Lenovo and Microsoft Reaffirm Global Agreement

April 18, 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."

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.

Source: Lenovo Group