IBM Issues Preliminary 2007 Fourth-Quarter and Full-Year Results

IBM (NYSE: IBM) today announced fourth-quarter 2007 diluted
earnings of $2.80 per share from continuing operations, an increase of
24 percent, compared with diluted earnings of $2.26 per share in the
fourth quarter of 2006. The company also reported fourth-quarter
revenue of $28.9 billion, an increase of 10 percent as reported,
including 6 points of currency benefit, compared with the fourth
quarter of 2006.

IBM reported full-year 2007 diluted earnings of $7.18 per share,
including 5 cents per share relating to the sale of the Printing
Systems Division in the second quarter, an increase of 18 percent,
compared with diluted earnings of $6.06 per share in 2006. The company
also reported full-year revenue of $98.8 billion, an increase of 8
percent, including 4 points of currency benefit.

IBM´s cash balance at the end of 2007 was more than $16 billion,
with strong free cash flow performance.

"The broad scope of IBM´s global business --- led by strong
operational performance in Asia, Europe and emerging countries ---
drove these outstanding results," said Samuel J. Palmisano, IBM
chairman, president and chief executive officer.

"IBM is well-positioned as we begin 2008 as a result of our global
business reach, solid recurring revenue stream and strong financial
position. We are on track to achieve our long-term earnings-per-share
roadmap objective in 2010."

IBM will provide more detailed information about its
fourth-quarter and full-year 2007 results during its
regularly-scheduled earnings Webcast on January 17.