Lenovo, a letter from Liu and Yang to all associates

Lenovo Group of all my colleagues:

We are very excited to announce that today, December 8, 2004, Lenovo Group acquired IBM's global PC business at a price of 1.25 billion US dollars, including desktops and laptops, as well as research and development centers, manufacturing plants, global distribution networks and service centers related to the personal computer business. , the new Lenovo will be free to use the IBM brand within 5 years, and permanently retain the right to use the world-famous "think" trademark, while IBM will hold about 19% of Lenovo Group's shares, become Lenovo Group's strategic partner. Upon completion of the acquisition, the new Lenovo will become the world's third largest personal computer company, with a wider global brand awareness, a more diverse customer base and a large distribution network, world-class management team, world-class leading technology, richer product portfolio, more efficient operation of the ability, Realize our dream of an international strategic vision.

December 8 will be a great day for Lenovo, and it will become an important moment in the history of Chinese enterprise development. In Lenovo's history of Lenovo, there is no such thing as today, the global IT industry and the economic and social impact of the shock. This is Lenovo with enterprising spirit of innovation to achieve unparalleled strategic breakthrough, but Lenovo 20 to create the best proof of corporate value. Together, we are proud and proud to be able to witness and participate in this historic merger.

The acquisition of IBM's global PC business, making Lenovo a global company, is a key and important step in our established internationalization strategy. In the past ten years, relying on the efforts of all staff, we have established the absolute advantage in the Chinese market, has laid a strong foundation for internationalization; today, by acquiring IBM's personal computer business, we have shortened the process of internationalization that may take us 20 years or even longer to achieve, This will be a new historical starting point, colleagues in the past to create a glorious history of Lenovo, I believe that the future will also be dedicated to promoting the successful operation of the new company, to create a more brilliant business performance.

After the completion of the merger, the new Lenovo will enter a smooth transition period and integration period, all aspects of the operation will be orderly, in the near future, China's business structure will remain stable, we have and customers, channels, suppliers and the government has been active communication, informed our progress, and committed to the quality of products and services, service team unchanged, The signed and executed contracts are unchanged. The Chinese market is the base of new Lenovo, and we will ensure stable and sustained growth of China's business.

The successful operation of the new Lenovo requires the full input and support of colleagues. First of all, we need to highly identify with the company's strategy, the company's goals and personal development goals, through the various departments of serious and meticulous work, to ensure the smooth implementation of integration and business sustained and stable development; second, we need to embrace change with a firm and positive mindset, Take the initiative to meet the challenges that change poses to us, accept changes, actively respond, in the quality of work and their own quality to the international enterprise staff standards close; The new company will also actively create conditions, through training and other means to help employees adapt to the changes brought about by internationalization, so that everyone adapt to the requirements of international companies.

IBM has a history of 90 years, Lenovo has also been in China over the past 20 decades, the two companies have a common corporate culture concept: People-oriented, customer-oriented, excellence, emphasizing the creation of value for shareholders. The two sides have a natural complementary advantage, however, these advantages can be truly integrated, synergy to produce a huge development momentum, depending on the joint efforts of both sides of the staff, we need mutual respect, humility to learn, to make new Lenovo into a common strategic vision, corporate culture and value sharing of respected companies.

The Chairman of the Board of the new company will be Yuanqing, and the new CEO will be Mr. Steve Ward. Mr. Steve Ward, a senior vice president of IBM, has been in charge of the personal Systems group for more than 26 years as an IBM company. Yuanqing and Steve Ward have begun close cooperation, and under their leadership, the new board of directors and the management of all levels will take the lead, and within six months all the work will be orderly.

We will promptly announce the follow-up progress of the relevant information, in today and after a period of time, we will through the staff assembly, online c-time and other forms and everyone to communicate, to answer the concerns of everyone, if you have any questions or suggestions, you can always contact with the Big Head Monkey mailbox. (Bigmonkey@lenovo.com)

Liu, chairman of Lenovo Group's board of Directors

Lenovo Group president and CEO Yang

December 8, 2004