Agreement: NetDragon to Produce Official Online Game for China Film Group’s New Blockbuster: “Tuo Ming Zhuang”

Hong Kong, 12 November 2007 – NetDragon Websoft Inc. (“NetDragon” or the “Company”, or, together with its subsidiaries, the “Group”, Stock Code: 8288), a leading online game developer and operator, announced today that it has entered into a strategic cooperation with China Film Group, the largest state-run film enterprise in the PRC, to develop the official online game for the new movie “Tuo Ming Zhuang.

The two companies signed the strategic cooperation agreement at The Peninsula Palace Beijing Hotel earlier, marking another milestone in PRC’s online game industry. The signing ceremony was attended by Mr. Liu Luyuan, Chief Executive Officer and Executive Director of NetDragon, Mr. Han Sanping, Chairman of China Film Group, Mr. Peter Chan Ho-Sun, Mr. Andy Lau Tak-Wah and Ms. Xu Jinglei, the director, and the lead actors in the movie. 

“This is the first step in a long-term strategic cooperation between NetDragon and China Film Group.  It is NetDragon’s mission to provide players with a diverse range of online game products.  Our comprehensive research and development capabilities have enabled us to develop products based on a wide variety of themes both efficiently and effectively. With our extensive experience in the operation of online games, we are absolutely confident that we will create a new classic kung fu online game. We are also able to guarantee that the content and features of the movie will be fully presented in the online game, ensuring that players can enjoy the game as much as they enjoy the movie,” said Mr. Liu Luyuan, Chief Executive Officer and Executive Director of NetDragon, at the ceremony.

Through this cooperation, China Film Group will provide NetDragon with professional advice on the storyboard, personalities and images of characters, etc.  NetDragon is expected to invest RMB15,000,000 in the development of “Tuo Ming Zhuang” online game, aiming to launch the game when the movie is released.

“Following the success of many adaptations of classic works of literature and film into online games in the PRC, we are now seeing great attention to online game adaptations of popular movies, TV series, and bestselling books. This cooperation will not only help us create a new kind of online game, but will also raise our profile through the synergy of the two companies, just as it increases our market share.  We are confident that “Tuo Ming Zhuang” online game will become a new driving force for NetDragon’s future development, ” Mr. Liu concluded. 


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About NetDragon

Founded in 1999, NetDragon Websoft Inc. is one of the PRC’s leading online game developers and operators and is headquartered in Fuzhou, the PRC. The Company listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited on 2 November 2007 and has been named “2007 The Best Employer in the PRC – The Best Company to Work For” by Fortune magazine (Chinese edition). 

The Company currently has more than 600 employees and has successfully developed and operated several large-scale online games, including a demon fantasy game Eudemons Online; Conquer Online, a game featuring ancient martial arts heroes; a robot fighting game Zero Online; 2D turn-based cartoon pets game Monster and Me; and Era of Faith, a game featuring a virtual medieval fantasy world.

For the six months ended 30 June 2007, the revenue of the Company amounted to RMB261.7 million with a growth rate of 902.4%.