IBM Statement on First-Qtr

International Bus Mach Corp
8 April 2002


( BW)(NY-IBM)(IBM) IBM Statement On First-Quarter 2002 Results


    Business/Technology Editors


    ARMONK, N.Y.--(BUSINESS WIRE)--April 8, 2002--IBM today announced

that its first-quarter 2002 revenues are expected to be in the range

of $18.4 to $18.6 billion compared with $21.0 billion in the first

quarter of last year, based on preliminary data. The company said it

expects first-quarter 2002 pre-tax income of between $1.650 billion to

$1.750 billion. IBM also said that it expects first-quarter 2002

earnings per share will range from $.66 to $.70 compared with $.98 in

the year-earlier period.

    John R. Joyce, IBM senior vice president and chief financial

officer, said: 'As I said during our last analyst call in January, the

business environment remains very tough. We saw a continued slowdown

in customer buying decisions in the first quarter. The first quarter

traditionally is the weakest period of the year for technology

purchases, and many of our customers chose to reduce or defer capital

spending decisions until they see a sustained improvement in their

businesses.

    'As a result, we saw across-the-board weakness in revenues in the

first quarter, particularly in our OEM technology business. We expect

that our Technology Group revenues will decline by approximately 35

percent in the quarter and that this business will lose approximately

$200 million on a pre-tax basis, or $.08 per share, in the quarter,'

Mr. Joyce said.

    'Despite the difficult environment, we believe our strategies

remain the right ones for our industry and that we will continue to

gain or hold share in key strategic areas. We remain committed to

taking actions to improve our competitiveness, and we are

exceptionally well positioned to benefit when business conditions

improve.'

    IBM reports its first-quarter results on April 17.



    --30--jgm/in*



    CONTACT: IBM

             Rob Wilson, 914/499-6565

             [e-mail]

                 or

             Carol Makovich, 914/499-6212

             [e-mail]


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