Shanghai, China – March 22, 2010. The9 Limited (NASDAQ: NCTY) (“The9”), an online game developer and operator in China, and Red 5 Studios, Inc. (“Red 5”), an online game developer in the United States, today jointly announced that they have entered into a definitive investment agreement pursuant to which The9 will invest a total amount of approximately US$20 million for a majority interest in Red 5.
Mr. Jun Zhu, The9’s Chairman and Chief Executive Officer, commented, “Red 5 is a creator of innovative entertainment software, designing games that focus on ease of play and fun. With the acquisition, The9’s global strategy is beginning to take shape. It will further enhance our game development capability and diversify our game portfolio and pipeline. I believe our collaboration will create new and exciting entertainment content for people around the world.”
Mark Kern, the Chief Executive Officer of Red 5, said, “We are very excited to welcome The9 as our key investor and to announce that they are making a commitment to us with the equity infusion. The investment recognizes the hard work of the Red 5 team and the strong potential of the game we are working on, as well as our ability, in the future, to become a multi-game studio. By leveraging The9’s outstanding expertise in the operation of online games, we will have a great advantage in bringing our games to millions of online gamers around the world. We look forward to a long and fruitful partnership with The9.”
