Dividend Declaration

International Bus Mach Corp
30 October 2001


The IBM board of directors today declared a regular quarterly cash dividend of 
$.14 per common share, payable December 10, 2001 to stockholders of record 
November 9, 2001.  IBM stock will be traded ex-dividend on the New York Stock 
Exchange starting November 7, 2001.

The board of directors also authorized the company to repurchase up to an 
additional $3.5 billion of IBM common shares. IBM said it plans to buy shares on
the open market from time to time, depending on market conditions.