(Logo: http://www.newscom.com/cgi-bin/prnh/20050314/CNM005LOGO )    Financial Highlights    Highlights for the Second Quarter of 2009:   -- Total revenues: $9.8 million, representing a decrease of 16.3%      quarter-over-quarter and a decrease of 22.9% year-over-year.   -- Wireless value-added services ("WVAS") revenues: $5.5 million,      representing a decrease of 29.1% quarter-over-quarter and a decrease of      39.3% year-over-year.   -- Recorded music revenues, which are from our record label businesses:      $4.3 million, representing an increase of 9.4% quarter-over-quarter and      an increase of 19.5% year-over-year.   -- Net loss attributable to Hurray! Holding: $10.9 million   -- Adjusted EBITDA(1): a net loss of $5.7 million   -- Diluted loss per ADS: $0.50    (1) A non-GAAP measure, which is defined as net income attributable to       Hurray! Holding company except for income from discontinued operations       before interest, tax, depreciation, amortization, impairment for       goodwill and earnings from investment in music equity affiliate,       write-down of intangible assets, stock-based compensation, gains on       reduction of acquisition payable and foreign exchange loss.   

Commenting on the second quarter results, Dr. Xiang, CEO of Hurray! stated: "The past quarter was a challenging and significant one for Hurray! as we effectively completed the scheduled realignment of resources amongst business lines, which help to enhance our operating efficiency and reinforced momentum for future growth. We believe we will be able to significantly narrow down our loss in the following quarter with the continuous rise in operating efficiency and better integration of channel and contents as the result of the aforementioned realignment. We also expect to have a chance of achieving an operation break-even in the foreseeable future. Hurray! is optimistic about the future cooperation with Shanda in light of the complementary content, distribution platforms and large user base which may present both companies with opportunities to achieve synergies going forward."

Business Results

Total revenues for the second quarter ended June 30, 2009 were $9.8 million, representing a decrease of 16.3% from $11.8 million for the preceding quarter, and a decline of 22.9% from $12.8 million for the same quarter last year.

During the second quarter of 2009, the Company took action to reduce its marketing efforts through various channels which had failed to generate the expected profitability, resulting in reduced revenues. Total wireless value-added services revenues were $5.5 million for the second quarter of 2009, representing a decrease of 29.1% from $7.9 million in the previous quarter and a decrease of 39.3% from $9.2 million in the same quarter of 2008.

Recorded music revenues, which represent revenues of our controlled music companies Freeland Music, Huayi Brothers Music, Hurray! Secular Bird and Seed Music, which was acquired on January 1, 2009, were $4.3 million, representing an increase of 9.4% as compared to $3.9 million in the previous quarter and an increase of 19.5% as compared to $3.6 million in the same period of 2008. The increase arose from the contribution of Seed Music, consolidated from January 1, 2009, which contributed revenues of $1.6 million in the second quarter and $3.8 million year to date.

Total gross margin was 21.3% for the second quarter of 2009 as compared to 16.4% for the previous quarter and 36.4% for the same period of 2008.

Gross margin for wireless value-added services was 26.7% for the second quarter of 2009, as compared to 17.5% in the previous quarter, and 29.8% for the same period of 2008.

Recorded music gross margin was 14.4% for the second quarter of 2009 as compared to 14.0% in the previous quarter and 53.4% for the same period of 2008.

Total gross profit was $2.1 million for the second quarter of 2009, representing an increase of 9.2% compared to $1.9 million for the previous quarter, and a decline of 54.8% as compared to $4.6 million for the same period of 2008.

Total operating expenses were $15.5 million for the second quarter of 2009, which included provisions for account receivable and other current assets of $3.3 million as a result of further detailed assessment for these account balances based on the information became available to us recently, professional service fees relating to the Shanda tender offer of $1.3 million, an impairment for goodwill of $3.0 million and a write-down for intangible assets of $3.5 million for music business, and severance costs of $ 0.4 million. This represents an increase of 208.9% as compared to the total operating expenses of $5.0 million for the previous quarter and an increase of 375.0% as compared to the total operating expenses of $3.3 million for the same period of 2008, net of the reversal of Unicom liability amounting to $1.6 million.

The income tax benefit for the second quarter of 2009 was $435,581 resulting mainly from the reversal of deferred tax liabilities related to the intangible assets impairment as compared to $22,965 in the previous quarter and an income tax expense of $282,250 in the same period of 2008.

We also performed impairment test for our investments in music equity affiliate due to its negative operating cash flow and $0.21 million was recorded as impairment charges in the second quarter.

Net loss attributable to Hurray! Holding was $10.9 million for the second quarter of 2009.

Adjusted EBITDA was negative $5.7 million for the quarter ended June 30, 2009, as compared with an adjusted EBITDA of negative $1.7 million in the previous quarter. A reconciliation of the (loss) income from continuing operations under U.S. generally accepted accounting principles (GAAP) and adjusted EBITDA is included at the end of this release. Adjusted EBITDA excluding additional provisions for trade receivables, expenses related to the tender-offer deal and severance costs, was negative $1.3 million, which demonstrates a slight improvement compared to the previous quarter.

Fully diluted loss per ADS was $0.50 based on a weighted average of 22.0 million diluted ADSs for the second quarter of 2009, as compared to the diluted loss per ADSs of $0.09 based on a weighted average of 22.0 million diluted ADSs for the previous quarter, and a fully diluted earnings per ADS of $0.07 based on a weighted average of 21.9 million diluted ADSs for the second quarter of 2008.

As of June 30, 2009, the Company had $59.1 million in cash and cash equivalents.

Business Highlights

Hurray! continued executing its strategy of developing proprietary content and diversifying distribution channels, with the following highlights:

   -- Hurray! launched 15 new mobile games and mobile themes on China      Mobile's portal in the second quarter of 2009, including "Tri-Eye Boy 2:      The Revenge", and "BOBO - Perfect Match".  In the third quarter of 2009,      we are launching another 9 new mobile games and mobile themes.    -- In June, "Sacred Seal - The Legend of Magic Sword", and "Metal Tank -      Deadly Armor" two of our mobile game, was voted "Star-Rated Mobile      Games" at a mobile game user recommendation contest organized by China      Mobile.  "Sacred Seal - The Legend of Magic Sword" was selected as one      of the high-rated mobile games in China Mobile's G-plus game package.    -- Hurray! affiliated music companies, including Huayi Brothers Music,      Freeland Music, New Run Entertainment, Secular Bird and Seed Music,      released a series of new songs, including 8 albums, 6 Compilations, 2      EPs and 2 singles, and launched successful marketing programs to      promote the new releases simultaneously over Internet and wireless      platforms.  Subsequently, "Power of Love" ("Ai Shi Li Liang") by Kenji      Wu, "The Other Half"("Ling Yi Ban") by Xu Ruyun, became popular hits in      the second quarter.    -- Hurray! artists, including Kenji Wu, Guang Liang, Wen Lan and others      received awards for their outstanding performances at various      prestigious music award ceremonies in Asia, including "Annual Golden      Song" for Guang Liang, "Best New Single" for Kenji Wu, and etc.    -- Seed Music signed up 2 new artists, Zhou Hui and Guo Shuyao.    

Shanda Interactive Entertainment Limited Announced Final Results and Completion of the Tender Offer for Hurray! Holding Co., Ltd.