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CDC Corporation Adjusted EBITDA Increases 25 Percent and Operating Cash Flow Increases 100 Percent in Second Quarter of 2009 Compared to Second Quarter of 2008.

Company Successfully Completes IPO of CDC Software as Part of Asset Monetization Strategy

HONG KONG & ATLANTA -- CDC Corporation (NASDAQ: CHINA), a leading global enterprise software, IT services and new media company, today announced financial results for the quarter ended June 30, 2009. For the second quarter of 2009, revenue and Adjusted EBITDA (a) from continuing operations (b) or Adjusted EBITDA* were (U.S.)$81.7 million and (U.S.)$12.5 million, respectively. This compares to revenue and Adjusted EBITDA of (U.S.)$111.0 million and (U.S.)$10.0 million, respectively, for the second quarter of 2008.

In the second quarter of 2009, CDC Corporation also recorded operating cash flows of (U.S.)$11.2 million a 100 percent increase compared to (U.S.)$5.6 million in operating cash flows in the second quarter of 2008, marking seven consecutive quarters of cash generated from operations. For the second quarter of 2009, net income was (U.S.)$3.2 million, or $0.03 per share, compared to a loss of (U.S.)$10.0 million for the same quarter last year.

For the six months ended June 30, 2009, CDC Corporation reported Adjusted EBITDA of (U.S.)$19.7 million compared to (U.S.)$12.6 million for the same period in 2008. Net income for the six months ended June 30, 2009, was (U.S.)$11.0 million, or $0.09 per share, compared to a loss of (U.S.)$23.1 million, or a loss per share of $0.22 for the same quarter last year.

According to Thomson Financial Second Call, Wall Street consensus estimates for CDC Corporation's Adjusted EBITDA for the second quarter of 2009 were expected to be (U.S.)$5.6 million. With Adjusted EBITDA of (U.S.)$12.5 million in the second quarter of 2009, this marks the seventh consecutive quarter where CDC Corporation has reported quarterly Adjusted EBITDA that has exceeded Wall Street consensus estimates.

"We have completed the first phase of unlocking the value of CDC Corporation through the IPO of CDC Software," said Peter Yip, CEO of CDC Corporation. "This was a critical first step for the company and we plan to continue unlocking shareholder value with our other operating business units."

"Furthermore, we are pleased to report a sequential improvement in our revenue from Q1 2009 to Q2 2009, and in addition, post a 25 percent increase in Adjusted EBITDA compared to the same quarter last year, despite a lower revenue base. We were once again able to exceed Wall Street's Adjusted EBITDA expectations for the quarter and have now exceeded Wall Street consensus for the last seven quarters primarily because of our focus and proactive strategies for right-sizing, improving operational efficiencies, and leveraging our offshore product engineering centers in India and China.

"We also saw a 4 percent improvement in second quarter revenue compared to the first quarter of this year due primarily to the launch of Yulgang 3.0, a solid increase in license bookings compared to the first quarter of 2009, and continued steady sales in our installed base at CDC Software."

According to Yip, "We were pleased with our Adjusted EBITDA growth as a result of proactive measures to strategically realign operations, which we started more than 12 months ago. We believe our seven consecutive quarters of Adjusted EBITDA growth and solid operating cash flow are indications that CDC Corporation is operating from a strong foundation. When global economic conditions improve, we feel confident that we are well-positioned to take advantage of market opportunities."

CDC Corporation Consolidated

* Total revenue for CDC Corporation in the second quarter of 2009 was (U.S.)$81.7 million, a decrease of 26 percent from (U.S.)$111.0 million in the second quarter of 2008.

* Adjusted EBITDA in the second quarter of 2009 was (U.S.)$12.5 million, an increase of 25 percent from (U.S.)$10.0 million in the second quarter of 2008.

Balance Sheet and Convertible Debentures Update

The company's balance sheet set forth below, which is dated as of June 30, 2009, remained solid, with Non-GAAP Cash and Cash Equivalents(a) of (U.S.)$142.4 million as of June 30, 2009. As of June 30, 2009, the company had come to terms with all 11 holders of its 3.75 percent senior exchangeable convertible notes due 2011, for the repurchase of approximately 75 percent of the original amount of $168.0 million notes outstanding, equivalent to $125.8 million in principal repurchased, at average prices below par and with no dilutive impact on shareholders. The remaining face value of notes outstanding and not negotiated held by non-affiliates is $42.2 million.

