[Exim] rejected HELO ... syntactically invalid argument(s)

I upgraded from 3.35 to 4.30 recently and I LOVE the
new version. Wish I got motivated long ago.
It's fun watching all the garbage get rejected with exiscan.

In my /etc/exim4/local_host_blacklist I have this:
200.0.0.0/8

In my config_check_receipt I have this:
deny message = host is listed in $dnslist_domain ($dnslist_text)
         dnslists = list.dsbl.org:\
                    sbl.spamhaus.org:\
                    relays.ordb.org:\
                    sbl-xbl.spamhaus.org:\
                    bl.spamcop.net

I am getting hundreds of the following in my logs:

rejected HELO from [200.118.112.12]: syntactically invalid argument(s): IBM_A31
rejected HELO from [200.118.112.12]: syntactically invalid argument(s): IBM_A31
rejected HELO from [200.118.112.12]: syntactically invalid argument(s): IBM_A31
rejected HELO from [200.118.112.12]: syntactically invalid argument(s): IBM_A31
rejected HELO from [200.118.112.12]: syntactically invalid argument(s): IBM_A31

I found this on Google:
http://www.senderbase.org/search?searchBy=ipaddress&searchString=200.118.112.12

What exactly is happening here?

Virus infected machine or massive spammer?

Thanks,
Andy