CDC Corporation (CHINA)

[MrBankRoll]

08/25/2008 7:30AM BW CDC Provides Second Half of 2008 Total Revenue and Adjusted EBITDA Guidance, Exceeding Consensus Estimates

CDC Corporation (NASDAQ: CHINA), a leading global enterprise software and new media company, today announced that, based on its preliminary financial projections and estimates, the company expects total revenues for the second half of 2008, to be in the range of approximately (U.S.)$208 million to (U.S.)$210 million, compared to approximately (U.S.)$205 million for the same period in 2007 and above the Wall Street consensus of approximately $206 million. In addition, the company expects Adjusted EBITDA for the second half of 2008 to be approximately (U.S.)$8.0 – (U.S.)$10.0 million, which compares to Adjusted EBITDA of (U.S.)$1.4 for the comparable period in 2007 and Adjusted EBITDA of (U.S.)$5.1 million in the first half of 2008.

“Our two major divisions, CDC Software and CDC Games are growing, with impressive EBITDA growth,” said Peter Yip, CEO of CDC Corporation. “Currently, a large portion of our revenue at these divisions is recurring and our recent management alignment has resulted in a lower corporate overhead. We are cautiously optimistic about the second half of 2008, notwithstanding the difficult economic backdrop, as we believe we have adjusted our business model accordingly and we are focused on improving profitability, operating metrics and cash generation. In the second half of 2008, we expect to see an almost 100 percent improvement in our adjusted EBITDA from the first half of 2008.” About CDC Corporation The CDC family of companies includes CDC Software focused on enterprise software applications and services, CDC Games focused on online games, and China.com focused on portals for the greater China markets. For more information about CDC Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net.