NetDragon Partners with Fujian and Fuzhou Governments to Successfully Fight Against Private Server

[23 December 2008, Hong Kong] NetDragon Websoft Inc. (“NetDragon” or the “Company”, with its subsidiaries collectively referred to as the “Group”; Stock Code: 777), a leading game developer and operator in the PRC, has recently achieved great success in combating private servers with the strong support of both the Fujian and Fuzhou governments. They have successfully defeated a number of private server operators involving Eudemons Online nationwide, including a large-scale operation based in the city of Xiamen.

Mr. Liu Luyuan, Executive Director and Chief Executive Officer of NetDragon, said, “The offensive actions we took have had a strong impact on clamping down on private server operators and clearly reflect our determination to tackle these illegal activities. The Group has received support and cooperation from various government departments, which has enhanced our ability to crack down on these parasitic activities. Also, a specially dedicated task force was formed internally to monitor private server activities 24 hours a day. Looking forward, we are glad to be working with our peers and proactively cooperating with relevant government departments to overcome the problem of private servers. We are confident of eventually closing down over 50% of this anti-intellectual property activity by the end of 2008 with the aim of building up a more healthy and harmonious internet industry.”

As a leading player in Fujian’s high technology sector, NetDragon has been adversely affected by private server problems over the past year, alerting the attention of the Fujian and Fuzhou governments. In September 2008, the Fujian Public Security Bureau announced an aggressive plan of action in cooperation with the Fuzhou Municipal Bureau of Public Security, Fuzhou Municipal Copyright Administration, Fuzhou Municipal Bureau of Culture, Administration for Industry and Commerce of Fuzhou and Fuzhou Intellectual Property Office. Their aim was to work closely with NetDragon to attack all private server activities. In October, the Fuzhou Municipal Bureau of Public Security also established an investigation committee to focus on private server problems involving online games of NetDragon. This was a clear indication of the determination from both the government and NetDragon in collectively fighting against illegal private server activities.

About NetDragon
NetDragon Websoft Inc. is one of the leading online game developers and operators in the PRC. The Group’s game portfolio comprises of 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 Eudemons Online, Conquer Online, Zero Online, Tou Ming Zhuang Online, Heroes of Might and Magic Online, Era of Faith, and Monster & Me. Some of the games are also available in foreign languages, including English, French and Spanish. The Group also has four games currently in development, including Way of the Five, Tian Yuan, Disney Fantasy Online and Dungeon Keeper Online, which are expected to be launched from the first quarter of 2009.

Listed on the GEM of the SEHK on 2 November 2007 (Stock code on GEM: 8288), NetDragon successfully transferred to the Main Board of the SEHK on 24 June 2008 (Stock code on Main Board: 777). For more details please visit or .

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