09:31     LENOVO GROUP<00992> - Announcement & Resumption (6)                 

    TPG  -  -  1,560,000 Convertible  572,477,064  6.2%  0% 5.8%              
          Preferred Shares                                                    
                                                                              
    General Atlantic Group  -  -  780,000 Convertible  286,238,532  3.1%      
    0%      2.9%      Preferred Shares                                        
                                                                              
    Newbridge Capital Group  -  -  390,000 Convertible  143,119,266  1.5%     
    0%      1.5%      Preferred Shares                                        
                                                                              
    Directors  53,980,000 Shares  0.6%  53,980,000 Shares  53,980,000  0.6%   
     0.6%   0.6%                                                              
                                                                              
    Public  3,195,764,137 Shares  34.6%  3,195,764,137 Shares                 
    3,195,764,137  34.3%  36.4%     32.6%                                     
                                                                              
        100.0%    9,300,513,539  100%  100% 100%                              
                                                                              
    As at 3 May 2005                                                          
    Percentage of total issued share capital                                  
                                                                              
    Immediately upon the full conversion of the Convertible Preferred Shares  
    (after closing of the Share Repurchase) assuming no exercise of Warrants  
                                                                              
    Immediately upon the full conversion of the Convertible Preferred Shares  
    (after closing of the Share Repurchase) and full exercise of Warrants     
                                                                              
    SOURCE OF FUNDING                                                         
                                                                              
    The funds required for the Share Repurchase, of approximately             
    US$152,221,909 (approximately HK$1,187,330,888), will be financed out     
    of the proceeds of US$350,000,000 (approximately HK$2,730,000,000) from   
    the issue of the Convertible Preferred Shares and the Warrants to the     
    Investors pursuant to the Investment Agreement. Closing of the Share      
    Repurchase is conditional, among other things, upon closing of the        
    Investment Agreement. As the Initial Closing occurred prior to the        
    closing of the Investment Agreement, the Company will use a portion of    
    the proceeds raised pursuant to the Investment Agreement to fund the      
    repurchase of the Excess Shares issued to IBM in lieu of cash             
    consideration. The Company believes that the financing of the Share       
    Repurchase will not have any adverse impact on the financial position     
    of the Company.                                                           
                                                                              
    INFORMATION ON THE COMPANY                                                
                                                                              
    The principal activity of the Company is investment holding. Since the    
    closing of IBM Acquisition, the principal activity of the Group is        
    provision of desktop and notebook computers in worldwide markets. The     
    Group also provides information technology products including mobile      
    handsets, servers, peripherals and digital entertainment products in      
    the PRC.                                                                  
                                                                              
    The terms of the Share Repurchase were negotiated at arm's length         
    between the Company and IBM. The Directors consider that the Share        
    Repurchase is in the best interests of the Company.                       
                                                                              
    INFORMATION ON IBM                                                        
                                                                              
    IBM is the largest supplier of "hardware", "software" and information     
    technology services, and pioneered the development and implementation     
    of "e-business" solutions. Over the past decade, IBM has been a leader    
    in the information technology market's shift of focus from selling        
    hardware, software, and services, to the creation of solutions to         
    clients' business problems. The common stock of IBM is listed on the      
    New York, Chicago and Pacific stock exchanges and on other exchanges in   
    the USA and around the world.                                             
                                                                              
    SHARES REPURCHASE CODE IMPLICATIONS                                       
                                                                              
    Pursuant to Rule 2 of the Share Repurchase Code, the Share Repurchase     
    must be approved by the Executive. The Share Repurchase is also           
    conditional upon the approval by at least three-fourths of the votes      
    cast on a poll by disinterested shareholders present in person or by      
    proxy at the EGM. In accordance with the Share Repurchase Code, IBM and   
    its concert parties are required to abstain from voting in respect of     
    the Share Repurchase. All disinterested shareholders within the meaning   
    of the Share Repurchase Code are eligible to vote. The Company, the       
    Major Shareholder and the Investors will approach the SFC to determine    
    whether or not the Major Shareholder and the Investors will be eligible   
    to vote at the EGM.                                                       
                                                                              
    GENERAL                                                                   
                                                                              
    Following the Initial Closing, the Share Repurchase also constitutes a