Investment Enables CDC Mobile to Launch Mobile Web2.0 through 3G Services
BEIJING, Feb. 5 /Xinhua-PRNewswire-FirstCall/ -- China.com, a leading
Internet services provider in China and a Hong Kong listed subsidiary of
CDC Corporation (Nasdaq: CHINA), announced today that it has acquired a
five percent interest in Beijing Menlo Network Science Limited, the owner
and operator of Menllo.com, a leading Web 2.0 online community in China.
Under the terms of the agreement, China.com will provide Menllo.com with
strategic market coverage for one year in exchange for the five percent
interest. China.com will have the right to appoint a director to the Board
of Menllo.com and will have the option to increase its holdings in
Menllo.com in the future.
With a large and fast growing user base across China, Menllo.com is a
platform that empowers individuals to share music, videos, journals,
photos, whiteboards and more with their friends, and find people with
common interests. It is a popular online destination for emerging
musicians, writers, photographers, and a variety of other talents. By
collaborating with China.com, Menllo will utilize the extensive market
coverage of the CDC family of companies including millions of visitors to
China.com, millions of growing subscribers of CDC Mobile, and more than 42
million registered users of CDC Games. For instance, much of the
user-generated content on Menllo.com will also be made available on mobile
phones through CDC Mobile's 3G services.
This investment by China.com will enable CDC Mobile, a leading provider
of mobile value-added services (MVAS) in China and a business unit of CDC
Corporation, to become one of the first movers in integrating Web2.0
content with 3G services in China. By building a mobile Web2.0, CDC Mobile
plans to significantly increase its portfolio of highly demanded content to
grow the company's sources of revenue.
In January 2007, CDC Mobile announced its (U.S.) $100 Million 3G
content partner program to target leading 3G content providers and
aggregators in North Asia and Europe, as well as the creation of new
original content for the 3G marketplace. The company believes that its
strategy of investing in 3G now, will enable it to become one of the
leading content providers in large, early adopting 3G countries, as well as
providing first-mover advantage in the anticipated 3G marketplace in China.
The company also recently announced an agreement with a leading South
Korean mobile Internet content provider for exclusive distribution of
highly popular South Korean mobile games, videos, music and fashion
advertisements, in China.
"Creating communities, by empowering individuals, is truly
revolutionary for today's online world in China," said Donglei Fang, acting
COO of China.com Inc. "For CDC Mobile, we believe that creating a mobile
web2.0 through 3G will create a significant growth opportunity for us.
Through this investment, we can further diversify our user base by
attracting creative, user-generated content from China's huge talent pool,
and subsequently increase online traffic and mobile downloads. More
importantly, by embracing mobile web 2.0 and making strategic inroads in
the vast 3G market, we will be able to further consolidate CDC Mobile's
leadership position and enable future growth."
About China.com Inc.
China.com is a leading operator of Internet portals serving a broad
range of audiences in China. In 2006, the company was chosen as the first
to host Google's Video Adsense, serving video ads targeted at China's
English-speaking audience. China.com has also been appointed by the Jilin
Government as the exclusive web sponsor of the 2007 Asian Winter Games.
China.com was listed on the GEM of the Stock Exchange of Hong Kong Limited
on March 9, 2000. In December 2000, China.com Inc. was admitted as a
constituent stock of the Hang Seng IT and IT Portfolio Indices.
About Menllo.com
Menllo.com is a leading web 2.0 online community that empowers
individuals to share self composed music, videos, journals, photos,
whiteboard, and more with their friends and find people of common
interests.
About CDC Mobile
CDC Mobile, a business unit of CDC Corporation, is focused on providing
consumer-based and enterprise-based mobile applications services in China.
These include SMS (Short Message Services), IVR (Interactive Voice
Response), MMS (Multimedia Message Service) and WAP (Wireless Application
Protocol) applications and services. Through its companies in China, it has
direct connectivity with local mobile operators in 29 provinces. In January
2007, CDC Mobile launched a US $100 million investment program targeting
strategic investments in leading 3G content providers in North Asia and
Europe that can be leveraged to gain first-mover advantage in the
anticipated 3G marketplace in China.
About CDC Corporation
The CDC family of companies includes CDC Software focused on enterprise
software applications and services, CDC Mobile focused on mobile
applications, CDC Games focused on online games, and China.com focused on
portals for the greater China markets. For more information about CDC
Corporation (Nasdaq: CHINA), please visit http://www.cdccorporation.net
About CDC Games
CDC Games is one of the market leaders of online and mobile games in
China with over 42 million registered users. The company pioneered the
"free-to- play, pay-for-merchandise" online games model in China with
Yulgang, which has received the "Top 10 Most Popular Games" award from the
China Game Industry Annual Conference (CGIAC) for two consecutive years, in
2005 and 2006. Stone Age 2, from CDC Games, also received the award for
"Most Anticipated Game of 2007" from CGIAC.
About CDC Software
CDC Software, The Customer-Driven Company(TM), is a provider of
comprehensive enterprise software applications and services designed to
help businesses thrive and become customer-driven market leaders. The
company's industry-specific solutions are used by more than 5,000 customers
worldwide within the manufacturing, financial services, health care, home
building, real estate, and wholesale and retail distribution industries.
CDC Software's product suite includes Pivotal CRM (customer relationship
management), c360 CRM add-on products, industry solutions and development
tools for the Microsoft Dynamics CRM platform, Ross ERP (enterprise
resource planning) and SCM (supply chain management), MVI real-time
performance management, IMI warehouse management and order management,
Platinum China HR (human resource) and business analytics solutions. For
more information, please visit http://www.cdcsoftware.com .
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements regarding
opportunity for CDC Mobile's growth through the creation of a mobile
web2.0, the diversification of China.com and CDC Mobile's user base and
increase in online traffic and mobile downloads through the attraction of
user-generated content, the consolidation of CDC Mobile's leadership
position and future growth through web 2.0 and 3G content and products.
These statements are based on management's current expectations and are
subject to risks and uncertainties and changes in circumstances. There are
important factors that could cause actual results to differ materially from
those anticipated in the forward- looking statements, including the
following: the popularity of China.com's online service offerings and CDC
Mobile's applications in China; the ability to realize strategic objectives
by taking advantage of market opportunities; the ability to make changes in
business strategy, development plans and product offerings; the ability to
integrate operations or new acquisitions in accordance with the company's
business strategy; and the effects of restructurings and rationalization of
operations and regulatory developments in China. Further information on
risks or other factors that could cause results to differ is detailed in
filings or submissions with the United States Securities and Exchange
Commission made by CDC Corporation in its Annual Report for the year ended
December 31, 2005 on Form 20-F filed on June 21, 2006. All forward-looking
statements included in this press release are based upon information
available to management as of the date of the press release, and you are
cautioned not to place undue reliance on any forward-looking statements
which speak only as of the date of this press release. The company assumes
no obligation to update or alter the forward-looking statements whether as
a result of new information, future events or otherwise.
For further information, please contact:
Media Relations
Scot McLeod
CDC Software
Tel: +1-678-259-8625
Email: ScotMcLeod@cdcsoftware.com
Investor Relations
Monish Bahl
CDC Corporation
Tel: +1-678-259 8510
Email: monishbahl@cdcsoftware.com
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