CDC Corporation Generates Net Income Attributable to Controlling Interest(c), or Net Income, of (U.S.)$7.9 million in First Quarter of 2009

CDC Corporation Makes Significant Progress on Strategic Growth Initiatives
HONG KONG & ATLANTA--(Business Wire)--
CDC Corporation (NASDAQ: CHINA), a leading global enterprise software and new
media company, today announced financial results for the quarter ended March 31,
2009. For the first quarter of 2009, revenues and Adjusted EBITDA(a) from
continuing operations(b) or Adjusted EBITDA were (U.S.)$79.0 million and
(U.S.)$6.7 million, respectively. This compares to revenue and Adjusted EBITDA
from continuing operations of (U.S.)$98.2 million and (U.S.)$0.9 million,
respectively, for the first quarter of 2008. During the first quarter of 2009,
the effects of currency exchange rate fluctuations had a negative impact on the
company`s revenues of approximately (U.S.)$7.3 million. CDC Corporation reported
net income(c) from continuing operations attributable to controlling interest,
or Net Income, of (U.S.)$7.9 million for the first quarter of 2009, compared to
a net loss from continuing operations attributable to controlling interest or
Net Loss of (U.S.)$8.4 million, for the first quarter of 2008.

In the first quarter of 2009, CDC Corporation also recorded operating cash flows
of (U.S.)$2.1 million compared to (U.S.)$5.3 million in operating cash flows in
the first quarter of 2008, marking six consecutive quarters of cash generated
from operations.

According to Thomson Financial First Call, Wall Street consensus estimates for
CDC Corporation`s Adjusted EBITDA for the first quarter of 2009 were expected to
be (U.S.)$5.1 million. With Adjusted EBITDA of (U.S.)$6.7 million in the first
quarter of 2009, this marks the sixth consecutive quarter where CDC Corporation
has reported quarterly Adjusted EBITDA that has exceeded Wall Street consensus
estimates.

"Despite lower revenues as a result of the extremely difficult global economic
environment, as well as a negative impact from currency fluctuations, we were
pleased to post a positive net income and once again exceed Wall Street Adjusted
EBITDA expectations for the quarter," said Peter Yip, CEO of CDC Corporation.
"Our proactive strategies of focusing on right-sizing, improving operational
efficiencies, and leveraging our offshore product engineering centers in India
and China, have helped us to exceed Wall Street consensus Adjusted EBITDA
estimates for the last six quarters, despite the severe economic downturn."

"In addition, in the first quarter of 2009, our revenues were impacted by
traditional seasonality in the software, services and games businesses. As
discussed in our last earnings call, we believe CDC Games was particularly
affected by many gamers suspending play and awaiting the launch of Yulgang 3.0,
which occurred in late March 2009. Evaluating the first six weeks of the second
quarter of this year, compared to that same period during the first quarter of
2009, we have seen a substantial uptick in revenue at CDC Games, and have also
seen a healthy increase in license bookings and the pipeline of sales
opportunities at CDC Software."

Balance Sheet and Convertible Debentures Update

The company`s balance sheet set forth herein, which is dated as of March 31,
2009, reflects a significant amount of purchasing activity of the company`s 3.75
Percent Senior Exchangeable Convertible Notes Due 2011 (Notes). An affiliate of
the company purchased, or entered into agreements to purchase, an aggregate of
$83.0 million in face value during the first quarter of 2009. As previously
announced, the company was able to accomplish these Note purchases by utilizing
a combination of its own internal cash, cash generated from operations and
refinancing, with no dilution of shareholder equity resulting from these
transactions. Nonetheless, the company`s balance sheet remained strong, with
Non-GAAP Cash and Cash Equivalents(a) of (U.S.)$137.8 million as of March 31,
2009.

As of May 12, 2009, an affiliate of CDC Corporation has purchased, or entered
into agreements to purchase, an aggregate of approximately 75 percent of the
original (U.S.)$168 million of face value of Notes, from all 11 of its separate
Note holders. Two of the 11 Note holders still own a portion of their Notes. The
total of all purchases that have closed, and upon completion of those that are
under agreement, which are subject to certain closing conditions and expected to
close no later than August 15, 2009, will represent an aggregate of (U.S.)$125.8
million of the face value of the Notes. These purchases have been, on average,
purchased at prices below par value. Notably, the company will have saved
(U.S.)$39.3 million in potential future interest expense and principal based on
the November 2009 put date and (U.S.) $72.0 million in cash payments if the
notes had been held until final maturity in November 2011, as a result of these
previously-announced purchase transactions, both under contract and closed, with
the Notes holders.

Yip continued, "We are very pleased to have reached an agreement with our last
remaining convertible debenture holder. We have now reached an amicable
agreement with all 11 of our holders for all or part of their respective
holdings. We hope to continue to work with the two holders that have a remaining
position, and reach resolution shortly."

