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IBM Credit Reports 2002 Third-Quarter Financial Results


ARMONK, N.Y - 16 Oct 2002: . . . IBM Credit Corporation today reported third-quarter 2002 net earnings of $63.3 million, a 44 percent decrease over $112.7 million in the third quarter of 2001. Net earnings for the first nine months of 2002 were $229.4 million, a decrease of 28 percent, compared with $320.2 million for the same period of 2001. The annualized return on average equity was 20.3 percent, compared with 23.6 percent in 2001.

New customer financing originations* for acquisition of information technology products and services decreased 14 percent to $1.2 billion in the third quarter of 2002, compared with $1.4 billion for the same period in 2001. New commercial financing originations -- providing working capital financing -- decreased 4 percent to $2.6 billion, compared with $2.7 billion for the same 2001 period. For the nine months ended September 30, 2002, customer financing originations* decreased by 11 percent to $4.1 billion, compared with $4.6 billion for the same period of 2001, and commercial financing originations decreased by 11 percent to $7.5 billion, compared to $8.4 billion for the same 2001 period.

At September 30, 2002, total assets were $13.2 billion, compared with $15.3 billion at December 31, 2001, a decrease of 14 percent. Retained earnings were $1.0 billion, compared with $1.1 billion at December 31, 2001, a decrease of 9 percent.

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.

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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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