TCL and Microsoft Join Hands to Promote Intellectual Property Protection in China

LOS ANGELES — April 6, 2006 — TCL Group, one of the leading PC manufacturers in China, today signed a genuine Windows® cooperative engagement agreement with Microsoft Corp. According to the agreement, the two companies are committed to working together to promote the use of validly licensed versions of Microsoft® software products on TCL-branded personal computer products for the Chinese market through joint marketing and other engagement. The agreement will help enhance the use of genuine software, and the respect for and protection of intellectual property in China.

The agreement was signed at a ceremony in Los Angeles, attended by Chinese Vice Premier Wu Yi, who is visiting the United States for economic and trade talks with U.S. government representatives. Software legalization and cooperation between the Chinese and U.S. information technology (IT) companies are high on the agenda in these talks.

“Starting in June, TCL will pre-install genuine Windows software on all its PC product lines and plans to purchase licenses of Windows worth $60 million for the coming three years,” said Yang Weiqiang, vice president of TCL Group. “TCL is committed to intellectual property rights protection because we understand our customers can benefit from higher quality, security, reliability, product support and a better user experience by using genuine software.”

“Microsoft is committed to devoting resources to promote the use of genuine software and to working with partners to ensure that our customers get the most out of their PCs through the use of genuine software,” said Tim Chen, corporate vice president and CEO of the Greater China Region at Microsoft. “This agreement is in line with our strategy of growing in sync with China’s local IT industry.”

Recently, the Chinese government has called for state-owned enterprises to take the lead in using genuine software as a way to protect intellectual property and lay the foundation for building up an innovation-driven economy.

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