CHINA Cdc Corp. (MM)

CDC Corporation (NASDAQ: CHINA), focused on enterprise software and online games, announced today that in the second quarter of 2008, through its share repurchase program, the company has repurchased 262,457 shares of its common stock at an average cost basis of (U.S.)$2.90. Since the end of the second quarter, the company has also repurchased an additional 209,517 shares of its common stock through its share repurchase program at an average cost basis of (U.S.)$2.39. Since the inception of the company's stock buy back program in April 2006, it has repurchased a total of 9.5 million shares of its common stock at an average cost basis of (U.S.)$5.53. In addition, Peter Yip, the company�s CEO, has purchased a net additional amount equal to 268,000 CDC Corporation common shares at an average cost basis of (U.S.)$3.55 (including commissions), since January 3, 2008. �I continue to believe that our shares are undervalued and I have personally purchased shares during periods when the trading window has been open, as well as through existing trading plans,� said Peter Yip, CEO of CDC Corporation. �The Company has a strong balance sheet. Additionally, we previously reported (U.S.)$229.2 million in non-GAAP cash and cash equivalents as of March 31, 2008 and reported (U.S.)$5.3 million in GAAP operating cash flows in our Q1 2008 earnings release. I am confident in CDC�s ability to demonstrate continued improvement in its key operating metrics for the second half of 2008.� About CDC Corporation The CDC family of companies includes CDC Software focused on enterprise software applications and services, CDC Games focused on online games, and China.com focused on portals for the greater China markets. For more information about CDC Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net. Cautionary Note Regarding Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements relating to our belief that our shares are undervalued, our beliefs regarding the completion and effect of our share repurchase programs, our beliefs regarding the effects of our lower corporate overhead, cost-savings measures and renewed focus on operations, our beliefs regarding the generation of more predictable and recurring revenue streams, our beliefs regarding our prospects for the second half 2008 and other statements which are not historic fact. These statements are based on management's current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, including the following: (a) the ability to realize strategic objectives by taking advantage of market opportunities in targeted geographic markets; (b) the ability to make changes in business strategy, development plans and product offerings to respond to the needs of current, new and potential customers, suppliers and strategic partners; (c) the ability to integrate operations or new acquisitions in accordance with the company's business strategy; (d) the effects of restructurings and rationalization of operations; (e) the ability to address technological changes and developments including the development and enhancement of products; (f) the ability to develop and market successful Advanced Mobile Products; (g) the entry of new competitors and their technological advances; (h) the need to develop, integrate and deploy enterprise software applications to meet customer's requirements; (i) the possibility of development or deployment difficulties or delays; (j) the dependence on customer satisfaction with the company's software products and services; (k) continued commitment to the deployment of the enterprise software solutions; (l) risks involved in developing software solutions and integrating them with third-party software and services; (m) the continued ability of the company's enterprise software solutions to address client-specific requirements; (n) demand for and market acceptance of new and existing enterprise software and services and the positioning of the company's solutions; (o) the popularity of CDC Games' existing and new games; and (p) the continued growth of the online games industry in Asia. Further information on risks or other factors that could cause results to differ is detailed in filings or submissions with the United States Securities and Exchange Commission made by CDC Corporation in its Annual Report for the year ended December 31, 2007 on Form 20-F filed on June 30, 2008. All forward-looking statements included in this press release are based upon information available to management as of the date of the press release, and you are cautioned not to place undue reliance on any forward-looking statements which speak only as of the date of this press release. The company assumes no obligation to update or alter the forward looking statements whether as a result of new information, future events or otherwise.