Investor services program

*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 IBM Investor Services Plan ("ISP"), which is sponsored by Computershare Trust Company, N.A. ("Computershare"), P.O. Box 43072, Providence, Rhode Island 02940 (781)575-2727. A prospectus for the ISP is available from Computershare. It is the only document you can rely upon relating to any offering of IBM common stock under the ISP. 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.

IBM's Investor Services Program 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.

Key features of the program include:

• All IBM common stockholders of record, including those who hold IBM stock certificates, are automatically eligible to participate in the Investor Services Program.
• New investors can become IBM stockholders with as little as $500.
• You can build your investment over time by making additional purchases periodically. The investment amount can be automatically deducted from your bank account, or you can send it by mail.
• You may choose to receive any dividend payments electronically, by check or you may have a portion or all of your dividends reinvested towards the purchase of additional shares.
• All shares purchased through the program will be held for you in book entry form by the Program Administrator. IBM stock certificates currently held by you may be deposited with the Program Administrator for safekeeping.
• You can sell any book entry shares being held for you through the Program.
• You can transfer shares or make gifts of IBM common stock.

The Investor Services Program is sponsored and administered by Computershare (formerly known as EquiServe) , not by IBM. Contact Computershare (see contact information) with any questions you may have on the program.

Shares purchased through the IBM Investor Services Program 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 Investor services program provides investors with a convenient and simple method of purchasing shares with minimal service fees. You will be able to reinvest all or part of your dividends, and you will be able to make additional voluntary cash purchases by check or by automatic withdrawal from your bank account.

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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 IBM Investor services program (see Investor services program, Direct stock purchase plan).

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).

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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, IBM Investor Services Program, P O Box 13531, Newark, NJ 07188-0001. 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, the first investment has a $500 minimum investment requirement and there is a first time investment fee of $15 which is deducted prior to investment. Contact Computershare for details (see contact information).

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Automatic investment enables you to pre-authorize Computershare to purchase additional shares each month by electronically debiting your check or savings account at a U.S. financial institution. This permits you to make regular investments, if you choose, in an amount and schedule that are comfortable for you, without the inconvenience of writing and mailing checks. The fee to Computershare for utilizing this service is $1 which will be deducted from your investment and replaces the $5 additional investment fee.

To initiate automatic investments, you must complete and sign an Authorization Form for Automatic Deductions and return it to Computershare. Once automatic deductions begin, funds will be withdrawn from your bank account on either the 1st or 15th of each month, or both (as specified by you on your Authorization Form), or the next business day if either the 1st or 15th is not a business day. These funds will normally be invested on the following Wednesday, or if that day is not a business day, the first business day after Wednesday.

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The Investor Services Program 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 IBM Investor Services Program (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.

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A certificate can be issued for any whole shares held by Computershare in your plan account. Certificates cannot be issued for fractional shares.

To request a certificate withdrawal, simply contact Computershare (see contact information).

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• Registered Stockholder access

IBM stock can be bought through a stock broker, bank, or generally through a financial institution that provides brokerage services.

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