Perfect World Announces Recent Business Developments

Press Releases Issued During the Period:

March 7, 2011 - Perfect World Announces Fourth Quarter and Fiscal Year 2010 Unaudited Financial Results

March 7, 2011 - Perfect World Announces Share Repurchase Program

EXPANSION PACKS

"Fantasy Zhu Xian" Expansion Pack – "Fantasy Zhu Xian 2.0"

On April 28, 2011, Perfect World released the expansion pack "Fantasy Zhu Xian 2.0" for its first turn-based 2D MMORPG "Fantasy Zhu Xian."  This expansion pack introduces new team-battle instances and gameplay including exciting aerial combat and a new wing system, creating a stunning aerial fantasy world for players to explore.

OVERSEAS LICENSING AGREEMENTS

Licensing "Perfect World II" to the Spanish-speaking countries in Latin America

In March 2011, Perfect World signed an agreement with Aeria Games & Entertainment Inc. ("Aeria Games") to license "Perfect World II" to the Spanish-speaking countries in Latin America. Perfect World II is a 3D MMORPG launched in Mainland China in 2006 by Perfect World, and has since been successfully launched in dozens of countries and territories throughout Asia, Europe and North America.

Licensing "Legend of Martial Arts" to the Russian Federation and other Russian-speaking Territories

In April 2011, Perfect World signed an agreement with Inter-s Co., Ltd. ("Inter-s") to license "Legend of Martial Arts" to the Russian Federation and other Russian-speaking Territories. "Legend of Martial Arts", first launched in Mainland China in September 2006, is a 3D cartoon adventure MMORPG based on a popular TV drama series with the same Chinese name.  

Licensing "Empire of the Immortals" to Taiwan

In April 2011, Perfect World signed an agreement with Gameastor Digital Entertainment Co., Ltd. ("Gameastor"), a subsidiary of Gamania Digital Entertainment Co., Ltd. (OTC: 6180) ("Gamania"), to license "Empire of the Immortals" to Taiwan. Following "Battle of the Immortals," "Empire of Immortals" is another 2.5D MMORPG in Perfect World's "Immortals" franchise. Featuring the international style of the Immortals series, "Empire of the Immortals" runs on an upgraded Cube engine to render exciting visual effects, and innovative game play and battle modes.

OVERSEAS LAUNCHES THROUGH LICENSEES

Launch of "Forsaken World" in Singapore and Malaysia

In March 2011, Perfect World launched its "Forsaken World" in Singapore and Malaysia through Cubinet Interactive Sdn Bhd, a subsidiary under Cubinet Interactive Group ("Cubinet Interactive"). "Forsaken World" is a 3D MMORPG which caters to the tastes of global game players.  Set against the backdrop of a fantasy world, "Forsaken World" breaks new ground by introducing a multitude of innovative features and novel gaming concepts. Players themselves are able to alter the fate of the world through their individual actions in the game. "Forsaken World" was first launched in Mainland China in October 2010.

Launches of "Legend of Martial Arts" and "Hot Dance Party" in the Philippines

In March and May 2011, Perfect World launched its 3D MMORPG "Legend of Martial Arts" and 3D online casual game "Hot Dance Party" in the Philippines through Cubinet Interactive Philippines Corporation, a subsidiary under Cubinet Interactive.  To date, these games have been exported to a number of countries and regions.  "Hot Dance Party" is Perfect World's first online casual game and was first launched in Mainland China in March 2008.

OVERSEAS OPERATIONS

Obtained License to Operate "RaiderZ" in North America

In February 2011, Perfect World Entertainment Inc., a wholly-owned U.S. subsidiary of Perfect World, signed a licensing agreement with Korea-based MAIET Entertainment ("MAIET"), to operate "RaiderZ" in North America.  "RaiderZ" is an action MMORPG, where players can fully experience fun of battling and hunting a myriad of huge monsters that require strategy, skill, and in most cases teamwork.

Launch of "Forsaken World" in North America and Europe

In March 2011, Perfect World launched its 3D MMORPG "Forsaken World" in US and Europe through its wholly-owned subsidiaries, Perfect World Entertainment Inc. and Perfect World Europe B.V., respectively.  

