NetDragon Websoft Inc. Announces Interim 2009 Results

[25 August 2009, Hong Kong] NetDragon Websoft Inc. (“NetDragon”, with its subsidiaries collectively the “Group”; Stock Code: 777), a leading online game developer and operator in China, today announced its Interim 2009 unaudited financial results for the six-month period ended 30 June 2009. NetDragon will host a management conference call and webcast to review its results and recent developments, at 9:00am Hong Kong Time 26 August 2009, which corresponds to 9:00pm of 25 August Eastern Daylight Time.

1H 2009 Business Highlights
▪ Launched “Way of the Five” in March 2009
▪ Launched “The Warlords”, the English version of “Tou Ming Zhuang Online”, in April 2009
▪ Released Expansion Packs (EPs) for “Eudemons Online” and “Zero Online”, in various languages including English
▪ “Zero Online” launched in Thailand and Vietnam markets by local licensees in early 2009.
▪ Licensed the right to develop and operate a new version of “Ultima Online” in collaboration with Electronic Arts‟ Mythic Entertainment
▪ Conducted closed-beta tests for “Tian Yuan” and “Disney Fantasy Online”
▪ Continued to witness healthy demand for in-house developed mobile software applications, such as “Panda Reader” and “91 Assistant”, with which NetDragon is targeting China‟s emerging smart-phone users
▪ Continued to develop and offer the Chinese audience a diverse array of internet products and services via our integrated internet portal “”
▪ Continued to recruit skilled managers and developers to raise the overall production capacity and product quality of our Group‟s online game offerings, software applications, and other multimedia initiatives

Recent Developments
▪ Launched “Gold Edition: Heroes of Might and Magic Online” in July 2009
▪ Recognized as the “Most Valuable Enterprise in China‟s Online Game Industry over the Past Ten Years” at the Ten-Year China Online Game Industry Award Ceremony in July 2009
▪ Released Expansion Pack (EP) for “Conquer Online” in English in July and Spanish in August

Chairman’s Statement
Mr. Liu Dejian, Chairman and Executive Director of NetDragon, commented: “As we approach the 10th Anniversary of NetDragon‟s establishment, I am delighted with the progress and achievements attained by our Group. Since establishment, we have embarked on an R&D-focused mission to innovate and offer game aficionados and internet users entertaining, informative and practical products to enhance their lives. By focusing on creating our own IP, we were early-movers at home and able to make pioneering advances directly into overseas markets since 2004. These collective experiences have endowed NetDragon with the awareness and wherewithal to continue to successfully leverage our proprietary products at home and in various markets worldwide.”

Mr. Liu concluded: “10 years into our mission, the „future‟ as we imagined it in 1999 is now upon us all, and an even brighter and opportunity-laden future in online games and multimedia lies ahead. We have been investing in people and infrastructure over the past few years, thereby raising our R&D capacity and improving quality, as marked by numerous game launches, EPs and other product releases. As more and diversified content and products reach maturity, the direct monetization and cross-promotional potential is immense. We look forward to growing our product offerings and customer base in the years to come.”

Business Outlook
▪ We commenced closed beta testing for “Tian Yuan” and “Disney Fantasy Online” and expect both titles to launch in 2009. Games in the pipeline also include “CJ7 Online” “Dungeon Keeper Online”, and a new version of “Ultima Online”, among others.
▪ We will continue to pursue myriad opportunities to create online games and online experiences based upon popular third-party intellectual property.
▪ We will continue to take a two-pronged approach to expanding overseas by directly operating localized games as well as licensing abroad. NetDragon expects to remain at the fore amongst China‟s online gaming companies in expanding beyond the home market.
▪ We will continue to enhance our production capabilities by streamlining our integrated model of operation, strengthen marketing efforts and channels management, and expand our product mix, in order to extend the life span of existing games and successfully debut new games.
▪ We will continue to closely monitor our cost structure and implement cost control procedures as deemed necessary, in order to raise organizational productivity, while remaining ever cognizant of our need to invest in future growth opportunities.

Management Conference Call
Dial-in details for the live conference call are as follows:
International Dial-In +1 617 786 2961
US Toll free +1 800 901 5231
HK Toll free +800 96 3844
South China Toll free 10 800 130 0399
North China Toll free 10 800 152 1490
Participant Code 77179327

A live and archived webcast of the conference call will be available on the Investor Relations section of NetDragon‟s website at Participants in the live webcast should visit the aforementioned website 10 minutes prior to the call, then click on the icon for “2009 Interim Results Investor Conference Call” and follow the registration instructions. The archived webcast will be available for one year from the date of the original conference call.

Non-HKFRSs Financial Measures
To supplement the financial measures prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”), this press release includes non-HKFRSs financial measures of normalized profit and normalized profit per share, which excludes the impact of government grants and tax refunds. The Group believes these non-HKFRSs financial measures are important to help investors to understand the Group‟s current financial performance and future prospects, compare business trends among different reporting periods on a consistent basis and access the Company’s core operating results. These non-HKFRSs financial measures should be considered in addition to financial measures prepared in accordance with HKFRSs, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with HKFRSs.

About NetDragon
NetDragon Websoft Inc. is one of the leading online game developers and operators in the PRC. The Group’s game portfolio comprises a range of MMORPGs (Massively Multiplayer Online Role-Playing Games) that cater to various types of players and gaming preferences. The Group has successfully developed and marketed many popular online titles of various styles. Its current offerings include the games Way of the Five, Eudemons Online, Conquer Online, Zero Online, and Heroes of Might and Magic Online, among others. Some games are available in foreign languages, including English, French and Spanish. The Group also has several games currently in development, including Tian Yuan, Disney Fantasy Online, CJ7 Online, Dungeon Keeper Online and Ultima Online.

For further information please contact:

NetDragon Websoft Inc.
Ms. Maggie Zhou (Investor Relations Department)
Tel:   +86 591 87543120
IR website: