10:07 LENOVO GROUP<00992> - Announcement (3) Changes of Directorates The Board announces the following changes of directorates with effect from the Initial Closing: (i) Mr Liu Chuanzhi has ceased to be the Chairman of the Board and has been re-designated as a non-executive Director. (ii) Mr Yang Yuanqing, an executive Director and the preceding Chief Executive Officer of the Company, has been appointed as the Chairman of the Board to replace Mr Liu. (iii) Mr Stephen Maurice Ward, Jr. has been appointed as an executive Director. (iv) Mr Zhu Linan has been appointed as a non-executive Director. (v) Mr Zeng Maochao has resigned as a non-executive Director. Mr Liu Chuanzhi, aged 61, has ceased to be the Chairman of the Board and been re-designated as a non-executive Director with effect from the Initial Closing. Mr Liu had been the Chairman of the Board and an executive Director since 8 February 1994 and 8 November 1993 respectively. He graduated from the Department of Radar Communications, Xian Military Communications Engineering College of China in 1966. He has over 35 years of experience in the computer industry. Mr Liu is a director of Legend Holdings Limited, the controlling shareholder of the Company, and certain of its associates (as defined in the Listing Rules). Mr Liu does not have any family relationships with any other Directors and senior management of the Company. Mr Liu did not hold any directorship in any listed public companies in the last three years. As at the date of this announcement, no service contract has been entered into by him with the Company. Mr Liu was not appointed for a specific term, but is subject to retirement by rotation and re-election at the annual general meetings of the Company in accordance with the Articles of Association. Mr Liu will receive such director's fee and other remuneration as the Board may determine from time to time pursuant to the power given to it under the Articles of Association or otherwise granted to the Board by the Shareholders. In determining the director's fee and remuneration for Mr Liu, the Board will take into account the level of remuneration paid to a non-executive director of comparable companies, time and responsibilities committed and assumed by Mr Liu in attending to the affairs of the Company and the recommendations given by the remuneration committee of the Board. The Company will make an announcement when the director's fee and remuneration of Mr Liu is fixed. According to the register maintained by the Company pursuant to section 352 of the SFO as of 30 April 2005, Mr Liu was interested in 16,986,000 Shares and 5,250,000 underlying Shares in respect of share options granted under the share option scheme of the Company. Mr Stephen Maurice Ward, Jr., aged 50, has been appointed as an executive Director, Chief Executive Officer and President of the Company with effect from the Initial Closing. Prior to joining the Group, Mr Ward spent over 26 years with IBM and was the senior vice president and general manager of IBM's Personal Systems Group responsible for IBM's Personal Computing Division, Retail Store Solutions Division and Printing Systems Division. During his time with IBM, Mr Ward held a number of senior management positions in key product development, manufacturing management, industrial sector management, and was once the chief information officer of IBM. Mr Ward has not previously held any positions with the Company or any of its subsidiaries. He is also a director of Carpenter Technology Corporation, a company listed on the New York Stock Exchange in the United States. Save as other disclosed above, Mr Ward did not hold any other directorship with any listed companies in the last three years and has no relationship with any other Directors, senior management, substantial shareholders or controlling shareholders of the Company. The Company entered into a service contract with Mr Ward on 30 April 2005 for a term of three years pursuant to which Mr Ward will be entitled to a base salary of US$600,000 per annum and a maximum annual bonus of US$1,000,000 depending on his performance for that year. According to the register maintained by the Company pursuant to section 352 of the SFO as at 30 April 2005, Mr Ward was not interested in any Shares of the Company. Mr Zhu Linan, aged 43, has been appointed as a non-executive Director with effect from the Initial Closing. He graduated with a Master degree in Electronic Engineering from Shanghai Jiao Tong University in 1987. He has over 18 years of management experience. He serves on the board of directors of Legend Holdings Limited, the controlling shareholder of the Company, and certain of its associates (as defined in the Listing Rules). Mr Zhu does not have any family relationships with any other Directors and senior management of the Company. Mr Zhu was a vice