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                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

  (Mark One)
     |X|         Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934
                  For the Quarterly Period Ended June 30, 2004

                                       OR
     |_|        Transition Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                           Commission File No. 1-14050
                           LEXMARK INTERNATIONAL, INC.
             (Exact name of registrant as specified in its charter)

            Delaware                                     06-1308215
  (State or other jurisdiction                        (I.R.S. Employer
of incorporation or organization)                    Identification No.)

       One Lexmark Centre Drive
       740 West New Circle Road
         Lexington, Kentucky                               40550
(Address of principal executive offices)                 (Zip Code)

                                 (859) 232-2000
              (Registrant's telephone number, including area code)




Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No ___

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Securities Exchange Act of 1934).  Yes  X  No ___


The registrant had  129,520,133  shares  outstanding  (excluding  shares held in
treasury) of Class A common stock, par value $0.01 per share, as of the close of
business on July 30, 2004.







                  LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES

                                      INDEX


                                                                        Page of
                                                                       Form 10-Q
                                                                       ---------
                                     Part I

ITEM 1.  Financial Statements

        CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited)
          THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2004 AND 2003.............2

        CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION (Unaudited)
          AS OF JUNE 30, 2004 AND DECEMBER 31, 2003............................3

        CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
          SIX MONTHS  ENDED JUNE 30, 2004 AND 2003.............................4

        NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited).....5-9

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
          AND RESULTS OF OPERATIONS (Unaudited)............................10-15

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK............16

ITEM 4. CONTROLS AND PROCEDURES...............................................16

                                     Part II

ITEM 1. LEGAL PROCEEDINGS.....................................................17

ITEM 2. CHANGES IN SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES
          OF EQUITY SECURITIES................................................17

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS...................18

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K......................................18







                                      1



                         Part I - Financial Information

Item 1.    Financial Statements

                  LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES
                  CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
                     (In Millions, Except Per Share Amounts)
                                   (Unaudited)



                                                                       Three Months Ended                Six Months Ended
                                                                             June 30                          June 30
                                                                    ------------------------         ------------------------
                                                                      2004            2003             2004            2003
                                                                      ----            ----             ----            ----
                                                                                                         
Revenue                                                             $1,247.7        $1,120.2         $2,503.7        $2,228.1
Cost of revenue                                                        807.4           739.4          1,652.6         1,491.1
                                                                    --------        --------         --------        --------
          Gross profit                                                 440.3           380.8            851.1           737.0
                                                                    --------        --------         --------        --------

Research and development                                                76.5            66.7            148.7           128.8
Selling, general and administrative                                    178.0           177.1            351.4           342.6
                                                                    --------        --------         --------        --------
          Operating expense                                            254.5           243.8            500.1           471.4
                                                                    --------        --------         --------        --------

          Operating income                                             185.8           137.0            351.0           265.6

Interest (income)/expense, net                                          (2.3)           (0.1)            (4.6)            0.6
Other                                                                   (0.3)           (0.2)             0.3            (0.2)
                                                                    --------        --------         --------        --------

          Earnings before income taxes                                 188.4           137.3            355.3           265.2

Provision for income taxes                                              51.8            35.6             97.7            68.9
                                                                    --------        --------         --------        --------
          Net earnings                                              $  136.6        $  101.7         $  257.6        $  196.3
                                                                    ========        ========         ========        ========

Net earnings per share:
          Basic                                                     $   1.05        $   0.79         $   1.98        $   1.54
                                                                    ========        ========         ========        ========

          Diluted                                                   $   1.02        $   0.77         $   1.93        $   1.50
                                                                    ========        ========         ========        ========


Shares used in per share calculation:
          Basic                                                        130.3           127.9            130.0           127.5
                                                                    ========        ========         ========        ========

          Diluted                                                      134.0           131.6            133.5           130.9
                                                                    ========        ========         ========        ========



See notes to consolidated condensed financial statements.





                                       2




                  LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES
             CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
                         (In Millions, Except Par Value)
                                   (Unaudited)





                                                                                                 June 30          December 31
                                                                                                   2004               2003
                                                                                                ----------        -----------

ASSETS
Current assets:
                                                                                                             
        Cash and cash equivalents                                                               $    820.7         $    744.6
        Marketable securities                                                                        586.5              451.5
        Trade receivables, net of allowance of  $44.4 in 2004 and $48.1 in 2003                      572.5              615.4
        Inventories                                                                                  512.0              437.0
        Prepaid expenses and other current assets                                                    220.4              195.3
                                                                                                ----------         ----------
               Total current assets                                                                2,712.1            2,443.8


Property, plant and equipment, net                                                                   713.9              715.9
Other assets                                                                                         314.1              290.7
                                                                                                ----------         ----------
              Total assets                                                                      $  3,740.1         $  3,450.4
                                                                                                ==========         ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
        Short-term debt                                                                         $      3.1         $      1.1
        Accounts payable                                                                             494.3              465.7
        Accrued liabilities                                                                          665.5              716.5
                                                                                                ----------         ----------
              Total current liabilities                                                            1,162.9            1,183.3

Long-term debt                                                                                       149.4              149.3
Other liabilities                                                                                    479.0              474.8
                                                                                                ----------         ----------
              Total liabilities                                                                    1,791.3            1,807.4
                                                                                                ----------         ----------

Stockholders' equity:
        Preferred stock, $.01 par value, 1.6 shares authorized;
             no shares issued and outstanding                                                          -                  -
        Common stock, $.01 par value:
              Class A, 900.0 shares authorized; 129.6 and
                128.6 shares outstanding in 2004 and 2003, respectively                                1.6                1.6
              Class B, 10.0 shares authorized; no shares issued and outstanding                        -                  -
        Capital in excess of par                                                                   1,047.5              956.4
        Retained earnings                                                                          2,352.6            2,095.0
        Treasury stock, at cost; 35.1 and 34.5 shares in 2004
          and 2003, respectively                                                                  (1,281.9)          (1,213.5)
        Accumulated other comprehensive loss                                                        (171.0)            (196.5)
                                                                                                ----------         ----------
              Total stockholders' equity                                                           1,948.8            1,643.0
                                                                                                ----------         ----------
              Total liabilities and stockholders' equity                                        $  3,740.1         $  3,450.4
                                                                                                ==========         ==========


See notes to consolidated condensed financial statements.



