INSPUR PRESENTATION

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一．Profile of Inspur Group二．Build Autonomous Innovation System三． International Cooperation Promotes

Corporate Development. 四．Achievement of Autonomous Innovation.

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The plant switched to produce low-frequency high-power triode and computer peripheries.

1974 Renamed as shandong electronic equipment plant

1983 Started production of PCs

1985 LC0520A PC won the first prize of national quality contest

1990 The world’s first Chinese pager was born in Inspur.

1993 The first domestic mini-server based on intel framework developed by inspur

1998

1989 Inspur Electronic Information Industry Group Company was officially founded.

Inspur electronic information industry com.,ltd was officially founded.

“Inspur information” and “inspur software” went

public. 2000

2004 “Inspur international” went public in Hongkong

1968

1960 Moved from shanghai to jinan and established the teaching instrument plant.

1945 Shanghai Xintaichang instrument plant,the predecessor of Inspur was officially founded.

1949 Shanghai meiya electronic instrument plant was founded.

2005

Microsoft invested Inspur strategically2005

Signed joint-venture agreement with Venezuela goverment

1 、 Inspur milestones

Part1 Profile of Inspur Group

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Staff 5000 （ IN 2006 ） Operating Revenues RMB 15.2 Billion （ IN 2006 ） Status 17th among China Top100 electronic enterprises

9th among China Top100 software enterprises

First among the application software enterprises

2 、 Capacity

Part1 General introduction of Inspur

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Key National Hi-tech Enterprise

One of the First Certified National Enterprise Technology Centers

One of the First Bases of Industrializing 863 Program Achievements

One of the First Certified Computer Information System Integration Service Providers

National Postdoctoral Work Stations

ISO9001, ISO14001 and ISO18000 System Certificates

Key Software Enterprise of National Planning, CMM L3 Certification

Inspur trademark is Chinese Famous Trademark.

Inspur computers and servers are brand products in China.

Inspur fiscal cash register and ERP products are Shandong Famous Product.

In July 2006, Inspur was approved as one of the first innovation-based trial enterprises by the Ministry of Science and Technology, and the only one in Jinan City.

3 、 Qualifications of Inspur


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Computer industrial cluster SV 、 PC 、 storage special computers

Software clusterApplication software(Loushang/GSP)

ERP 、 E-government(EC-GAP)

Intellectual terminalfiscal cash register,self-service terminal,set-top box and etc.

Mobile communicationCDMA 、 GSM mobile phones

Wireless access products and etc.

4 、 Business structure


Tobacco/Finance/Telecom/Tax ；Software outsourcing

Software&hardware integration

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The most advanced and largest server

production line in china. The biggest special-purpose computer

manufacturer in China. The largest fiscal cash register supplier in

China.

5 、 production capacity


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Inspur server sales volume and saleroom have ranked the first for 11 years

successively among domestic manufacturers. Leading brand in China’s storage market with the biggest share in the domestic

storage market for consecutive three years. One of the top three ERP financial management software vendors in China with

the highest annual growth rate in the domestic ERP software market. The biggest share in the fiscal cash register market for consecutive four yeares. Ranked the 5th place among China’s software outsourcing service providers. Subdivision market

Inspur has taken the biggest share in the government server market for consecutive three years, and overtaken IBM and HP.

Inspur is the number one ERP software provider for industries of petroleum, chemicals, papermaking, foodstuffs and beverages, pharmaceuticals, finance, and military project, and has maintained its market position as the top-ranking ERP software provider for the medicine industry.

Inspur takes 55% share in the tobacco industrial software in China

One of the top three e-government software and service providers in China

6 、 market status


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Innovation Platforms

Set up the special research and development facility (Shandong

Electronics Research Institute) in the early 1980s

Became one of the first 40 national enterprise technology centers in 1993

One of the 16 bases of industrializing 863 Program achievements

approved by the Ministry of Science and Technology

Certified national enterprise postdoctoral work station, and has

undertaken 12 various tasks consigned by the state

Approved as the key server laboratory in Shandong Province

In 2003, certified as a national software appraisal and testing laboratory

In 2007, approved as the electronic information equipment industrial

technology center in Shandong Province

LC-Intel architect laboratory, Inspur-Microsoft online laboratory

Overseas R&D Centers Hong Kong (Inspur International), Japan , Inspur

American R&D Center (Silicon Value), Seattle (Inspur World Wide Service

Ltd)

National key laboratory for high-performance server and storage

technology is under construction

Part2 Build autonomous Innovation System

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System structure of high-performance server

