Registration Statement No. 333-37034
                         Filed Pursuant to Rule 424(b)(3)

           International Business Machines Corporation

                          IBM Notes

         With Maturities of 1 year or More from Date of Issue

                     Pricing Supplement No. 7

(To Prospectus dated June 20, 2000 and
Prospectus Supplement dated June 28, 2002)

The date of this Pricing Supplement is: August 20, 2002

This is a Pricing Supplement. It describes the Fixed Rate Notes
now being issued under the $1,000,000,000 Medium Note program of
International Business Machines Corporation.  This document adds
to, or "supplements" the description of the Notes which we refer
to in the accompanying Prospectus Supplement and the Prospectus.
This pricing supplement provides important and detailed
information about the specific Notes we are now issuing.  This
Pricing Supplement also amends the terms of the Prospectus
Supplement and the 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 the

Trade Date:         August 19, 2002

Issue Date:         August 22, 2002

CUSIP:              45920QDB7

Principal Amount:   $4,933,000.00

Interest Rate:      4.75%

Maturity Date:      August 15, 2012

Price To
(expressed as
a percentage
of the
Amount):             100%

Discounts and
Commissions:         1.25%

1st Coupon
Payment Date:       February 15, 2003

Frequency:          Semi-Annually

Survivor's Option:  Yes

Subject to
or Repayment:       Yes

Date and Terms
of Redemption or
any applicable
or special
record dates):      Callable at 100% on 08/15/2005
                    and continuously thereafter
                    with 30 days notice.

Original Issue
(OID) Note:         No

Total Amount
of OID:             Not applicable