Dividend Declaration

International Bus Mach Corp
24 April 2001


The IBM Board of Directors today declared a regular quarterly cash dividend of
$.14 per common share, payable June 9, 2001 to stockholders of record May 10,
2001.  IBM stock will be traded ex-dividend on the New York Stock Exchange
starting May 8, 2001.

Today's dividend declaration represents an increase of $.01 or 8 percent versus
the prior quarterly dividend of $.13 per common share.  IBM has increased the
quarterly dividend six times since 1996, representing a total increase of 124
per cent.

The IBM board also authorized up to $3.5 billion in additional funds for use in
its share repurchase program.  IBM said it will repurchase shares on the open
market from time to time, depending on market conditions.