# EXHIBIT II

## PARENTS AND SUBSIDIARIES—(continued)

| State or country of incorporation or organization | Percentage of voting securities owned by its immediate parent |
|---|---|
| IBM World Trade Americas/Far East Corporation (Continued) | |
| IBM Southeast Asia Services Ltd. | Hong Kong 100 |
| IBM Japan, Ltd. | Japan 100 |
| IBM Japan Sales Company, Ltd. | Japan 100 |
| Systems Development, Ltd. | Japan 100 |
| IBM Korea, Inc. | Korea (South) 100 |
| IBM de Mexico, S.A. | Mexico 100 (B) |
| IBM New Zealand Ltd. | New Zealand 100 |
| IBM New Zealand Product Distribution Company Ltd. | New Zealand 100 |
| IBM de Panama, S.A. | Panama 100 (B) |
| IBM del Peru, S.A. | Peru 100 |
| IBM Sistemas y Servicios, S.A. | Peru 100 |
| IBM Latin American Region S.A. | Peru 100 (A) |
| IBM Philippines, Incorporated | Philippines 100 (B) |
| IBM Singapore Pte. Ltd. | Singapore 100 |
| IBM Product Distribution Co., Pte. Ltd. | Singapore 100 |
| IBM Taiwan Corporation | Taiwan 100 |
| IBM Thailand Company Ltd. | Thailand 100 (B) |
| IBM del Uruguay, S.A. | Uruguay 100 |
| IBM de Venezuela, S.A. | Venezuela 100 |
| IBM de Exportacion y Servicios, S.A. | Venezuela 100 (B) |

**(A)** IBM World Trade Corporation is the nominee shareholder.

**(B)** Minor percentage held by other shareholders subject to repurchase option.

**(C)** IBM Eurocoordination, S.A. is owned approximately 14% each by subsidiaries located in France, Germany, Italy and the United Kingdom and approximately 4% each by subsidiaries located in Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Spain, Sweden and Switzerland.

**(D)** Remaining percentage owned by IBM World Trade Corporation.

**(E)** Remaining percentage owned by IBM World Trade Asia Corporation.

**(F)** Not consolidated.

**(G)** Information Satellite Corporation and BCI Satellite, Inc. each hold a 1/2 interest in Satellite Business Systems (SBS).