Giant Interactive Announces Joint Venture With Huayi Brothers to Cooperate King of Kings III

Dec 07, 2010, 08:00 ET from Giant Interactive Group Inc.

SHANGHAI, Dec. 7, 2010 /PRNewswire-Asia/ -- Giant Interactive Group Inc. (NYSE: GA) ("Giant" or the "Company"), a leading Chinese online game developer and operator, today announced that it has entered a binding framework agreement with Huayi Brothers Media Corporation (SZSE: 300027) ("Huayi Brothers"), one of the few fully-integrated media, entertainment and leisure groups in China, to cooperate Giant's 3D MMORPG King of Kings III.

After the transaction is completed as defined by the framework agreement, Giant and Huayi Brothers will jointly own a new entity called Beijing Huayi Giant Information Technology Co., Ltd (the "Joint Venture"), which will obtain the intellectual property of King of Kings III and its development team from Giant.  Huayi Brothers will become the majority shareholder, while Giant and the development team of King of Kings III will become minority shareholders of the Joint Venture.

Mr. Yuzhu Shi, Giant's Chairman and Chief Executive Officer commented, "We are excited to announce this new agreement with Huayi Brothers as we believe it represents an ideal opportunity to explore the convergence of online games with various other entertainment mediums.  Through this venture King of Kings III will continue to benefit from Giant's innovative R&D talent and deep-seeded industry knowledge, but also leverage the enormous marketing capabilities that come with Huayi Brothers' large scale presence throughout China. We are confident that this structure will optimize the potential of King of Kings III and drive the maximum number of users to the game."

Mr. Zhongjun Wang, Huayi Brothers' Chairman of the Board commented, "We are pleased to commence this venture with Giant Interactive and are confident that this partnership will be beneficial to both companies.  Since the development of King of Kings III, Giant has made large strides to tailor the game to the Chinese audience; furthermore, they continue to provide constant updates and recently introduced the game's second expansion pack.  We believe the Joint Venture will provide for continued focus on the game's development, while simultaneously opening new avenues for attracting new players and ultimately driving revenue."  

About Giant

Giant Interactive Group Inc. (NYSE: GA) is a leading online game developer and operator in China in terms of market share according to iResearch Consulting Group, an independent Chinese research center, and focuses on massively multiplayer online role playing games.  Currently, Giant operates multiple games, including ZT Online, ZT Online Green Edition, Giant Online, King of Kings III, The Golden Land, XT Online, Dragon Soul, and My Sweetie.  Giant has several additional online games that it intends to launch, including ZT Online 2, Allods Online, and Elsword.  Giant has built a nationwide distribution network to sell the prepaid game cards and game points required to play its games, which as of September 30, 2010 consisted of over 130 distributors, and reached over 96,000 retail outlets, including internet cafes, software stores, supermarkets, bookstores, newspaper stands, and convenience stores located throughout China.  For more information, please visit Giant Interactive Group on the web at www.ga-me.com.

About Huayi Brothers

Huayi Brother Media Corporation (SZSE: 300027)is one of the few fully-integrated media, entertainment and leisure groups in China. With dedicated operating divisions in film and television production as well as in film distribution, artist talent management, music, advertising and most recently, film exhibition, Huayi Brothers is at the creative forefront of every aspect of the modern entertainment industry in China.  Huayi Brothers has produced many of the highest grossing Chinese language films of all time, including Aftershock, If You Are the One, Detective Dee, The Message, and The Assembly.

Safe Harbor Statement

Statements in this release contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the 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 and among others.  These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control.  Our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements.  Further information regarding risks and uncertainties that could cause our actual results to differ from those in the forward-looking statements is included in our filings with the U.S. Securities and Exchange Commission, including our annual report on Form 20-F.  Any projections in this release are based on limited information currently available to us, which is subject to change.  Although such projections and the factors influencing them will likely change, we undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release. Such information speaks only as of the date of this release.

Contacts:

Investor Contact (Shanghai):

Rich Chiang, IR Manager

Giant Interactive Group, Inc.

+86 21 6451 1258

ir@ztgame.com

Investor Relations (US):

Mahmoud Siddig, Director

Taylor Rafferty

+1 (212) 889 4350

giantinteractive@taylor-rafferty.com

Investor Relations (HK):

Ruby Yim, Managing Director

Taylor Rafferty

+852 3196 3712

giantinteractive@taylor-rafferty.com

Media Contact (US):

Jason Marshall

Taylor Rafferty

+1 (212) 889 4350

giantinteractive@taylor-rafferty.com

SOURCE Giant Interactive Group Inc.



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