                                       3



                  LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                  (In Millions)
                                   (Unaudited)





                                                                                                    Six Months Ended
                                                                                                        June 30
                                                                                               -------------------------
                                                                                                 2004             2003
                                                                                                 ----             ----
Cash flows from operating activities:
                                                                                                          
    Net earnings                                                                               $ 257.6          $ 196.3
        Adjustments to reconcile net earnings to net cash
            provided by operating activities:
              Depreciation and amortization                                                       67.0             73.3
              Deferred taxes                                                                       4.9             (6.6)
              Other                                                                                5.6             15.4
                                                                                               -------          -------
                                                                                                 335.1            278.4
              Change in assets and liabilities:
                Trade receivables                                                                 42.9             31.4
                Inventories                                                                      (75.0)            16.9
                Accounts payable                                                                  28.6             26.4
                Accrued liabilities                                                              (51.0)           (36.4)
                Tax benefits from employee stock plans                                            32.5             21.1
                Other assets and liabilities                                                     (27.3)            57.8
                                                                                               -------          -------
                  Net cash provided by operating activities                                      285.8            395.6
                                                                                               -------          -------

Cash flows from investing activities:
    Purchases of property, plant and equipment                                                   (63.7)           (32.3)
    Purchases of marketable securities                                                        (1,003.3)             -
    Proceeds from marketable securities                                                          868.3              -
    Other                                                                                          -                0.7
                                                                                               -------          -------
                  Net cash used for investing activities                                        (198.7)           (31.6)
                                                                                               -------          -------

Cash flows from financing activities:
    Increase (decrease) in short-term debt                                                         2.0            (12.3)
    Issuance of treasury stock                                                                     1.1              0.9
    Purchase of treasury stock                                                                   (69.5)             -
    Proceeds from employee stock plans                                                            56.3             34.3
    Other                                                                                         (0.1)             -
                                                                                               -------          -------
                  Net cash (used for) provided by financing activities                           (10.2)            22.9
                                                                                               -------          -------

Effect of exchange rate changes on cash                                                           (0.8)             2.9
                                                                                               -------          -------

Net increase in cash and cash equivalents                                                         76.1            389.8
Cash and cash equivalents - beginning of period                                                  744.6            497.7
                                                                                               -------          -------

Cash and cash equivalents - end of period                                                      $ 820.7          $ 887.5
                                                                                               =======          =======


  See notes to consolidated condensed financial statements.





                                       4



                  LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

1.   BASIS OF PRESENTATION

     The accompanying  interim  consolidated  condensed financial statements are
     unaudited;  however, in the opinion of management of Lexmark International,
     Inc.  (together with its  subsidiaries,  the  "company"),  all  adjustments
     (which  comprise only normal and recurring  accruals)  necessary for a fair
     presentation  of the interim  financial  results  have been  included.  The
     results for the interim periods are not  necessarily  indicative of results
     to be expected for the entire year.  These  financial  statements and notes
     should  be  read  in   conjunction   with  the  company's   audited  annual
     consolidated financial statements for the year ended December 31, 2003.

2.   STOCK-BASED COMPENSATION
     (In millions, except per share amounts)

     The company accounts for its stock-based employee  compensation plans under
     APB Opinion  25,  Accounting  for Stock  Issued to  Employees,  and related
     interpretations.  Accordingly,  no  compensation  cost is  reflected in net
     earnings as all options  granted  have an exercise  price at least equal to
     the market value of the underlying  common stock on the date of grant.  The
     following table is provided in accordance with the disclosure  requirements
     of SFAS No. 148,  Accounting for Stock-Based  Compensation - Transition and
     Disclosure - an Amendment  of SFAS 123, and  illustrates  the effect on net
     earnings  and  earnings per share if the company had applied the fair value
     recognition provisions of SFAS 123 to stock-based employee compensation.




                                                                  Three Months                        Six Months
                                                                     Ended                               Ended
                                                                    June 30                             June 30
                                                            -----------------------            -----------------------

                                                              2004            2003              2004             2003
                                                              ----            ----              ----             ----

                                                                                                    
     Net earnings, as reported                               $136.6          $101.7            $257.6           $196.3

     Deduct:  Total stock-based employee
       compensation expense determined
       under fair value based method for all
       awards, net of related tax effects                     (11.1)          (10.4)            (22.5)           (21.0)
                                                             ------          ------            ------           ------
     Pro forma net income                                    $125.5          $ 91.3            $235.1           $175.3
                                                             ======          ======            ======           ======

     Net earnings per share:
        Basic - as reported                                  $ 1.05          $ 0.79            $ 1.98           $ 1.54
        Basic - pro forma                                    $ 0.96          $ 0.71            $ 1.81           $ 1.37

        Diluted - as reported                                $ 1.02          $ 0.77            $ 1.93           $ 1.50
        Diluted - pro forma                                  $ 0.94          $ 0.69            $ 1.76           $ 1.34







                                       5




3.   INVENTORIES
     (Dollars in millions)



     Inventories consist of the following:
                                                                  June 30                        December 31
                                                                    2004                            2003
                                                                 ---------                       -----------
                                                                                             
     Work in process                                              $156.2                           $139.4
     Finished goods                                                355.8                            297.6
                                                                  ------                           ------
                                                                  $512.0                           $437.0
                                                                  ======                           ======


4.   AGGREGATE WARRANTY LIABILITY
     (Dollars in millions)

     Changes in the company's aggregate warranty liability,  which includes both
     warranty and extended warranty (deferred revenue), are presented below.




                            -----------------------------------------------------------------------------
                                                                                   2004         2003
                            -----------------------------------------------------------------------------

                                                                                          
                            Balance at January 1                                   $172.7       $147.0

                            Accruals for warranties issued                          110.5        110.7

                            Accruals related to pre-existing warranties
                                (including amortization of deferred revenue
                                for extended warranties and changes in              (33.4)       (19.7)
                                estimates)

                            Settlements made (in cash or in kind)                   (82.9)       (83.6)
                            -----------------------------------------------------------------------------

                            Balance at June 30                                     $166.9       $154.4
                            -----------------------------------------------------------------------------



     Both warranty and the short-term  portion of extended warranty are included
     on the accrued liabilities line in the Consolidated Condensed Statements of
     Financial Position.  The long-term portion of extended warranty is included
     on the other liabilities line in the Consolidated  Condensed  Statements of
     Financial Position.

