SEC FORM 3

SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person^*

Daniels Michael E

(Last)

(First)

(Middle)

IBM CORPORATION

590 MADISON AVENUE

(Street)

NEW YORK

10022

(City)

(State)

(Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
07/26/2005

3. Issuer Name and Ticker or Trading Symbol
INTERNATIONAL BUSINESS MACHINES CORP [ IBM ]

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	Senior Vice President

5. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	5,074.5174	D

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
Emp. Stock Option (right to buy)	02/24/2002⁽¹⁾	02/23/2008	Common Stock	1,466	$51.155	D
Emp. Stock Option (right to buy)	02/23/2003⁽¹⁾	02/22/2009	Common Stock	28,200	$88.955	D
Emp. Stock Option (right to buy)	02/29/2004⁽¹⁾	02/28/2010	Common Stock	27,000	$103.25	D
Emp. Stock Option (right to buy)	02/27/2005⁽¹⁾	02/26/2011	Common Stock	27,000	$104.71	D
Emp. Stock Option (right to buy)	02/26/2005⁽²⁾	02/25/2012	Common Stock	31,802	$97.59	D
Emp. Stock Option (right to buy)	02/25/2005⁽²⁾	02/24/2013	Common Stock	37,000	$78.13	D
Emp. Stock Option (right to buy)	02/24/2005⁽²⁾	02/23/2014	Common Stock	40,000	$105.96	D
Emp. Stock Option (right to buy)	03/08/2006⁽³⁾	03/07/2015	Common Stock	31,030	$101.33	D
Rst. Stock Unit	⁽⁴⁾	⁽⁴⁾	Common Stock	1,215	$0	D
Rst. Stock Unit	⁽⁵⁾	⁽⁵⁾	Common Stock	9,434	$0	D
Rst. Stock Unit	⁽⁶⁾	⁽⁶⁾	Common Stock	5,000	$0	D
Rst. Stock Unit	⁽⁷⁾	⁽⁷⁾	Common Stock	11,628	$0	D
Phantom Stock Unit	⁽⁸⁾	⁽⁸⁾	Common Stock	7,814	$0	D

Explanation of Responses:

1. This grant vested in four equal annual installments; the last installment vested on the date shown above.

2. This grant vests in four equal annual installments; the most recent vesting occurred on the date shown above.

3. This grant vests in four equal annual installments, the first vesting to occur on the date shown above.

4. These units are payable in cash or the company's common stock upon the lapse of the restrictions on February 1, 2006.

5. These units are payable in cash or the company's common stock upon the lapse of the restrictions on June 17, 2007.

6. These units are payable in cash or the company's common stock upon the lapse of the restrictions on September 3, 2009 .

7. These units are payable in cash or the company's common stock upon the lapse of the restrictions on December 6, 2009.

8. Phantom stock units acquired under the IBM Executive Deferred Compensation Plan convert to the cash value of the company's common stock on a one-for-one basis, and distribution is deferred until separation from the company.

	C. B. Gregory for M. E. Daniels by power-of-attorney	07/26/2005
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.