Strategic Growth Initiatives

CDC Corporation has three core businesses, CDC Software, a leading global
provider of a broad suite of enterprise software applications and services; CDC
Global Services, an IT services and consulting business; and CDC Games, which
offers online games in China. In the first quarter of 2009, these three core
businesses generated aggregate Adjusted EBITDA of (U.S.)$11.9 million, compared
to (U.S.)$8.2 million in the first quarter of 2008.

The following table illustrates the results generated by these businesses on a
combined basis for the quarters ended March 31, 2008 and 2009:

2008 2009 Variance
Revenue: (U.S.)$95.9 million (U.S.)$76.6 million* (20 %)
Adjusted EBITDA: (U.S.)$8.2 million (U.S.)$11.9 million 45 %
Adjusted EBITDA Margin: 9% 16% 78 %

* Total revenue for the three core businesses for the first quarter of 2009 was (U.S.)$76.6 million. During the first
quarter of 2009, the effects of currency exchange rate fluctuations had an aggregate negative impact on the combined
revenues of these three core businesses of approximately (U.S.) $7.3 million. On a constant currency basis, revenues for
the first quarter of 2009 would have been (U.S.)$83.9 million.

Based on preliminary numbers, CDC offers the following update on progress so far
in the second quarter of 2009:

* CDC Games has seen a more than 30 percent improvement in revenues in first six
weeks of the second quarter of 2009, compared to the first six weeks of the
first quarter of 2009.
* CDC Software has seen a healthy improvement in bookings of license revenue
sales in first six weeks of the second quarter of 2009, compared to the first
six weeks of the first quarter of 2009. In addition, the pipeline of sales
opportunities at CDC Software has considerably improved compared to the first
six weeks of the first quarter of 2009.
* CDC Global Services has a backlog of more than (U.S.)$15.0 million as of the
first six weeks of the second quarter of 2009.

According to Yip, "Despite the fact that revenues were down in the first quarter
of 2009, we were especially impacted by currency exchange rate fluctuations. On
a constant currency basis, we would have seen a 12 percent drop in revenues.
Nonetheless, we were pleased with our Adjusted EBITDA growth as a result of
proactive measures to strategically realign operations, started more than 12
months ago. In addition, we are pleased that we generated positive net income in
the first quarter. In the second quarter of 2009, we have seen an improvement in
indicators that we believe lead revenue performance, so far in the quarter to
date. As we have stated previously, we remain cautiously optimistic with regard
to our long-term prospects during these uncertain economic times."

CDC Corporation Consolidated

* Total revenue for CDC Corporation in the first quarter of 2009 was (U.S.)$79.0
million, a decrease of 20 percent from (U.S.)$98.2 million in the first quarter
of 2008. On a constant currency basis, revenue would have been (U.S.) $86.3
million without the negative impact of currency exchange rate fluctuations.
* Adjusted EBITDA in the first quarter of 2009 was (U.S.)$6.7 million, an
increase of 655 percent from (U.S.)$0.8 million in the first quarter of 2008.
The improvement was primarily due to the company`s efforts to strategically
realign operations.

Subsidiary Revenue and Operating Metrics Summary

CDC Software (excluding Global Services)

On a standalone basis, CDC Software, the largest of the company`s three core
businesses, had the following results for the quarters ended March 31, 2008 and
2009:

Q1 2008 Q1 2009 Variance
Revenue: (U.S.)$60.5 million (U.S.)$50.5 million* (17 %)
Adjusted EBITDA: (U.S.)$5.3 million (U.S.)$11.9 million 125 %
Adjusted EBITDA Margin: 9% 24% 167 %

*Total revenue for CDC Software for the first quarter of 2009 was (U.S.)$50.5
million. During the first quarter of 2009, the effects of currency exchange rate
fluctuations had a negative impact on CDC Software`s revenues of approximately
(U.S.)$5.1 million. On a constant currency basis, revenues for CDC Software in the
first quarter of 2009 would have been (U.S.)$55.6 million, instead of (U.S.)$50.5
million.

Despite lower revenues in the first quarter of 2009 compared to the first
quarter of 2008, CDC Software continued to experience significant improvements
in Adjusted EBITDA and Adjusted EBITDA margins, primarily due to its efforts to
strategically realign operations and position the company as a scalable
platform. These adjustments were implemented over the past several quarters.

The company believes that CDC Software has positioned itself as a platform for
growth through acquisitions, given its scalable infrastructure. This business
and technology platform includes leveraging its global sales and marketing
engine, using its lower cost, high quality offshore development centers in India
and China, as well as back office support. The company believes this type of
infrastructure can promote and facilitate acquisitions and improve operating
leverage. As such, CDC has developed a pipeline of acquisition targets which it
may pursue in the next several quarters.