On a pro forma basis, as of June 30, 2009, without taking into account any other changes in net tangible book value after June 30, 2009 other than to give affect to: (i) repurchases of convertible notes after June 30, 2009 and through to date; (ii) adjustment to fair market value of derivative balance related to redemptions of convertible notes; (iii) payment of dividend to minority interest holders at the China.com level; and (iv) the issuance and sale of 4.0 million and 0.8 million of American Depository Shares by CDC Software and CDC Software International Corporation, a wholly owned subsidiary of CDC Corporation, CDC Corporation's:

* Pro-forma cash would have been (U.S.)$124.5 million instead of (U.S.)$111.9 million;

* Working capital surplus would have been (U.S.)$30.0 million instead of working capital deficit of (U.S.)$27.4 million; and

* Total debt would have been (U.S.)$64.4 million instead of (U.S.)$119.1 million.
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Total revenue for CDC Software for the second quarter of 2009 was (U.S.)$50.6 million. License sales declined to (U.S.)$7.8 million from (U.S.)$13.7 million in the second quarter of 2008. However, licenses sales increased 10 percent in the second quarter compared to the first quarter of 2009.

CDC Software is now trading as a separately listed public company on the NASDAQ Global Market under the symbol: CDCS. For a more information regarding the financial performance of CDC Software during the second quarter and first six months of 2009, please see CDC Software's second quarter 2009 press release located at the company's website: www.cdcsoftware.com.

CDC Global Services

On a standalone basis, CDC Global Services had the following results for the three months ended June 30, 2008 and 2009:
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Total revenue for CDC Global Services for the second quarter of 2009 was (U.S.)$18.5 million. Approximately 64 percent of this revenue was derived from the U.S. market while 36 percent was from international sources. Staff utilization for the quarter was 90 percent, which was up from 89 percent in Q1 2009. Furthermore, the company believes that CDC Global Services' staffing utilization rates are higher than industry averages. CDC Global Services' profit margins were negatively impacted by investments made in its business process outsourcing centers in India. In addition, CDC Global Services' revenue and profitability were also negatively impacted during the quarter due to the completion of several large deals.

CDC Global Services' offerings include platform-specific services for Microsoft and SAP, as well as project management, IT staffing, managed help desk solutions and a full range of outsourced service offerings. CDC Global Services also provides hardware for data collection and RFID through partnerships. Two key attributes of this business unit include an onshore/offshore delivery model for project work, which helps keep costs low for customers while helping to protect margins for the company, and long-term contracts for managed services, which help to provide CDC Global Services with a more predictable revenue stream.

Some of CDC Global Services' key wins and awards in the second quarter of 2009 included:

* A three year, (U.S.)$2.0 million contract extension to manage desktop technology for a nationally known managed care operation.

* A large energy delivery company servicing 1.9 million customers signed a (U.S.)$2.0 million contract extension to manage their desk top technology for another two years.

* A nationally known beer company signed contract for CDC Global Services to implement SAP's Warehouse Management System at the first of three breweries.

* CDC Global Services completed one of the few successful implementations in the world for SAP's Extended Warehouse Management system for an international beverage company.

* Praxa Limited, a business unit of CDC Global Services, was named to the 2009 Microsoft Dynamics President's Club and to Microsoft's 2009 Inner Circle for its dedicated commitment to customers and for its status as a top Microsoft Dynamics partner.

"CDC Global Services' strategy is heavily focused on returning to profitability through integrating various operations into one unit under a seasoned management team. In addition we want to grow our existing global services businesses by leveraging our customer base and expanding our services offerings through strategic acquisitions," said Peter Yip, CEO of CDC Corporation.

CDC Games

On a standalone basis, CDC Games had the following results for the three months ended June 30, 2008 and 2009:
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Total revenue from continuing operations(b) for CDC Games during the second quarter of 2009 was (U.S.)$9.5 million. This represents a decrease of approximately 11 percent from the second quarter of 2008, but represents an increase of over 50 percent from the first quarter of 2009.

During the second quarter of 2009, CDC Games launched Yulgang 3.0, a major new version of the company's most popular game, and the Bloody Sky expansion pack for Shaiya.

CDC Games currently has 160 million registered users and 8.4 million active users with a portfolio of six online games that features diverse styles and appeals to a variety of gaming demographics.

