China.com Reports Robust Growth in Revenue and Net Profit for the Second Quarter of 2006

China.com Reports Robust Growth in Revenue and Net Profit for the Second Quarter of 2006

August 14, 2006

Online Game Yulgang Continues Its Outstanding Performance with Quarterly Revenue Growth of 52% And Registered Users Exceeding 30 Million

    Financial and operational highlights for the three
months ended 30 June, 2006:

    -- Total revenue was HK$150 million, up 72%
year-on-year 
    -- Gross profit was HK$91 million, up 103%
year-on-year
    -- Profit attributable to equity shareholders was
HK$17.8 million, up 
       772% year-on-year.  25th consecutive quarter of
profitability. 
    -- Continued to be operating cashflow positive, balance
sheet position 
       remains strong, with over HK$954 million in net cash
and cash 
       equivalents
    -- Yulgang surpassed 348,000 peak concurrent users and
30 million 
       registered users.  The online games business unit
contributed HK$61 
       million in revenues.


    HONG KONG and BEIJING, Aug. 14 /Xinhua-PRNewswire/ --
China.com Inc. ("China.com"; Hong Kong Stock
Code: 8006), an online game, Mobile Value Added Services
("MVAS") and Internet services provider operating
principally in China, and a 77%-owned subsidiary of CDC
Corporation (Nasdaq: CHINA), today announced its financial
results for the three months ended 30 June, 2006. During
the period, the Company recorded total revenue of HK$150
million, representing an increase of 72% over the same
period last year, while gross profit was HK$91 million, up
103%.  Profit attributable to equity shareholders was
HK$17.8 million, up 772% from Q2 2005.  This is the 25th
consecutive quarter since the Company's initial public
offering in March of 2000 that the Company has shown a
profit attributable to equity shareholders.  Balance sheet
position remained strong with net cash and interest-bearing
securities at over HK$954 million as of 30 June 2006.

    Dr. Raymond Ch'ien, Chairman of the Board, China.com
said, "I am pleased with the substantial progress made
by the company's operations during the second quarter of
2006.  We achieved new milestones across all key business
units, especially CDC Games whose outstanding performance
consistently exceeded our expectations.  We appreciate that
challenges lie ahead with the recent and imminent regulatory
changes in the MVAS and online games sectors and we are
committed to work even harder to offset any short term
effects on performance and to continue our success in the
vast and growing markets of China."

    CDC Games    

    CDC Games became the 100% owner of 17game, the operator
of Yulgang, at the end of Q1 2006 and began full
consolidation of 17game's revenue in the second quarter.
The online games business continued to deliver robust
results with games revenues increasing by 52% to HK$61
million in Q2 2006. 

    CDC Games is one of the market leaders of online and
mobile games in China as demonstrated by its strong growth
momentum and financial performance.  During the quarter,
Yulgang, one of its latest online games, continued to
deliver outstanding performance with registered users
exceeding 30 million, up 36% from the previous quarter and
the average concurrent players for Yulgang surpassing
242,000, up 34% from Q1. 

    CDC Games has delivered solid quarter-over-quarter
improvements in several important operational metrics.  In
addition, CDC Games is exploring opportunities for
additional revenue sources and has recently started to
partner with the sales force of the China.com Portal to
sell ads on the games portal.  

    Leveraging the momentum and enormous customer base
generated by Yulgang, the Company plans to build a broader
portfolio of games and to selectively acquire synergistic
and earnings accretive gaming companies in China. 
Following the success of Yulgang, CDC Games has licensed
two additional online games with a "free-to-play"
business model.  Negotiations for another game are ongoing
which the Company hopes to complete by the end of Q3 2006.


    The Company plans to grow organically by taking
advantage of its extensive national coverage, dynamic user
profile and strong registered user base while making
selected acquisitions using its strong cash position.  The
Company will also continue to evaluate various potential
means to unlock shareholders' value which may include a
potential spin-off or carve-out of CDC Games.

    China.com Portal

    In Q2, the Company continues to strengthen China.com
portal's position as one of the preferred websites for
Chinese professionals by enhancing content in the
lifestyle, career, entertainment, technology and health
channels.  In May, the portal launched China's first online
comic news show, "The Straight Show", which has
been very popular among Chinese Internet users.  This
program is also positioned to be a platform for interactive
online video and delivering mobile video content. 

    In addition, the portal entered into a number of
strategic partnerships with leading global companies such
as Google and Amazon to further enhance its search
capabilities, content and services during the quarter. 
These partnerships have also assisted the portal in
monetizing its fast growing pageviews.

    During the quarter, the portal continued to explore
opportunities for synergy and cooperation with its sister
companies in the CDC family.  This included partnering with
CDC Software to offer Software as a Service
("SaaS") products through its robust nationwide
network and leveraging its broad advertising sales force to
sell advertisements for CDC Games' portal.

    "While we are encouraged by the continuing success
of our existing operations, we are excited at the prospects
for tremendous growth for our new products and services
such as "The Straight Show" and SaaS," said
Dr. Chen Xiaowei, Chief Financial Officer of China.com.  

    CDC Mobile

    During the quarter, the mobile services and
applications business continued to attain healthy growth
and a more balanced revenue mix.  Total revenue increased
6% quarter on quarter fueled by the growth of 2.5G
services. The Company's wireless application protocol
("WAP") and multimedia messaging services
("MMS") both recorded 27% quarter on quarter
revenue gains. 

    Executive Appointments

    On 3 August, Mr. Yip Hak Yung, Peter was re-designated
as an executive director and appointed as acting chief
executive officer of China.com Inc.  Mr. Yip was a founder
of the Company and also serves as the chief executive
officer of CDC Corporation, the 77% majority shareholder of
the Company. 

    In addition, Dr. Chen Xiaowei has been appointed as an
executive director, compliance officer and authorized
representative of the Company in addition to her current
role as Chief Financial Officer of the Company.

    Notes to the Editors:

    This press release should be read in conjunction with
the announcement posted on the website of the Growth
Enterprise Market of The Stock Exchange of Hong Kong
Limited.

    About China.com Inc.

    China.com Inc. (stock code: 8006; website:
http://www.inc.china.com ), a leading online game, Mobile
Value Added Services (MVAS), and Internet services company
operating principally in China, and a 77%-owned subsidiary
of CDC Corporation (formerly chinadotcom corporation)
(Nasdaq: CHINA; website: http://www.cdccorporation.net ),
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.

    Safe Harbor Statement

    There is no assurance that the current growth of
China.com Inc.'s business can be maintained.  The
statements in this news release, other than historical
financial information, may contain forward-looking
statements that involve risks and uncertainties that could
cause actual results to differ from anticipated results. 

    For more information, please contact: 

     Jenny Hu                         
     China.com Inc.                   
     Tel:   [phone] x662     
     Fax:   [phone]
     Email: [e-mail]       
                                                           
             
SOURCE  China.com Inc.