Software

CDC Games Completes Restructuring, Names President

CDC Games, a business unit of CDC Corporation (CHINA), has announced a restructuring plan and the appointment of a new president.

The company has completed the internal restructuring of CDC Games and the online games publisher is now a
direct business unit of CDC Corporation. CDC Games' title Yulgang continues to be one of the top online games in China with over 37 million registered users.

As a result of the restructuring, CDC Corporation has acquired 100% of CDC Games from China.com Inc., a 77%-owned subsidiary of CDC Corporation, for a purchase price of US$110 million, US$50 million of which was paid in cash and $60 million of which will be funded through an 18 month note bearing interest at 5% per annum.

Additionally, CDC Corporation will pay up to $25 million to China.com Inc. in the event CDC Games completes a successful listing on certain recognized stock exchanges within the next 12 months.

The company has also appointed John Lee as president to help fuel the aggressive growth of CDC Games as it positions itself to launch future online games in China and in emerging global markets.

Lee, who will report directly to Xiaowei Chen, Ph.D., CEO of CDC Games, brings extensive expertise in expanding new business markets globally in the online games industry. In this role, Lee will be responsible for international expansion beyond the China market. He also will spearhead the company's previously announced Developer Franchise Program that has earmarked US$20 million for investments in developers of online games which will provide CDC Games with exclusive distribution rights to their games. Under this program, Lee will initially focus on the markets of China, Korea, Japan and U.S.

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