CDC Games plans to continue its diversification strategy with the anticipated late third quarter launch in China of the Lord of the Rings Online (LOTRO), a subscription-based MMORPG that is based on the literary works of J.R.R. Tolkien. Also, CDC Games expects to launch RU Online, a locally developed MMORPG based on the Monopoly game theme, which is planned for launch in November, in China.

CDC Games has just completed a successful stress test on its advanced gaming and billing platforms which exceeded expectations for LOTRO. During the current testing phases of LOTRO, the company has seen significant interest and positive feedback by gamers on the unique music system, detailed scenery, exciting player versus player features, and innovative and more narrative style quests that differ from most MMOs. LOTRO has been rising in the rankings for the most anticipated game in popular search engines and games portals. For instance, on Baidu, China's most popular search engine, LOTRO was recently ranked #9 as one of the most anticipated games in China.

Since CDC Games has continued its diversification and domestic online games strategy, the company believes that it can maintain a relatively stable, recurring and repeatable revenue base. In addition, the company has made significant improvement in managing operating expenses with the consolidation of the operations and facilities of 17Games and Optic Communications, two companies acquired by CDC Games in 2006 and 2007, respectively. Furthermore, CDC Games believes it has developed a more cost-effective process for effectively launching games, which includes cross promotion and leveraging a combined base of existing players.

"We have seen a significant revenue increase at CDC Games since the launch of Yulgang 3.0," Yip said. "We also launched the Bloody Sky expansion pack of Shaiya which helped improved metrics for this game. CDC Games is adding a healthy pipeline of domestic games over the next several quarters. Furthermore, we are looking forward to launching LOTRO by the end of the third quarter, which we believe is an ideal time based on the market opportunities currently for a game of this genre and the exciting features which we expect should be well received by gamers," Yip said.

China.com

Total revenue for China.com from continuing operations(b) during the second quarter of 2009 was (U.S.)$3.1 million, a decrease of approximately 25 percent from the second quarter of 2008.

The company saw increased demand from its customer base for its automobile and games channels. During the quarter, China.com launched two new channels, the "Baby" channel and "Fortune Telling" channel. In the second quarter, China.com entered into new advertising and promotion agreements with major clients including: Haier, Toyota Guangzhou, Intel China, Canon China, L'Oreal China, and Honda Guanghzou. China.com also won a contract from the Municipal government of Jiaxing city in Zhejiang Province to run the first incubation project in China that provides support to promote webgame industries in China including government financial and policy support. Notably, China.com was recently named: "Top Ten Internet Portal in China" and "The Best Content Covering Website for the Beijing Olympics Events," sponsored by Internet Society of China, China People's Daily and the State Council Information Office of PRC.

Concluding Remarks

Yip concluded, "Overall, we are pleased with the rebound in revenue and growth in Adjusted EBITDA in the second quarter despite challenging market conditions. The successful IPO of CDC Software was a critical milestone. We are also looking forward to the launch of exciting new online games this year, including domestic games, as well as the highly anticipated LOTRO launch.

"We also believe that executing our strategy to improve cost management, streamlining operations, reducing debt and pursuing a variety of strategic growth opportunities should not only strengthen our balance sheet, but also ultimately help to unlock shareholder value. We remain cautiously optimistic with regard to our long-term prospects since we believe we now have an optimal business and technology platform in place. Furthermore, if the economy continues to improve, we believe we are well positioned to take advantage of market opportunities."

* CDC Corporation has recently changed the composition of its Adjusted EBITDA measurement, as provided herein, to be consistent with the presentation of Adjusted EBITDA for its subsidiary, CDC Software Corporation. CDC Corporation believes this revised presentation is a useful measure of operating performance. A reconciliation of this revised Adjusted EBITDA measurement to our historical Adjusted EBITDA measurement is provided below.

Conference Call

The company's senior management will host a conference call for financial analysts and investors on Tuesday, August 18, 2009, at 9:00 am EDT.
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This call is being webcast by CCBN and can be accessed at CDC Corporation's corporate web site at www.cdccorporation.net.

The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).

