UPDATE: Shanda Reports First Quarter 2008 Unaudited Results

  -- Net revenues hit record high of US$111.1 million, up 46.5% YoY and
                                 9.2% QoQ
 -- Operating income hit record high of US$44.5 million, up 39.0% YoY and
                                11.9% QoQ
                   -- Diluted earnings per ADS US$0.56

SHANGHAI, China, May 28 /Xinhua-PRNewswire/ -- Shanda Interactive Entertainment Limited , or Shanda, a leading interactive entertainment media company in China, today announced its unaudited consolidated financial results for the first quarter ended March 31, 2008.

  First Quarter 2008 Highlights(1)

    -- Consolidated net revenues increased 46.5% year-over-year and 9.2%
       quarter-over-quarter to a record high of RMB779.8 million
        (US$111.1 million), compared to the Company's previous guidance of
       quarter-over-quarter growth between 6% and 9%.
    -- Revenues from MMORPGs increased 54.8% year-over-year and 6.3%
       quarter-over-quarter to a record high of RMB640.8 million
       (US$91.3 million).
    -- Revenues from casual games increased 28.1% year-over-year and 36.0%
       quarter-over-quarter to a record high of RMB116.6 million
       (US$16.6 million).
    -- Operating income increased 39.0% year-over-year and 11.9% quarter-
       over-quarter to a record high of RMB312.1 million (US$44.5 million).
    -- Non-GAAP(2) net income was RMB304.2 million (US$43.3 million),
       compared with RMB215.4 million in the first quarter of 2007 and
       RMB309.6 million the fourth quarter of 2007. Non-GAAP earnings per
       diluted ADS were RMB4.14 (US$0.60), compared with RMB2.95 in the
       first quarter of 2007 and RMB4.20 in the fourth quarter of 2007.
    -- Net income was RMB288.8 million (US$41.2 million), compared with
       RMB448.8 million in the first quarter of 2007 and RMB292.6 million in
       the fourth quarter of 2007. Earnings per diluted ADS were RMB3.94
       (US$0.56), compared with RMB6.14 in the first quarter of 2007 and
       RMB3.98 in the fourth quarter of 2007.
    -- Active paying accounts (APA) for all the games in commercial
       operation increased 19.2% quarter-over-quarter to 6.03 million.
    -- APA for MMORPGs increased 18.3% quarter-over-quarter to
       4.11 million. Average monthly revenue per active paying account
       (ARPU) for MMORPGs decreased 10.1% quarter-over-quarter to RMB52.0
       due to dilution caused by the relatively lower APRU from new APAs in
       the first quarter of 2008.
    -- APA for casual games increased 21.3% quarter-over-quarter to
       1.92 million. Average monthly revenue per active paying account
       (ARPU) for casual games increased 12.1% quarter-over-quarter to
       RMB20.3.

   (1) The conversion of Renminbi (RMB) into U.S. dollars in this release
       is based on RMB7.0190 to US$1.00 as published by the People's Bank of
       China on March 31, 2008. The percentages stated in this press release
       are calculated based on the RMB amounts.
   (2) Non-GAAP measures are disclosed below and reconciled to the
       corresponding GAAP measures in the section below titled "Non-GAAP
       Financial Measures".

''Shanda has achieved another quarter of solid progress in the first quarter of 2008 based upon the successful implementation of the Company's 3C strategy of Content, Community and Commerce. Quarterly net revenues surpassed the US$100 million mark, with strong growth achieved in both MMORPGs and casual games. We continue to drive the expansion of our paying user base through content upgrades, unified platform and customized services, which resulted in the double-digit quarter-over-quarter growth in active paying accounts for both MMORPGs and casual games,'' said Tianqiao Chen, Chairman and Chief Executive Officer of Shanda. ''As we look ahead to the remainder of this year, we believe that our diversified content portfolio and strong operating platform will continue to generate sustainable and scalable long-term growth for the Company.''

Conference Call and Webcast Notice

Shanda will host a conference call on Wednesday, May 28, 2008 at 8:00 am (Eastern Time) / 8:00 pm (Beijing/Hong Kong time), to present an overview of the Company's financial performance and business operations. A live webcast of the conference call will be available on the Company's corporate website at http://www.snda.com/ .

First Quarter 2008 Financial Results(1)

Net Revenues. In the first quarter of 2008, Shanda reported net revenues of RMB779.8 million (US$111.1 million), representing an increase of 46.5% from RMB532.3 million in the first quarter of 2007 and 9.2% from RMB714.2 million in the fourth quarter of 2007.

Online game revenues, including MMORPGs and casual games, were RMB757.4 million (US$107.9 million) in the first quarter of 2008, representing an increase of 50.0% from RMB505.0 million in the first quarter of 2007 and 10.0% from RMB688.4 million in the fourth quarter of 2007.

Revenues from MMORPGs in the first quarter of 2008 increased 54.8% year- over-year and 6.3% quarter-over-quarter to RMB640.8 million (US$91.3 million), accounting for 82.2% of total revenues. The sequential growth in MMORPG revenues was primarily driven by expansion packs for existing game titles, in- game promotions, as well as enhanced community stickiness on our unified platform.