IBM and Lehman Brothers entered into a business alliance last year with the aim to jointly invest in Chinese enterprises. This business alliance has been described and branded as "The China Investment Fund". The transaction is not only the first major investment by this alliance, but also a milestone of Kingdee International in the international capital market after its listing on the Growth Enterprise Market in Hong Kong (2001) and on the Main board in Hong Kong (2005). Also, Kingdee International and IBM have signed a MOU on global collaboration, mainly on various aspects like the globalization and SOA, marketing/sales/channels/customers, consultation and application management services (AMS), Software as a service (SaaS) and etc. Kingdee International and IBM will set up a management committee responsible for implementation and monitoring the progress of the above mentioned cooperation plans.

Talking about the introduction of international investors, Mr. Xu Shao Chun, Chairman of Kingdee, said, 'The global software industry is undergoing a revolutionary change. Only those who can capture the market trends will stand out in the market. The introduction of IBM and Lehman Brothers' investment and further collaboration with IBM will help Kingdee International to consolidate the advantages of every party and ride on the trends of software services and tailor made software. It further enhances Kingdee International's corporate governance and speed up the progress of Kingdee International to go into the global market. It ultimately enhances the competitiveness of both parties' clients in China and global markets.

Mr. Henry Chow, Chairman of IBM Greater China said, 'IBM remains dedicated to being a reliable innovation partner with the Chinese government and Chinese enterprises. Kingdee International is one of the leading enterprise management software and e-business application solution suppliers in China. After years of collaboration, IBM and Kingdee International have become mutually trusted partners. During this time, IBM will provide technology expertise, services revolution and business operation to Kingdee International, with an aim to shape Kingdee as a large scale international software company. It not only brings substantial benefits to Kingdee International, but also illustrates the enormous support by IBM to the China's domestic software industry. IBM is favourable to the development of the services industry and strives to offer assistance to the China enterprises to expand its business through this kind of investment.'

Lehman Brothers has been a pioneer among global investment banks since establishing its presence in China. Commenting on the first investment made by its business alliance with IBM, Chris Manning, Managing Director and Head of Asia Private Equity, Lehman Brothers said, "China is an important market to Lehman Brothers and is an integral part of our global strategy to expand our franchise in Asia. This partnership with IBM aligns with the Firm's commitment to offering innovative solutions to service our clients. Kingdee International is a leader in China's enterprise resources planning (ERP) industry, particularly among the small-and-medium-enterprises segment, which offers fast-growing and untapped growth opportunities. We are very excited about this investment opportunity as we are about our investment partnership with IBM in China."

Mr. Charles P. Wu, Managing Partner of The China Investment Fund and Vice President of IBM Greater China Group was satisfied with the success of this collaboration. He said, 'The collaboration with Kingdee International through the "China Investment Fund" business alliance is a new business strategy of IBM in China. It should exert significant influence on future investments and business cooperation for IBM in China. Furthermore, this collaborative approach will become a key component of IBM's China strategy.