CDC Corporation Plans to Explore Strategic Growth Alternatives for Three Core Businesses That Increased Aggregate Adjusted EBITDA by 34 Percent in 2008

HONG KONG & ATLANTA--(Business Wire)--
CDC Corporation (NASDAQ: CHINA), a leading global enterprise software and new
media company, announced today that it plans to explore strategic growth
alternatives for its three core business that have together increased 2008
aggregate Adjusted EBITDA (a) from continuing operations (b) by 34 percent
compared to 2007.

The three core businesses referred to in this press release are: CDC Software, a
provider of enterprise software solutions and services, CDC Global Services, a
global provider of IT services and consulting, and CDC Games, a leading
publisher of online games in China.

"In the fourth quarter of 2008, the company incurred certain non-cash, one-time
and non-recurring charges including an impairment of goodwill and intangible
assets of $48 million at CDC Global Services and CDC Games in accordance with
Statement of Financial Accounting Standards 142, Goodwill and Other Intangible
Assets and a loss on fair market value of derivative associated with the
convertible debentures of approximately $20 million," said Peter Yip, CEO of CDC
Corporation. "With these charges, the company reported a loss of $84 million
from continuing operations in Q4 2008, of which the majority was non-cash. The
company expects by taking these impairment charges in Q4 2008, it will enable
CDC Corporation to improve return on total assets on a current basis. We
reported cash flow from operations in the fourth quarter of 2008 of $8.3
million. And the Adjusted EBITDA, which we believe is a more fair method to
measure the performance of the businesses, was more robust, especially at the
operating unit level.

"Furthermore, in response to the company`s previously disclosed convertible note
repurchases, CDC Corporation expects the fair market value of the embedded
derivative liability to decrease in 2009, resulting in net income for the first
quarter of 2009.

"Despite the global economic downturn, three of our core businesses achieved an
impressive 34 percent increase, on an aggregate basis, in Adjusted EBITDA from
continuing operations in 2008 compared to the prior year. CDC Corporation has
invested considerable time and effort to develop these various core businesses
and each of them is at a different stage of maturity. During 2008, CDC
Corporation has improved several of the key operating metrics in these
businesses and is now in the process of exploring strategic and growth
alternatives with respect to all of them. We believe that the exploration of
such alternatives for these businesses could ultimately unlock shareholder value
in the company, as we feel our shares are currently undervalued in the market."

In 2008, these businesses together, generated the following results relative to
2007:

2007 2008 Variance
Revenue: $382.6 million $395.4 million 3.3%
Adjusted EBITDA: $36.3 million $48.8 million 34.4%
Adjusted EBITDA Margin: 9% 12% 33.3%

(a) Adjusted Financial Measures

This press release includes Adjusted EBITDA from continuing operations, which is
not prepared in accordance with GAAP (collectively, the "Non-GAAP Financial
Measures"). Non-GAAP Financial Measures are not alternatives for measures such
as net income, earnings per share and cash and cash equivalents prepared under
generally accepted accounting principles in the United States ("GAAP"). These
Non-GAAP Financial measures may also be different from non-GAAP measures used by
other companies. Non-GAAP Financial Measures should not be used as a substitute
for, or considered superior to, measures of financial performance prepared in
accordance with GAAP.

Investors should be aware that these Non-GAAP Financial Measures have inherent
limitations, including their variance from certain of the financial measurement
principals underlying GAAP, should not be considered as a replacement for GAAP
performance measures, and should be read in conjunction with our consolidated
financial statements prepared in accordance with GAAP. These supplemental
Non-GAAP Financial Measures should not be construed as an inference that the
Company`s future results will be unaffected by similar adjustments to net
earnings determined in accordance with GAAP. Reconciliations of Non-GAAP
Financial Measures to GAAP are provided herein immediately following the
financial statements included in this press release.

(b) Adjustment for Discontinued Businesses

During the first and fourth quarter of 2008, the mobile value added business of
China.com and operations of CDC Games International, respectively, were
discontinued. The operations of CDC Games International, a subsidiary of CDC
Games Corporation, included operations in the U.S., Japan and Korea. All
historical results related to these two businesses have been included in
discontinued operations.

About CDC Corporation

The CDC family of companies includes CDC Software focused on enterprise software
applications and services, CDC Global Services, focused on IT services and
consulting, 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.

Cautionary Note Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995, including
statements relating to our expectations and beliefs about CDC Corporation and
its core businesses, our expectations to pursue plans to seek strategic
alternatives with respect to its core businesses, and other statements that are
not historical fact, the achievement of which involve risks, uncertainties or
assumptions. These statements are based on management's current expectations and
are subject to risks and uncertainties and changes in circumstances. Further
information on risks or other factors that could cause results to differ is
detailed in filings or submissions with the United States Securities and
Exchange Commission made by CDC Corporation in its Annual Report for the year
ended December 31, 2007 on Form 20-F filed on June 30, 2008 and amended on
September 15, 2008. All forward-looking statements included in this press
release are based upon information available to management as of the date of the
press release, and you are cautioned not to place undue reliance on any forward
looking statements which speak only as of the date of this press release. The
company assumes no obligation to update or alter the forward looking statements
whether as a result of new information, future events or otherwise.

CDC Software, CDC Global Services, and CDC Games
Unaudited Reconciliation From GAAP Results to Adjusted EBITDA
(Amounts in thousands of U.S. dollars)

Twelve Months Ended
December 31,
2007 2008
(a) Reconciliation from GAAP results to Adjusted EBITDA from continuing operations
Operating income (loss) from continuing operations * $ 21,335 $ (52,212 )
Add back restructuring and other charges (4,452 ) 62,293
Add back depreciation expense 5,812 7,821
Add back amortization expense 9,896 10,724
Add back amortization expense included in cost of revenue 15,427 22,279
Add back stock compensation expenses 1,926 1,862
Add back unrealized exchange rate gains (losses) on deferred tax assets (3,762 ) 3,271
Subtract capitalized software credit (9,977 ) (7,269 )
Adjusted EBITDA from continuing operations $ 36,205 $ 48,769

*Included in $52.2 million loss from continuing operations in 2008 is $48.1
million in noncash impairment loss related to goodwill and intangible assets at
CDC Global Services and CDC Games in accordance with Statement of Financial
Accounting Standards 142, Goodwill and Other Intangible Assets.

CDC Corporation
Investor Relations:
Monish Bahl, 678-259-8510
Mbahl@cdcsoftware.com
or
Media Relations:
CDC Software
Lorretta Gasper, 678-259-8631
lgasper@cdcsoftware.com

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