Dividend Declaration

IBM                          
Joseph Stunkard, 914/499-6212
[e-mail]
                  

IBM Board Declares Regular Quarterly Cash Dividend

The IBM Board of Directors today declared a regular quarterly cash
dividend of $.16 per common share, payable December 10, 2003 to
stockholders of record November 10, 2003.

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