For example, CDC has signed a binding term sheet with WKD Solutions, known by
the Categoric brand name, and expects that transaction to close in the second
quarter. Categoric is a leading provider of supply chain event management and
business activity monitoring (BAM) solutions that helps enterprises improve
their supply chain visibility and support their governance, risk and compliance
requirements.

CDC Software also plans to continue focusing on improving its operating margins
by leveraging an offshore model, increasing sales force performance and
enhancing maintenance revenue through its win-back program.

During the first quarter of 2009, CDC Software also introduced new products and
version upgrades for its core applications that included ERP and Manufacturing
Operations Management. Revenue for CDC Software was geographically distributed,
with the Americas contributing about 52 percent of the total, and the rest of
world contributing about 48 percent.

Further, during the first quarter of 2009, CDC Software added a total of 114 new
customers and signed upgrade and expansion agreements with 396 enterprise
software customers. New customers accounted for 20 percent of total software
license revenue during the quarter and included: AFP, AXUS, Cooper Tires,
Emerson Tools, EXFO Telecom, Intersnack Europe, Lagun Aro, Lenze, Orqua, PDCH,
Pfeiffer Vacuum, RIMAC, Studentlitteratur, and Wixon NA.

Repeat business with existing customers accounted for 80 percent of total
software license revenue for the quarter. Customers with expanded and repeat
business during the quarter included: O-AT-KA Milk Products Coop., Inc.,
Idemitsu Unitec, Mair Research, Merial et Accor, Norges Gruppe, Pinnacle Foods,
RS Components, Terreal, and Vestas Xuzhou.

Recent highlights include:

* The launch of CDC Factory Express, a manufacturing operations management
solution designed specifically for single plant manufacturers.
* Pivotal CRM 6.0 was named as one of the "Top 15" CRM software packages in the
enterprise category for 2009, by ISM Inc., a premier CRM consulting firm. This
represents the 13th consecutive appearance in this prestigious listing.
* The launch of Ross 6.3.2, an ERP solution which helps chemical manufacturers
comply with European Union`s REACH regulations.
* CDC Respond, an enterprise complaint management and feedback solution, was
launched in India to help address many of the requirements of India`s Right to
Information (RTI) Act.

"CDC Software is optimistic in its prospects for license revenue growth since we
have seen an increase in the pipeline of sales opportunities during the first
six weeks of the second quarter of 2009 compared to the same period in the first
quarter of this year, as well as a healthy increase in license bookings. With
our global, scalable platform, we believe we are now well positioned to improve
upon operating metrics should the economy improve. Overall, we feel cautiously
optimistic about our future," noted Yip.

CDC Global Services

On a standalone basis, CDC Global Services had the following results for the
quarters ended March 31, 2008 and 2009:

Q1 2008 Q1 2009 Variance
Revenue: (U.S.)$26.9 million (U.S.)$19.8 million* (26 %)
Adjusted EBITDA: (U.S.)$1.1 million (U.S.)$0.7 million (36 %)
Adjusted EBITDA Margin: 4% 4% -- %

Total revenue for CDC Global Services for the first quarter of 2009 was
(U.S.)$19.8 million. During the first quarter of 2009, the effects of currency
exchange rate fluctuations had a negative impact on CDC Global Services` revenues
of approximately (U.S.)$2.2 million. On a constant currency basis, revenues for
CDC Global Services in the first quarter of 2009 would have been (U.S.)$22.0
million, instead of (U.S.)$19.8 million.

Staff utilization for the quarter was 89 percent, which was essentially flat
from the fourth quarter of 2008. The company believes that its staffing
utilization rates are higher than industry averages.

CDC Global Services` offerings include platform-specific services for Microsoft
and SAP, as well as project management, IT staffing, managed help desk solutions
and a full range of outsourced service offerings. CDC Global Services also
provides hardware for data collection and RFID through partnerships. Two key
attributes of this business unit include an onshore / offshore delivery model
for project work, which helps keep costs low for customers while protecting
margins for the company. The other attribute is long-term contracts for managed
services, which helps to provide CDC Global Services with a more predictable
revenue stream.

Some key wins in the first quarter of 2009 included:

* A three year, (U.S.)$3.0 million outsourcing contract from a U.K.- based
financial services firm.
* A (U.S.)$1.9 million SAP extended warehouse management implementation contract
from a large U.S.- based pharmaceutical company.
* A (U.S.)$400,000 XPS implementation contract from a U.S. based silicone
supplier.

CDC Global Services also plans to look to expand geographically, organically and
through acquisitions. The company has recently launched a new Business Process
Outsourcing business that has seen steady growth so far with a solid pipeline
that includes several multi-year deals.

