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Lenovo to Increase Global Footprint With New Manufacturing Plants in Mexico and India

   

RESEARCH TRIANGLE PARK, NC, MONTERREY, MEXICO, and NEW DELHI, INDIA - July 26, 2007 – Lenovo today announced the company will open two new, state-of-the-art manufacturing plants and fulfillment operations centers in Monterrey, Mexico, and Baddi, Himachal Pradesh, India. Each of the facilities will support regional customer requirements including product assembly and configuration, distribution services and logistics — and additional value-added services — to meet the need for Lenovo products in these economically vital markets.

The Baddi plant is expected to be operational in the third fiscal quarter of 2007, while the Monterrey facility will come online by mid-2008. The new plants will enable Lenovo to significantly increase global production capacity of Think-branded and Lenovo-branded PCs.

The total combined economic value of these investments is estimated at more than $30 million, including the cost of construction, tooling, salaries, taxes and additional contributions to the local, regional and national economies.

"These plants are an investment in Lenovo's future that leverages our world-class manufacturing base in China and extends it globally to satisfy demand for Lenovo products in vital economic opportunity areas," said Gerry P. Smith, senior vice president of Lenovo's Global Supply Chain. "This announcement, together with the new facilities we recently announced in Shanghai, China, and North Carolina, will help us to improve our competitiveness and cost structure as well as accelerate our ability to reach new markets and buyer segments.

"We are also actively scouting locations in Central and Eastern Europe and anticipate shortly announcing a similar type of installation mirroring what we are reporting today," Smith said.

Lenovo currently has manufacturing facilities in Beijing, Huiyang, Shanghai and Shenzhen, China, and Pondicherry, India, and a new fulfillment center in Whitsett, North Carolina, announced last month.

The planned 260,000 square foot (24,155 square meters) Monterrey facility will have a production capacity of five million PCs when it goes on-stream in mid-2008, employing approximately 750 people. The plant will supply PCs to customers throughout the Americas and represents Lenovo's largest manufacturing investment to date outside of China.

The Baddi plant will be the first to go online, with some limited production capacity available as soon as September 2007 to serve the growing India market. With an annual capacity of two million units, the plant initially will measure 130,000 square feet (12,077 square meters), and employ approximately 350 people.

About Lenovo Group Ltd. Lenovo (HKSE: 992) (ADR: LNVGY) is dedicated to building the world's best-engineered 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 .