IBM Board Approves Regular Quarterly Cash Dividend

Authorizes $4 Billion for Stock Repurchase
                  IBM
                  

                   Authorizes $4 Billion for Stock Repurchase

The IBM (NYSE:IBM) board of directors today declared a regular quarterly cash
dividend of $.30 per common share, payable December 9, 2006 to stockholders of
record November 10, 2006.

With the payment of the December 9 dividend, IBM will have paid 364 consecutive
quarterly dividends, starting in 1916.

The board also authorized $4 billion in additional funds for use in its stock
repurchase program. This amount is in addition to approximately $2.4 billion for
stock repurchase remaining from a prior authorization. With this new approval,
IBM now has approximately $6.4 billion for its stock repurchase program. IBM
said it will repurchase shares on the open market or in private transactions
from time to time, depending on market conditions.

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