First Quarter 2009 Highlights(1)   -- Consolidated net revenues increased 42.0% year-over-year and 9.1%      quarter-over-quarter to a record high of RMB1,107.1 million (US$162.0      million), compared to the Company's previous guidance of      quarter-over-quarter growth between 3% and 5%.   -- Massively multi-player online role-playing games (MMORPGs) related      revenues increased 47.4% year-over-year and 8.0% quarter-over-quarter      to RMB944.5 million (US$138.2 million).   -- Casual games(2) related revenues increased 1.1% year-over-year and      21.3% quarter-over-quarter to RMB117.9 million (US$17.2 million).   -- Operating income increased 46.0% year-over-year and 10.3%      quarter-over-quarter to RMB455.7 million (US$66.7 million).   -- Non-GAAP(3) net income increased 23.2% year-over-year and 10.0%      quarter-over-quarter to RMB374.7 million (US$54.8 million). Non-GAAP      earnings per diluted ADS were RMB5.48 (US$0.80), compared with RMB4.14      in the first quarter of 2008 and RMB4.90 in the fourth quarter of 2008.   -- Net income increased 25.0% year-over-year and 10.6%      quarter-over-quarter to RMB361.0 million (US$52.8 million). Earnings      per diluted ADS were RMB5.28 (US$0.78), compared with RMB3.94 in the      first quarter of 2008 and RMB4.70 in the fourth quarter of 2008.   -- Active paying accounts (APA) for MMORPGs increased 22.1%      quarter-over-quarter to 7.19 million. Average monthly revenue per      active paying account (ARPU) for MMORPGs decreased 11.5%      quarter-over-quarter to RMB43.8.   -- APA for casual games(2) increased 37.7% quarter-over-quarter to 2.06      million. ARPU for casual games(2) decreased 11.9% quarter-over-quarter      to RMB19.1.   

"Shanda achieved another solid quarter of growth during the first quarter of 2009, which further demonstrates the Company's leadership position in the interactive entertainment media industry," said Tianqiao Chen, Chairman and Chief Executive Officer of Shanda. "Looking forward, we will make continuous efforts to enhance our users' interactive entertainment experience by combining our integrated service platform with our diversified content businesses."

Conference Call and Webcast Notice

Shanda will host a conference call at 9:00 p.m. on June 2, 2009 Eastern Time (9:00 a.m. on June 3, 2009 Beijing/Hong Kong time), to present an overview of the Company's financial performance and business operations. A live webcast of the conference call will be available on the Company's corporate website at http://www.snda.com/ .

First Quarter 2009 Financial Results(1)

Net Revenues. In the first quarter of 2009, Shanda reported net revenues of RMB1,107.1 million (US$162.0 million), representing an increase of 42.0% from RMB779.8 million year-over-year and 9.1% from RMB1,015.2 million in the fourth quarter of 2008.

Online games related revenues, including MMORPGs and casual games(2), were RMB1,062.4 million (US$155.4 million) in the first quarter of 2009, representing an increase of 40.3% from RMB757.4 million year-over-year and 9.3% from RMB971.7 million in the fourth quarter of 2008.

MMORPGs related revenues in the first quarter of 2009 increased 47.4% year-over-year and 8.0% quarter-over-quarter to RMB944.5 million (US$138.2 million), accounting for 85.3% of net revenues. The sequential growth in MMORPG related revenues was primarily driven by the continued release of expansion packs for our existing games as well as newly launched games in the first quarter of 2009.

The number of APA for MMORPGs increased 22.1% sequentially to 7.19 million in the first quarter of 2009, primarily due to the Company's continuous efforts to convert free players to paying users. ARPU for MMORPGs was RMB43.8 in the first quarter of 2009, compared with RMB49.5 in the fourth quarter of 2008.

Casual games(2) related revenues in the first quarter of 2009 increased 1.1% year-over-year and increased 21.3% quarter-over-quarter to RMB117.9 million (US$17.2million). The sequential increase in casual games(2) related revenues was primarily driven by the release of content upgrades, in-game promotions and seasonal strength related to holidays.

The number of APA for casual games(2) increased 37.7% sequentially to 2.06 million in the first quarter of 2009. ARPU for casual games(2) declined 11.9% sequentially to RMB19.1 in the first quarter of 2009.

Other revenues in the first quarter of 2009 increased 99.6% year-over-year and 3.1% quarter-over-quarter to RMB44.7 million (US$6.6 million).

Gross Profit. Gross profit for the first quarter of 2009 was RMB801.0 million (US$117.2 million), representing a 47.8% increase from RMB542.1 million in the first quarter of 2008 and a 9.5% increase from RMB731.7 million in the fourth quarter of 2008. Gross margin was 72.3% in the first quarter of 2009, compared with 69.5% in the first quarter of 2008 and 72.1% in the fourth quarter of 2008.

Income from Operations. Operating income for the first quarter of 2009 was RMB455.7 million (US$66.7 million), representing a 46.0% increase from RMB312.1 million in the first quarter of 2008 and a 10.3% increase from RMB413.1 million in the fourth quarter of 2008. Operating margin was 41.2% in the first quarter of 2009, compared with 40.0% in the first quarter of 2008 and 40.7% in the fourth quarter of 2008.

Share-based compensation was RMB13.7 million (US$2.0 million) in the first quarter of 2009, compared with RMB15.4 million in the first quarter of 2008 and RMB14.2 million in the fourth quarter of 2008.

Non-Operating Income. Net non-operating income for the first quarter of 2009 was RMB0.6 million (US$0.09 million), compared with RMB5.5 million in the first quarter of 2008 and RMB6.4 million in the fourth quarter of 2008. The quarter-over-quarter difference was primarily due to the difference in government financial incentives between the first quarter of 2009 compared with the fourth quarter of 2008. Non-operating income contributed from government financial incentives amounted to RMB1.6 million (US$0.2 million) in the first quarter of 2009, compared with RMB1.8 million in the first quarter of 2008 and RMB14.5 million in the fourth quarter of 2008.

Income Tax Expense. Income tax expense for the first quarter of 2009 was RMB 95.3 million (US$13.9 million), as compared with income tax expenses of RMB28.7 million in the first quarter of 2008 and RMB93.0 million in the fourth quarter of 2008.

Effective as of January 1, 2008, the Chinese government adopted a new income tax law that unified the enterprise income tax payable by domestic and foreign-invested enterprises at 25%. The Company's subsidiaries and VIEs are at various stages of progress depending on the requirements of the different local tax authorities in recognition of qualification of the NEW/HIGH Technology Enterprises preferred tax treatment pursuant to "Working Guidelines for Assessment of New/High Technology Enterprises" issued by the Chinese tax authorities on July 8, 2008. In December 2008, government recognition of certain entities as NEW/HIGH Technology Enterprises was acknowledged by the local tax authority. Accordingly, these entities were entitled to a preferential tax rate, which is effective retroactively to January 1, 2008. As a result, the Directors of the Company believe it is appropriate to report the Company's income tax provision at the new statutory income tax rate of 25%, except for entities that are still subject to tax holidays or other preferential income tax policies.