IBM Board Approves Record Increase Of Regular Quarterly Cash Dividend

IBM Board Approves Record Increase Of Regular Quarterly Cash Dividend

The IBM board of directors today declared a regular quarterly cash dividend of $.30 per common share, payable June 10, 2006 to stockholders of record May 10, 2006.Today’s dividend declaration represents an increase of $.10, or 50 percent more than the prior quarterly dividend of $.20 per common share. The percentage increase is the largest in the history of IBM.

This is the eleventh year in a row that IBM has increased its quarterly cash dividend, representing a total increase of 380 percent since 1996. With the payment of the May 10 dividend, IBM will have paid 362 consecutive quarterly dividends, starting in 1916.

The board also authorized $4 billion in additional funds for use in its stock repurchase program. This amount is in addition to approximately $2.5 billion for stock repurchase remaining from a prior authorization. With this new approval, IBM now has approximately $6.5 billion for its stock repurchase program. IBM said it will repurchase shares on the open market or in private transactions from time to time, depending on market conditions.

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