5.   STOCKHOLDER'S EQUITY

     As of June 30, 2004,  the  company's  board of directors  had  authorized a
     total  repurchase  of $1.4  billion of its Class A common  stock,  of which
     approximately $113 million is remaining.  This repurchase  authority allows
     the company,  at  management's  discretion,  to selectively  repurchase its
     stock  from  time to time in the open  market  or in  privately  negotiated
     transactions  depending  upon market  price and other  factors.  During the
     second quarter of 2004, the company  repurchased  approximately 0.8 million
     shares,  at a cost  of  approximately  $70  million,  pursuant  to a  share
     repurchase  program in compliance with  Securities and Exchange  Commission
     Rule 10b5-1 and Rule 10b-18 of the  Securities and Exchange Act of 1934. No
     shares were  repurchased  during the first  quarter of 2004. As of June 30,
     2004, the company had repurchased  approximately 35.5 million shares for an
     aggregate cost of approximately $1.3 billion.





                                       6




6.   OTHER COMPREHENSIVE EARNINGS (LOSS)
     (Dollars in millions)

     Comprehensive earnings, net of taxes, consists of the following:




                                                                  Three Months Ended                 Six Months Ended
                                                                        June 30                           June 30
                                                                 ----------------------            --------------------
                                                                  2004            2003              2004          2003
                                                                  ----            ----              ----          ----
                                                                                                     
      Net earnings                                               $136.6          $101.7            $257.6        $196.3
      Other comprehensive earnings (loss):
          Foreign currency translation adjustment                  (3.1)           12.7              (2.9)         15.3
          Cash flow hedging, net of reclassifications               6.8             0.3              29.2          (1.9)
          Minimum pension liability adjustment                      0.8            (0.5)             (0.8)          -
                                                                 ------          ------            ------        ------

      Comprehensive earnings                                     $141.1          $114.2            $283.1        $209.7
                                                                 ======          ======            ======        ======


      Accumulated other comprehensive loss consists of the following:


                                                                                                             Accumulated
                                                                                         Minimum                Other
                                               Translation          Cash Flow            Pension            Comprehensive
                                               Adjustment             Hedges            Liability               Loss
                                               -----------          ---------           ---------           -------------
                                                                                                   
     Balance, December 31, 2003                  $(15.2)              $(36.5)            $(144.8)              $(196.5)
     First quarter 2004 change                      0.2                 22.4                (1.6)                 21.0
                                                 ------               ------             -------               -------
     Balance, March 31, 2004                      (15.0)               (14.1)             (146.4)               (175.5)
     Second quarter 2004 change                    (3.1)                 6.8                 0.8                   4.5
                                                 ------               ------             -------               -------
     Balance, June 30, 2004                      $(18.1)              $ (7.3)            $(145.6)              $(171.0)
                                                 ======               ======             =======               =======


7.   EARNINGS PER SHARE (EPS)
     (In millions, except per share amounts)

     The  following  table  presents  a  reconciliation  of the  numerators  and
     denominators of the basic and diluted EPS calculations:




                                                          Three Months Ended                  Six Months Ended
                                                               June 30                              June 30
                                                      -----------------------              -----------------------
                                                        2004            2003                2004             2003
                                                        ----            ----                ----             ----
       Numerator:
                                                                                                
          Net earnings                                $136.6           $101.7              $257.6           $196.3
                                                      ======           ======              ======           ======

       Denominator:
          Weighted average shares used
            to compute basic EPS                       130.3            127.9               130.0            127.5

          Effect of dilutive securities
            Stock options                                3.7              3.7                 3.5              3.4
                                                      ------           ------              ------           ------

          Weighted average shares used
            to compute diluted EPS                     134.0            131.6               133.5            130.9
                                                      ======           ======              ======           ======

          Basic net EPS                                $1.05           $ 0.79              $ 1.98           $ 1.54
          Diluted net EPS                              $1.02           $ 0.77              $ 1.93           $ 1.50



     Options to purchase  an  additional  1.3 million and 1.4 million  shares of
     Class A common  stock





                                       7


     for the three and six month  periods ended June 30, 2004 and June 30, 2003,
     respectively,  were outstanding but were not included in the computation of
     diluted earnings per share because their effect would be antidilutive.

8.   EMPLOYEE PENSION AND POSTRETIREMENT PLANS

     The  components  of the net periodic  benefit cost for both the pension and
     postretirement plans were as follows:




                                                                  Three Months Ended               Six Months Ended
     Pension Benefits:                                                  June 30                        June 30
                                                                ---------------------           ---------------------
                                                                  2004           2003             2004          2003
                                                                  ----           ----             ----          ----
                                                                                                   
     Service cost                                               $  3.6         $  3.4           $  7.4         $  6.7
     Interest cost                                                 9.9            9.9             20.5           19.9
     Expected return on plan assets                              (12.8)         (11.9)           (25.9)         (23.7)
     Amortization of prior service (benefit)                      (1.1)          (0.3)            (1.2)          (0.6)
     Amortization of net loss                                      1.6            1.7              4.6            3.3
     Settlement or curtailment losses                              -              0.4              -              0.4
                                                                ------         ------           ------         ------
     Net periodic benefit cost                                  $  1.2         $  3.2           $  5.4         $  6.0
                                                                ======         ======           ======         ======






                                                                  Three Months Ended                Six Months Ended
     Other Postretirement Benefits:                                     June 30                        June 30
                                                                ---------------------           ---------------------
                                                                  2004           2003             2004          2003
                                                                  ----           ----             ----          ----
                                                                                                   
     Service cost                                               $  0.5         $  0.7           $  1.0         $  1.4
     Interest cost                                                 0.8            0.9              1.6            1.7
     Amortization of prior service (benefit)                       -             (0.2)            (0.1)          (0.2)
     Amortization of net loss                                      -              0.1              0.1            0.1
                                                                ------         ------           ------         ------
     Net periodic benefit cost                                  $  1.3         $  1.5           $  2.6         $  3.0
                                                                ======         ======           ======         ======


     As discussed in Note 10 of the Notes to  Consolidated  Condensed  Financial
     Statements,  FASB Staff  Position No. 106-2 ("FSP  106-2"),  Accounting and
     Disclosure   Requirements   Related  to  the  Medicare   Prescription  Drug
     Improvement and Modernization Act of 2003 (the "Act"), is effective for the
     first interim or annual period  beginning  after June 15, 2004. The company
     is eligible to receive the subsidy but only for a limited number of retired
     individuals  who are receiving  benefits  under a plan provision that is no
     longer offered to employees. The effects of the Act are not significant for
     the company and therefore,  will be  incorporated  at the next regular plan
     measurement date of January 1, 2005.

