Revenue of $402.4 Million, Adjusted Net Income of $18.7 Million and $255.2 Million of Non-GAAP Cash and Cash Equivalents Reported by CDC Corporation for 2007

Business Wire, April 28, 2008

BEIJING, China & ATLANTA -- CDC Corporation (NASDAQ: CHINA), a leading global enterprise software and new media company, today announced its financial results for the fourth quarter and year-ended December 31, 2007. Total revenue for full year 2007 was (U.S.)$402.4 million, an increase of 30 percent from (U.S.)$309.5 million in 2006. Adjusted net income(a) was (U.S.)$18.7 million for 2007. Non-GAAP cash and cash equivalents(c) were (U.S.)$255.2 million as of December 31, 2007.

"Despite the economic downturn, I believe our company is in a strong position," said Peter Yip, CEO, CDC Corporation. "We finished 2007 with record Q4 revenue of (U.S)$107.7 million while our software business achieved record milestones for the full year in all key metrics including license, maintenance and services revenue, and adjusted net income. Software revenue grew 39 percent in Q4 2007 compared to Q4 2006, and 45 percent for the full year 2007 compared to the full year 2006. Recurring maintenance revenue increased 38 percent in 2007 compared to 2006. Due to our vertical focus, global positioning and acquisition strategy, our software business delivered strong and consistent growth throughout the year. In 2008, we intend to continue to execute on our strategies that have made our software business successful, and we further expect to increase the leverage of our infrastructure in China and India both from a research and development perspective, as well as from a sales and marketing perspective. Given the current economic downturn, we are also taking proactive steps to improve our profit margins. In 2008, our focus is on growing recurring software revenue and sales to our 6,000-plus installed base customer accounts."

Added Yip, "We are also very happy to see the CDC Games business getting back on track. CDC Games is now a diversified global on-line games business that is truly unique in the industry. We now have eight games commercially deployed, with operations in the China, Japan and in the United States. We are very pleased to have resolved our dispute with MGame and are equally pleased with the recovery in Yulgang revenue. Version 2.0 of Yulgang has recently been launched and feedback has been encouraging. In the fourth quarter, CDC Games had a sequential revenue improvement of 20 percent compared to the third quarter and we expect sequential improvements throughout 2008. We are also taking significant costs out of our operation as we are consolidating onto one game publishing platform. We will continue with our diversification strategy, through our strong pipeline of new games including Digimon, Life Online and Dragonsky, while maintaining tight cost controls to promote profitability. In addition to the success of our games business, revenue for our portal and media business in China grew by 29 percent in Q4 2007 compared to Q4 2006.

"We now have three successful and growing businesses and we are continuing to improve the operating performance of each. With our strong balance sheet that includes a cash position of more than (U.S.) $250 million at the end of 2007, we believe we are in a very strong position and we are very excited about our future."

Full Year 2007 Results:

* Total revenue from CDC Software for 2007 was (U.S.)$349.0 million, an increase of 45 percent from (U.S.)$240.8 million in 2006.

* Revenue from CDC Games for 2007 was (U.S.)$33.6 million, an increase of 25 percent from (U.S.)$26.8 million in 2006.

* The China.com segment, excluding the discontinued MVAS business, generated revenue of (U.S.)$11.4 million in 2007, an increase 13 percent from (U.S.)$10.1 million in 2006.

* Total revenue for full year 2007 was (U.S.)$402.4 million, an increase of 30 percent from (U.S.)$309.5 million in 2006. Adjusted net income(a) was (U.S.)$18.7 million for 2007 and our reported net loss was (U.S.)$101.8 million. Non-GAAP cash and cash equivalents(c) were (U.S.)$255.2 million as of December 31, 2007.

Fourth Quarter Results:

* Total revenue for CDC Corporation in Q4 2007 was (U.S.)$107.7 million, an increase of 20 percent from (U.S.)$ 89.4 million in Q4 2006. This represents the highest quarterly revenue in the company's history.

* Net loss was (U.S.)$91.2 million for Q4 2007, compared to a loss of (U.S.)$2.2 million in Q4 2006. Included in the fourth quarter loss were the following non-cash charges:

* $72.8 million charge for the write-down of assets in the MVAS subsidiary, CDC Mobile

* $8.2 million charge for the write-down of investments in the CDC Games subsidiary

* $11.5 million related to the unrealized loss on collateralized loan obligations and a change in the fair value of our debt derivative

* Adjusted net loss for Q4 2007(b)was (U.S.)$3.5 million, primarily due to one-time audit expenses related to initial SOX compliance and the carve-outs of CDC Games and CDC Software, and the resolution of the dispute with Mgame. This compares to an adjusted net income of (U.S.)$6.4 million in Q4 2006.

* Adjusted diluted loss per share was (U.S.)$(0.03) for Q4 2007 compared to diluted earnings per share of (U.S.)$ 0.06 in Q4 2006.