Instant Replay

For those unable to call in, a digital instant replay will be available after the call until Sept. 1, 2009. U.S. based Toll Free Number: +1 800 642 1687, U.S.-based Toll Number: +1 706 645 9291 Passcode or PIN #: 23710558

(a) Adjusted Financial Measures

This press release includes Adjusted EBITDA from continuing operations and Non-GAAP Cash and Cash Equivalents, which are not prepared in accordance with GAAP (collectively, the "Non-GAAP Financial Measures"). Non-GAAP Financial Measures are not alternatives for measures such as net income, earnings per share and cash and cash equivalents prepared under generally accepted accounting principles in the United States ("GAAP"). These Non-GAAP Financial measures may also be different from non-GAAP measures used by other companies. Non-GAAP Financial Measures should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP.

Investors should be aware that these Non-GAAP Financial Measures have inherent limitations, including their variance from certain of the financial measurement principals underlying GAAP, should not be considered as a replacement for GAAP performance measures, and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. These supplemental Non-GAAP Financial Measures should not be construed as an inference that the Company's future results will be unaffected by similar adjustments to net earnings determined in accordance with GAAP. Reconciliations of Non-GAAP Financial Measures to GAAP are provided herein immediately following the financial statements included in this press release.

(b) Adjustment for Discontinued Businesses

During the second and fourth quarter of 2008, the mobile value added business of China.com and operations of CDC Games International, respectively, were discontinued. The operations of CDC Games International, a subsidiary of CDC Games Corporation, included operations in the U.S., Japan and Korea. All historical results related to these two businesses have been included in discontinued operations.

(c) SFAS 160 Adoption

As of January 2009, the company adopted SFAS 160, Non-controlling Interests in Consolidated Financial Statements. After the adoption of SFAS 160, net income (loss) is now referred to as net income (loss) attributable to controlling interest on the consolidated statement of operations.

(d) 2008 Revised Quarterly Information

Results provided herein for certain quarters of 2008 may be different than those previously reported in our press releases due to certain year-end adjustments required to be made in connection with the audit of our financial statements for the year ended December 31, 2008. 2008. Such revised financial information for each quarter of 2008 is provided herein.

About CDC Corporation

The CDC family of companies includes CDC Software focused on enterprise software applications and services, CDC Global Services focused on IT consulting services, outsourced application development and IT staffing, CDC Games focused on online games, and China.com focused on portals for the greater China markets. For more information about CDC Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net.

About CDC Software

CDC Software (NASDAQ: CDCS), The Customer-Driven Company[TM], is a provider of enterprise software solutions and services designed to help organizations deliver a superior customer experience while increasing efficiencies and profitability. CDC Software's product suite includes: CDC Factory (Enterprise Manufacturing Intelligence)), CDC Ross ERP (enterprise resource planning) and CDC SCM (supply chain management), e-M-Power (discrete manufacturing), CDC Supply Chain (supply chain management, warehouse management and order management), CDC Pivotal CRM and Saratoga CRM (customer relationship management), CDC MarketFirst (marketing automation and lead management), CDC Respond (customer complaint and feedback management), c360 CRM add-on products, industry solutions and development tools for the Microsoft Dynamics CRM platform, CDC HRM (human resources) and business analytics solutions.

These industry-specific solutions are used by customers worldwide within the manufacturing, financial services, health care, home building, real estate, and wholesale and retail distribution industries. CDC Software also offers a comprehensive portfolio of services that span the life cycle of its software applications. For more information, please visit www.cdcsoftware.com.

About CDC Global Services

CDC Global Services, a business unit of CDC Corporation, provides IT consulting services, including platform-specific services for Microsoft and SAP, as well as project management, IT staffing, managed help desk solutions and a full range of outsourced service offerings. CDC Global Services provides hardware for data collection and RFID, through partnerships with some of the industry's most reputable vendors. CDC Global Services customers benefit from streamlined vendor management and the ability to control project costs, while being able to access the right IT resources through a singular point of contact. For more information on CDC Global Services, visit: www.cdcglobalservices.com.

About CDC Games

CDC Games is a market leader in online and mobile games in China with more than 160 million registered users. The company pioneered the "free-to-play, pay-for-merchandise" online games model in China with Yulgang and launched the second free-to-play, pay for merchandise FPS (second person shooter) game in China with Special Force. Currently, CDC Games offers six popular MMO online games in China that include: Digimon RPG, Special Force, Yulgang, Shaiya, Lunia, and Eve Online. For more information on CDC Games, visit: www.cdcgames.net.

About China.com Inc.

