Dividend Declaration

International Bus Mach Corp
30 April 2002



The IBM Board of Directors today declared a regular quarterly cash dividend of
$.15 per common share, payable June 10, 2002 to stockholders of record May 10,
2002. IBM stock will be traded ex-dividend on the New York Stock Exchange
starting May 8, 2002.

Today's dividend declaration represents an increase of $.01 or 7 percent versus
the prior quarterly dividend of $.14 per common share. IBM has increased the
quarterly dividend seven times since 1996, representing a total increase of 140
percent.

The IBM board also authorized up to $3.5 billion in additional funds for use in
its share repurchase program. IBM said it will repurchase shares on the open
market from time to time, depending on market conditions. 


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