Rule 424(b)(3)
Registration No. 333-70521
PRICING SUPPLEMENT NO. 2
TO PROSPECTUS DATED March 9, 1999
(As supplemented March 11, 1999)
INTERNATIONAL BUSINESS MACHINES CORPORATION
MEDIUM-TERM NOTES
(Fixed Rate Note)
(Due from one year to 30 years from date of issue )
Designation: Fixed Rate Original Issue Date:
Medium-Term Notes Due April 16, 1999
April 16, 2014
Principal Amount: $25,000,000 Maturity Date:
April 16, 2014
Issue Price (as a percentage of Regular Record Dates:
Principal Amount): 100.00% Fifteenth calendar day, whether
or not a Business Day prior to
the corresponding Interest
Payment Date.
Interest Rate: 6.40%
Interest Payment Dates:
Monthly, on the 16th
commencing May 16, 1999
Commission or Discount (as a
percentage of Principal Amount):0.00%
CUSIP: 459 20Q CF9 Redemption Provisions: These notes are
redeemable. See "Redemption" below.
[X] Book Entry
[ ] Certificated
INTRODUCTION
This is a Pricing Supplement. It describes the Fixed Rate Notes being
issued under the Medium Note Program of International Business Machines
Corporation ("IBM"). 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 pricing and other 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 redeemable by IBM on any Interest Payment Date occuring on
or after April 16, 2002 in whole but not in part, on at least 30 days
prior notice at a redemption price of 100% (otherwise known as par).
PLAN OF DISTRIBUTION
Notes in the total Principal Amount of $25,000,000 will be sold
to Bear Stearns & Co. Inc. at the Issue Price set forth
at the top of this Pricing Supplement. Bear Stearns & Co. Inc. in turn, will
resell these Notes to investors at varying prices, which prices are
subject to prevailing market conditions at the time of resale.
Dated: March 26, 1999
