IBM Announces Preliminary 2008 Third-Quarter EP...

--  Diluted earnings of $2.05 per share, up 22 percent;

    --  Net income of $2.8 billion, up 20 percent;

    --  Pre-tax income of $3.9 billion, up 19 percent;

    --  Revenue of $25.3 billion, up 5 percent.
                  IBM
                  

IBM (NYSE:IBM) today announced third-quarter 2008 diluted earnings of $2.05 per
share from continuing operations, an increase of 22 percent, compared with
diluted earnings of $1.68 per share in the third quarter of 2007. The company
also reported net income of $2.8 billion, an increase of 20 percent. Revenue
increased 5 percent, including 3 points of currency benefit, to $25.3 billion,
compared with the third quarter of 2007.

IBM said it continues to expect full-year 2008 earnings per share of at least
$8.75, or year-to-year growth of 22 percent.

The company's gross profit margin in the third quarter was 43.3 percent compared
with 41.3 percent in the third quarter of 2007. Pre-tax income was $3.9 billion,
an increase of 19 percent compared with the third quarter of 2007.

At the end of the third quarter, IBM's year-to-date free cash flow was
approximately $6.4 billion and its cash balance was $9.8 billion.

'Our results demonstrate that the combination of a steady base of recurring
revenue and profits, investments for growth in emerging markets, a range of
products and services that deliver value to clients, and a strong and flexible
financial foundation give IBM a competitive edge in good times and tough times,'
said Samuel J. Palmisano, IBM chairman, president and chief executive officer.
'We remain confident in our full-year outlook.'

IBM will provide more detailed information about its third quarter results
during its regularly scheduled Webcast.

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IBM
John Bukovinsky, 732/618-3531
[e-mail]
or
IBM
Michael Fay, 914/499-6435
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