     The company previously  disclosed in its financial  statements for the year
     ended December 31, 2003, that it expected to contribute  approximately  $45
     million to its pension  and  postretirement  plans in 2004.  As of June 30,
     2004, approximately $30 million of contributions had been made, and in July
     2004 the company  contributed  approximately  $14  million to its  European
     pension plans. The company presently anticipates contributing an additional
     $5 million during the remainder of 2004, for a total of $49 million.




                                       8



9.   SEGMENT DATA

     The  company  manufactures  and sells a variety of  printing  products  and
     related  supplies  and  services.  The company is primarily  managed  along
     business  and  consumer  market   segments.   The  company   evaluates  the
     performance of its segments based on revenue and operating income, and does
     not include segment assets or other income and expense items for management
     reporting purposes.  Segment operating income includes selling, general and
     administrative,  research and development  and other  expenses,  certain of
     which are allocated to the respective  segments based on internal  measures
     and may not be  indicative  of amounts  that would be  incurred  on a stand
     alone basis or may not be  indicative  of results of other  enterprises  in
     similar  businesses.   Additionally,   segment  operating  income  excludes
     significant expenses that are managed outside of the reporting segments.

     The following  table includes  information  about the company's  reportable
     segments:




                                               Three Months Ended                  Six Months Ended
                                                    June 30                            June 30
                                            ------------------------           -------------------------
                                               2004            2003               2004             2003
                                               ----            ----               ----             ----
       Revenue:
                                                                                    
          Business                          $  682.7        $  658.9           $1,355.7         $1,290.9
          Consumer                             565.0           461.3            1,148.0            937.2
          All other                              -               -                  -                -
                                            --------        --------           --------         --------
          Total revenue                     $1,247.7        $1,120.2           $2,503.7         $2,228.1
                                            ========        ========           ========         ========

       Operating income/(loss):
          Business                          $  187.2        $  170.6           $  362.0         $  335.0
          Consumer                              87.8            47.2              161.1             87.5
          All other                            (89.2)          (80.8)            (172.1)          (156.9)
                                            --------        --------           --------         --------
          Total operating income/(loss)     $  185.8        $  137.0           $  351.0         $  265.6
                                            ========        ========           ========         ========


10.  NEW ACCOUNTING STANDARDS

     In May 2004, the Financial  Accounting  Standards Board ("FASB") issued FSP
     106-2,  Accounting  and  Disclosure  Requirements  Related to the  Medicare
     Prescription  Drug Improvement and  Modernization  Act of 2003 (the "Act").
     The Act introduces a prescription  drug benefit under Medicare as well as a
     federal  subsidy to sponsors of  post-retirement  health care benefit plans
     that provide a benefit that is at least actuarially  equivalent to Medicare
     Part D. FSP 106-2  supercedes  FSP 106-1,  which was issued in January 2004
     and permitted a sponsor of a post-retirement health care plan that provides
     a prescription drug benefit to make a one-time election to defer accounting
     for the  effects  of the  Act  until  more  authoritative  guidance  on the
     accounting for the federal subsidy was issued. The company elected to defer
     accounting  for the  effects  of the Act  under  FSP  106-1.  FSP  106-2 is
     effective for the first interim or annual period  beginning  after June 15,
     2004.  The company has evaluated the  provisions of FSP 106-2 and concluded
     that  it  will  not  have a  material  impact  on the  company's  financial
     position, results of operations and cash flows.






                                       9



Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations (Unaudited)

                  LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES


Results of Operations
- ---------------------

Consolidated  revenue  for the  three  months  ended  June 30,  2004 was  $1,248
million,  an  increase  of 11% over  the same  period  of 2003.  Revenue  in the
business  market  segment was $683  million  for the second  quarter of 2004 and
increased 4% over the same period of 2003.  This growth was  principally  due to
increases  in unit  volumes.  Revenue in the  consumer  market  segment was $565
million for the second quarter of 2004 and increased 23% over the same period of
2003. This growth was also  principally due to increases in unit volumes.  Total
U.S. revenue  increased $37 million or 7% and international  revenue,  including
exports from the U.S., increased $91 million or 15%.

For the six months ended June 30, 2004, consolidated revenue was $2,504 million,
an increase of 12% over the same period of 2003.  Revenue in the business market
segment  was $1,356  million for the first six months of 2004 and  increased  5%
over the same period of 2003.  This growth was  principally  due to increases in
unit volumes.  Revenue in the consumer market segment was $1,148 million for the
first half of 2004 and increased  23% over the same period of 2003.  This growth
was also  principally  due to  increases  in unit  volumes.  Total U.S.  revenue
increased $91 million or 9% and  international  revenue,  including exports from
the U.S., increased $185 million or 15%.

Consolidated  gross profit was $440 million for the second  quarter of 2004,  an
increase of 16% from the same period of 2003.  For the six months ended June 30,
2004,  consolidated  gross profit was $851 million,  an increase of 15% from the
same period of 2003.  Gross  profit as a  percentage  of revenue for the quarter
ended June 30, 2004 increased to 35.3% from 34.0% in the second quarter of 2003,
an increase of 1.3  percentage  points.  Gross profit as a percentage of revenue
for the six months ended June 30, 2004 increased to 34.0% from 33.1% in the same
period of 2003, an increase of 0.9  percentage  points.  The  improvement in the
gross  profit  margin for both the three and six month  periods of 2004 over the
same periods of 2003 was  principally  due to improved  product margins (2.2 and
2.0 percentage points,  respectively),  partially offset by a negative mix among
products (0.9 and 1.0 percentage points, respectively).

Total  operating  expense was $254  million for the quarter  ended June 30, 2004
compared to $244 million for the same period of 2003.  Total  operating  expense
was $500 million for the six months ended June 30, 2004 compared to $471 million
for the same period of 2003.  Operating  expense as a percentage  of revenue for
the quarter was 20.4%  compared to 21.8% for the  corresponding  period in 2003.
Operating  expense as a  percentage  of  revenue  for the first half of 2004 was
20.0%  compared to 21.2% for the  corresponding  period of 2003. The decrease in
the  operating  expense as a percentage  of revenue for both periods in 2004 was
primarily  due to revenue  growing at a faster  rate than  selling,  general and
administrative  expense,  slightly  offset by higher  research  and  development
spending.

