Dividend Declaration - REPLACEMENT

IBM
                  

The issuer advises that the following replaces the '3rd Quarter Results'
announcement released today at 18.10 BST. The headline '3rd Quarter
Results'(instead of Dividend Declaration) and category code QRT (instead of
DIV) was used incorrectly for this release. 

All other details remain unchanged. The full corrected text appears below.

DIVIDEND DECLARATION

IBM Board Declares Regular Quarterly Cash Dividend Authorizes $4 Billion for
Stock Repurchase

The IBM board of directors today declared a regular quarterly cash dividend of
$.18 per common share, payable December 10, 2004 to stockholders of record
November 10, 2004. With the payment of the December 10 dividend, IBM will have
paid 356 consecutive quarterly dividends, starting in 1916.

The board also authorized up to $4.0 billion in additional funds for use in its
repurchase program. IBM said it will repurchase shares on the open market or in
private transactions from time to time, depending on market conditions.

    CONTACT: IBM
             Edward Barbini, 914/499-6565
             [e-mail]