Dividend Declaration

IBM
                  

IBM Board Approves Regular Quarterly Dividend; Authorizes $4 Billion for Stock
Repurchase

The IBM board of directors today declared a regular quarterly cash dividend of
$0.20 per common share, payable December 10, 2005 to stockholders of record
November 10, 2005. With the payment of the December 10 dividend, IBM will have
paid 360 consecutive quarterly dividends, starting in 1916.

The board also authorized up to $4.0 billion in additional funds for use in its
repurchase program. IBM said it will repurchase shares on the open market or in
private transactions from time to time, depending on market conditions.

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