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RULE 424(b)(3)
REGISTRATION NO. 333-40669
PRICING SUPPLEMENT NO. 20
TO PROSPECTUS DATED December 10, 1997
(As supplemented December 12, 1997)
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: October 1,1998
Medium-Term Notes Due
October 1, 2008
Principal Amount: $100,000,000 Maturity Date: October 1, 2008
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 99.535% Fifteenth calendar day,
whether or not a Business
Day, immediately preceding
the corresponding Interest
Payment Date
Interest Rate: 5.40% Interest Payment Dates:
Semiannually, on the first
(1st) day of April and October
commencing April 1, 1999
Commission or discount (as CUSIP No: 459 20Q BM5
a percentage of Principal
Amount): 0.465%
Redemption Provisions: NONE
Form: /X/ Book-Entry
/ / Certificated
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INTRODUCTION
This is a Pricing Supplement. It describes the Fixed Rate Notes being
issued under the Medium Note Program of International Business Machines
Corporation. This document adds to, or 'supplements' the description of the
Notes referred to in the accompanying Prospectus Supplement and Prospectus. It
does so by providing specific information about the Notes issued in this
particular transaction. This Pricing Supplement also amends the Prospectus
Supplement and Prospectus to the extent that the description of the Notes in
this Pricing Supplement is different from the terms which are set forth in the
Prospectus Supplement and Prospectus.
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 day which is a Business Day.
No additional interest will accrue as a result of the delay in payment. For
purposes of this offering, the term "Business Day" means each day on which
commercial banks and foreign exchange markets settle payments in The City of New
York. We have capitalized a number of terms in this document. If you do not see
a definition for those terms in this document, those terms will have the
meanings which we have already given to them in the Prospectus Supplement and
the Prospectus.
REDEMPTION
The Notes are not redeemable by the Company.
PLAN OF DISTRIBUTION
Notes in the total Principal Amount of $100,000,000 will be sold to
Salomon Brothers Inc at the Issue Price set forth at the top of this Pricing
Supplement. Salomon Brothers Inc, in turn, will resell the Notes to investors at
varying prices, which prices may be subject to prevailing market conditions at
the time of resale.
Dated: September 24, 1998
