Rule 424(b)(3)
Registration No. 333-40669
PRICING SUPPLEMENT NO. 28
TO PROSPECTUS DATED December 10, 1997
(As supplemented December 12, 1997)
INTERNATIONAL BUSINESS MACHINES CORPORATION
MEDIUM-TERM NOTES
(Floating Rate Note)
(Due from one year to 30 years from date of issue )
Designation: Floating Rate Original Issue Date:
Medium-Term Notes Due December 14, 1998
December 14, 1999
Principal Amount: $20,000,000 Maturity Date:
December 14, 1999
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 99.99% Fifteenth calendar day, whether
or not a Business Day prior to
the corresponding Interest
Interest Rate Base: LIBOR (3 Month) Payment Date.
Spread: None Interest Reset Dates:
Each Interest Payment Date
(other than the Maturity Date)
Initial Interest Rate: 5.23875%
Interest Payment Dates: March 14, Interest Reset Period: Quarterly
1999, June 14, 1999, September 14,
1999 and the Maturity Date. Interest Determination Dates: Second
London Banking Day preceding each
Interest Reset Date.
Commission or Discount (as a
percentage of Principal Amount):0.01%
Index Maturity: 3 months Designated LIBOR Page:
Telerate Page 3750
CUSIP: 459 20Q BV5 Redemption Provisions: None
Form: [X] Book-Entry
[ ] Certificated
This is a Pricing Supplement. It adds to, or 'supplements' the
description of the Notes referred to in the accompanying Prospectus
Supplement and Prospectus. It provides specific pricing and other
information prudent investors want to know about the Notes. The Pricing
Supplement also amends the Prospectus Supplement and Prospectus to the
extent its terms differ from those already described in the Prospectus
Supplement and Prospectus.
INTEREST
The Notes will bear interest at a rate which is reset on the Interest
Reset Dates which have been listed above. The interest rate in effect from
the Original Issue Date to the first Interest Reset Date for 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.
Interest on the Notes will be calculated based on the actual number of
days elapsed over a year of 360 days. The Calculation Agent for 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. However, if that day falls in the next calendar
month, the Interest Payment Date or Interest Reset Date will be advanced
to the first day before that day which is a Business Day.
A "Business Day" means any day on which commercial banks and foreign
exchange markets settle payments in The City of New York, and is a day on
which dealings in deposits in U.S. dollars are transacted in the London
interbank market (a 'London Banking Day').
We have capitalized other terms in this document. If they were not
defined specifically here, those terms have the same meanings we have
already given to them in the Prospectus Supplement and Prospectus.
PLAN OF DISTRIBUTION
We are selling the Notes to Blaylock & Partners, L.P. In turn,
Blaylock & Partners, L.P. will be reselling the Notes to one or
more investors at varying prices, which prices may be dependent on
market conditions.
Dated: December 9, 1998
