Strategic Partnership with EA to Expand The9's
Offering in
China's Online Gaming Market
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Shanghai and Redwood City, Calif. -
May 21, 2007. The9 Limited (NASDAQ: NCTY) (“The9”),
a leading online game operator in China, today announced
an equity investment by Electronic Arts Inc. (NASDAQ:ERTS)
(“EA”), the world's leading developer and publisher
of interactive entertainment. The two companies also
announced a licensing agreement that gives The9 exclusive
publishing rights for EA SPORTS FIFA Online in mainland
China. Upon completion of the equity investment, EA
will own approximately 15 percent of the common shares
of The9. The investment is roughly US$167 million.
The agreement builds on EA's strategy of partnering
with proven regional operators to bring online games
to Asia, and The9's strategy of expanding its game product
offerings in the Chinese market.
EA SPORTS FIFA is EA's leading international sports
franchise and is seeing early online success in Asia.
Last year, EA and Seoul-based Neowiz partnered to launch
EA SPORTS FIFA Online in Korea, now one of Korea's most
popular games, consistently ranked among top performers
with more than 4.4 million registered subscribers, according
to EA's company data. The9 has exclusive publishing
rights for the game in mainland China.
“EA will be a strong partner for us in the rapidly expanding
online game market in China.” said Jun Zhu, Chairman
and Chief Executive Officer of The9. “We are seeing
strong interest in online sports games in China with
the upcoming 2008 Beijing Olympics and the FIFA World
Cup in 2010, and FIFA Online is set to be a top favorite
in the Chinese market. ”
Hubert Larenaudie, President, EA Asia Online, said,
“This is another significant step in EA's strategy to
build an online presence in Asia. The9's proven expertise
will be a tremendous advantage in bringing FIFA Online
to a growing market and we look forward to partnering
with them to bring the best online football gaming experience
to millions of Chinese gamers and football fans. ”
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 ,Blizzard
Entertainment 's
World of Warcraft ,
Soul of The Ultimate Nation ,and
its first proprietary MMORPG, Joyful Journey West ,
in mainland China. It has also obtained exclusive licenses
to operate additional MMORPGs and advanced casual games
in China, including Granado Espada,Guild Wars, Hellgate:
London, Ragnarok Online 2, Emil Chronicle Online,Huxley
and FIFA Online.In addition,The9 is also working on
the development of a 3D fantasy MMORPG game, Fantasy
Melody Online .
About Electronic Arts
Electronic Arts Inc. (EA), headquartered in Redwood
City, California, is the world's leading interactive
entertainment software company. Founded in 1982, the
company develops, publishes, and distributes interactive
software worldwide for video game systems, personal
computers, cellular handsets and the Internet. Electronic
Arts markets its products under four brand names: EA
SPORTS ,
EA ,
EA SPORTS BIG
and POGO .
In fiscal 2007, EA posted revenue of $3.09 billion and
had 24 titles that sold more than one million copies.
EA's homepage and online game site is www.ea.com. More
information about EA's products and full text of press
releases can be found on the Internet at http://info.ea.com.
EA SPORTS FIFA Online is manufactured under license
by Electronic Arts.
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.
Safe Harbor For Forward-Looking Statements
Some statements set forth in this release, including
those regarding EA's investment in, and its publishing
agreement with, The9, growth in the online games market
in Asia, and the expected impact of the investment and
agreements on EA's strategic and operational plans and
financial results, contain forward-looking statements
that are subject to change. Statements including words
such as "anticipate," "believe,"
"estimate" or "expect" and statements
in the future tense are forward-looking statements.
These forward-looking statements are subject to risks
and uncertainties that could cause actual events or
actual future results to differ materially from the
expectations set forth in the forward-looking statements.
Some of the factors which could cause results to differ
materially from the expectations expressed in these
forward-looking statements include the following: the
satisfaction of customary closing conditions; the possibility
that the investment and/or publishing agreement will
not be consummated or that the consummation may be delayed;
the effect of the announcement of the investment and
agreements on EA's and The9's strategic relationships,
operating results and business generally, including
the ability to retain key employees; 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 in China; The9's ability to retain
existing players and attract new players, anticipate
and adapt to changing consumer preferences and respond
to competitive market conditions; general economic conditions;
and other factors described in EA's SEC filings (including
EA's Annual Report on Form 10-K for the year ended March
31, 2006 and Quarterly report on Form 10-Q for the quarter
ended December 31, 2006). If any of these risks or uncertainties
materialize, the investment and/or publishing agreement
may not be consummated or may not be consummated on
the anticipated terms, the potential benefits of the
investment and agreement may not be realized, EA's operating
results and financial performance could suffer, and
actual results could differ materially from the expectations
described in these forward-looking statements. EA assumes
no obligation to update these forward-looking statements
which speak only as of the date of this press release.
For further information, please contact:
Ms. Dahlia Wei
Senior Manager, Investor Relations
The9 Limited
Tel: +86 (21) 5172-9990
Email: IR@corp.the9.com
Website:
Jeff Brown
EA Corporate
Tel: +1-650-628-7922
Email: jbrown@ea.com
Tiffany Steckler
EA International
Tel: +4122 316 1322
Email: tsteckler@europe.ea.com
Tricia Gugler
EA Investor Relations
Tel: +1-650-628-7327
Email: tgugler@ea.com
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