China.com Invests in Leading Web 2.0 Online Community

Investment Enables CDC Mobile to Launch Mobile Web2.0 through 3G Services

China.com, a leading Internet services provider in China and a Hong Kong listed subsidiary of CDC Corporation, announced today that it has acquired a five percent interest in Beijing Menlo Network Science Limited, the owner and operator of Menllo.com, a leading Web 2.0 online community in China. Under the terms of the agreement, China.com will provide Menllo.com with strategic market coverage for one year in exchange for the five percent interest. China.com will have the right to appoint a director to the Board of Menllo.com and will have the option to increase its holdings in Menllo.com in the future.

With a large and fast growing user base across China, Menllo.com is a platform that empowers individuals to share music, videos, journals, photos, whiteboards and more with their friends, and find people with common interests. It is a popular online destination for emerging musicians, writers, photographers, and a variety of other talents. By collaborating with China.com, Menllo will utilize the extensive market coverage of the CDC family of companies including millions of visitors to China.com, millions of growing subscribers of CDC Mobile, and more than 42 million registered users of CDC Games. For instance, much of the user-generated content on Menllo.com will also be made available on mobile phones through CDC Mobile's 3G services.

This investment by China.com will enable CDC Mobile, a leading provider of mobile value-added services (MVAS) in China and a business unit of CDC Corporation, to become one of the first movers in integrating Web2.0 content with 3G services in China. By building a mobile Web2.0, CDC Mobile plans to significantly increase its portfolio of highly demanded content to grow the company's sources of revenue.

In January 2007, CDC Mobile announced its (U.S.) $100 Million 3G content partner program to target leading 3G content providers and aggregators in North Asia and Europe, as well as the creation of new original content for the 3G marketplace. The company believes that its strategy of investing in 3G now, will enable it to become one of the leading content providers in large, early adopting 3G countries, as well as providing first-mover advantage in the anticipated 3G marketplace in China. The company also recently announced an agreement with a leading South Korean mobile Internet content provider for exclusive distribution of highly popular South Korean mobile games, videos, music and fashion advertisements, in China.

"Creating communities, by empowering individuals, is truly revolutionary for today's online world in China," said Donglei Fang, acting COO of China.com Inc. "For CDC Mobile, we believe that creating a mobile web2.0 through 3G will create a significant growth opportunity for us. Through this investment, we can further diversify our user base by attracting creative, user-generated content from China's huge talent pool, and subsequently increase online traffic and mobile downloads. More importantly, by embracing mobile web 2.0 and making strategic inroads in the vast 3G market, we will be able to further consolidate CDC Mobile's leadership position and enable future growth" - CDC Corporation.