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China.com Inc. Reports Q3 Financial Results

CDC Corporation (CHINA) announced that its 81%-owned subsidiary, China.com Inc., has provided its financial results under Hong Kong GAAP for the third quarter ended September 30, 2005. China.com achieved quarterly revenue levels and its 22nd consecutive quarter of profits with total revenues of HK$108 million, up 24% when compared to Q2 2005.

The company says its online games initiative continues to achieve strong growth, the portal continues to hit key operational matrices, and the MVAS business has undergone three sequential quarters of double-digit percentage revenue growth and has progressively diversified away from SMS revenues to a point where revenues from advanced mobile products such as MMS and WAP represent 60% of total MVAS revenue.

China.com has established a wholly-owned subsidiary, CDC Games Limited, to hold all current and future online game business assets and investments. With strong growth expected in China's online gaming market as well as with the company's online game offering, China.com plans to focus more resources to this fast-growing sector.

The company's mobile value-added services (MVAS) business continued to show healthy growth in Q3 2005 with a 15% increase in total revenue over Q2 2005.

Sequential quarterly revenue increases from Advanced Mobile Products amounted to the following: Multimedia Messaging Services (MMS) – up 80%, Interactive Voice Response (IVR) – up 61%, and Wireless Application Protocol (WAP) – up 27%.

The company's MVAS marketing strategy focused on cross-selling its products and services toward niche consumer groups across various platforms. The strategy resulted in meaningful ranking increases of some of the company's key WAP products on China Mobile's WAP product listings.

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