SHANGHAI, China, July 30 /Xinhua-PRNewswire/ -- The9 Limited (Nasdaq: NCTY)("The9"), a leading online game operator in China, announced today that it has, through a wholly-owned subsidiary, entered into an agreement with Yedang Entertainment Co., Ltd ("Yedang"), a leading entertainment business publisher in Korea, and T3 Entertainment Co. Ltd. ("T3"), a leading online game developer in Korea, under which it will have an exclusive license to operate Audition in mainland China, Hong Kong and Macau.
The9's exclusive license of Audition will be effective from August 1, 2008, and the term of the license will be for two years from the commercial launch date of the game in mainland China, Hong Kong and Macau. If the game is available for licensing prior to the current license's expiration date, the effective date of The9's exclusive license will be advanced to an earlier date. Under the agreement, The9 has agreed to pay a milestone-based license fee in the amount of US$8 million and a royalty equal to 30% of the game revenues provided that the minimum royalty payable over the license period shall be no less than US$35 million.
Audition is an advanced casual dancing online game and is currently one of the most popular casual games in mainland China. The agreement reflects The9's recognition of Audition's high game quality, and the game's publisher and developer's confidence in The9's track record as a leading online game operator in China. The game is expected to continue its success story in China.
In May 2007, The9 also obtained the exclusive license to operate Audition 2, the sequel to Audition, in mainland China.
About The9 Limited
The9 Limited is a leading online game operator in China. The9's business is primarily focused on operating and developing high-quality games for the Chinese online game players market. The9 directly or through affiliates operates licensed MMORPGs, consisting of MU(R), Blizzard Entertainment(R)'s World of Warcraft(R), Soul of The Ultimate Nation(TM), and its first proprietary MMORPG, Joyful Journey West(TM), in mainland China. It has also obtained exclusive licenses to operate additional MMORPGs and advanced casual games in mainland China, including Granado Espada, Guild Wars, Hellgate: London, Ragnarok Online 2, Emil Chronicle Online, Huxley, FIFA Online, Audition 2, Field of Honor and Audition. In addition, The9 is also working on the development of a 3D fantasy MMORPG game, Fantastic Melody Online(TM).
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. The9 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about The9's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, The9's limited operating history as an online game operator, political and economic policies of the Chinese government, the laws and regulations governing the online game industry, information disseminated over the Internet and Internet content providers in China, intensified government regulation of Internet cafes, The9's ability to retain existing players and attract new players, license, develop or acquire additional online games that are appealing to users, anticipate and adapt to changing consumer preferences and respond to competitive market conditions, and other risks and uncertainties outlined in The9's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. The9 does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
