Lenovo Closes Share Purchase Agreement And Now Holds More Than 51% Medion’s Share Capital

Hong Kong / Stuttgart - August 2, 2011:The investment by Lenovo, the world’s third-largest PC maker, in Medion, one of Germany’s biggest personal technology and consumer electronics companies, today achieved a significant milestone. Lenovo has announced the closing of the share purchase agreement with Gerd Brachmann, Medion’s largest shareholder, founder and CEO. With the purchase of Medion shares from Mr. Brachmann together with the purchase of shares from Medion’s second largest shareholder, Orbis, Lenovo now holds over 51% of Medion’s share capital (c.56% of Medion’s voting rights) through its wholly owned subsidiary, Lenovo Germany Holding GmbH.

“This step accelerates our penetration into the consumer market in Western Europe, particularly in Germany, whilst giving us more growth opportunities by leveraging Medion’s strong routes to market,” said Milko van Duijl, President Mature Markets Group Lenovo.

Lenovo now intends to establish a Domination and Profit and Loss Transfer Agreement (“DPLTA”) between Lenovo Germany Holding GmbH and Medion. The implementation of the DPLTA is intended to promote the collaboration of the two businesses and to strengthen the overall competitive position of Medion and Lenovo.

Lenovo’s shareholding of over 51% of Medion’s share capital (c.56% of Medion’s voting rights) together with Mr. Brachmann’s remaining shareholding of c.18.33% of Medion’s share capital (c.19.86% of Medion’s voting rights) will ensure the necessary voting rights for a resolution in favour of a DPLTA between Lenovo and Medion. Lenovo and Mr. Brachmann have agreed that Mr. Brachmann will vote his remaining shareholding of c.18.33% in Medion in favour of a DPLTA between Lenovo and Medion. TheManagement Board of Medion welcomes this intention and is willing to work in close cooperation with Lenovo on this matter.

“We see great opportunities with the combined power of both companies and we will work together to bring attractive products to the market,” says Gerd Brachmann, founder and CEO, Medion AG.

The terms and conditions of the DPLTA, in particular the amount of the adequate guaranteed dividends for the minority shareholders and the amount of the adequate cash compensation for the minority shareholders are still to be determined in the coming months.

About Lenovo

Lenovo (HKSE: 992) (ADR: LNVGY) is a $US21 billion personal technology company serving customers in more than 160 countries, and the world’s third-largest PC vendor. Dedicated to building exceptionally engineered PCs and mobile internet devices, Lenovo’s business is built on product innovation, a highly-efficient global supply chain and strong strategic execution. 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. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smart phones. Lenovo, a global Fortune 500 company, has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. www.lenovo.com.