LENOVO Group, China's leading homegrown PC maker, has signed a memorandum of understanding with Bull Corp. to sell the French company��s high-performance computers in China, reported Shenzhen Daily on Friday.

Under the five-year memorandum, Lenovo would market Bull��s NovaScale 5080, 5160 and 6000 servers and application technology in the domestic market, Bull��s spokeswoman Angela Lee said.

The products were targeting China��s high-end users, a new revenue source for Lenovo, Lee added.

The alliance could also provide the Chinese PC maker with a partner for its expansion in oversees markets, industry analysts said.

Earlier this year, Lenovo said it planned to step up its overseas expansion by forming an international alliance similar to that between TCL��s television arm and French electronics giant Thomson.

The alliance led to a joint venture between TCL and Thomson, in which the Chinese side holds a controlling stake. It was with the joint venture that TCL carved a large share in the European market by gaining the RCA and Thomson TV brands and manufacturing operations.

Lenovo, founded in 1994, has controlled more than 25 percent of the Chinese PC market, with a total sales volume of nearly 3.6 million units in 2003.

Last year, Bull grossed a net profit of 4.1 million francs (US$630,000), but less than 6 percent was from the Asian market.

Source: Shenzhen Daily/Agencies