Rebound at CDC Mobile Continues

CDC Mobile, a leading provider of mobile value-added services ("MVAS") in China and a business unit of CDC Corporation, today provided an update of its operations for the month of November, following the industry changes that occurred in July, when new regulations on MVAS providers were first implemented in China and CDC Mobile reorganized its businesses

As mentioned in the third quarter earnings release, the MVAS business of CDC Mobile has achieved organic growth for three consecutive months since July through October. November has also seen an uptick in revenues on a sequential basis from October. The monthly average revenue from September to November 2006 was $2.27 million, up 16 percent from the revenue for August 2006. This does not include the acquisition of Timeheart, which closed in the end of November. With the acquisition of Timeheart, proforma monthly average revenues from September to November 2006 would have been $2.87 million, up 47 percent from the revenue for August 2006.

The main reasons for the growth can be attributed to the development of innovative new products, the updating of existing products and a revamp of the marketing strategy to further segment CDC Mobile's user base into more detailed and defined demographics allowing the company to more effectively direct the right products to specific targeted group of users.

"We continue to see a rebound from the downturn we experienced as a result of the marketplace changes we saw earlier in the year," said Peter Yip, chief executive officer of CDC Corporation. "We will see tightening of regulations in the short term, but in the long term we will have tremendous opportunities in the vast MVAS market. We want to take advantage of this short term uncertainty and be one of the leading players in the largest and fastest growing mobile market in the world, as we see significant acquisition opportunities in the sector, similar to Timeheart, which was an accretive transaction. We have tremendous confidence in China's vast MVAS market."

By As mentioned in the third quarter earnings release, the MVAS business of CDC Mobile has achieved organic growth for three consecutive months since July through October. November has also seen an uptick in revenues on a sequential basis from October. The monthly average revenue from September to November 2006 was $2.27 million, up 16 percent from the revenue for August 2006. This does not include the acquisition of Timeheart, which closed in the end of November. With the acquisition of Timeheart, proforma monthly average revenues from September to November 2006 would have been $2.87 million, up 47 percent from the revenue for August 2006.

The main reasons for the growth can be attributed to the development of innovative new products, the updating of existing products and a revamp of the marketing strategy to further segment CDC Mobile's user base into more detailed and defined demographics allowing the company to more effectively direct the right products to specific targeted group of users.

"We continue to see a rebound from the downturn we experienced as a result of the marketplace changes we saw earlier in the year," said Peter Yip, chief executive officer of CDC Corporation. "We will see tightening of regulations in the short term, but in the long term we will have tremendous opportunities in the vast MVAS market. We want to take advantage of this short term uncertainty and be one of the leading players in the largest and fastest growing mobile market in the world, as we see significant acquisition opportunities in the sector, similar to Timeheart, which was an accretive transaction. We have tremendous confidence in China's vast MVAS market."

By CDC Corporation