Design technologies of high-performance server

System software of high-performance server

New magnanimity storage system structure

Wide-band magnanimity network storage system for multimedia video application

Classified group magnanimity strorage system and management technology

National key laboratory for high-performance server and storage technology—the only one in the area of server and storage technology

Reserch areas ：

　　


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Industry-University-Research Cooperation

Principles of cooperation: Not for ownership, just for use, open and co-

win

Industry-University-Research Cooperation Partners:

Tsinghua University, Peking University, Beijing University of

Aeronautics&Astronautics , Xi’an Jiaotong University, Beijing University

of Technology, the Chinese Academy of Sciences Software Institute,

National University of Defense Technology, Harbin University of

Technology, and etc.

Cooperation Means:

Jointly undertake the national tasks, build laboratories and cultivate

postdoctoral students.

Co-establish postdoctoral work stations with Tsinghua University,

Beijing University, Beihang University and Chinese Academy of

Sciences.


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Industry-University-Research Cooperation Achievements

Joined hands with Xi’an Jiaotong University to undertake the New Type of Network Server System task

under the 863 Program, and successfully developed the first homemade hi-end commercial server

system-Tissot 20000 high-performance computer.

Cooperated with the National University of Defense Technology to undertake the significant special

project under the 863 Program, Server Operating System Kernel, and research the first generation of the

homemade operating system and application environment.

Worked together with Harbin University of Technology to undertake the CRM/SCM Software Combined

with ERP under the 863 Program.

Joined forces with Tsinghua University, Peking University and Central China University of Science and

Technology to develop the demonstrative project of the next-generation Internet, Research of Intelligent

Node for P2P Overlay Network based on IPv6, and further established the national network.

Undertook 863 "Fault-tolerant Server Key Technology and System Research", the development of fault-

tolerant server, and the joint promotion of embed application in partnership with Harbin Institute of

Technology

Established a high-performance computer lab, a ERP&EC lab, and a talent training base with

Shandong University

Founded a Inspur-Loushang Platform Lab with Shandong University of Science and Technology


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Developed technologies and products in partnership with global leading enterprises, learned these enterprises’ advanced experience in innovation, strengthened staff’s innovation awareness, and improved Inspur’s ability to grasp the tendency of technical development.

Co-established Labs

Co-established four labs with Intel, Jointly established an SOA innovation center

Jointly established an EDA with Mentor

Created a LJC R&D center in Qingdao in partnership with Ericsson, which has become one of Ericsson’s R&D centers for global broadband network products

Founded three labs with Microsoft, namely, Online Evaluation, Enterprise Management Software, and E-government, and in 2006 finished the expansion of the “Joint Online Software Lab”, an important component of Microsoft’s testing system


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目录

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Inspur has established five joint ventures with three of the world’s top 500 companies,

namely, Microsoft, LG, and Ericsson, for conducting in-depth cooperation in software research and development, software outsourcing, communications, and so forth.

Specifically, the company established three joint ventures with LG, and the joint ventures are committed to developing and producing GSM, CDMA mobile phones and offering communication solutions. It co-founded a joint venture devoting to research and development of wireless access products with Ericsson, and the joint venture was integrated into the global supply chain of Ericsson in 2004.

Moreover, it assisted Microsoft in developing software with an investment of USD 25 million.

Entered into long-term strategic partnership with Intel, IBM, EDS, Oracle, NEC, HITACHI, and FITEC

Part3 International Cooperation Promotes Corporate Development

Internationalization is a very important strategy of Inspur

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Learned global leading enterprises’ rich experience in product research and development, software &

hardware technology, project management, and corporate operation in an effort to improve its self-

innovative capacity, change employees’ innovation awareness, and grasp market tendency

Succeeded in promoting .net-based ECGAP in the domestic market in 2006 and started its cooperation

with Microsoft on the co-development of the domestic e-government market

Constructed China’s first .net technology-based GSP development platform in partnership with

Microsoft in 2006 and developed a series of mature products on the ERP platform

Established the first offshore outsourcing center with Microsoft in November of 2006, finished the

expansion of the Inspur-Microsoft Online Lab in Beijing, expanding the capacity by nearly 150%, and

established the Inspur-Microsoft Online Lab in Shanghai in February of 2007, enhancing its

outsourcing capacity and R&D capacity largely.


Capital cooperation with the world’s Top 500 enterprises promotes the development of Inspur’s operations.

