Rese­arch Tri­ang­le Park, North Caro­li­na, and Moun­tain View, Cali­for­nia – Janu­ary 29, 2014: Leno­vo (HKSE: 992) (ADR: LNVGY) and Goog­le (NASDAQ: GOOG) today have ente­red into a defi­ni­ti­ve agree­ment under which Leno­vo plans to acqui­re the Moto­ro­la Mobi­li­ty smart­phone busi­ness. With a strong PC busi­ness and a fast-gro­wing smart­phone busi­ness, this agree­ment will signi­fi­cant­ly streng­then Lenovo’s posi­ti­on in the smart­phone mar­ket. In addi­ti­on, Leno­vo will gain a strong mar­ket pre­sence in North Ame­ri­ca and Latin Ame­ri­ca, as well as a foot­hold in Wes­tern Euro­pe, to com­ple­ment its strong, fast-gro­wing smart­phone busi­ness in emer­ging mar­kets around the world.

The purcha­se pri­ce is appro­xi­m­ate­ly US$2.91 bil­li­on (sub­ject to cer­tain adjus­t­ments), inclu­ding US$1.41 bil­li­on paid at clo­se, com­pri­sed of US$660 mil­li­on in cash and US$750 mil­li­on in Leno­vo ordi­na­ry shares (sub­ject to a share cap/floor). The remai­ning US$1.5 bil­li­on will be paid in the form of a three-year pro­mis­so­ry note.

Leno­vo, which in 2005 acqui­red IBM’s PC busi­ness and its legen­da­ry PC brand, will now acqui­re world-renow­ned Moto­ro­la Mobi­li­ty, inclu­ding the MOTOROLA brand and Moto­ro­la Mobility’s port­fo­lio of inno­va­ti­ve smart­phones like the Moto X and Moto G and the DROID™ Ultra series. In addi­ti­on to cur­rent pro­ducts, Leno­vo will take owner­ship of the future Moto­ro­la Mobi­li­ty pro­duct roadmap.

Goog­le will main­tain owner­ship of the vast majo­ri­ty of the Moto­ro­la Mobi­li­ty patent port­fo­lio, inclu­ding cur­rent patent appli­ca­ti­ons and inven­ti­on dis­clo­sures. As part of its ongo­ing rela­ti­onship with Goog­le, Leno­vo will recei­ve a licen­se to this rich port­fo­lio of patents and other intellec­tu­al pro­per­ty. Addi­tio­nal­ly Leno­vo will recei­ve over 2,000 patent assets, as well as the Moto­ro­la Mobi­li­ty brand and trade­mark portfolio.

Moto­ro­la Mobi­li­ty enjoys out­stan­ding brand awa­re­ness around the world, and is curr­ent­ly the #3 Android smart­phone manu­fac­tu­rer in the U.S. and #3 manu­fac­tu­rer over­all in Latin America.

“The acqui­si­ti­on of such an ico­nic brand, inno­va­ti­ve pro­duct port­fo­lio and incre­di­bly talen­ted glo­bal team will imme­dia­te­ly make Leno­vo a strong glo­bal com­pe­ti­tor in smart­phones. We will imme­dia­te­ly have the oppor­tu­ni­ty to beco­me a strong glo­bal play­er in the fast-gro­wing mobi­le space,” said Yang Yuan­qing, chair­man and CEO of Leno­vo. “We are con­fi­dent that we can bring tog­e­ther the best of both com­pa­nies to deli­ver pro­ducts cus­to­mers will love and a strong, gro­wing busi­ness. Leno­vo has a pro­ven track record of suc­cessful­ly embra­cing and streng­thening gre­at brands – as we did with IBM’s Think brand – and smooth­ly and effi­ci­ent­ly inte­gra­ting com­pa­nies around-the-world. I am con­fi­dent we will be suc­cessful with this pro­cess, and that our com­pa­nies will not only main­tain our cur­rent momen­tum in the mar­ket, but also build a strong foun­da­ti­on for the future.”

“Leno­vo has the exper­ti­se and track record to sca­le Moto­ro­la Mobi­li­ty into a major play­er within the Android eco­sys­tem. This move will enable Goog­le to devo­te our ener­gy to dri­ving inno­va­ti­on across the Android eco­sys­tem, for the bene­fit of smart­phone users ever­y­whe­re,” said Lar­ry Page, CEO, Google.

“As part of Leno­vo, Moto­ro­la Mobi­li­ty will have a rapid path to achie­ving our goal of rea­ching the next 100 mil­li­on peo­p­le with the mobi­le Inter­net. With the recent laun­ches of Moto X and Moto G, we have tre­men­dous momen­tum right now and Lenovo’s hard­ware exper­ti­se and glo­bal reach will only help to acce­le­ra­te this,” said Den­nis Woodsi­de, CEO, Moto­ro­la Mobility.

The tran­sac­tion is sub­ject to the satis­fac­tion of regu­la­to­ry requi­re­ments, cus­to­ma­ry clo­sing con­di­ti­ons and any other nee­ded approvals.

About Lenovo

Leno­vo (HKSE: 992) (ADR: LNVGY) is a US$34 bil­li­on per­so­nal tech­no­lo­gy com­pa­ny – the lar­gest PC maker world­wi­de and an emer­ging PC Plus lea­der – ser­ving cus­to­mers in more than 160 count­ries. Dedi­ca­ted to 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. For more infor­ma­ti­on see www.lenovo.com.

About Motorola Mobility

Moto­ro­la Mobi­li­ty, a Goog­le com­pa­ny, crea­tes mobi­le devices and wire­less access­ories that sim­pli­fy, con­nect and enrich people’s lives. For more infor­ma­ti­on, visit motorola.com/mobility.

About Google

Goog­le is a glo­bal tech­no­lo­gy lea­der, focu­sed on impro­ving ways peo­p­le con­nect with infor­ma­ti­on. Google’s inno­va­tions in web search and adver­ti­sing have made its web­site a top Inter­net pro­per­ty and its brand one of the most reco­gni­zed in the world.