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IBM Credit Corporation Reports 2000 Third-Quarter Results


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NORTH CASTLE, New York - 17 Oct 2000: IBM Credit Corporation today reported third-quarter 2000 net earnings of $105.0 million, an increase of 3 percent, compared with $102.3 million for the same 1999 period. The annualized return on average equity was 18.4 percent, compared with 20.1 percent in the third quarter of 1999.

In the third quarter of 2000, new customer financing originations* for acquisition of information technology products and services increased 13 percent to $1.7 billion, compared with $1.5 billion in the third quarter of 1999. New commercial financing originations, providing working capital for inventory and accounts receivable financing, decreased 11 percent to $3.4 billion in the third quarter of 2000, compared with $3.8 billion for the same 1999 period.

At September 30, 2000, total assets were $15.9 billion, compared with $16.3 billion at December 31, 1999, a decrease of 2 percent. Retained earnings at September 30, 2000, were $1.5 billion, compared with $1.8 billion at December 31, 1999, a decrease of 17 percent.

For the first nine months of 2000, net earnings were $307.9 million, an increase of 4 percent, compared with $296.0 million for the same period in 1999. For the first nine months of 2000, customer financing originations* decreased 10 percent to $4.3 billion, compared with $4.8 billion for the first nine months of 1999. For the first nine months of 2000, commercial financing originations decreased 10 percent to $9.5 billion, compared with $10.6 billion for the same 1999 period.

IBM Credit Corporation in the United States is part of the worldwide IBM Global Financing organization. IBM Global Financing offers businesses of all sizes leasing and financing solutions for hardware, software and services acquired from IBM and IBM Business Partners. Serving customers in more than 40 countries, IBM Global Financing provides a broad array of asset management services. In addition, IBM Global Financing provides flexible commercial financing offerings for inventory, accounts receivable and acquisition financing to resellers and remarketers. Visit the IBM Global Financing home page at www.ibm.com/financing.

Forward-Looking and Cautionary Statements
Except for the 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.

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