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At the invitation of Bill Gates, Inspur chairman Sun Peishu attended the 10th Microsoft

CEO Summit and reached a consensus with Bill Gates over the development of international business. In 2006, Inspur brought its business of informationization of the communication industry to the overseas market and successively signed contracts with Pacific Bangladesh Telecom and the National Telecom Bureau of Burundi. In May, the Bengali project was accepted successfully.

Established branches in Tokyo of Japan and Seattle of the United States, and acquired two software outsourcing teams of Shinwa and Otsu, with software outsourcing maintaining explosive growth in Japan, South Korea, Europe, and the US


Burst into the overseas market with its hardware and software products in 2006, making much headway in internationalization

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Server

Let loose China’s first 10 processors-based server SMP2000;Launched the first generation of China-made high-performance server system which passed SAP

Global Standard Authentication, VERITAS Authentication, BEA Compatibility Authentication, EMC

Compatibility Authentication, and Oracle 10g RAC International Authentication, the world’s first server

system that has pass Oracle 10g RAC International Authentication;Has undertaken national 863 hi-tech projects for seven times, been awarded the National Science and

Technology Progress Award (Class-2 and Class-3) for three times and the Science & Technology

Progress Award of Shandong Province for six times, and its 20-strong fruits have met the international

advanced levelBecome one of the first batch of global enterprises and the first in China who have passed the

International Database System Trust Authentication and Oracle VC Certification Signed a MoU with Intel in 2006, stepping into the server arena; Having the capacity to develop and

design system-level hardware independently, Inspur has become the first domestic server brand which has enlarged its influence to the upper-stream of the industrial chain.

Part4 Achievement of Autonomous Innovation.

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Storage

Observing the philosophy of “Active Storage”, Inspur has been enhancing its professional core competitiveness and successfully served up a model of high-end product AS1000G2 in 2006, thus making a historical breakthrough in the domestic high-end storage field.

The sales of its self-owned storage products skyrocketed by 112% in 2006. Inspur was selected as a supplier of storage for China’s Procurement Center of the Central Government, becoming the first manufacturer in the domestic storage market which has been selected by the procurement center.

Commercial Computer

It developed a technical structure U-COOL with the integration of a dozen of patent technologies by itself, which can upgrade the computer’s cooling efficiency, noise-reduction effect, as well as stability thanks to the technical renovation in PC’s inner space structure, running environment and the ways of working. The renovation has been applied to the company’s New Yingzheng-series computers.

In 2006, Inspur commercial computer witnessed a growth of over 20%, helping the product win the room of differentiated existence and development amid the market competition with the similar products.


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Special-purpose Computer

Inspur is one of the earliest high & new tech companies dedicated in research and development of computers resisting atrocious environment. It obtained a quality certificate for military products GJB9001A, II-grade confidential qualification certificate for military industry enterprises, and also passed the country’s qualification examination for military equipments manufacturers.

In 2006, Inspur launched its first robot-one with binocular stereoscopic vision.

It also makes ruggedized computer capable of working underwater, low-leakage information security computer, ruggedized notebook computer, ruggedized palm computer, information leakage-proof computer, ruggedized server, vehicle-carried ruggedized working platform, as well as Golden Finger shield.


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SOC Chip

In 2004, Inspur launched the country’s first SOC chip with own intellectual property rights specially used in intelligent terminals, which edged into the leading position in the domestic market with a running speed of 200MHz.

In October 2005, Inspur successfully produced the country’s first tax controlling SOC chip—LC698S, in volume, filling in the domestic market gap and therefore becoming the first SOC chip being practically applied to large volume of fiscal cash registers in China.

Its SOC chip applied for 5 invention patents, and obtained one Integrated Circuit Layout-design Registration.


Inspur is a core member of the country’s fiscal cash register standard

group; and is a member of overall planning team for the third-phase

project of the taxation administration’s Golden Tax Program.It first developed the fiscal cash register complying with the country’s

GB 18240.1–3 standard. Inspur’s fiscal cash register based on SOC chips have obtained the

country’s 3C certificate, with its key indicators at the leading positions

in the domestic market, and it is listed into the key technology

promotion projects by Shandong Province.

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Inspur SoC Chip-based Fiscal Cash Register

Inspur now is the only qualified manufacturer of both fiscal IC card and fiscal cash register, is the only

company in China’s fiscal equipment manufacturing sector obtaining three international management

system certifications in quality, environment, and occupational health and safety

In June 2004, Inspur was designated as the only special fiscal equipments provider for the 29 th Olympics

Games by Beijing Organizing Committee for the Games of the XXIX Olympiad. Its Inspur-branded fiscal

cash register products and chips respectively obtained 2006 National Torch Program certificate and 2006

National Key New Product Plan certificate.

