In the Emerging Markets, Lenovo’s PC shipments far surpassed industry expectations for PC shipments, with the Company delivering a 50 percent year-over-year increase, seven times the overall industry growth rate of 7.4 percent during the fourth fiscal quarter. Representing 16 percent of Lenovo’s overall sales, Emerging Markets sales jumped 43 percent year-over-year during the fourth quarter to a total of $US1.2 billion. Lenovo enjoyed notable market share gains across the entire region, picking up 2.1 share points year-over-year, with a particularly strong showing in India and Russia. Lenovo ended the quarter as the number-one PC vendor in India, a first-time ever milestone, and in Russia, Lenovo became the number three PC vendor, no less an impressive achievement.

With the joint venture with NEC and the acquisition of Medion complete and fully operational, consolidated sales in Mature Markets for the fourth fiscal quarter increased 85 percent year-over-year to $US3.4 billion, or 45 percent of the Company’s total sales. Despite the overall industry being flat year-over-year during the fourth quarter, Lenovo’s PC shipments exploded to an 81 percent increase year-over-year during the same period. Of particular note was the Company’s performance in North America, where PC shipments were up 26 percent, in an overall market that was flat year-over-year. Helped by strong market share gains in Japan, where Lenovo is the number one PC vendor, and Western Europe, Lenovo achieved an overall ten percent market share across the Mature Markets for the first-time ever.

PRODUCT OVERVIEW

Consolidated sales for Lenovo’s laptop PC business worldwide in the fourth fiscal quarter increased 41 percent year-over-year to $US4.2 billion, accounting for 56 percent of the Company’s overall sales. During the same period, Lenovo’s worldwide PC shipments increased a solid 44 percent, or almost nine times an overall industry increase of just five percent. In the fourth quarter, Lenovo introduced the ThinkPad X1 hybrid laptop with up to ten hours of battery life, and the Thinkpad T430u Ultrabook, the company’s first business ultrabook, featuring an extremely thin and light design. In addition, Lenovo introduced several new consumer IdeaPad laptops in a full spectrum of styles, colors, and performance for every consumer – from mobile professionals to students to everyone in between.

During the fourth fiscal quarter, Lenovo’s desktop PC shipments grew 43 percent worldwide year-over-year, or just as with laptops, almost nine times an overall industry increase worldwide of just five percent worldwide. Lenovo’s desktop PC shipments for the same period increased 45 percent to $US2.4 billion, or 32 percent of the Company’s overall sales worldwide. In the fourth quarter, Lenovo introduced the IdeaCentre A720 all-in-one desktop PC, featuring a pioneering 27-inch screen that allows a more widely-adjustable angle from five to 90 degrees. Also announced was the new IdeaCentre K430, a traditional tower desktop PC sporting optional dual graphics and twin hard drives.

Lenovo saw strong growth in its Mobile Internet Digital Home (MIDH) product lines as its smartphone shipments grew ten times faster than the overall market in China, allowing the Company to gain 8.2 share points year-over-over, and finishing the quarter at just a shade under double-digit market share as the number four smartphone provider in China. In a market that was down a dramatic 25 percent year-over-year, shipments of Lenovo feature phones in China increased 4.5 percent, allowing the Company to gain 8.2 share points year-over-year. Most impressive in the MIDH product lineup was the continued momentum of tablets, which climbed year-over-year to 17.2 percent market share in China, allowing the Company to become the number two tablet provider in China, and number four in the world.

ABOUT LENOVO

Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a $US30 billion personal technology company – and the second largest PC company in the world, serving customers in more than 160 countries. 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 has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information, see www.lenovo.com.

* See IDC 2012Q1 press release

** includes Africa, Asia Pacific, Central/Eastern Europe, Hong Kong, India, Korea, Latin America, Mexico, Middle East, Pakistan, Russia, Taiwan, Turkey

***includes Australia/New Zealand, Israel, Japan, North America, Western Europe and global accounts