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IBM Credit Reports 2002 Second-Quarter Financial Results


ARMONK, N.Y. - 17 Jul 2002: IBM Credit Corporation today reported second-quarter 2002 net earnings of $85.2 million, an 18 percent decrease over $103.5 million in the second quarter of 2001.

The annualized return on average equity was 21.9 percent, compared with 22.4 percent in 2001.

New customer financing originations* for acquisition of information technology products and services decreased 12 percent to $1.5 billion in the second quarter of 2002, compared with $1.7 billion for the same period in 2001. New commercial financing originations -- providing working capital for inventory, accounts receivable and acquisition financing -- decreased 7 percent to $2.5 billion, compared with $2.7 billion for the same 2001 period.

At June 30, 2002, total assets were $14.0 billion, compared with $15.3 billion at December 31, 2001, a decrease of 8 percent. Retained earnings were $1.0 billion, compared with $1.1 billion at December 31, 2001, a decrease of 9 percent. Net earnings for the first half of 2002 were $166.1 million, a decrease of 20 percent, compared with $207.5 million for the same period of 2001; customer financing originations* decreased by 9 percent to $2.9 billion, compared with $3.2 billion for the same period of 2001; and commercial financing originations decreased by 12 percent to $5.0 billion, compared with $5.7 billion for the same 2001 period.

IBM Credit Corporation in the United States is part of the worldwide IBM Global Financing organization. For more information, visit the IBM Global Financing home page at www.ibm.com/financing.

Forward-Looking and Cautionary Statements
Except for historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company's filings with the Securities and Exchange Commission.

Financial results attached

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*New customer financing originations reflect assets either owned or managed by IBM Credit Corporation.

Contact(s) information

J. Timothy Ohsann
IBM Global Financing
(914) 765-6647
ohsann@us.ibm.com

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