Shanda Game Acquisition Platform related affiliates strengthen mobile strategy

China's leading online game development, operations and publishers Shanda Games Limited (Nasdaq:game, hereinafter referred to as "Grand Game" or "Company"), announced today to form a final agreement, will acquire Shanda Interactive Entertainment Limited ("Shanda Interactive") under the provision of user and payment platform services affiliated companies. The company hopes to achieve the following results through this transaction:-Promote corporate mobile platform building-improve corporate cost structure and increase earnings per share-optimize company cash usage-reduce recurring associated transactions and solve associated loan problems Shanghai Sheng Exhibition Network Technology Co., Ltd. ("Sheng Zhan") and Tianjin Shengjing Trading Co., Ltd. ( "Shengjing") is a subsidiary of Shanda Interactive. Shanda Games use them for a number of services such as online payments, user authentication, customer service, anti-addiction systems, data support, and prepaid card marketing and distribution. In the first quarter of 2013, Shanda's services paid chin and shengjing about 21.3% of the total revenues of Shanda's games. Chin, as an online service platform, has extensive use of Shanda games online accounts, recording user login, payment and other behavioral data, as well as an experienced customer service team, with the average user about 9 million times a month interaction, Eight consecutive years by the Ministry of Industry and Information industry in China to promote the Alliance Customer Relationship Management Professional committee as "China's Best call center", and obtained "2012 CCCs (client contact center System) five-star certification." And Shengjing is a grand game to issue and promote the game prepaid card dealers, in the country has about 180,000 of the channel terminal, monthly sales point card more than 2 million. The Grand game board formed a special Committee of independent directors to consider, assess and negotiate the transaction, including Mr. Lin Lijun (Chairman), Mr. Chen Qinglong and Mr. Guiyong. The Special Committee engaged the Davis Polk & Wardwell LLP as an external legal adviser, and employed Ernst and Digital as a financial advisor to provide a fair view of the subject matter and to set the price of the transaction through multiple rounds of negotiations with the Grand Interactive. With the unanimous recommendation of the Special Committee, the Board of Directors of Shanda approved the deal. The deal totals 811.5 million dollars in cash, including cash, deferred payment, and settlement of the Grand Interactive loan. As of March 31, 2013, Shanda's cash, cash equivalents, short-term investments and restricted cash, deducted loans and payable dividends, amounted to 556 million dollars. "Through the deal, the board aims to strengthen the grand game strategy and financial strength," said Mr. Chen, chairman of Shanda Games. The acquisition is an organic addition to our strategy, making it a solid step in strengthening our mobile business. Given that mobile games are usually smaller and have shorter life cycles than MMO games, we think the role of the platform will be more important. We will use the rich user data of Sheng Zhan and shengjing and widePan-channel, combined with our online gaming market over the years accumulated resources and experience, to create a unified mobile gaming platform. The recent launch of the mobile game "million King Arthur" in the Chinese market only through the marketing of this platform has been a great success, further proof of the exhibition and shengjing platform value. We believe that this transaction will promote the establishment of the company's mobile platform and the overall business development, after the completion of the business integration, we'll also release the company's mobile strategy important initiatives. In addition, the transaction reduces the two parts of our cost structure and is expected to improve the 40–50% of EPS. Mr Chen added, "It will optimize our cash usage, reduce regular affiliate transactions, solve related loan loans, and make Shanda games a more complete online gaming company." By having a complete customer service system, user data and distribution channels, Shanda games can further enhance the player experience and provide users with more efficient services. "The deal is expected to be completed in the third quarter of 2013.