Shanda (SNDA) says it has signed a memorandum of understanding with Intel (INTC) to jointly promote the Shanda EZ Interactive Home Entertainment Solution.

This MOU builds on an existing strategic partnership established over a year ago, under which Shanda and Intel cooperated on the development of digital home solutions. This initiative includes co-marketing programs aimed at promoting Shanda's digital home entertainment solution to thousands across China and the world.

This new agreement is a prelude to the coming debut of Shanda EZ solution, which includes Shanda EZ Center, the software solution to upgrade a normal PC platform to an integrated interactive entertainment platform, and Shanda EZ Pod, which is a set of software solution including EZ Center and a remote control.

After installing Shanda EZ Center/EZ Pod on a PC, consumers can easily access Shanda's diversified interactive entertainment content offerings, including online games, literature, music and movie, in a way that is as convenient and user-friendly as operating a TV.

Intel and Shanda will partner in the promotion, marketing and distribution of Shanda EZ Center/EZ Pod. The two companies will both invest in a co- marketing campaign.

Based on the MOU, Shanda EZ Center/EZ Pod will be one of the preferred software solutions for Intel's new generation digital home platform. Intel will actively promote the sales of the EZ Center/EZ Pod along with Shanda.

Through the joint efforts of Shanda and Intel, the companies expect to distribute 500,000 sets of EZ Center/EZ Pod over the next 12 months. The two companies will also have in-depth cooperation to further enhance Shanda EZ Center/EZ Pod solution based on Intel's digital home technology.

In addition, the two companies will continue their effort to promote digital living concept to China's consumers, emphasizing the interactive nature of entertainment content and services. Over the next year, Shanda and Intel will launch a marketing campaign covering more than 10,000 Internet cafes throughout China to showcase the solution and the improved user experience.

"Shanda's EZ Center and EZ Pod provide users throughout China an integrated home entertainment solution," said Tianqiao Chen, CEO of Shanda. "Through our cooperation with Intel, we have created a reliable and easy-to- use platform for users to access our broad range of interactive entertainment content and services. In addition, our joint marketing campaign would be able to reach out to more consumers throughout China."

Jane Price, Country Manager of Intel China, added "Intel is dedicated to delivering a new and innovative digital home platform that integrates content, service and cutting edge technology, enabling consumers to enjoy digital content and an entertaining experience. We will continue collaborating with industry leaders such as Shanda to develop and promote digital entertainment in China."

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