Microsoft and CDC Software Form Alliance to Provide Enterprise Applications as On-Site Deployments and Via Software as a Service

Microsoft and CDC Software Form Alliance to Provide Enterprise Applications as On-Site Deployments and Via Software as a Service

May 24, 2006

Relationship Offers Customers in China Integrated CRM and SaaS Solutions

    ATLANTA, REDMOND, Wash. and BEIJING, May 24
/Xinhua-PRNewswire/ -- CDC Software, a wholly owned
subsidiary of CDC Corp. (Nasdaq: CHINA) and provider of
enterprise resource planning (ERP), customer relationship
management (CRM) and supply chain management (SCM) software
applications, today announced a strategic alliance with
Microsoft Corp. (Nasdaq: MSFT) to develop, market and
deliver CRM enterprise applications to customers in China. 
These applications will be designed as on-site and on-demand
deployments via the software-as-a-service (SaaS) model. In a
multiphased approach, the alliance agreement also includes
plans to explore opportunities to integrate Windows
Live(TM) Services and MSN(R) with CDC Corp.'s China.com
portal.

    (Logo:  NewsCom: 
http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )

    "This agreement with Microsoft highlights the
compelling value of our Microsoft-centric applications and
our unique position as a leading provider of enterprise
applications and online services in China," said Peter
Yip, chief executive officer for CDC Corp. and executive
chairman for CDC Software. 

    As part of the first phase of the agreement, the
companies will offer the Microsoft Dynamics(TM) CRM
platform together with the CDC Software c360 CRM add-ons as
on-site applications in China. CDC Software's c360 CRM
add-on products and development tools for the Microsoft
Dynamics CRM platform have been delivered to more than
1,000 customers worldwide in more than eight languages
through a network of more that 450 channel partners. 

    "China represents a strategic growth opportunity
for our CRM business," said Brad Wilson, general
manager for Microsoft Dynamics CRM at Microsoft. "Our
alliance with CDC Software will enable us to leverage its
popular c360 CRM add-on products, its deep knowledge of
Chinese markets and channels, and its nationwide
infrastructure to accelerate delivery of innovative
products and services to this important high-growth
market."

    The second phase of the agreement includes plans for
the companies to develop and deliver Microsoft Dynamics CRM
applications as hosted, on-demand services in China. The
SaaS CRM offerings, planned for December 2006, will
leverage the broad infrastructure established throughout
China by CDC Software's sister division, China.com, a
leading Internet services and online game company. The
China.com network, which took over five years to build, is
established nationwide in 30 provinces and four
municipalities, includes servers in all major Chinese
cities and serves more than 5 million unique visitors each
day. The China.com network currently supports the company's
widely used online games, thriving portal business and
hosting services for more than 1,700 enterprises in China.

    "With the growing demand among enterprise and
midmarket customers for SaaS solutions, the introduction of
Microsoft Dynamics CRM applications as hosted services will
provide these customers with rapid implementation,
decreased application downtime, and overall cost
savings," said Robert Bernard, general manager of the
Global ISV group at Microsoft. "We are pleased to work
with CDC Software to further integrate our technology and
extend the value of the Microsoft(R) platform to our CRM
customers in China and abroad."

    "The c360 CRM add-on applications have proven to
be very successful in North America and around the
globe," Yip said. "We are bullish on the
opportunity to work with Microsoft as its Microsoft CRM
strategy expands in China."

    About CDC Software

    CDC Software, The Customer-Driven Company(TM), is a
provider of enterprise software applications designed to
help organizations deliver a superior customer experience
while increasing efficiencies and profitability. CDC
Software's product suite includes the Pivotal CRM (customer
relationship management), c360 CRM add-on products, industry
solutions and development tools for the Microsoft Dynamics
CRM platform, Ross ERP (enterprise resource planning) and
SCM (supply chain management), IMI warehouse management and
order management, Platinum China HR (human resource) and
business analytics solutions. 

    The industry-specific solutions are used by more than
5,000 customers worldwide within the manufacturing,
financial services, health care, home building, real
estate, and wholesale and retail distribution industries.
The company completes its offerings with a full continuum
of services that span the life cycle of technology and
software applications, including implementation, project
consulting, outsourced business services, application
management and offshore development. CDC Software is the
enterprise software unit of CDC Corp. For more information,
please visit the http://www.cdcsoftware.com .

    About CDC Corp.

    CDC Corp. is focused on enterprise software, mobile
applications and online games. As part of its strategic
review, the company has reorganized into two primary
operating business units, CDC Software and China.com Inc.
For more information about CDC Corp., please visit the
website: http://www.cdccorporation.net .

    About Microsoft

    Founded in 1975, Microsoft (Nasdaq: MSFT) is the
worldwide leader in software, services and solutions that
help people and businesses realize their full potential.

    NOTE:  Microsoft, Windows Live, MSN and Microsoft
Dynamics are either registered trademarks or trademarks of
Microsoft Corp. in the United States and/or other
countries.

    The names of actual companies and products mentioned
herein may be the trademarks of their respective owners.

    CDC Software 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, and
includes statements relating to the results of the
strategic alliance with Microsoft Corporation to develop,
market and deliver CRM enterprise applications to customers
in China, the ability to offer the Microsoft Dynamics CRM
platform together with our c360 CRM add-ons as on-premise
applications in China and the ability to successfully
develop and deliver Microsoft Dynamics CRM applications as
hosted, on-demand services in China. 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, among others: market demand
for Microsoft Dynamics CRM platform and c360 CRM add-ons in
the China market; the ability to successfully develop the
CRM applications as a software-as-a-service offering; the
ability to use the China.com infrastructure to deliver
software-as-a-service offerings in China; and development
of competing products with enhanced functionalities which
would better serve the CRM or software-as-a-service markets
in China. Further information on risks or other factors that
could cause results to differ are detailed in filings or
submissions with the United States Securities and Exchange
Commission made by our parent, CDC Corporation, including
its Annual Report for the year ended December 31, 2004 on
Form 20-F/A filed October 11, 2005. 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.

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    For more information, please contact:

    China Media Relations

     Ida Ho 
     China.com Inc.
     Tel:   [phone]
     Email: [e-mail]

    North America Media Relations

     Jennifer Buchhalter 
     Articulate Communications Inc.
     Tel:   [phone], ext. 16
     Email: [e-mail]

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SOURCE  Microsoft Corp.