SHANGHAI, China, Aug. 11 /Xinhua-PRNewswire/ -- Giant Interactive Group Inc. (NYSE: GA) (“Giant”), one of China’s leading online game developers and operators, today announced that its board of directors has approved a share repurchase program. Under the terms of the approved program, Giant may repurchase up to US$150.0 million worth of its issued and outstanding American Depositary Shares (“ADSs”) from time to time in open-market transactions on the NYSE Euronext.
The repurchases will be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block trades or pursuant to a 10b5-1 plan. The purchases will be made subject to restrictions relating to volume, price and timing. The timing and extent of any purchases will depend upon market conditions, the trading price of its ADSs and other factors, including customary restrictions on share repurchases. Giant expects to implement this share repurchase program in a manner consistent with market conditions and the interest of the shareholders. Giant’s board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size accordingly. Giant plans to fund repurchases made under this program from available working capital.
Mr. Yuzhu Shi, Chairman and Chief Executive Officer of Giant, commented, "Our board of directors’ approval of the share repurchase program reflects our continued commitment to increase shareholder value and confidence that the current ADS price levels do not reflect our current potential value. In addition to the share repurchase program, we will continue to execute on our key growth plan of broadening our player base via enhanced community and increased loyalty.”
About Giant Interactive Group Inc.
Giant Interactive Group Inc. (NYSE: GA) is one of China’s leading online game developers and operators in terms of revenues, focusing on massively multiplayer online role playing games. Giant’s first game, ZT Online, was voted the most popular online game in China in 2006 according to International Data Corporation. Giant’s second game, Giant Online, entered into open beta testing on March 28, 2008. Giant has two additional online games that it intends to commercially launch, including King of Kings III and Empire of Sports. Giant has built a nationwide distribution network to sell the prepaid game cards and game points required to play its games, which as of March 31, 2008 consisted of over 270 distributors, and reached over 116,500 retail outlets, including internet cafes, software stores, supermarkets, bookstores, newspaper stands, and convenience stores located throughout China. For more information, please visit Giant Interactive Group on the web at
http://www.ga-me.com .
Forward Looking Statements
This release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. 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,” “confident” and similar statements. Statements that are not historical facts, including statements about Giant’s beliefs and expectations, are forward-looking. These statements include, among other things, Giant’s anticipated repurchase of its ADSs. Giant may repurchase all US$150.0 million of its ADSs, no ADSs, or any amount in between, depending on the trading price of its ADSs, which may be positively or negatively impacted by the share repurchase program, market conditions, determinations following the date of this announcement to use such funds for other purposes, or for other reasons. These forward-looking statements are not historical facts but instead represent only Giant’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside its control. For a discussion of important factors that could adversely affect Giant’s business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 7 of Giant’s annual report on Form 20-F filed with the Securities and Exchange Commission on June 18, 2008. Giant undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release. Such information speaks only as of the date of this release.
