Lenovo Sets Up Second Manufacturing Plant in India

BANGALORE

July 26, 2007

Reaffirming its commitment to the Indian IT market, global PC maker Lenovo
announced that it is opening a new, state-of-the art manufacturing plant and
fulfillment-operations center in Baddi, Himachal Pradesh, India. The Baddi
manufacturing plant is an essential part of Lenovo's global manufacturing
strategy and is Lenovo's second manufacturing facility in India. The plant in
Baddi will manufacture both Think and Lenovo-branded PCs and is expected to be
operational in the third fiscal quarter of 2007.

"India is an integral part of Lenovo's global manufacturing strategy.
With our second plant in India, we expect to improve our supply chain efficiency
and better serve our growing base of customers in this region," said Jeff
Gallinat, vice president - Global Manufacturing, Lenovo.

This announcement is the latest in a series of investments and strategic
initiatives announced by the company in India following Lenovo's acquisition of
the IBM PC Division in May 2005. Lenovo first demonstrated the importance it
places on the Indian market when it launched the Lenovo 3000 series in India in
March 2006, making India the first country outside China to market Lenovo-branded
PCs.

In December 2006, Lenovo opened an Innovation center in Andheri, Mumbai to
accelerate innovation and create solutions for challenges faced in developing
markets. The center is Lenovo's third, worldwide. The Mumbai Innovation Center
enables large enterprise and mid-market customers, business partners and
independent software vendors to collaborate on new personal computing solutions
to address today's toughest client IT challenges and is spread across 4,500
square feet. This is Lenovo's third Innovation Center after Research Triangle
Park, United States and Beijing, China.

More recently, in July 2007, Lenovo also announced its worldwide marketing
hub in Bangalore. The hub facilitates adoption of best practices from across the
globe, standardizes brand communication, enables a faster and more
cost-effective response management system, and delivers consistent application
of common metrics across markets. This 'distributed centralization' marketing
model will allow Lenovo to produce higher-quality work, use the best talent
available no matter where they reside and accelerate its market responsiveness.

The Baddi plant, measuring 130,000 square feet (12,077 square meters) will
employ approximately 350 people and have an annual capacity of two million
units. It will support regional customer requirements including product
assembly, distribution services and reverse logistics. It will also offer
additional value-added services such as product configuration including custom
imaging, asset tagging, and bundled and "over packed" orders.