China.com is a leading operator of Internet portals, serving a broad range of audiences in China. In 2006, it was chosen as the second company to host Google's Video Adsense which serves video ads targeted at China's English-speaking audience. China.com also was appointed by the Jilin government as the exclusive web sponsor of the 2007 Asian Winter Games. China.com was listed on the GEM of the Stock Exchange of Hong Kong Limited on March 9, 2000. In December 2000, China.com Inc. was admitted as a constituent stock of the Hang Seng IT and IT Portfolio Indices.

Cautionary Note Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our beliefs and expectations regarding our plans to unlock shareholder value at our subsidiaries, our beliefs regarding the effects of our proactive strategies for right-sizing, improving operational efficiencies and leverage off-shore resources, our beliefs regarding the stability of our sales to our installed base customers, our beliefs regarding our competitive positioning in the event of a recovery in the global economy, our beliefs regarding the utility of the pro forma financial information provided herein, our beliefs regarding staff utilization rates at CDC Global Services and their comparison to industry averages, our beliefs regarding factors that negatively affected performance at CDC Global Services during the second quarter of 2009, our beliefs regarding the key attribute of our CDC Global Services business and the characteristics of its revenue streams, our expectations and strategies for CD Global Services and the effects thereof, our beliefs regarding our diversification strategy at CDC Games, our expectations regarding planned launches for games at CDC Games and the timing thereof, our beliefs market perceptions of our current and planned games and trends related thereto, our beliefs regarding our ability to maintain stable revenues at CDC Games, our beliefs regarding our processes for launching and marketing games, our beliefs regarding the timing of our anticipated launch of LOTRO, our beliefs regarding our future operating objectives and strategies and the effects thereof on our balance sheet, financial condition and shareholder value, our beliefs regarding our platform strategy and competitive position, our expectations and estimates regarding our financial performance for future periods and 2009, including revenue, GAAP net income and Adjusted EBITDA, our beliefs regarding the benefit and utility of our presentation of Adjusted EBITDA, our beliefs about the preferences of Yulgang players, our beliefs about our products and games, as well as the characteristics and potential benefits and uses thereof, our beliefs about the continuation of, and any possible results of, our discussions with holders of our convertible notes and communications relating thereto, as well as the completion of any transactions for which we have agreements in place, our beliefs regarding actual and potential savings of interest and cash relating to our convertible notes, our beliefs regarding improvements in Games revenues, our beliefs about future online games offerings at CDC Games and the timing thereof, our beliefs about the nature of revenues, our beliefs regarding China.com's business and the factors influencing it, our beliefs about our cash position, our efforts with respect to continued cost-savings and our beliefs regarding our marketing, financial, business and competitive position and other statements that are not historical fact, the achievement of which involve risks, uncertainties and assumptions. These statements are based on management's current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, including the following: (a) the ability to realize strategic objectives by taking advantage of market opportunities in targeted geographic markets; (b) the ability to make changes in business strategy, development plans and product offerings to respond to the needs of current, new and potential customers, suppliers and strategic partners; (c) the effects of restructurings and rationalization of operations in our companies; (d) the ability to address technological changes and developments including the development and enhancement of products; (e) the ability to develop and market successful products and services; (f) the entry of new competitors and their technological advances; (g) the need to develop, integrate and deploy enterprise software applications to meet customer's requirements; (h) the possibility of development or deployment difficulties or delays; (i) the dependence on customer satisfaction with the company's games, software products and services; (j) continued commitment to the deployment of the products, including enterprise software solutions; (k) risks involved in developing software solutions and integrating them with third-party software and services; (l) the continued ability of the company's products and services to address client-specific requirements; (m) demand for and market acceptance of new and existing enterprise software and services and the positioning of the company's solutions; (n) risks associated with our convertible debt; and (o) the ability of staff to operate the enterprise software and extract and utilize information from the company's products and services. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Also, the results and benefits experienced by customers and users set forth in this press release may differ from those of other users and customers. Further information on risks or other factors that could cause results to differ is detailed in filings or submissions with the United States Securities and Exchange Commission made by CDC Corporation in its Annual Report for the year ended December 31, 2008 on Form 20-F filed on June 30, 2009. All forward-looking statements included in this press release are based upon information available to management as of the date of the press release, and you are cautioned not to place undue reliance on any forward looking statements which speak only as of the date of this press release. The company assumes no obligation to update or alter the forward looking statements whether as a result of new information, future events or otherwise. Historical results are not indicative of future performance.
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