DGAP-News Shanda Games Limited to Acquire Eyedentity Games

Shanda Games Limited /

09.09.2010 05:09

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Creates Leading Online Game Platform With Stronger International Presence and
Enhanced In-House Development Capabilities

SHANGHAI, China, Sept. 8, 2010 (GLOBE NEWSWIRE) -- Shanda Games Limited
(´Shanda Games, ´ or the ´Company´) (Nasdaq:GAME), a leading online game
developer, operator and publisher in China, today announced that it has reached
an agreement to acquire Eyedentity Games, a leading online game development
studio in Korea, as part of the Company´s overall growth strategy in the global
market. The acquisition will combine Shanda Games´ online game platform with
Eyedentity´s game development capabilities, to further expand Shanda Games´
leading global online game platform.

Transaction Highlights:

-- Expands Shanda Games´ international presence with the addition of
Eyedentity´s internationally licensed online game portfolio;

-- Strengthens Shanda Games´ in-house online game development capabilities;

-- Allows Shanda Games to fully capture the benefits of the successful launch
of ´Dragon Nest´;

-- Reinforces Shanda Games´ leading position in the online game industry.

Mr. Alan Tan, Chairman and CEO of Shanda Games, commented, ´We are very excited
to be bringing together two of the best teams in the online game industry
together.  We began working with Eyedentity almost three years ago on ´Dragon
Nest´ and, as we got to know them, have been very impressed by the team´s
creativity and its deep understanding of the gamer community. With Shanda
Games´ expertise and experience in operating online games in China and
Eyedentity´s game development capabilities, combined with our collective
international businesses, this acquisition positions Shanda Games to become a
leading global online game company.´

Mr. Chris Lee, founder and CEO of Eyedentity Games, commented, ´We are
delighted to become part of Shanda Games. Our focus is on creating interesting
and fun online games, and Shanda Games has the resources to publish and
operate, on a much larger scale, the games that we create. We are very pleased
with how Shanda Games has launched and operated ´Dragon Nest´ in China, and its
success is a perfect example of what we can accomplish. As we combine our
complimentary businesses, we look forward to similar successes.´

Based in Seoul, Korea and founded by experienced industry veterans, Eyedentity
is a private developer of online games with over 100 game developers. Its
online game ´Dragon Nest´, based on an in-house 3D engine, has already been
licensed to partners in Korea, Japan, China, Taiwan, Southeast Asia, and the
U.S. to date and has since been successfully launched in Korea, Japan and
China. It is among the top five massively multi-player online role-playing
games (MMORPG) in Japan and one of the most successful new online games in
China this year.

The transaction is valued at approximately US$95 million in cash.  Shanda
Games´ cash, cash equivalents, short-term investments, and restricted cash
totaled US$444 million as of June 30, 2010.

The closing of the transaction is subject to standard closing conditions. The
parties expect to close the transaction in the third quarter of 2010.

Safe Harbor Statement

This announcement contains forward-looking statements.  These statements are
made under the ´safe harbor´ provisions of the U.S. Private Securities
Litigation Reform Act of 1995.  Statements in this announcement that are not
historical facts, including but not limited to statements regarding the success
of any existing or future acquisitions or investments, the introduction and
timing of new game titles, and the future benefits brought by these new games,
represent only the Company´s current expectations, assumptions, estimates and
projections and are forward-looking statements. These forward-looking
statements involve various risks and uncertainties.  Important risks and
uncertainties that could cause the Company´s actual results to be materially
different from expectations include but are not limited to the risk that Dragon
Nest is not well received by game users in the countries to which the game is
licensed, the acquisition of Eyedentity will not expand Shanda Games´ leading
global online game platform, and Shanda Games is unable to integrate Eyedentity
into Shanda Games, as well as the risks set forth in the Company´s filings with
the U.S. Securities and Exchange Commission, including the Company´s annual
report on form 20-F.  The Company does not undertake any obligation to update
any forward-looking statement, except as required under applicable law.

About Shanda Games

Shanda Games Limited (Nasdaq:GAME) is a leading online game developer, operator
and publisher in China, with a mission of becoming a leading global online game
media platform. Shanda Games offers a diversified game portfolio, which
includes some of the most popular massively multiplayer online role-playing
games (MMORPGs) and advanced casual games in China, targeting a large and
diverse community of users. Shanda Games manages and operates online games that
are developed in-house, co-developed with world-leading game developers,
acquired through investments or licensed from third parties. For more
information about Shanda Games, please visit http://www.ShandaGames.com.

About Eyedentity Games

Headquartered in Seoul, South Korea, Eyedentity Games was founded in 2007 by
industry veterans from Webzen, Phantagram and Gravity to bring a new era of
unique and entertaining online game experience to players around the globe.
The studio´s proprietary game technology, the ´Eternity Engine, ´ features low
system requirements while allowing for fast action, appealing visuals and
thousands of massive gamers to enter the game world simultaneously.  Eyedentity
Games´ first product, Dragon Nest, is currently in service in Korea, Japan and
China and targeted for release in Taiwan, North America and Southeast Asia.
More information on Eyedentity Games can be found at the company´s website at
http://www.eyedentitygames.com/eng.

CONTACT:  Shanda Games Limited
          Ellen Chiu, Investor Relations Director
          Maggie Zhou, Investor Relations Manager
          +86-21-5050-4740 (Shanghai)
          IR@ShandaGames.com

          Taylor Rafferty
          Savoy Lee, Director (China)
            +852-2167-2005
            savoy.lee@taylor-rafferty.com
          Alan Oshiki, Managing Director (U.S.A.)
            +1-212-232-2354
            alan.oshiki@taylor-rafferty.com

News Source: NASDAQ OMX

09.09.2010 05:09 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Shanda Games Limited
              
               
              United States
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         US81941U1051
WKN:          

End of Announcement                             DGAP News-Service

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