Giant Interactive Announces Official Closed Beta Testing for ZT Online 2

ZT Online 2 is the Company's new internally developed, martial arts, massively multiplayer online role playing game ("MMORPG"), which features both traditional ZT Online gameplay and new casual gameplay such as pet-raising, attractive 2D graphical effects, and support for 40,000 concurrent gamers per shard.  With four hundred talented developers involved with the project for three years, ZT Online 2 utilizes a revised in-game economy to target lower spending and non-spending users compared to the original ZT Online.  This "Third Generation" in-game economy has already helped the game attract high interest from gamers without large scale marketing by the Company.  ZT Online 2 has already reached over 200,000 peak concurrent users ("PCU") during the unlimited closed beta testing phase that began in the fourth quarter 2010.  This achievement was driven mostly by word of mouth by gamers and positions ZT Online 2 as one of the most anticipated online games for 2011 as voted by gamers during the China Game Industry Annual Conference.

Mr. Xuefeng Ji, Giant's Vice President of Research & Development and the producer of ZT Online 2 commented, "Unlike the first generation time-based games and second generation item-based games, ZT Online 2's transaction-based in-game economy promotes fairness among gamers.  Because we no longer sell items directly to gamers, players are tasked with creating the items and trading them within the game.  With only a five percent transaction fee, and more balanced power between paying and non-paying users, gamers now have more incentive to play the game, earn items, trade, and remain involved in the social aspects of the game."

Mr. Yuzhu Shi, Giant's Chairman and Chief Executive Officer commented, "A successful online game needs to pass three hurdles: the first impression, the trial when gamers begin testing the game, and longevity – keeping players engaged over the long term.  During ZT Online 2's unlimited closed beta testing phase, we have seen great results as churn rates have been very low and gamers have responded very positively to our new in-game economy.  I hope that gamers continue to explore our third generation in-game economy and that ZT Online 2 becomes not only an innovative growth driver for our Company, but also an influence on the online game industry."  

About Giant

Giant Interactive Group Inc. (NYSE: GA) is a leading online game developer and operator in China in terms of market share according to iResearch Consulting Group, an independent Chinese research center, and focuses on massively multiplayer online role playing games. Currently, Giant operates multiple games, including ZT Online, ZT Online Green Edition, Giant Online, The Golden Land, XT Online, and Dragon Soul.  Giant has several additional online games that it intends to launch, including ZT Online 2, Allods Online, and Elsword. Giant has built a nationwide distribution network to sell the prepaid game cards and game points required to play its games, which as of December 31, 2010 consisted of over 130 distributors, and reached over 96,000 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 www.ga-me.com.

Safe Harbor Statement

Statements in this release contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the 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 and among others, include our ability to successfully commercially launch ZT Online 2 into official closed beta testing, and the ability of ZT Online 2 to be a growth driver.  These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control.  Our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements.  Further information regarding risks and uncertainties that could cause our actual results to differ from those in the forward-looking statements is included in our filings with the U.S. Securities and Exchange Commission, including our annual report on Form 20-F.  Any projections in this release are based on limited information currently available to us, which is subject to change.  Although such projections and the factors influencing them will likely change, we undertake 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.