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Beijing West Heavy Industries Selects IBM As Strategic Business Advisor

BEIJING, July 15

IBM and Beijing West Heavy Industries Co. Ltd (Beijing West) have signed an agreement to help Beijing West develop its business strategy following its acquisition of the global suspension and brakes business of Delphi Corp, one of the world's largest automotive parts manufacturers.

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To help Beijing West drive revenue growth and maximize cost effectiveness, IBM will set the vision and mission for the company. It will also establish a strategy for the company's development for the next three to five years based on the analysis of the development and market trends of the automotive parts industry in China and worldwide.

IBM will focus on maximizing Beijing West's operational efficiency as a strong operations team can help ensure the successful execution of the company's strategy. IBM Global Business Services (GBS) consultants will also provide insights on the company's organization and structure, and also help set the marketing and business development plans based on its resources and capabilities.

"We are pleased to work with IBM as our trusted partner to lay the foundation for our company's future," said Dongsheng Feng, Director, Corporate Affairs, Beijing West. "IBM has a proven track record of supporting clients in the translation of innovative and core competencies into real business value by formulating strategies, managing change, and steering transformation."

"Developing a sound business strategy and clear mission statement will be critical to helping Beijing West lay the foundation for future growth and success," said Marc Chapman, General Manager, IBM Global Business Services, Greater China Group. "IBM's expertise and experience helping the automotive industry worldwide will help Beijing West develop smarter initiatives and can serve as a catalyst for other companies with aggressive plans for growth."

The move by Beijing West will help place the company in a strong position to capture the growing market in China. With sale of 873,000 passenger cars in June of this year, local passenger car sales grew 47.7 percent compared to 2008, driven by the Chinese government's stimulus measures which boosted consumption. Overall vehicle sales, including trucks and buses, rose 36.5 percent in June from a year earlier to 1.14 million units.

  The agreement was signed in June 2009.

  About Beijing West Heavy Industries

Beijing West was established in March this year with investment from Shougang Group (Capital Steel), the Tempo Group and Beijing Fangshan State-owned Assets

Management Company. Beijing West's acquisition deal with Delphi Group, worth US$100 million, was approved in June 2009, and the transaction is expected to be completed in November 2009.

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  Qian Fang, Susan            Harriet Ip              Randy Zane
  Communications, IBM China   IBM Communications,     IBM Media Relations
  + 8610 65391188-4963,       Growth Markets Unit     917-472-3589         +65 6418-1521 

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CONTACT: Qian Fang, Susan, Communications, IBM China,, +
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