Consolidated  operating  income was $186 million for the second  quarter of 2004
and increased 36% from 2003. The increase in the  consolidated  operating income
was due to a $59 million  increase in gross profit,  partially  offset by an $11
million increase in operating expense.  Operating income for the business market
segment  increased  $17 million in the second  quarter of 2004,  compared to the
same period in the prior year.  Operating income for the consumer market segment
increased  $41  million in the second  quarter of 2004,  compared  to the second
quarter of 2003.  The  increases in  operating  income for both the business and
consumer  market  segments were  principally  due to  improvements  in the gross
profit for those segments.

For the six months ended June 30, 2004,  consolidated  operating income was $351
million and  increased





                                       10



32% from 2003. The increase in consolidated  operating  income was due to a $114
million increase in gross profit,  partially offset by a $29 million increase in
operating  expense.  Operating income for the business market segment  increased
$27 million in the first half of 2004,  compared to the same period in the prior
year.  Operating income for the consumer market segment increased $74 million in
the first six months of 2004, compared to the same period in 2003. The increases
in operating  income for both the business and  consumer  market  segments  were
primarily due to improvements in the gross profit for those segments.

Non-operating income increased approximately $2 million in the second quarter of
2004,  compared  to the same  period  in 2003.  Non-operating  income  increased
approximately $5 million in the first half of 2004,  compared to the prior year.
These increases were principally due to additional  interest income in 2004 as a
result of an increase in the level of cash and marketable securities held by the
company.

Net earnings for the second quarter of 2004 were $137 million,  compared to $102
million in the second  quarter of 2003.  Net earnings for the first half of 2004
were $258  million  compared  to $196  million  for the first half of 2003.  The
increase in net earnings for both  periods was  principally  due to the improved
operating  income,  offset  slightly by an increase in the effective  income tax
rate.  The  effective  income tax rate was 27.5% in 2004 as compared to 26.0% in
2003.  The increase in the  effective  income tax rate was  primarily due to the
expiration of favorable tax laws and geographical shifts in earnings.

Basic net earnings per share were $1.05 for the second  quarter of 2004 compared
to $0.79 in the  corresponding  period in 2003.  Diluted net  earnings per share
were $1.02 in the second quarter of 2004, compared to $0.77 in 2003, an increase
of 32%. Basic net earnings per share were $1.98 for the first six months of 2004
compared to $1.54 in the corresponding  period in 2003. Diluted net earnings per
share were $1.93 for the first six months of 2004  compared to $1.50 in 2003, an
increase of 29%.  These  increases  were  primarily  due to the increases in net
earnings.

Financial Condition
- -------------------

The company's  financial  position remains strong at June 30, 2004, with working
capital of $1,549  million  compared to $1,261  million at December 31, 2003. At
June 30, 2004,  the company had  outstanding  $3 million of short-term  debt and
$149 million of long-term  debt.  The debt to total capital ratio was 7% at June
30,  2004,  compared  to 8% at  December  31,  2003.  The company had no amounts
outstanding under its U.S. trade receivables  financing program or its revolving
credit facility at June 30, 2004.

Cash provided by operating activities for the six months ended June 30, 2004 was
$286 million, compared to $396 million for the same period of 2003. The decrease
in cash flows from operating  activities  was primarily due to unfavorable  cash
flow changes in inventories and other assets and liabilities accounts, partially
offset  by  increased  earnings.  Management  believes  that  cash  provided  by
operations will continue to be sufficient to meet operating and capital needs.

Cash used for  investing  activities  for the six months ended June 30, 2004 was
$199 million,  compared to $32 million for the same period in 2003.  The company
began  investing  in  marketable  securities  during the third  quarter of 2003.
During the first six months of 2004, the  investments  in marketable  securities
resulted in a net use of cash of $135  million.  During  July 2004,  the company
invested an additional $400 million in marketable securities.  The company spent
$64 million on capital  expenditures  during the first half of 2004, compared to
$32 million  during the same period of 2003.  The capital  expenditures  for the
first six months of 2004 were principally related to infrastructure support, new
product development and manufacturing capacity expansion. It is anticipated that
capital  expenditures  for  2004  will be  approximately  $200  million  and are
expected to be funded through cash from operations.

Cash used for financing activities was $10 million for the six months ended June
30, 2004, compared





                                       11



to $23 million  cash  provided by  financing  activities  for the same period of
2003. The $33 million decrease in cash from financing activities was principally
due to the  purchase  of $70 million of  treasury  stock in 2004  compared to no
purchases in 2003,  offset  somewhat by a $22 million  increase in proceeds from
employee stock plans during 2004.

As of June 30, 2004,  the company's  board of directors  had  authorized a total
repurchase of $1.4 billion of its Class A common stock,  of which  approximately
$113 million is remaining.  This  repurchase  authority  allows the company,  at
management's  discretion,  to selectively repurchase its stock from time to time
in the open market or in privately negotiated transactions depending upon market
price  and other  factors.  During  the  second  quarter  of 2004,  the  company
repurchased  approximately  0.8 million shares,  at a cost of approximately  $70
million,  pursuant to a share  repurchase  program in compliance with Securities
and Exchange  Commission Rule 10b5-1 and Rule 10b-18 of the Securities  Exchange
Act of 1934. No shares were repurchased  during the first quarter of 2004. As of
June 30, 2004, the company had repurchased approximately 35.5 million shares for
an aggregate cost of approximately $1.3 billion.

New Accounting Standards
- ------------------------

In May 2004, the Financial Accounting Standards Board ("FASB") issued FASB Staff
Position No. 106-2 ("FSP 106-2"), Accounting and Disclosure Requirements Related
to the Medicare Prescription Drug Improvement and Modernization Act of 2003 (the
"Act"). The Act introduces a prescription drug benefit under Medicare as well as
a federal subsidy to sponsors of post-retirement  health care benefit plans that
provide a benefit that is at least  actuarially  equivalent  to Medicare Part D.
FSP 106-2 supercedes FSP106-1,  which was issued in January 2004 and permitted a
sponsor of a post-retirement  health care plan that provides a prescription drug
benefit to make a one-time  election to defer  accounting for the effects of the
Act until more authoritative  guidance on the accounting for the federal subsidy
was issued.  The company elected to defer  accounting for the effects of the Act
under FSP 106-1.  FSP 106-2 is effective  for the first interim or annual period
beginning  after June 15, 2004.  The company has evaluated the provisions of FSP
106-2 and  concluded  that it will not have a material  impact on the  company's
financial position, results of operations and cash flows.