"Our CDC Global Services business was also impacted by currency exchange rate
fluctuations, as well as the overall economic downturn that has put pressure on
pricing, and the expiration of a large engagement at the end of 2008," Yip said.

CDC Games

On a standalone basis, CDC Games had the following results for the quarters
ended March 31, 2008 and 2009:

Q1 2008 Q1 2009 Variance
Revenue: (U.S.)$8.6 million (U.S.)$6.3 million(b) (27 %)
Adjusted EBITDA: (U.S.)$1.8 million (U.S.)($0.8) million (144 %)
Adjusted EBITDA Margin: 20% (14%) (177 %)

Total revenue from continuing operations(b) for CDC Games during the first quarter
of 2009 was (U.S.)$6.3 million. This represents a decline of approximately 27
percent in revenue from the first quarter of 2008. This decline was primarily
driven by several gamers suspending play and awaiting the launch of Yulgang 3.0,
which occurred in late March 2009.

Evaluating the first six weeks of the second quarter of this year, compared to
that same period during the first quarter of 2009, we have seen an uptick in
revenue at CDC Games.

As previously announced, during the first quarter of 2009, CDC Games also
launched Lunia, its first massively multiplayer online role-playing action game
(MMORPG) based on the popular manga style comic art form, in China.

CDC Games currently has a portfolio of six online games that features diverse
styles and appeals to a variety of gaming demographics. CDC Games plans to
continue its diversification strategy with the launch of new games this year,
and anticipates launching its first domestic game in China in the second quarter
of 2009, called TD Online, an MMORPG developed by a local company in China. CDC
Games also plans on launching additional domestic games in the China market
which we believe will help align the company with market trends currently
indicating that domestic online games hold the largest market share in China.

Since CDC Games has continued its diversification and domestic online games
strategy, the company believes that it can maintain a relatively stable,
recurring and repeatable revenue base. In addition, the company believes it has
developed a more cost-effective process for effectively launching games, which
includes cross promotion and leveraging a combined base of existing players.

"Since the launch of Yulgang 3.0 in the latter part of Q1 2009, we have seen, to
date, strong revenue and expect to report positive Adjusted EBITDA for CDC Games
in the second quarter of 2009. We also look forward to several new game launches
over the next few quarters," Yip said.

China.com

Total revenue for China.com from continuing operations(b) during the first
quarter of 2009 was $2.4 million, an increase of approximately 9 percent from
the first quarter of 2008. This growth was mainly attributable to higher
advertising revenues from the automobile, games, and travel vertical channels,
as well as from the content enriching community platform.

Also during the quarter, China.com entered into partnerships with several brand
companies including Haier, BYD Automobile, Hainan Mazda, Guangzhou Honda,
Guangzhou Toyota, Kumho Tires, IBM, as well as Dongfeng Nissan that the company
believes will help enrich its automobile clientele in China. During the first
quarter, China.com`s portal also received the "Internet Market China 2009 Award"
and "Most Influential Interactive Media in the Chinese Internet Industry 2008
Award."

In May 2009, China.com formed a partnership with the China Customs Department
and China Ocean Shipping (Group) Company (COSCO) for the exclusive right to be
the sole provider, for six months, in delivering electronic import declaration
services. Under the terms of this agreement, China.com is expected to build a
portal for consignees of import sea shipments from the U.S. into China so they
can file their import declarations through this website, instead of filing paper
applications. China.com intends to charge the consignees a service fee and will
have a revenue sharing arrangement with COSCO and other services companies.
China.com currently expects the portal to "go live" in the third quarter of this
year.

Concluding Remarks

Yip concluded, "We made the necessary steps over the last 12 months to realign
our operations for significant EBITDA expansion, despite the economic downturn.
Overall, we are pleased to have generated net income for Q1 2009 and have
Adjusted EBITDA and Adjusted EBITDA margin that not only showed a substantial
increase, but also exceeded analyst expectations despite a drop in revenue.
Furthermore, we have made significant accomplishments in reducing debt by
purchasing a substantial amount of our convertible notes from all our note
holders. We are also making exciting progress in pursuing strategic growth
alternatives for the company. In addition, CDC Games expects to launch some
exciting new online games this year, including our first domestic game in China.

"We believe that executing our strategy to improve cost management, streamlining
operations, reducing debt and pursuing a variety of strategic growth
opportunities should not only strengthen our balance sheet, but also ultimately
help to unlock shareholder value. Despite the lower revenues as a result of the
difficult economic conditions, we remain cautiously optimistic with regard to
our long-term prospects since we believe we now have the optimal business and
technology platform in place. Furthermore, if we do see an improvement in the
economy, we believe we are well positioned to take advantage of the
opportunities."

Conference Call

The company`s senior management will host a conference call for financial
analysts and investors, today, May 12, 2009 at 8:30 am EST.