In 2006, Inspur launched 7 models of fiscal cash register running on Inspur SOC chips, and also introduced

service station automatic invoicing solutions, which filled in the gap at the domestic market.


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Information Security Products

Inspur is the earliest IT company in China engaged in research of information security technologies, started the research and development of products for network information security, data protection, commercial-used password, as well as embedded software & hardware integration, since 1996.

It is the nation’s designated company for scientific research, production and marketing of password products.

It is a major undertaker committed to formulating national standard for safety servers, and has ever undertaken the “information security server” project under the country’s strategic high technology research development plan “863 Plan”.

Its self-developed Inspur SSR server security-enhancing system filled in the domestic market gap, and it was listed into the Special Information Security Projects of National Development and Reform Commission in 2006.


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Inspur ERP Software

Inspur has undertaken 3 “863 Plan” projects, and was graded the highest A in the ERP/financial software quality spot-check

and grading conducted by the General Administration of Quality Supervision, Inspection and Quarantine of the PRC.

It has been leading the market for big-and-medium-sized enterprises for years, having 45% of the overall market shares in

the nationwide pharmaceutical sector, having been at the first place of China’s fastest-growing ERP providers for four

years, and been steadily among the top 3 in the country’s ERP software market.

It has more than 300,000 enterprise customers. 38% of the 167 enterprises under the State Assets Supervision and

Administration Commission are using Inspur ERP. During the 10 th Five-Year Plan period, close to 1/3 of the 4,000 pilot

enterprises involved in the country’s manufacturing information construction projects were provided with enterprise

information system by Inspur.

Its ERP products for the aerospace supply chain platform have been successfully used in the supply chain system for

Shenzhou-series manned spaceships.

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Middleware & Industrial-application SoftwareInspur’s self-developed “Luoshang” platform is the first real-meaning J2EE-based application support platform in China,

which has been successfully used in a wide range of fields including governmental departments, tobacco, communications,

taxation, quality supervision and inspection, electricity and financing sectors.Inspur EC-GAP electronic government affair platform: it is the fruit under the partnership with Microsoft, which has been

successfully applied to the country’s pilot electronic government affair project-Qingdao regulatory approval platform project,

as well as some other projects in Dongying, Fujian, Beijing, Zhejiang and Guangdong, etc.Inspur’s information construction solutions for tobacco sector are used in 17 provinces in the country, taking up over 55%

of the domestic market shares.Inspur also provides information construction solutions for sectors including taxation, quality supervision and inspection,

and communications. Its “one-stop” comprehensive inquiry system for building a corruption prevention system in the

taxation sector drew the industry’s attentions nationwide, after being known via CCTV NEWS on June 22, 2006. The system

is successfully applied to over 90% of local taxation systems in Shandong Province.

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Innovation Project and Fruits

During the tenth Five Year Plan period from 1996 to 2000, Inspur undertook nine “836”projects and 50-strong national, provincial, and municipal-level innovative projects and won 12 science & technology awards of the State, Provinces, and Municipalities. The company developed 350-plus new products, keeping the proportion of output value of new products in the total above 95%. Its products have met the domestic leading level and some have even reached the international advanced level.

Awards & Prizes Received in Recent Years

64-bit high-performance server won the Class-2 National Science & Technology Progress Award of the Year 2004;

The design of transaction processing-oriented Analysis Services with excellent performance-price ratio and high performance and optimization technologies won the Award for Key Technological Invention of the Ministry of Information Industry of the Year 2005, the first prize of such kind for Shandong Province;

Work flow-based centralized ERP software supporting system reconstruction won Class-1 Science & Technology Progress Award of Shandong Province of 2006

Inspur Invoice Comprehensive Management System won the Class-1 Science & Technology Progress Award of Shandong Province of 2004

IA-Architecture 64-bit high-performance server won the Class-1 Science & Technology Progress Award of Shandong Province of 2003

ERP/myGS PS software won the Class-1 Science & Technology Progress Award of Jinan City of 2004


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Building Inspur Science&Technology park and Inspur Industry park

Inspur Science&Technology park will be constructed referring to the layout of Silicon Valley of

America and Microsoft headquarter and will be one important part of China International ICT

Innovation Cluster Zone(CIIIC).

With construction area 530 thousand square meters and investment of RMB 5.1 billion ,the park

will be the key Reserch&Development base of international cooperation.

Development Layout

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Inspur Science&Technology park

Development Layout

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Inspur Industry park

Development Layout

Documents

INSPUR PRESENTATION