RULE 424(b)(3)
REGISTRATION NO. 33-65119
PRICING SUPPLEMENT NO. 1 TO PROSPECTUS DATED FEBRUARY 7, 1996
(As supplemented April 18, 1996)
INTERNATIONAL BUSINESS MACHINES CORPORATION
MEDIUM-TERM NOTES
(Fixed Rate Note)
(Due One Year or More from Date of Issue)
Designation: Fixed Rate Original Issue Date:
Medium-Term Notes Due June 5, 1996
June 15, 2006
Principal Amount: $25,000,000 Maturity Date: June 15, 2006
Issue Price (as a percentage Regular Record Dates:
Principal Amount): 98.40% The 1st of each month whether
or not a Business Day
immediately preceding the
corresponding Interest
Payment Date
Interest Rate: 7.05% Interest Payment Dates:
The 15th of each month,
commencing July 15, 1996 and
ending on the Maturity Date
Commission or discount (as a CUSIP: 45920Q AA2
percentage of Principal
Amount): 1.60%
Redemption Provisions:
The Notes are redeemable at
the option of the Company on
each June 15th and
December 15th Interest Payment
Date, occurring on or after
June 15, 1999
Form: [X] Book-Entry
[ ] Certificated
This Pricing Supplement supplements and, to the extent
inconsistent therewith, amends the description of the Notes referred
to above in the accompanying Prospectus Supplement and Prospectus.
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INTEREST
Interest on the Notes will be calculated based on a year of
360 days consisting of 12 months of 30 days each.
If any payment of principal or interest is due on a day that
is not a Business Day, that payment may be made on the next succeeding
Business Day. No additional interest will accrue as a result of the
delay in payment. For purposes of the offering made hereby, "Business
Day" as used herein and in the accompanying Prospectus Supplement
means each day on which commercial banks and foreign exchange markets
settle payments in The City of New York. Capitalized terms used but
not defined herein have the meanings assigned in the accompanying
Prospectus Supplement and Prospectus.
REDEMPTION
The Notes are redeemable by the Company on each June 15th
and December 15th Interest Payment Date occurring on or after the June
15, 1999 Interest Payment Date, in whole but not in part, on at least
30 days prior notice at a redemption price of 100% of the principal
amount thereof plus accrued interest thereon to the date of
redemption.
PLAN OF DISTRIBUTION
The Notes will be sold to Merrill Lynch, Pierce, Fenner &
Smith Incorporated at the Issue Price set forth above for resale to
one or more investors at varying prices related to prevailing market
prices at the time of resale.
Dated: May 29, 1996
