Dividend Declaration

International Bus Mach Corp
31 October 2000


The IBM Board of Directors today declared a regular quarterly cash dividend of
$.13 per common share, payable December 9, 2000 to stockholders of record
November 10, 2000. IBM stock will be traded ex-dividend on the New York Stock
Exchange starting November 8, 2000.

The board of directors also authorized the company to repurchase up to an
additional $3.5 billon of IBM common shares. IBM said it plans to buy shares on
the open market from time to time, depending on market conditions.