How To Buy Ibm Stock

Statements and additional information for your registered stockholder account is available on-line through Computershare. Go to www.computershare.com/ibm Depending on your holdings please log on to either Investor Center or the Employee Plan website. Some of the other things you can accomplish on-line:

The information set forth on this website does not constitute an offer by IBM to sell our common stock, or a solicitation of an offer to buy IBM common stock, either within the United States of America or in any other jurisdiction. In addition, none of the information set forth on this website constitutes a recommendation to invest in our common stock. Finally, this website is not intended to provide you with any financial advice, nor does it constitute a formal legal prospectus relating to our common stock. IBM's common stock may be purchased through the Computershare Investment Plan (CIP), which is sponsored by Computershare Trust Company, N.A. (\"Computershare\"), P.O Box 505039, Louisville, KY 40233-5039. A prospectus for the CIP is available from Computershare. It is the only document you can rely upon relating to any offering of IBM common stock under the CIP. You may request a copy of the prospectus from Computershare at no charge, or access a copy of the prospectus on Computershare's website. Please review the prospectus carefully before you decide to invest.

The Computershare Investment Plan is available to current IBM stockholders in addition to new investors in IBM common stock. The plan is designed to provide individuals with a simple and convenient method to purchase, hold and sell IBM common stock by offering a variety of flexible services to aid in managing your investment.

Shares purchased through the CIP will be held in book entry form at Computershare. The book entry form of ownership allows you to own shares without having physical stock certificates in your possession. A periodic statement of account is provided reflecting the number of book entry shares registered in your name and held by Computershare.

The benefits of book entry ownership are the elimination of problems associated with paper certificates, such as storage and safety of securities. Book entry shares also eliminate the requirement for physical movement of stock certificates at the time of sale or transfer of ownership.

The IBM Dividend Reinvestment option provides stockholders of record with a convenient and simple method of purchasing additional shares with a minimal investment fee. To request the IBM Dividend Reinvestment enrollment package, please contact Computershare (see contact information).

Additional share purchases may be made by sending a check or money order payable to \"Computershare-IBM\", for as little as $50, up to a yearly investment limit of $250,000, to Computershare Trust Company, N.A., IBM, PO Box 6006, Carol Stream, IL 60197-6006. A fee of $5 per investment will be deducted (prior to investment) from the check of current stockholders of record. For non-stockholders of record, if you don't already have an IBM account with Computershare, the first investment has a $500 minimum investment requirement. Contact Computershare for details (see contact information).

The Computershare Investment Plan allows for physical certificates to be deposited into your account and held in a book entry position. When you deposit your shares you no longer have to worry about safeguarding physical certificates. In addition, the deposited shares have all the benefits of investment plan shares. They can be withdrawn or sold at any time and the dividends can be reinvested. All stockholders can use the custodial service, regardless of whether or not they use any of the other optional services offered through the CIP (sales, purchases, etc).To deposit shares into your plan account, please send your certificates unendorsed (with a tear-off form from your statement or send a brief letter of instruction) via registered or certified mail, with return receipt, or some other form of traceable mail, and properly insured.You will promptly receive a statement from Computershare confirming each deposit of your shares to your book entry account.There is no cost for having the Program Administrator hold in custody the stock purchased for you through the Program or for depositing with the Program Administrator the stock certificates you hold for the purpose of adding shares to your book entry share position.

You can contact Computershare and they will provide you with an Authorization Form to provide bank/broker information. The Form, properly completed with your bank/broker name, Depository Participant number and your bank/broker account number should be signed by you and any other stockholders named in the registration on your account and returned to Computershare. Your bank/broker will be able to assist you in completing the form. The authorizing signature(s) on the Form should be guaranteed by your Bank/Broker with a Medallion Guarantee.

You may also call Computershare at 888-IBM-6700 or 781-575-2727 and request a stock certificate for all or a portion of your book entry shares. A stock certificate will be mailed to you by Computershare within forty-eight hours of their receipt of your request.

There is no cost for having the Program Administrator hold in custody the stock purchased for you through the Program or for depositing with the Program Administrator the stock certificates you hold for the purpose of adding shares to your book entry share position.

Computershare Investment Plan is available to current IBM stockholders in addition to new investors in IBM common stock. The program is designed to provide individuals with a simple and convenient method to purchase, hold and sell IBM common stock by offering a variety of flexible services to aid in managing your investment.

* All shares purchased through the Program will be held for you in book entry form by the Program Administrator and IBM stock certificates you are holding may be deposited with the Program Administrator for safekeeping.

Shares purchased through the Computershare Investment Plan will be held in book entry form at Computershare. The book entry form of ownership allows you to own shares without having physical stock certificates in your possession. A periodic statement of account is provided reflecting the number of book entry shares registered in your name and held by Computershare.

You may transfer/gift shares to others directly without requiring the issuance of stock certificates. You can transfer/gift some or all of your Program shares held in custody by sending the Program Administrator written and signed transfer instructions. Signatures must be Medallion Guaranteed by a financial institution participating in the Medallion Guarantee program. Call or write the Program Administrator (see contact information) for instructions. There is no charge for transferring shares. After the transfer is complete, the recipient will receive an account statement showing the transfer of those shares. At your request, Computershare will send you a non-negotiable gift certificate you can present to the recipient or you may request Computershare to issue an IBM stock certificate for the shares.

To participate in the IBM Dividend Reinvestment option, you must be a stockholder of record. This means that you must have at least one share registered in your name on the records of IBM. Stock held in \"street\" or \"nominee name\" with a broker, bank or other financial entity, is not eligible to participate in the IBM Dividend Reinvestment option. If you are not yet a registered owner and you wish to enroll in the IBM Dividend Reinvestment Plan, please contact your broker for your initial purchase, have them issue a stock certificate registered in your name and contact Computershare for an enrollment form (see contact information). An alternative would be to buy shares directly through the Computershare Investment Plan.

Additional share purchases may be made by sending a check or money order payable to \"Computershare-IBM\", for as little as $50, up to a yearly investment limit of $250,000, to Computershare, Investment Plan, P.O. Box 6006, Carol Stream, IL 60197-6006. A fee of $5 per investment will be deducted (prior to investment) from the check or money order of current stockholders of record. For non-stockholders of record, the first investment has a $500 minimum investment requirement. Contact Computershare for details (see contact information). 781b155fdc