Geographic Overview

In China, in the third fiscal quarter, Lenovo recorded consolidated sales of US$3.5 billion, a two percent decrease year-over-year, but an eight percent increase quarter-to-quarter. China represented 28.5 percent of the Company’s total worldwide third quarter sales. Pre-tax income in China increased eight percent to US$180 million year-over-year, with pre-tax income margin gaining half-a point to 5.2 percent.

In Asia Pacific, Lenovo had consolidated sales in the third fiscal quarter of US$1.7 billion, a decrease of 14 percent year-over-year, representing 14 percent of the Company’s total worldwide sales. The region had a pre-tax loss of US$41 million and a pre-tax loss margin of 2.4 percent.

In Europe, Middle East and Africa, consolidated sales in the third fiscal quarter declined 2.7 percent year-over-year to US$3.4 billion, but increased a robust 23 percent quarter-to-quarter, or 27.6 percent of the Company’s total worldwide sales. The pre-tax loss was US$102 million with a pre-tax loss margin of three percent.

In the Americas, consolidated sales were US$3.6 billion, down eight percent year-over-year, or 29.9 percent of Lenovo’s total worldwide sales during the third fiscal quarter. Pre-tax income was US$39 million, with a pre-tax income margin of 1.1 percent.

About Lenovo

Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a US$45 billion global Fortune 500 company and a leader in providing innovative consumer, commercial, and enterprise technology. Our portfolio of high-quality, secure products and services covers PCs (including the legendary Think and multimode YOGA brands), workstations, servers, storage, smart TVs and a family of mobile products like smartphones (including the Motorola brand), tablets and apps. Join us on LinkedIn, follow us on Facebook or Twitter ( @Lenovo) or visit us at www.lenovo.com.