About Aeria Games & Entertainment Inc. (http://www.aeriagames.com/)

Aeria Games & Entertainment Inc. is a leader in free-to-play massively multiplayer online (MMO) games in North America, Latin America and Europe, with offices in Santa Clara, USA, Berlin, Germany and Sao Paulo, Brazil. Since its establishment in 2006, Aeria Games has published a diversified and growing portfolio of critically-acclaimed microtransaction-based online games, from action MMO games, first-person shooters (FPS), to fantasy and casual MMORPGs.  Aeria Games is committed to delivering deep, immersive and interactive entertainment to millions of gamers worldwide.

About Inter-s Co., Ltd. (http://tabagames.ru/)

Founded in April 2009, Russia-based Inter-s Co., Ltd. specializes in R&D of software and online projects.  To date, the company's self-developed casual and social networking games are operated by tabagame.ru, its gaming portal.  In 2010, Inter-s began its plan to operate MMORPGs in the Russian Federation and other Russian-speaking territories, and recently obtained the licensing agreement to operate Perfect World's Legend of Martial Arts in the Russian Federation and other Russian speaking territories.  Inter-s aims to introduce more exciting and high-quality games to the market.

About Gamania Digital Entertainment Co., Ltd. (http://www.gamania.com)

Gamania Digital Entertainment Co., Ltd. (OTC: 6180) is a leading PC online game and digital entertainment corporation, providing high quality online games and digital entertainment content to consumers all over the world.  Gamania has established a number of overseas branch offices in China, Japan, Korea, Hong Kong, the United States and Europe.  With its core-business being PC online gaming, Gamania aims to become a leading digital entertainment brand, providing diversified digital entertainment content including online games, animations, and other entertainment platform to the world.

About Cubinet Interactive Group (http://www.cubinet.com)

Cubinet Interactive Group is engaged in developing and publishing high-quality game products in the Southeast Asia market.  Composed of a large number of senior experts in all aspects, Cubinet Interactive also has strong network support and a strong user's community.  In addition to the publication and operation of games in Malaysia and Singapore, Cubinet Interactive also develops business throughout the rest of Southeast Asia region.  Through cooperation with Perfect World, the company successfully launched "Perfect World II" in Malaysia and Singapore.  "Perfect World II" was one of the best performing online games in Southeast Asia in 2007.  In addition, the company also introduced other Perfect World games including "Battle of the Immortals," "Legend of Martial Arts," "Chi Bi," "Zhu Xian" and "Hot Dance Party" to the region where they also became popular.

About MAIET Entertainment, Inc. (http://maiet.co.kr/)

MAIET Entertainment, Inc. is a developer of online games focused at being excellent and entertaining while utilizing the best advanced development technology. MAIET Entertainment's goal is to develop the best games possible with best services since its first release in 2002 with "AceSaga" and later with "GunZ" in 2004.

About Perfect World Co., Ltd. (http://www.pwrd.com)

Perfect World Co., Ltd. (NASDAQ: PWRD) is a leading online game developer and operator based in China.  Perfect World primarily develops online games based on proprietary game engines and game development platforms.  The Company's strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently and promptly introduce popular games designed to cater changing customer preferences and market trends.  The Company's current portfolio of self-developed online games includes massively multiplayer online role playing games ("MMORPGs"): "Perfect World," "Legend of Martial Arts," "Perfect World II," "Zhu Xian," "Chi Bi," "Pocketpet Journey West," "Battle of the Immortals," "Fantasy Zhu Xian," "Forsaken World," "Dragon Excalibur," and "Empire of the Immortals;" and an online casual game: "Hot Dance Party."  While a substantial portion of the revenues are generated in China, the Company's games have been licensed to leading game operators in a number of countries and regions in Asia, Latin America and the Russian Federation and other Russian speaking territories.  The Company also generates revenues from game operations in North America, Europe and Japan.  The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

This press release contains forward-looking statements.  These statements constitute forward-looking statements under 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.  Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.  Potential risks and uncertainties include, but are not limited to, our limited operating history, our ability to develop and operate new games that are commercially successful, the growth of the online game market and the continuing market acceptance of our games and in-game items in China and elsewhere, our ability to protect our intellectual property rights, our ability to respond to competitive pressure, our ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere.  Further information regarding these and other risks is included in Perfect World's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.  Perfect World does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.