( BW)(NY-IBM)(IBM) IBM Board Approves Regular Quarterly Cash Dividend

    Business Editors/High-Tech Writers

    ARMONK, N.Y.--(BUSINESS WIRE)--July 27, 2004--The IBM Board of
Directors today declared a regular quarterly cash dividend of $.18 per
common share, payable September 10, 2004 to stockholders of record
August 10, 2004.
    This is the 355th consecutive quarter that IBM has paid a dividend
to its stockholders.

    --30--SDG/ny*

    CONTACT: IBM
             Edward Barbini, 914/499-6565
             barbini@us.ibm.com