MOSTLY CHINA

[Jang-A-Lang]

GA,

Business Highlights and Outlook

ZT Online. As a testimony to our commitment to constantly enhancing our games in accordance with gamers' changing preferences, we have begun rolling out new expansion packs and features for ZT Online. The Neighboring Friends expansion pack contains a new feature in which a gamer's physical location can now be shown to other players. This encourages users to form location-based bonds, both in the game and in real-life, taking ZT Online to a new level of interactivity. This expansion pack is being rolled out on a regional basis, with nationwide deployment to be completed in 2008. ZT Online PTP, a pay-to- play version of the original ZT Online, allows gamers to explore the award- winning ZT Online universe using a time or subscription based model. We believe the simultaneous operation of both pay-to-play and free-to-play versions will allow the game to appeal to a broader audience and expand our customer base. We began open beta testing of ZT Online PTP on January 29, 2008.

Giant Online. We officially commenced closed beta testing of Giant Online, our company's second internally developed game. Giant Online's most distinctive characteristic is its modern military theme, blended with many casual game components. In addition, we developed the game's direction towards more community-based features. These features promote stable community bonds and raise the stickiness of the game, helping to retain new players. On December 29, 2007, we released the game to a group of players for user testing. Direct feedback from enthusiastic beta testers has been positive and plays an instrumental role in allowing game designers to further refine the game's content and design. At the end of the first quarter of 2008, we will initiate an open beta test.

King of Kings III. King of Kings III, a 3D free-to-play medieval magical MMORPG that we acquired from a Taiwan-based company, has completed its fundamental game design and is currently undergoing engineering testing in Taiwan. The developers plan to begin focus group testing in March of 2008. King of Kings III is on schedule for release in China in 2008.

Empire of Sports. Empire of Sports is a 3D MMORPG featuring multiple sports competitions. We have secured an exclusive license from Switzerland- based Empire of Sports Ltd. to operate Empire of Sports in the Greater China region when the game is completed in 2008.

First Quarter 2008 Guidance. We believe that fewer of our targeted players will have played our games during the first quarter 2008 due to the Chinese New Year holiday. In addition, we believe that the severe winter weather experienced in locations throughout China in first quarter 2008 will have resulted in still fewer players playing our games during the period. In spite of these factors, Giant expects to generate total net revenues for the first quarter 2008 in the range of RMB448 million to RMB456 million.