Factors That May Affect Future Results and Information Concerning Forward -
- ---------------------------------------------------------------------------
Looking Statements
- ------------------

Statements  contained in this report which are not statements of historical fact
are  forward-looking  statements  within  the  meaning  of  Section  27A  of the
Securities Act of 1933 and Section 21E of the  Securities  Exchange Act of 1934.
Forward-looking statements are made based upon management's current expectations
and beliefs concerning future  developments and their potential effects upon the
company.  There can be no  assurance  that  future  developments  affecting  the
company  will be those  anticipated  by  management,  and  there are a number of
factors that could adversely affect the company's  future  operating  results or
cause the company's  actual results to differ  materially  from the estimates or
expectations  reflected in such  forward-looking  statements,  including without
limitation, the factors set forth below:

o The introduction of products by the company or its  competitors,  or delays in
customer   purchases  of  existing  products  in  anticipation  of  new  product
introductions  by the company or its  competitors  and market  acceptance of new
products and pricing  programs,  any disruption in the supply of new or existing
products  due to quality  issues,  the reaction of  competitors  to any such new
products or  programs,  the life cycles of the  company's  products,  as well as
delays in product  development and manufacturing,  and variations in the cost of
component  parts,  may  impact  sales,  may  cause a  buildup  in the  company's
inventories, make the transition from current products to new products difficult
and  could  adversely  affect  the  company's  future  operating  results.   The
competitive  pressure  to  develop  technology  and  products  and  to  increase
marketing  expenditures also could cause significant changes in the level of the
company's operating expenses.





                                       12



o The  company's  performance  depends in part upon its ability to  successfully
forecast  the  timing  and  extent  of  customer  demand  and  manage  worldwide
distribution and inventory  levels of the company and its resellers.  Unexpected
fluctuations in reseller  inventory levels could disrupt  ordering  patterns and
may adversely affect the company's financial results. In addition, the financial
failure or loss of a key  customer  or  reseller  could have a material  adverse
impact on the  company's  financial  results.  The company  must also be able to
address production and supply constraints,  including product disruptions caused
by quality  issues,  and delays or  disruptions  in the supply of key components
necessary for production,  including without limitation  component shortages due
to increasing global demand in the company's industry and other industries. Such
delays,  disruptions  or shortages  may result in lost revenue or in the company
incurring  additional  costs  to meet  customer  demand.  The  company's  future
operating  results and its ability to  effectively  grow or maintain  its market
share may be  adversely  affected if it is unable to address  these  issues on a
timely basis.

o Unfavorable  global  economic  conditions  may adversely  impact the company's
future  operating  results.  Since the second  quarter of 2001,  the company has
experienced  weak markets for its  products.  Although the company has seen some
indications  of market  improvement,  continued  softness  in these  markets and
uncertainty  about global economic  conditions  could result in lower demand for
the  company's  products.  Weakness  in demand has  resulted  in  intense  price
competition  and may result in excessive  inventory  for the company  and/or its
reseller  channel,   which  may  adversely  affect  sales,   pricing,   risk  of
obsolescence and/or other elements of the company's operating results.

o The  company  and its  major  competitors,  many of which  have  significantly
greater financial,  marketing and/or  technological  resources than the company,
have regularly  lowered prices on their products and are expected to continue to
do so. In particular, both the inkjet and laser printer markets have experienced
and are expected to continue to experience  significant  price  pressure.  Price
reductions  on inkjet  or laser  products  or the  inability  to  reduce  costs,
including  warranty  costs,  contain  expenses or increase or maintain  sales as
currently expected, as well as price protection measures,  could result in lower
profitability  and  jeopardize  the  company's  ability to grow or maintain  its
market share.

o The  company's  future  operating  results may be adversely  affected if it is
unable  to  continue  to  develop,  manufacture  and  market  products  that are
reliable,  competitive,  and meet  customers'  needs.  The markets for laser and
inkjet products and associated supplies are aggressively competitive, especially
with respect to pricing and the  introduction of new  technologies  and products
offering  improved  features  and  functionality.   The  impact  of  competitive
activities  on the sales  volumes or revenue of the  company,  or the  company's
inability  to  effectively  deal with  these  competitive  issues,  could have a
material  adverse  effect on the  company's  ability to  maintain or grow retail
shelf space or market share and on its financial results.

o Revenue derived from  international  sales make up about half of the company's
revenue.  Accordingly,  the company's future results could be adversely affected
by a variety of factors,  including changes in a specific  country's or region's
political or economic  conditions,  foreign currency exchange rate fluctuations,
trade protection measures and unexpected changes in regulatory requirements.  In
addition,  changes in tax laws and the ability to  repatriate  cash  accumulated
outside the United  States in a tax efficient  manner may  adversely  affect the
company's financial results,  investment  flexibility and operations.  Moreover,
margins on  international  sales tend to be lower than those on domestic  sales,
and the company believes that international operations in new geographic markets
will be less  profitable than  operations in the U.S. and European  markets,  in
part,  because  of the  higher  investment  levels for  marketing,  selling  and
distribution required to enter these markets.

o The company relies in large part on its  international  production  facilities
and international manufacturing partners for the manufacture of its products and
key  components  of its  products.





                                       13



Future  operating  results  may  be  adversely   affected  by  several  factors,
including,  without  limitation,  if the company's  international  operations or
manufacturing  partners  are unable to supply  products  reliably,  if there are
disruptions in international  trade,  disruptions at important geographic points
of exit and entry, if there are difficulties in transitioning such manufacturing
activities  among  the  company,   its   international   operations  and/or  its
manufacturing  partners,  or if there arise  production  and supply  constraints
which result in additional costs to the company.  The financial  failure or loss
of a key supplier  could result in a material  adverse  impact on the  company's
financial results.

o The company's effective tax rate could be adversely affected by changes in the
mix of earnings in countries  with differing  statutory tax rates.  In addition,
the amount of income  tax the  company  pays is  subject  to  ongoing  audits in
various  jurisdictions  and a material  assessment by a taxing  authority  could
adversely affect the company's profitability.

