Lenovo Group Ltd. And EMC Corporation Team Up In Strategic Worldwide Partnership

Lenovo Group Ltd. and EMC Corporation announced a broad partnership that enhances Lenovo's position in industry standard servers and networked storage solutions, while significantly expanding EMC's reach in China and other key, high-growth markets. The partnership is a strong strategic fit, leveraging the two companies' respective strengths, across three main areas: First, Lenovo and EMC have formed a server technology development program that will accelerate and extend Lenovo's capabilities in the x86 industry-standard server segment. These servers will be brought to market by Lenovo and embedded into selected EMC storage systems over time. Second, the companies have forged an OEM and reseller relationship in which Lenovo will provide EMC's networked storage solutions to its customers, initially in China and expanding into other global markets in step with the ongoing development of its server business. Finally, EMC and Lenovo plan to bring certain assets and resources from EMC's Iomega business into a new joint venture which will provide Network Attached Storage (NAS) systems to small/medium businesses (SMB) and distributed enterprise sites. In the joint venture, Lenovo will contribute cash, while EMC will contribute certain assets and resources of Iomega. Upon closing, Lenovo will hold a majority interest in the new joint venture. The joint venture is subject to customary closing procedures including regulatory approvals and is expected to close by the end of 2012.