Dividend Notification Declaration

International Bus Mach Corp
25 April 2000


IBM today announced that its Board of Directors has approved a quarterly
dividend increase of 8 percent from $.12 to $.13 per common share.  The dividend
will be payable June 10, 2000, to stockholders of record May 10, 2000. IBM stock
will be traded ex-dividend on the New York Stock Exchange starting May 8, 2000. 
IBM has increased the quarterly dividend five times since 1996, representing a
total increase of more than 100 percent.

The Board of Directors 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.