Dividend Declaration

IBM
                  



IBM Board Approves Regular Quarterly Cash Dividend

The IBM board of directors today declared a regular quarterly cash dividend of
$.18 per common share, payable March 10, 2005 to stockholders of record February
10, 2005. With the payment of the March 10 dividend, IBM will have paid 357
consecutive quarterly dividends, starting in 1916.

IBM also announced that its next annual meeting will be held April 26, 2005 at
the Charleston Area Convention Center in North Charleston, South Carolina.


    CONTACT: IBM
             Edward Barbini, 914-499-6565
             [e-mail]