The Board of Lenovo Group Limited announced that, on May 28, 2024, after trading hours, the Company and Alat have entered into the Strategic Collaboration Framework Agreement, pursuant to which the Company and Alat will cooperate strategically to develop new business opportunities in the MEA Region. The Strategic Collaboration Framework Agreement is a framework agreement for the Company and Alat to conduct a comprehensive business cooperation to expand the Company's business growth in the MEA Region. A framework of the localization plan with two development phases has been set out under the Strategic Collaboration Framework Agreement.

The parties will work in good faith to agree and enter into the MOP Agreement and the SDC Commercial Agreement in relation to the localization plan in accordance with the principles and commitments as set out in the Strategic Collaboration Framework Agreement in more detail. Pursuant to the Strategic Collaboration Framework Agreement, the Company will launch a new regional headquarters for the MEA Region in Riyadh, the Kingdom of Saudi Arabia, which will include a customer center to generate customer demand from the MEA Region and a research and development center focusing on the MEA Region. In conjunction with the regional headquarters, a new manufacturing facility will be set up in the Kingdom of Saudi Arabia to focus on producing initially PCs and servers for the MEA Region.

The regional headquarters and manufacturing facility will be operated by wholly owned subsidiary(ies) of the Company. Subject to a commercially viable plan, the parties will further agree to expand the Company's presence within the MEA Region, including further expansion of the manufacturing facility and its production capacity. Alat will support and provide assistance to the Company to ensure the smooth implementation of the Strategic Collaboration.

Alat will provide, among others, assistance to the Company in selecting the premises for the regional headquarters in Riyadh and obtaining of all permits, licenses and approval of governmental authority applicable to the regional headquarters in Riyadh. Alat will also deliver the premises for the manufacturing facility based on the Company's requirements for the Company to set up the manufacturing facility. The Strategic Collaboration Framework Agreement may be terminated under certain circumstances, including, among others, the termination of the Bond Subscription Agreement and the failure of the parties to agree and enter into the MOP Agreement and SDC Commercial Agreement within the specified timeframe.