Dividend Declaration

IBM
                  

IBM Board Approves Regular Quarterly Cash Dividend

The IBM board of directors today declared a regular quarterly cash
dividend of $.16 per common share, payable March 10, 2004 to
stockholders of record February 10, 2004.

IBM also announced that its next annual meeting will be held April
27, 2004 at the Rhode Island Convention Center in Providence, Rhode
Island.