus  1-2-3  and  Freelance  are  trademarks  or registered
               trademarks of Lotus Development Corp.

               Home Office is a trademark of Prometheus Products.

               Macintosh is a registered trademark of Apple Computer, Inc.

               Microsoft,  Microsoft  Windows,  Windows  3.1,  Windows  NT,
               Microsoft  Money,  Excel,  OLE  and  Cairo are trademarks or
               registered trademarks of Microsoft Corporation.

               Open+Fax is a trademark of Open+Voice, Inc.

               PFS: Works is a trademark of Spinnaker Software Corp.

               Photo CD is a trademark of Eastman Kodak Company.

               PMfax is a trademark of Keller Group, Inc.

               Prodigy is a trademark of PRODIGY Services Company, Inc.

               Quicken is a trademark of Intuit Corporation.

               Stacker is a trademark of STACK Electronics Inc.

               Sytos Plus and Sytos Rebound are  trademarks  or  registered
               trademarks of Sytron Corporation.

               WinFax is a trademark of Delrina Technology.

               WordPerfect   is   a  registered  trademark  of  WordPerfect
               Corporation.

               486 and Pentium are trademarks of Intel Corporation.