Press Release:
KongZhong to Acquire Loong Developer Shanghai Dacheng Network

KongZhong Corp., a leading mobile Internet company in China, has entered into a definitive agreement to acquire Shanghai Dacheng Network Technology Co. Ltd (Dacheng), a leading developer of three-dimensional (3D) massively multi-player online role-playing games (MMORPGs) based in Beijing and Shanghai.

“With the strong performance of Dacheng’s newest 3D online game, Loong, Dacheng is becoming one of China's leading 3D online game developers," said Jay Chang, the Chief Financial Officer of the Company. "By combining our leading mobile game business with Dacheng's self-developed 3D game engine and game development skills, the post-acquisition Company is poised to become a leading multi-platform digital entertainment and gaming company with focus on two of the fastest growing segments in China's game market, 3D MMORPGs and mobile games. KongZhong's previous experience in operating some of China's largest Internet sites will also help to support the rapid development of our combined gaming business in the coming years."

Loong, a martial arts themed game, is Dacheng's flagship 3D MMORPG developed for both the Chinese and international online game markets. Dacheng independently developed the game with its proprietary 3D game engine, Dazzler3D. Loong was released to pre-open beta in China on October 28, 2009. After pre-open beta, Loong was one of the most downloaded games on www.17173.com and was ranked the most anticipated game in China by www.qq.com. Loong currently has approximately 100,000 peak concurrent users per day. In addition, Dacheng has signed agreements to license and operate Loong in over 40 countries. It is expected that Loong will be released to open beta in China on December 29, 2009.

"Dacheng was founded with the goal of becoming China's leading 3D online game developer for both the Chinese and overseas online game markets," said Zhen Yang, the chief executive officer and founder of Dacheng. "We believe that the success of Loong, one of the most anticipated games in China for 2009, reflects the strength of our proprietary 3D game engine, Dazzler3D, and of our development capabilities. By joining forces with KongZhong, we believe we will be able to more rapidly build up a robust portfolio of 3D MMORPGs and to further extend KongZhong's leadership in the Chinese mobile game sector."