USA-based Toll Free Number: +1 (888) 603-6873
International: +1 973 582 2706
Pass code: 98088456
Call Leader: Monish Bahl

This call is being webcast by CCBN and can be accessed at CDC Corporation`s
corporate web site at www.cdccorporation.net.

The webcast is also being distributed over CCBN`s Investor Distribution Network
to both institutional and individual investors. Individual investors can listen
to the call through CCBN`s individual investor center at www.fulldisclosure.com
or by visiting any of the investor sites in CCBN`s Individual Investor Network.
Institutional investors can access the call via CCBN`s password-protected event
management site, StreetEvents (www.streetevents.com).

Instant Replay

For those unable to call in, a digital instant replay will be available after
the call until May 26, 2009. U.S. based Toll Free Number: +1 800 642 1687,
U.S.-based Toll Number: +1 706 645 9291 Passcode or PIN #: 98088456

(a) Adjusted Financial Measures

This press release includes Adjusted EBITDA from continuing operations and
Non-GAAP Cash and Cash Equivalents, which are 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.

(c) SFAS 160 Adoption

As of January 2009, the company adopted SFAS 160, Non-controlling Interests in
Consolidated Financial Statements. After the adoption of SFAS 160, net income
(loss) is now referred to as net income (loss) attributable to controlling
interest on the consolidated statement of 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 consulting
services, outsourced application development and IT staffing, 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.

About CDC Software

CDC Software, The Customer-Driven Company, is a provider of enterprise software
solutions and services designed to help organizations deliver a superior
customer experience while increasing efficiencies and profitability. CDC
Software`s product suite includes: CDC Factory (Enterprise Manufacturing
Intelligence)), Ross ERP (enterprise resource planning) and SCM (supply chain
management), e-M-Power (discrete manufacturing), CDC Supply Chain (supply chain
management, warehouse management and order management), Pivotal CRM and Saratoga
CRM (customer relationship management), CDC MarketFirst (marketing automation
and lead management), Respond (customer complaint and feedback management), c360
CRM add-on products, industry solutions and development tools for the Microsoft
Dynamics CRM platform, Platinum HRM (human resources) and business analytics
solutions.

These industry-specific solutions are used by customers worldwide within the
manufacturing, financial services, health care, home building, real estate, and
wholesale and retail distribution industries. CDC Software offers a
comprehensive portfolio of services that span the life cycle of its software
applications. For more information, please visit www.cdcsoftware.com.

About CDC Global Services

CDC Global Services, a business unit of CDC Corporation, provides IT consulting
services, including platform-specific services for Microsoft and SAP, as well as
project management, IT staffing, managed help desk solutions and a full range of
outsourced service offerings. CDC Global Services provides hardware for data
collection and RFID, through partnerships with some of the industry`s most
reputable vendors. CDC Global Services customers benefit from streamlined vendor
management and the ability to control project costs, while being able to access
the right IT resources through a singular point of contact. For more information
on CDC Global Services, visit: www.cdcglobalservices.com.

About CDC Games

CDC Games is a market leader in online and mobile games in China with more than
160 million registered users. The company pioneered the "free-to-play,
pay-for-merchandise" online games model in China with Yulgang and launched the
first free-to-play, pay for merchandise FPS (first person shooter) game in China
with Special Force. Currently, CDC Games offers six popular MMO online games in
China that include: Digimon RPG, Special Force, Yulgang, Shaiya, Lunia, and Eve
Online. For more information on CDC Games, visit: www.cdcgames.net

About China.com Inc.

China.com is a leading operator of Internet portals, serving a broad range of
audiences in China. In 2006, it was chosen as the first company to host Google`s
Video Adsense which serves video ads targeted at China`s English-speaking
audience. China.com also was appointed by the Jilin government as the exclusive
web sponsor of the 2007 Asian Winter Games. China.com was listed on the GEM of
the Stock Exchange of Hong Kong Limited on March 9, 2000. In December 2000,
China.com Inc. was admitted as a constituent stock of the Hang Seng IT and IT
Portfolio Indices

