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Lenovo and Microsoft Reaffirm Global Agreement

   

REDMOND, Wash. — April 17, 2006 — Senior executives from Lenovo Group Ltd. and Microsoft Corp. met today to reaffirm their joint efforts for market development and to formally sign a global agreement that expands and deepens the strategic cooperation between the two companies.

The two companies will work together to promote the use and benefits of validly licensed Microsoft® software products through new and innovative joint sales, marketing and training programs in China and around the world.

In November 2005, Lenovo took the initiative to launch a value-added software program in China, becoming the first PC manufacturer to pre-install genuine Microsoft Windows® operating systems in all its product lines for the China market. Educational programs have also been conducted at all Lenovo stores to increase consumer awareness of the value of genuine software; understanding of software copyright issues; and features such as system security, privacy protection and virus prevention. Microsoft supports the program by providing marketing resources and technology assistance. Since its launch, this innovative Lenovo program has surpassed expectations, receiving an enthusiastic response from consumers, resellers and business partners alike. The program is expected to boost intellectual property rights protection efforts in China. Lenovo plans to extend this kind of program to other emerging markets, driving business growth.

“By taking the lead in providing genuine value-added software on PCs in China, Lenovo is demonstrating foresight and wisdom as a responsible global industry leader,” said Bill Gates, chairman and chief software architect of Microsoft. “Microsoft commends Lenovo for recognizing the importance of intellectual property rights and the value of genuine software. We will continue to work with Lenovo and other industry partners to ensure that customers get the greatest value and performance from their PCs.”

“Our first priority has always been to provide highest-quality, innovative products to our customers,” said Yang Yuanqing, chairman of Lenovo. “Working together with Microsoft, we have made it easy for our joint customers to get the reliability, service and support only available from genuine software, at great competitive pricing. As a global corporate citizen, we want to lead the efforts to make it possible for ordinary users to enjoy genuine software and to help foster the healthy and orderly development of the IT industry in every country in which we do business.”

Lenovo intends to pre-install genuine Microsoft software on PCs manufactured by Lenovo that are sold in more than 65 countries and regions around the world, allowing customers to enjoy the Windows capabilities they expect, and take advantage of ongoing system improvements that let them do more with their PCs. By promoting the consumer benefits of genuine software, Lenovo expects to purchase Microsoft Windows software valued at approximately $1.2 billion (U.S.) over the next 12 months.

Lenovo (HKSE: 992) (ADR: LNVGY) is dedicated to building the world’s most innovative personal computers. Lenovo’s business model is built on innovation, operational efficiency and customer satisfaction as well as a focus on investment in emerging markets. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division, the company develops, manufactures and markets reliable high-quality, secure, and easy-to-use technology products and services worldwide. Lenovo has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information, see www.lenovo.com .

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.