MOSTLY CHINA

[Jang-A-Lang]

Giant Interactive Announces Fourth Quarter and Fiscal Year 2007 Results
SHANGHAI, China, Feb. 20 /Xinhua-PRNewswire-FirstCall/ -- Giant Interactive Group Inc. (NYSE: GA) ('Giant' or the 'Company'), one of China's leading online game developers and operators, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2007.

Fourth Quarter 2007 Highlights:

-- Net revenue was RMB434.8 million (US$59.6 million), an increase of
7.3% over the third quarter 2007 and 151.8% over the fourth quarter
2006.
-- Gross profit was RMB372.8 million (US$51.1 million), an increase of
3.6% over the third quarter 2007 and 153.0% over the fourth quarter
2006. Gross profit in the fourth quarter 2007 grew at a slower rate
than revenue primarily due to an increase in business tax, caused by
distributors boosting their prepayments at year end. Please see the
discussion under 'Cost of Services' below for more details. Gross
profit margin for the fourth quarter 2007 was 85.7%.
-- Net income was RMB333.8 million (US$45.8 million), an increase of
15.0% over the third quarter 2007 and 287.2% over the fourth quarter
2006. Net income margin for the fourth quarter 2007 was 76.8%.
-- Non-GAAP net income excluding non-cash share-based compensation for
the fourth quarter 2007 was RMB347.3 million (US$47.6 million), an
increase of 17.9% over the third quarter 2007 and 273.0% over the
fourth quarter 2006. Non-GAAP net income margin excluding non-cash
share-based compensation for the fourth quarter 2007 was 79.9%.
-- Net income per American Depositary Share ('ADS') was RMB1.39
(US$0.19), compared to RMB1.44 for the third quarter 2007 and RMB0.43
for the fourth quarter 2006. Our initial public offering in November
2007 increased the capital basis for EPS calculation.
-- Non-GAAP net income excluding non-cash share-based compensation per
ADS for the fourth quarter 2007 was RMB1.44 (US$0.20), compared to
RMB1.46 for the third quarter 2007 and RMB0.47 for the fourth quarter
2006.
-- Active Paying Accounts ('APA') for online games(1) reached 1,405,000,
an increase of 6.6% from the third quarter 2007 and 78.6% from the
fourth quarter 2006.
-- Average Revenue Per User ('ARPU') for online games(1) reached
RMB308.6, an increase of 1.1% from the third quarter 2007 and an
increase of 40.5% from the fourth quarter 2006.
-- Average Concurrent Users ('ACU') for online games(1) was 512,000, an
increase of 6.4% from the third quarter 2007 and an increase of 29.4%
from the fourth quarter 2006.
-- Peak Concurrent Users ('PCU') for online games(1) was 983,000, an
increase of 10.7% from the third quarter 2007 and an increase of 30.2%
from the fourth quarter 2006.

(1) Online games include ZT Online, ZT Online PTP and Giant Online.

Fiscal Year 2007 Highlights:

Compared to fiscal year 2006 results,
-- Net revenues increased 273.9% to RMB1.5275 billion (US$209.4 million).
-- Gross profit increased 272.5% to RMB1.3535 billion (US$185.5 million).
-- Net income increased 364.5% to RMB1.1363 billion (US$155.8 million).
-- Non-GAAP net income excluding non-cash share-based compensation
increased 361.7% to RMB1.1612 billion (US$159.2 million).
-- Net income per ADS increased 342.6% to RMB5.40 (US$0.74).
-- Non-GAAP net income excluding non-cash share-based compensation per
ADS increased 337.3% to RMB5.51 (US$0.76).

Mr. Yuzhu Shi, Giant Interactive Chairman and CEO commented, '2007 was a successful year for Giant, underscored by our IPO on the NYSE and significant top- and bottom-line growth. Our company maintains industry-leading margins. Our success is derived from our focused strategy and our research and development capability. We focus on the research and development of a limited number of games, continuously making improvements in ZT Online in order to maintain continual revenue growth. Our product development team has the quality engineering talent and the in-depth understanding of Chinese gamers to develop commercially successful games. In addition, we forbid minors to play our games in order to fulfill our company's social responsibility, which at the same time, leads to a high average spending level per user.'

'We look to leverage this positive momentum as we develop our game portfolio in 2008. We believe that Giant Online will be our next hit game, and we will be heavily promoting it. We have received encouraging feedback from our closed beta testers of Giant Online, which will officially enter open beta testing at the end of the first quarter of 2008. In addition, we intend to commercially launch two new games in 2008, among which King of Kings III is a 3D massively multiplayer online role playing game ('MMORPG') set in a European-style magical world that complements our historical Chinese games. Empire of Sports is a role-playing sports game and we anticipate it will be popular during the year of the Olympics in China. The diversification of our game portfolio, while still adhering to our focused strategy, is an integral part of our strategy for growth, and we believe our current portfolio and pipeline position us well to compete in the coming years. Driven by our passion for games, we believe that our strong R&D and technology capabilities, extensive distribution, sales and marketing network and deep understanding of the Chinese mass market will allow us to continue to grow the business and build long-term shareholder value.'