Telecom & Wireless

Shanda Acquires Mobile Games Developer Digital-Red

Shanda Interactive Entertainment Limited (Nasdaq: SNDA) announced today that it has signed an agreement to purchase the remaining interest that it did not already own in Beijing Digital-Red Mobile Software Co., Ltd., or Digital-Red, a developer of games for mobile devices.

Shanda had initially purchased a minority stake in Digital-Red on January 13, 2004. Pursuant to the terms of the agreement, an initial installment will be paid in cash, with the remaining consideration to be paid in cash in 2006 based on the actual earnings performance of Digital-Red in 2005.

Founded in 2000, Digital-Red has developed more than 200 game applications, including pre-loaded games for mainstream mobile phone manufacturers, as well as K-Java games for China Mobile's game-download portal. Its pre-loaded games are deployed by Nokia, Motorola, Sharp and SonyEricson, etc. and are played by users all around the world. Its K-Java games were among the first ones available on China Mobile's game-download portal since it was first launched in 2003; and many of them enjoy top-ranking in terms of download traffic.

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