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.These
forward-looking statements include statements regarding our beliefs regarding
our strategies, the effects thereof and the reasons for changes in our financial
results and achievements, our beliefs about the preferences of Yulgang players,
our beliefs regarding any preliminary results or indications for the second
quarter of 2009, our beliefs regarding our business and financial decisions and
the benefits and effects thereof, our beliefs about our products and games, as
well as the characteristics and potential benefits and uses thereof, our beliefs
about the continuation of, and any possible results of, our discussions with
holders of our convertible notes and communications relating thereto, as well as
the completion of any transactions for which we have agreements in place, our
beliefs regarding actual and potential savings of interest and cash relating to
our convertible notes, our beliefs regarding improvements in Games revenues, our
beliefs regarding CDC Software bookings of license revenues and pipeline of
sales opportunities, our beliefs regarding Global Services` backlog, our beliefs
regarding the impact of currency exchange fluctuations, our beliefs regarding
our metrics and leading indicators, our expectations about improvements in
certain financial measures at CDC Software and the continuation of sales trends
for certain CDC Software products, the recurring nature of certain revenue
streams and the potential benefits of certain of our products to users, our
beliefs regarding our establishment of a platform for growth and expansion, our
beliefs regarding our scalable infrastructure and the characteristics and
benefits thereof, our beliefs regarding term sheet with WKD, our beliefs
regarding our future plans and strategies, our beliefs regarding our staffing
utilization rates, our expectations regarding our ability to continue to
generate positive cash flows from operations, our beliefs regarding our current
and future strategic, business and financial position, including the sufficiency
of our cash and cash equivalents, our beliefs regarding customer
implementations, our beliefs about future online games offerings at CDC Games
and the timing thereof, our beliefs about the nature of revenues, the benefits
of the diversification strategy and games launching process at CDC Games, our
beliefs regarding China.com`s business and the factors influencing it, our
beliefs regarding the value of our stock, our beliefs regarding future and
continued improvement in our profitability, our beliefs regarding the
composition of our revenues and the recurring or non-recurring nature thereof,
our beliefs regarding customer preferences and market trends, our beliefs
regarding China.com`s brand recognition in China, our beliefs and expectations
regarding China.com`s agreement with COSCO and the portal relating thereto, the
growth of online advertising in China, and strategic partnerships in China, and
the effects and benefits thereof, our beliefs about our cash position, our
efforts with respect to continued cost-savings and our beliefs regarding our
marketing, financial, business and competitive position and other statements
that are not historical fact, the achievement of which involve risks,
uncertainties and assumptions.

These statements are based on management`s current expectations and are subject
to risks and uncertainties and changes in circumstances. There are important
factors that could cause actual results to differ materially from those
anticipated in the forward looking statements, including the following: (a) the
ability to realize strategic objectives by taking advantage of market
opportunities in targeted geographic markets; (b) the ability to make changes in
business strategy, development plans and product offerings to respond to the
needs of current, new and potential customers, suppliers and strategic partners;
(c) the effects of restructurings and rationalization of operations in our
companies; (d) the ability to address technological changes and developments
including the development and enhancement of products; (e) the ability to
develop and market successful products and services; (f) the entry of new
competitors and their technological advances; (g) the need to develop, integrate
and deploy enterprise software applications to meet customer`s requirements; (h)
the possibility of development or deployment difficulties or delays; (i) the
dependence on customer satisfaction with the company`s games, software products
and services; (j) continued commitment to the deployment of the products,
including enterprise software solutions; (k) risks involved in developing
software solutions and integrating them with third-party software and services;
(l) the continued ability of the company`s products and services to address
client-specific requirements; (m) demand for and market acceptance of new and
existing enterprise software and services and the positioning of the company`s
solutions; (n) risks associated with our convertible debt; and (o) the ability
of staff to operate the enterprise software and extract and utilize information
from the company`s products and services.

If any such risks or uncertainties materialize or if any of the assumptions
proves incorrect, our results could differ materially from the results expressed
or implied by the forward-looking statements we make.Also, the results and
benefits experienced by customers and users set forth in this press release may
differ from those of other users and customers.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.Historical results are not
indicative of future performance.

CDC Corporation
Unaudited Consolidated Balance Sheets
(Amounts in thousands of U.S. dollars except share and per share data)

December 31, March 31,
2008 2009
ASSETS
Current
assets:
Cash $ 165,693 $ 103,786
Restricted 4,275 4,260
cash
Accounts 72,834 67,267
receivable
(net of
allowance
of $8,304
and $7,401
at December
31,
2007 and
March 31,
2009,
respectivel
y)
Available 33,428 17,165
-for-sale
securities
Deferred 7,768 7,782
tax assets
Prepayments 11,944 12,230
and other
current
assets
Total 295,942 212,490
current
assets

Property 15,392 14,171
and
equipment,
net
Goodwill 158,119 157,563
Intangible 108,334 102,408
assets, net
Available 11,797 12,599
-for-sale
securities
Investments 10,517 10,634
under cost
method
Deferred 41,261 41,134
tax assets
Other 5,168 4,449
assets

Total $ 646,530 $ 555,448
assets

LIABILITIES
AND
SHAREHOLDER
S` EQUITY
Current
liabilities
:
Accounts $ 21,397 $ 24,119
payable
Purchase 628 419
considerati
on payables
Income tax 4,138 6,976
payable
Accrued 44,970 38,936
liabilities
Restructuri 2,026 1,480
ng
accruals,
current
portion
Short-term 8,265 12,611
bank loans
Convertible 160,961 81,363
notes
Derivatives 41,189 25,233
of
convertible
notes
Deferred 61,977 58,814
revenue
Deferred 438 388
tax
liabilities
Total 345,989 250,339
current
liabilities

