Santaro Announces Establishment of New Platform and Distribution Agreements for Four New Third Party Games

BEIJING, Jan. 7, 2013 /PRNewswire/ -- Santaro Interactive Entertainment Company (OTCQB: STIE) (the "Company" or "Santaro") announced today that it had added four new games to its online game portfolio through new distribution agreements with three third-party developers. The Company has entered into a distribution agreement with Shanghai UUZU Information Technology Co., Ltd., pursuant to which the Company will distribute the game Knight Saga, a role playing MMORPG which won the 2012 Golden Plume Award for "User Most Enjoyed Top Ten Webgame" and the General, a simulation game (SLG) which won the 2012 Golden Plume Award for "User Most Anticipated Top Ten Webgame".  For the Knight Saga Game, Santaro is entitled to receive 65% of the monthly gross revenue derived from distributing the game if such revenue is less than RMB100,000 (approximately $16,000) , and is entitled to receive 70% of such revenue if such revenue exceeds RMB100,000 (approximately $16,000). For the Game The General, Santaro is entitled to receive 65% of the gross monthly revenue generated from the distribution of the game.

Additionally, the Company entered into a distribution agreement with Guangzhou Xianhai Network Technology Co., Ltd. in connection with distributing a MMORPG game Warlord Flame launched on January 1, 2013, pursuant to which Santaro is entitled to 70% of the monthly revenue generated from the game distribution. The Company also entered into a distribution agreement with Beijing Babeltime Technology Co., Ltd. in connection with distributing the MMORPG game Blood King Someday, which was expected to launch on January 5, 2013, pursuant to which Santaro is entitled to receive 65% of the gross monthly revenue derived from distributing the game if less than RMB1,000,000 ($160,000) of such revenue is achieved, or is entitled to receive 70% of such revenue if RMB1,000,000 ($160,000) or more of such revenue is achieved.

The Company also recently launched its new platform, www.1799.com, which now also includes the re-branded third party game platform, o5yx.com. The new platform will focus on higher quality third party game distribution and will also feature some internally developed products such as mobile platform games which are expected to be released by the Company in 2013. The new 1799.com platform now distributes games such as MMORPG, SLG, Board Games, Puzzle Games and Social Games. The focus of the platform is to provide diversification and make available a wide variety of games to appeal to a large and diverse spectrum of users.

Chairman and founder Mr. Chen added, "We are extremely pleased that we are significantly enhancing our Game portfolio through agreements with quality and award-winning developers for our expanding user base, and we intend to broaden our strategic relationships in China as well as internationally over the coming months."

About Santaro Interactive Entertainment Company

Santaro Interactive Entertainment Company primarily designs, develops and operates 3D online games, including web-based Massive Multiplayer Online Role-Playing Games (MMORPGs). Santaro's main focus is on digital interactive entertainment products, primarily in developing and operating web-based multiplayer online games, based on its proprietary SOUL game engine and game development platform. For those unfamiliar with these complex virtual games, typically players spend weeks, even months, in a multiplayer online role-playing environment, adopting the role of a particular character - a warrior or a sorcerer, for example - developing skills and weapons, and engaging adversaries in a series of missions or combats.

Forward-Looking Statements

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended and such forward looking statements are intended to be covered by the safe harbors created thereby. These forward-looking statements can be identified by terminology such as "will," "expects," "future," "plans," "believes" and similar statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties.

All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to the Company's limited operating history, the Company's ability to protect its proprietary information; changes in China's economic, political or social conditions or government policies, and other risks detailed in the Company's filings with the U.S. Securities and Exchange Commission.

These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, management cannot assure the public that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

Website: www.stiechina.com

SOURCE Santaro Interactive Entertainment Company