Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Shaughnessy Timothy S
  2. Issuer Name and Ticker or Trading Symbol
INTERNATIONAL BUSINESS MACHINES CORP [IBM]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
VP, Controller
(Last)
(First)
(Middle)
IBM CORPORATION, NEW ORCHARD ROAD
3. Date of Earliest Transaction (Month/Day/Year)
08/03/2007
(Street)

ARMONK, NY 10504
4. If Amendment, Date 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
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 08/03/2007   M   843 A $ 88.955 2,207.858 D  
Common Stock 08/03/2007   M   7,538 A $ 88.955 9,745.858 D  
Common Stock 08/03/2007   M   23,601 A $ 97.59 33,346.858 D  
Common Stock 08/03/2007   M   968 A $ 103.25 34,314.858 D  
Common Stock 08/03/2007   M   11,032 A $ 103.25 45,346.858 D  
Common Stock 08/03/2007   S   42,171 D $ 113.745 (1) 3,175.858 D  
Common Stock 08/03/2007   M   1,124 A $ 88.955 2,310.772 I (2) By spouse
Common Stock 08/03/2007   M   2,276 A $ 88.955 4,586.772 I (2) By spouse
Common Stock 08/03/2007   M   968 A $ 103.25 5,554.772 I (2) By spouse
Common Stock 08/03/2007   M   1,032 A $ 103.25 6,586.772 I (2) By spouse
Common Stock 08/03/2007   M   2,650 A $ 97.59 9,236.772 I (2) By spouse
Common Stock 08/03/2007   S   5,958 D $ 113.745 (1) 3,278.772 I (2) By spouse

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Emp. Stock Option (right to buy) $ 88.955 08/03/2007   M     7,538 02/23/2003(3) 02/22/2009 Common Stock 7,538 $ 0 0 D  
Emp. Stock Option (right to buy) $ 103.25 08/03/2007   M     11,032 02/29/2004(3) 02/28/2010 Common Stock 11,032 $ 0 0 D  
Emp. Stock Option (right to buy) $ 97.59 08/03/2007   M     23,601 02/26/2006(3) 02/25/2012 Common Stock 23,601 $ 0 0 D  
Emp. Stock Option (right to buy) $ 103.25 08/03/2007   M     968 02/29/2004(3) 02/28/2010 Common Stock 968 $ 0 0 D  
Emp. Stock Option (right to buy) $ 88.955 08/03/2007   M     843 02/23/2003(3) 02/22/2009 Common Stock 843 $ 0 0 D  
Emp. Stock Option (right to buy) $ 88.955 08/03/2007   M     2,276 02/23/2003(3) 02/22/2009 Common Stock 2,276 $ 0 0 I (2) By spouse
Emp. Stock Option (right to buy) $ 103.25 08/03/2007   M     1,032 02/29/2004(3) 02/28/2010 Common Stock 1,032 $ 0 0 I (2) By spouse
Emp. Stock Option (right to buy) $ 97.59 08/03/2007   M     2,650 02/26/2006(3) 02/25/2012 Common Stock 2,650 $ 0 0 I (2) By spouse
Emp. Stock Option (right to buy) $ 103.25 08/03/2007   M     968 02/29/2004(3) 02/28/2010 Common Stock 968 $ 0 0 I (2) By spouse
Emp. Stock Option (right to buy) $ 88.955 08/03/2007   M     1,124 02/23/2003(3) 02/22/2009 Common Stock 1,124 $ 0 0 I (2) By spouse

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Shaughnessy Timothy S
IBM CORPORATION, NEW ORCHARD ROAD
ARMONK, NY 10504
      VP, Controller  

Signatures

 D. Cummins for T. S. Shaughnessy by power-of-attorney   08/06/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(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).
(1) The price shown reflects the weighted average of multiple sales, ranging from $113.6100 to $113.9300 per share.
(2) The reporting person disclaims beneficial ownership of the securities, and this report shall not be deemed an admission that the reporting person is the beneficial owner of such securities for purposes of Section 16 or for any other purpose.
(3) This grant vested in four equal annual installments; the last installment vested on the date shown above.

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