Deferred 27,624 27,597
tax
liabilities
Long-term - 8,000
debt
Restructuri 239 32
ng
accruals,
net of
current
portion
Other 12,850 12,920
liabilities
Total 386,702 298,888
liabilities

Contingenci
es and
commitments

Shareholder
s` equity:
Preferred
shares,
$0.001 par
value;
5,000,000
shares
authorized,
no shares - -
issued
Class A
common
shares,
$0.00025
par value;
800,000,000
shares
authorized;
118,103,289
and
118,306,380
shares
issued as
of December
31, 2007
and March
31, 2009,
respectivel
y;
106,999,640 28 28
and
106,095,899
shares
outstanding
as of
December
31, 2007
and March
31, 2009,
respectivel
y
Additional 722,890 724,123
paid-in
capital
Common -
stock held
in
treasury;
11,103,649
and
12,210,481
shares
at December (56,118 ) (57,080 )
31, 2007
and March
31, 2009,
respectivel
y
Accumulated (441,128 ) (433,254 )
deficit
Accumulated 16,623 15,800
other
comprehensi
ve income
Total 242,295 249,617
parent
shareholder
s` equity

Noncontroll 17,533 6,943
ing
interest
Total 259,828 256,560
equity

Total $ 646,530 $ 555,448
liabilities
and
shareholder
s` equity

CDC Corporation
Unaudited Consolidated Statement of Operations
(Amounts in thousands of U.S. dollars except share and per share data)

Three Months Ended
March 31,
2008 2009
REVENUE:
Software $ 60,461 $ 50,521
Global Services 26,884 19,830
CDC Games 8,563 6,259
China.com 2,245 2,400
Total revenue 98,153 79,010

COST OF REVENUE:
Software (28,015 ) (24,176 )
Global Services (21,056 ) (16,203 )
CDC Games (5,574 ) (5,305 )
China.com (1,126 ) (1,209 )
Total cost of revenue (55,771 ) (46,893 )

Gross profit 42,382 32,117
Gross margin % 43% 41%

OPERATING EXPENSES:
Sales and marketing expenses (19,467 ) (11,304 )
Research and development expenses (6,034 ) (4,531 )
General and administrative expenses (21,161 ) (17,115 )
Amortization expenses (3,263 ) (1,967 )
Restructuring and other charges (266 ) (660 )
Total operating expenses (50,191 ) (35,577 )

Operating loss from continuing operations (7,809 ) (3,460 )
Operating margin % -8% -4%

Other income (loss), net (167 ) 15,324

Income (loss) before income taxes (7,976 ) 11,864
Income tax expense (450 ) (3,947 )

Income (loss) from continuing operations (8,426 ) 7,917
Loss from operations of discontinued subsidiaries (3,113 ) (203 )

Net income (loss) in consolidated subsidiaries (11,539 ) 7,714
Net income (loss) attributable to noncontrolling interest (345 ) 160

Net income (loss) attributable to controlling interest (c) $ (11,884 ) $ 7,874

Basic and diluted earnings (loss) per share from continuing operations $ (0.08 ) $ 0.07

Basic and diluted earnings (loss) per share attributable to controlling interest $ (0.11 ) $ 0.07

Weighted average number of shares - basic 108,144,141 106,887,953

Weighted average number of shares - diluted 108,144,141 106,897,819

CDC Corporation
Unaudited Consolidated Statement of Cash Flows
(Amounts in thousands of U.S. dollars)

Three Months Ended
March 31,
2008 2009
OPERATING ACTIVITIES:
Net income (loss) in consolidated subsidiaries $ (11,539 ) $ 7,714
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Loss (gain) on disposal/write-off of PPE net of Cash 34 (13 )
Loss (gain) on disposal of available-for-sale securities 6 616
Loss (gain) on disposal of cost investments (12 ) -
Loss (gain) on purchase of convertible notes - (3,960 )
Bad debt expense 42 292
Amortization of intangible assets 6,285 7,168
Depreciation expense 2,084 1,824
Impairment of available for sale securities 51 -
Stock compensation expenses 1,643 1,023
Deferred income tax provision 66 3,848
Unrealized exchange rate (gain) loss - 396
Amortization of debt issuance costs and debt discount on convertible notes 490 2,931
Fair market value adjustment of derivative instruments 2,319 (15,956 )
Interest income received on restricted cash - (31 )
Changes in operating assets and liabilities:
Accounts receivable 7,151 4,599
Deposits, prepayments and other receivables (2,704 ) (393 )
Other assets (1,181 ) (274 )
Accounts payable (3,030 ) 2,451
Accrued liabilities (300 ) (6,610 )
Deferred revenue 3,878 (2,640 )
Income tax payable (805 ) (1,001 )
Other liabilities 803 161
Net cash provided by operating activities 5,281 2,145