o The company markets and sells its products through several sales channels. The
company has also advanced a strategy of forming  alliances and OEM  arrangements
with many companies.  The company's  future  operating  results may be adversely
affected by any  conflicts  that might arise  between or among its various sales
channels,  the loss of any  alliance  or OEM  arrangement  or the loss of retail
shelf space.  Aggressive  pricing on laser and inkjet products and/or associated
supplies from  customers  and  resellers,  including,  without  limitation,  OEM
customers,  could result in a material adverse impact on the company's  strategy
and financial results.

o Although the company is currently the exclusive supplier of new cartridges for
its laser and inkjet  products,  there can be no assurance that other  companies
will not  develop new  compatible  cartridges  for the  company's  products.  In
addition,  refill  and  remanufactured  alternatives  for some of the  company's
cartridges are available and compete with the company's supplies  business.  The
company expects  competitive  refill and  remanufacturing  activity to increase.
Various legal challenges and governmental  activities may intensify  competition
for the company's aftermarket supplies business.

o The  company's  success  depends  in part on its  ability  to obtain  patents,
copyrights and trademarks,  maintain trade secret protection and operate without
infringing  the  proprietary  rights of  others.  Current  or  future  claims of
intellectual  property  infringement  could  prevent the company from  obtaining
technology of others and could  otherwise  materially  and adversely  affect its
operating  results or  business,  as could  expenses  incurred by the company in
obtaining  intellectual  property rights,  enforcing its  intellectual  property
rights  against others or defending  against claims that the company's  products
infringe the intellectual property rights of others. Furthermore, the imposition
of copyright fees or similar fees by copyright owners or collecting societies in
certain jurisdictions, primarily in Europe, could adversely affect the company's
operating results or business.

o The company's inability to perform  satisfactorily under service contracts for
managed  print  services and other  customer  services may result in the loss of
customers,  loss of reputation  and/or  financial  consequences  that may have a
material adverse impact on the company's financial results and strategy.

o The company depends on its information technology systems for the development,
manufacture,  distribution,  marketing,  sales and support of its  products  and
services.  Any failure in such systems, or the systems of a partner or supplier,
may adversely affect the company's operating results. Furthermore,  because vast
quantities  of the  company's  products  flow  through  only a few  distribution
centers  to  provide  product  to various  geographic  regions,  the  failure of
information  technology systems or any other disruption  affecting those product
distribution  centers  could have a  material  adverse  impact on the  company's
ability to deliver product and on the company's financial results.

o Terrorist  attacks and the potential for future terrorist attacks have created
many  political  and  economic  uncertainties,  some of  which  may  affect  the
company's future operating results.  Future terrorist attacks,  the national and
international  responses to such attacks, and other acts of war or




                                       14



hostility may affect the company's facilities,  employees, suppliers, customers,
transportation  networks  and supply  chains,  or may affect the company in ways
that are not capable of being predicted presently.

o The entrance of additional  competitors that are focused on printing solutions
could further intensify  competition in the inkjet and laser printer markets and
could have a material  adverse  impact on the  company's  strategy and financial
results.

o Factors  unrelated  to the  company's  operating  performance,  including  the
financial  failure or loss of significant  customers,  resellers,  manufacturing
partners  or  suppliers;  the  outcome  of  pending  and  future  litigation  or
governmental  proceedings;  and the ability to retain and attract key personnel,
could also adversely affect the company's  operating results.  In addition,  the
company's stock price, like that of other technology companies, can be volatile.
Trading  activity in the  company's  common stock,  particularly  the trading of
large blocks and intraday  trading in the company's common stock, may affect the
company's common stock price.

While the company  reassesses  material trends and  uncertainties  affecting the
company's  financial  condition and results of operations in connection with the
preparation of its quarterly and annual reports,  the company does not intend to
review or revise,  in light of future  events,  any  particular  forward-looking
statement contained in this report.

The  information  referred  to above  should be  considered  by  investors  when
reviewing any forward-looking statements contained in this report, in any of the
company's public filings or press releases or in any oral statements made by the
company  or any of its  officers  or other  persons  acting on its  behalf.  The
important  factors that could affect  forward-looking  statements are subject to
change,  and the company does not intend to update the foregoing list of certain
important  factors.  By means of this  cautionary  note, the company  intends to
avail itself of the safe harbor from liability  with respect to  forward-looking
statements that is provided by Section 27A and Section 21E referred to above.




                                       15



Item 3. Quantitative and Qualitative Disclosures About Market Risk

The market risk inherent in the company's  financial  instruments  and positions
represents the potential loss arising from adverse changes in interest rates and
foreign currency exchange rates.

Interest Rates
- --------------

At June 30, 2004,  the fair value of the company's  senior notes is estimated at
$162 million using quoted market prices and yields obtained through  independent
pricing sources for the same or similar types of borrowing arrangements,  taking
into  consideration  the  underlying  terms of the debt.  The fair  value of the
senior  notes  exceeded  the  carrying  value as  recorded  in the  Consolidated
Condensed Statements of Financial Position at June 30, 2004 by approximately $12
million.  Market  risk is  estimated  as the  potential  change  in  fair  value
resulting from a hypothetical  10% adverse change in interest rates and amounted
to approximately $2 million at June 30, 2004.

The  company  has  interest  rate swaps that serve as a fair value  hedge of the
company's  senior  notes.  The fair value of the interest rate swaps at June 30,
2004 was a liability of $2.7 million. Market risk for the interest rate swaps is
estimated as the potential  change in fair value  resulting  from a hypothetical
10% adverse change in interest rates and amounted to approximately $2 million at
June 30, 2004.

Foreign Currency Exchange Rates
- -------------------------------

The company  employs a foreign  currency  hedging  strategy  to limit  potential
losses in earnings or cash flows from adverse  foreign  currency  exchange  rate
movements.  Foreign currency exposures arise from transactions  denominated in a
currency  other  than  the  company's   functional  currency  and  from  foreign
denominated  revenue  and  profit  translated  into U.S.  dollars.  The  primary
currencies  to which the  company  is exposed  include  the euro,  the  Canadian
dollar,  the Japanese yen, the British pound and other Asian and South  American
currencies.  Exposures are hedged with foreign currency forward  contracts,  put
options,  and call options with maturity dates of less than eighteen months. The
potential loss in fair value at June 30, 2004, for such contracts resulting from
a  hypothetical  10% adverse change in all foreign  currency  exchange rates was
approximately $57 million.  This loss would be mitigated by corresponding  gains
on the underlying exposures.

Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures
- ------------------------------------------------

The company's  management,  with the participation of the company's Chairman and
Chief  Executive  Officer  and  Executive  Vice  President  and Chief  Financial
Officer,  have evaluated the effectiveness of the company's  disclosure controls
and  procedures as of the end of the period  covered by this report.  Based upon
that  evaluation,  the  company's  Chairman  and  Chief  Executive  Officer  and
Executive  Vice  President and Chief  Financial  Officer have concluded that the
company's   disclosure  controls  and  procedures  are  effective  in  providing
reasonable  assurance  that the  information  required  to be  disclosed  by the
company in the reports that it files under the Securities  Exchange Act of 1934,
as amended,  is recorded,  processed,  summarized  and reported  within the time
periods specified in the Securities and Exchange Commission's rules and forms.

Changes in Internal Control over Financial Reporting
- ----------------------------------------------------

There  has been no change  in the  company's  internal  control  over  financial
reporting  that  occurred  during the period  covered  by this  report  that has
materially affected, or is reasonably likely to materially affect, the company's
internal control over financial reporting.





                                       16



                  LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES

                           Part II. Other Information



Item 1. Legal Proceedings

See "PART I, Item 3, Legal  Proceedings"  in the Form 10-K for the  fiscal  year
ended  December 31, 2003 for a discussion  of legal  proceedings  affecting  the
company. The following is an update to that discussion.

On May 24,  2004,  the  company  and Pitney  Bowes,  Inc.  ("PBI")  settled  the
litigation  accusing the company of infringing  PBI's patent  4,386,272 with the
payment by the company to PBI of an immaterial  amount.  All claims  asserted by
each party against the other were dismissed with prejudice by Order of the court
on May 28, 2004.

Item 2. Changes in  Securities,  Use of Proceeds and Issuer  Purchases of Equity
        Securities



- --------------------- ------------- ----------------------- ---------------------------- -------------------------------
                         Total                                Total Number of Shares      Approximate Dollar Value of
                       Number of      Average Price Paid       Purchased as Part of          Shares that May Yet Be
       Period            Shares           per Share          Publicly Announced Plans     Purchased Under the Plans or
                       Purchased                                    or Programs            Programs (in millions) (1)
- --------------------- ------------- ----------------------- ---------------------------- -------------------------------
- --------------------- ------------- ----------------------- ---------------------------- -------------------------------


                                                                                         
April 1-30,  2004       100,000             $92.60                    100,000                        $173.4


- --------------------- ------------- ----------------------- ---------------------------- -------------------------------
- --------------------- ------------- ----------------------- ---------------------------- -------------------------------


May 1-31, 2004          366,500             $92.42                    366,500                        $139.5


- --------------------- ------------- ----------------------- ---------------------------- -------------------------------
- --------------------- ------------- ----------------------- ---------------------------- -------------------------------


June 1-30, 2004         283,500             $93.01                    283,500                        $113.1


- --------------------- ------------- ----------------------- ---------------------------- -------------------------------
- --------------------- ------------- ----------------------- ---------------------------- -------------------------------

Total                   750,000             $92.67                    750,000                         ---

- --------------------- ------------- ----------------------- ---------------------------- -------------------------------


(1)  As of June 30, 2004,  the  company's  board of directors  had  authorized a
     total  repurchase  of $1.4  billion of its Class A common  stock,  of which
     approximately $113 million is remaining.  This repurchase  authority allows
     the company,  at  management's  discretion,  to selectively  repurchase its
     stock  from  time to time in the open  market  or in  privately  negotiated
     transactions  depending  upon market  price and other  factors.  During the
     second quarter of 2004, the company  repurchased  750,000 shares, at a cost
     of approximately  $70 million,  pursuant to a share  repurchase  program in
     compliance  with  Securities and Exchange  Commission  Rule 10b5-1 and Rule
     10b-18  of  the  Securities  and  Exchange  Act of  1934.  No  shares  were
     repurchased  during the first  quarter of 2004.  As of June 30,  2004,  the
     company had repurchased  approximately 35.5 million shares for an aggregate
     cost of approximately $1.3 billion.





                                       17



Item 4. Submission of Matters to a Vote of Security Holders

        The  information  required to be  reported  for the  company's  Annual
        Meeting of Stockholders held April 22, 2004 was previously reported by
        the company in its Quarterly Report on Form 10-Q for the quarter ended
        March 31, 2004.

Item 6. Exhibits and Reports on Form 8-K

        (a)  Exhibits:

             A list of  exhibits  is set forth in the  Exhibit  Index found on
             page 20 of this report.

        (b)  Reports on Form 8-K:

             A Current  Report on Form 8-K was filed by the  company  with the
             Securities  and  Exchange  Commission  dated  April  19,  2004 to
             announce the company's first quarter 2004 financial results.






                                       18




                  LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES

                                    SIGNATURE
                                    ---------

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned  thereunto duly authorized,  both on behalf of the registrant and in
his capacity as principal accounting officer of the registrant.


                                         Lexmark International, Inc.
                                         (Registrant)



Date: August 6, 2004                     By: /s/ Gary D. Stromquist
                                            -----------------------
                                         Gary D. Stromquist
                                         Vice President and Corporate Controller
                                         (Chief Accounting Officer)






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                                  EXHIBIT INDEX


Exhibits:

10.1 Amendment No. 4 to the Lexmark  International,  Inc.  Nonemployee  Director
     Stock Plan, dated as of April 22, 2004. +

31.1 Certification  of Chairman  and Chief  Executive  Officer  Pursuant to Rule
     13a-14(a)  and  15d-14(a),  As  Adopted  Pursuant  to  Section  302  of the
     Sarbanes-Oxley Act of 2002.

31.2 Certification  of Executive  Vice  President  and Chief  Financial  Officer
     Pursuant to Rule  13a-14(a) and 15d-14(a),  As Adopted  Pursuant to Section
     302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification of Chairman and Chief Executive Officer Pursuant to 18 U.S.C.
     Section 1350, As Adopted Pursuant to Section 906 of the  Sarbanes-Oxley Act
     of 2002.

32.2 Certification  of Executive  Vice  President  and Chief  Financial  Officer
     Pursuant to 18 U.S.C.  Section 1350, As Adopted  Pursuant to Section 906 of
     the Sarbanes-Oxley Act of 2002.

     +  Indicates   management   contract  or  compensatory  plan,  contract  or
     arrangement.




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