Shanda Interactive Entertainment (NASDAQ: SNDA) today announced a strategic relationship with eBay EachNet, an eBay company.

Under the agreement, eBay EachNet will place online advertisements on Shanda's games platform. In addition, Shanda has selected eBay EachNet's e-commerce platform as its preferred choice for Shanda game users. Financial terms of the deal were not disclosed.

Shanda's agreement with eBay EachNet is a good example of Shanda's new strategy to leverage its large and growing user base to generate online advertisement revenue. Shanda's online game platform attracted 1.2 million total average concurrent users and 1.6 million total peak concurrent users during the second quarter of 2004. Under the agreement, eBay EachNet advertisements, including a variety of banners, display, and pop-ups, will appear on the web sites and user log-in pages for various Shanda's games.

Including the eBay EachNet agreement, Shanda has already signed a number of contracts which would add CNY 50 million (US $6 million) of revenues from online advertisement in 2005. Under the e-commerce initiative, eBay EachNet has been designated as the preferred platform for Shanda's user community. Shanda and eBay EachNet will work together to help protect each user's interest.


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