INVESTING ACTIVITIES:
Acquisition, net of cash acquired (3,623 ) -
Purchase of property, plant & equipment (290 ) (623 )
Payment for capitalized software (2,899 ) (892 )
Disposal (acquisition) of cost method investees - (828 )
Loans to and/or investment in franchise partners - (38 )
Proceeds from disposal of available-for-sale securities 33,319 15,094
Decrease (increase) in restricted cash - 7
Other 85 -
Net cash provided (used) in investing activities 26,592 12,720

FINANCING ACTIVITIES:
Proceeds from bank loans - 226
Repayment of bank loans (21,783 ) (2,880 )
Repayment of convertible notes - (62,540 )
Purchase of China.com shares by CDC Corporation - 376
Purchases of treasury stock - (962 )
Dividend distribution - (10,665 )
Other 119 -
Net cash used in financing activities (21,664 ) (76,445 )

Effect of exchange differences on cash 1,193 (327 )

Net increase (decrease) in cash and cash equivalents 11,402 (61,907 )
Cash and cash equivalents at beginning of year 145,346 165,693

Cash and cash equivalents at end of year $ 156,748 $ 103,786

CDC Corporation
Unaudited Reconciliation From GAAP Results to Non GAAP Cash
(Amounts in thousands of U.S. dollars)

March 31,
(a) Non GAAP Cash and Cash Equivalents Reconciliation 2009
Cash $ 103,786
Add restricted cash 4,260
Add available for sale securities - current 17,165
Add available for sale securities - long-term 12,599
Non GAAP cash and cash equivalents $ 137,810

CDC Corporation
Unaudited Reconciliation From GAAP Results to Adjusted EBITDA
Three Months Ended March 31, 2008
(Amounts in thousands of U.S. dollars)

CDC Software CDC Global CDC Games China.com Corporate Consolidated

Services
(a) Reconciliation from GAAP results to Adjusted EBITDA from continuing operations
Operating loss from continuing operations $ 1,238 $ (2,460 ) $ (557 ) $ (1,608 ) $ (4,422 ) $ (7,809 )
Add back restructuring and other charges 101 2,228 94 - (2,157 ) 266
Add back depreciation expense 1,114 130 798 73 (128 ) 1,987
Add back amortization expense 1,607 1,143 269 - 244 3,263
Add back amortization expense included in cost of revenue 3,258 - 1,226 - - 4,484
Add back stock compensation expenses 344 74 - 352 820 1,590
Add back unrealized exchange rate (gain) loss 506 - - - (506 ) -
Subtract capitalized software credit (2,899 ) - - - - (2,899 )
Adjusted EBITDA from continuing operations $ 5,269 $ 1,115 $ 1,830 $ (1,183 ) $ (6,149 ) $ 882

CDC Corporation
Unaudited Reconciliation From GAAP Results to Adjusted EBITDA
Three Months Ended March 31, 2009
(Amounts in thousands of U.S. dollars)

CDC Software CDC Global Services CDC Games China.com Corporate Consolidated
(a) Reconciliation from GAAP results to Adjusted EBITDA from continuing operations
Operating loss from continuing operations $ 6,027 $ (2,203 ) $ (3,076 ) $ (890 ) $ (3,318 ) $ (3,460 )
Add back restructuring and other charges 431 2,099 (24 ) - (1,846 ) 660
Add back depreciation expense 823 72 774 102 13 1,784
Add back amortization expense 1,259 469 - - 239 1,967
Add back amortization expense included in cost of revenue 3,892 5 1,304 - - 5,201
Add back stock compensation expenses 181 219 108 257 239 1,004
Add back unrealized exchange rate (gain) loss 228 - 156 12 - 396
Subtract capitalized software credit (892 ) - - - - (892 )
Adjusted EBITDA from continuing operations $ 11,949 $ 661 $ (758 ) $ (519 ) $ (4,673 ) $ 6,660

CDC Corporation
Unaudited Revenue Details
(Amounts in thousands of U.S. dollars)

Three Months Ended March 31,
2008 2009
Segment revenue from external customers:
Software:
Licenses $ 11,020 $ 7,298
Maintenance 25,551 24,198
Consulting services 23,033 18,680
Hardware 857 345
Total Software 60,461 50,521

Global Services :
Licenses 1,261 787
Consulting services 24,976 17,895
Hardware 647 1,148
Total Global Services 26,884 19,830

CDC Games 8,563 6,259
China.com 2,245 2,400

Total consolidated revenue $ 98,153 $ 79,010

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

Copyright Business Wire 2009