Shares in Issue

INTERNATIONAL BUSINESS MACHINES CORPORATION 
12 August 1999


Below is a schedule summarizing the changes in the number of shares of IBM
capital stock issued and reserved for issuance during the second quarter of
1999.

IBM treasury stock activity, for the various employee and stockholder plans, was
as follows for the quarter ended June 30, 1999, on a trade date basis:

                                        Shares

          Balance - March 31, 1999      25,540,238
          Acquisitions                  16,571,733
          Reissuances                   (1,332,807)

          Balances - June 30, 1999      40,779,164