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IBM Credit Reports 2001 Second-Quarter Financial Results


ARMONK, N.Y - 18 Jul 2001: . . . IBM Credit Corporation today reported second-quarter 2001 net earnings of $103.47 million, a 3 percent decrease, compared with $106.15 million for the second quarter of 2000. The annualized return on average equity was 22.4 percent, compared with 17.7 percent in 2000.

New customer financing originations* for acquisition of information technology products and services increased 5 percent to $1.74 billion in the second quarter of 2001, compared with $1.66 billion for the same period in 2000. New commercial financing originations -- providing working capital for inventory, accounts receivable and acquisition financing -- decreased 19 percent to $2.67 billion, compared with $3.30 billion for the same 2000 period.

At June 30, 2001, total assets were $15.71 billion, compared with $16.80 billion at December 31, 2001, a decrease of 6 percent. Retained earnings were $1.22 billion, compared with $1.43 billion at December 31, 2000, a decrease of 15 percent. Retained earnings at June 30, 2000, were $1.63 billion.

For the first half of 2001, net earnings were $207.54 million, an increase of 2 percent, compared with $202.84 million for the same period of 2000. For the first half of 2001, customer financing originations* increased by 21 percent to $3.24 billion, compared with $2.68 billion for the first half of 2000. For the first half of 2001, commercial financing originations decreased by 8 percent to $5.65 billion, compared with $6.13 billion for the same 2000 period.

IBM Credit Corporation in the United States is part of the worldwide IBM Global Financing organization. With more than $46 billion in new financing originations in 2000, IBM Global Financing offers businesses of all sizes leasing and financing solutions for IBM and non-IBM hardware, software and services. In addition, IBM Global Financing provides flexible commercial financing offerings for inventory, accounts receivable and other working capital requirements. Visit the IBM Global Financing home page at http://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.

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

Contact(s) information

Tim Ohsann
IBM Media Relations
(914) 765-6647
ohsann@us.ibm.com

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Global Financing
Hardware leasing, software and services financing, commercial financing, inventory, accounts receivable, term loans, acquisition financing