Lenovo Announces Memorandum of Understanding to Acquire Packard Bell

Lenovo today announced that the Company is in discussion with an
independent third party in relation to a proposed acquisition of
Packard Bell, a computer company in Europe and has entered into a
memorandum of understanding with such party to explore the
possibilities of the proposed acquisition. The Company is currently
continuing negotiation with the independent third party and
undertaking certain necessary enquiries with third parties and/or
government bodies in preparation for the entering into of definitive
agreements for such proposed acquisition.

The transaction, if materialized, may constitute a discloseable
transaction of the Company under the Hong Kong Stock Exchange listing
rules. Shareholders of Lenovo and potential investors should note that
the proposed acquisition may or may not materialize. Further
announcement will be made by the Company as and when appropriate to
comply with the Hong Kong Stock Exchange listing rules.

ABOUT LENOVO

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.