<PAGE>
RULE 424(b)(3)
REGISTRATION NO. 333-40669
PRICING SUPPLEMENT NO. 1
TO PROSPECTUS DATED December 10, 1997
(As supplemented December 12, 1997)
INTERNATIONAL BUSINESS MACHINES CORPORATION
MEDIUM-TERM NOTES
(Floating Rate Note)
(Due One Year or More from date of issue)
<TABLE>
<S> <C>
Designation: Floating Rate Original Issue Date:
Medium-Term Notes Due: March 6, 1998
April 5, 1999
Principal Amount: $100,000,000 Maturity Date:
April 5, 1999
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100% Fifteenth calendar day
whether or not a
Interest Rate Base: LIBOR Business Day prior to
the corresponding
Spread: Minus 0.14% Interest Payment Date
Initial Interest Rate: 5.5475% Interest Payment Dates:
June 6, 1998,
Redemption Provisions: None September 6, 1998,
December 6, 1998,
Commission or Discount (as March 6, 1999, and the
a percentage of Principal Maturity Date
Amount): 0.00%
Interest Reset Dates:
CUSIP: 459 20Q AS3
Second London Banking day
prior to each Payment Date
Interest (other than the Maturity
Index Maturity: 3 months Date)
for all Interest Determination Dates
other than the Final Interest
Determination Date, which shall be
one (1) month
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Interest Reset Period:
Quarterly (other than the
final Period, which period
shall end on the Maturity
Date)
Interest Determination
Dates:
Second London Banking Day
preceding each Interest
Reset Date
Form:[X] Book-Entry
[ ] Certificated
</TABLE>
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.
INTEREST
The Notes will bear interest at a rate reset on the Interest Reset Dates
specified above. The interest rate in effect from the original Issue Date to
the first Interest Reset Date with respect to the Notes will be the Initial
Interest Rate. Thereafter, the interest rate per annum on the Notes for each
Interest Reset Period will be determined at the rate for three (3) month
LIBOR minus a spread of 0.14%, provided, however that the interest rate for
the final Interest Reset Period shall be determined at the rate for one (1)
month LIBOR minus a spread of 0.14%.
Interest on the Notes will be calculated based on the actual number of
days elapsed over a year of 360 days. The Calculation Agent with respect to
the Notes will be The Chase Manhattan Bank.
If any Interest Payment Date or any Interest Reset Date would otherwise
be a day that is not a Business Day, such date will be postponed to the next
day that is a Business Day, unless that day falls in the next calendar month,
in which case such date will be advanced to the first preceding day that is a
Business Day. For purposes of the offering made hereby, "Business Day" as
used herein and in the accompanying Prospectus Supplement means any 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.
PLAN OF DISTRIBUTION
The Notes will be sold to Credit Suisse First Boston Corporation for
resale to one or more investors at a fixed public offering price. After the
initial public offering of the Notes, the public offering price and any
<PAGE>
concession or discount may be changed.
Dated: March 3, 1998
