Second Quarter 2009 Highlights(1)

-- Consolidated net revenues increased 47.7% year-over-year and 11.8%

quarter-over-quarter to RMB1,237.2 million (US$181.1 million), compared

to the Company's previous guidance of quarter-over-quarter growth

between 8% and 10%.

-- Massively multi-player online role-playing games (MMORPGs) related

revenues increased 54.6% year-over-year and 13.8% quarter-over- quarter

to RMB1,074.7 million (US$157.3 million).

-- Casual games(2) related revenues decreased 4.3% year-over- year and

12.7% quarter-over-quarter to RMB102.9 million (US$15.1 million).

-- Operating income increased 53.0% year-over-year and 12.7%

quarter-over-quarter to RMB513.4 million (US$75.2 million).

-- Net income attributable to ordinary shareholders increased 52.6%

year-over-year and 18.2% quarter-over-quarter to RMB426.9 million

(US$62.5 million). Earnings per diluted ADS were RMB6.14 (US$0.90),

compared with RMB3.80 in the second quarter of 2008 and RMB5.28 in the

first quarter of 2009.

-- Non-GAAP(3) operating income increased 51.6% year-over-year and 13.2%

quarter-over-quarter to RMB 531.5 million (US$77.9 million).

-- Non-GAAP(3) net income attributable to ordinary shareholders increased

50.9% year-over-year and 18.7% quarter-over-quarter to RMB445.0 million

(US$65.2 million). Non-GAAP earnings per diluted ADS were RMB6.40

(US$0.94), compared with RMB4.00 in the second quarter of 2008 and

RMB5.48 in the first quarter of 2009.

-- Active paying accounts (APA) for MMORPGs increased 19.4%

quarter-over-quarter to 8.58 million. As a result, average monthly

revenue per active paying account (ARPU) for MMORPGs decreased 4.7%

quarter-over-quarter to RMB41.7.

-- APA for casual games(2) decreased 9.6% quarter-over-quarter to 1.86

million. As a result, ARPU for casual games(2) decreased 3.4%

quarter-over-quarter to RMB18.4.

"We are pleased to report another solid quarter of growth during the second quarter of 2009," said Tianqiao Chen, Chairman and Chief Executive Officer of Shanda. "Shanda remains very committed to the interactive entertainment media industry, and we hope to enrich the life of every member of our large user community by providing high quality service and diversified interactive entertainment content offerings."

Conference Call and Webcast Notice

Shanda will host a conference call at 9:00 p.m. on September 3, 2009 Eastern Time (9:00 a.m. on September 4, 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 .

Second Quarter 2009 Financial Results(1)

Net Revenues. In the second quarter of 2009, Shanda reported net revenues of RMB1,237.2 million (US$181.1 million), representing an increase of 47.7% from RMB837.6 million year-over-year and 11.8% from RMB1,107.1 million in the first quarter of 2009.

Online game related revenues, including MMORPGs and casual games(2), were RMB1,177.6 million (US$172.4 million) in the second quarter of 2009, representing an increase of 46.7% from RMB802.6 million year-over-year and 10.9% from RMB1,062.4 million in the first quarter of 2009.

MMORPGs related revenues in the second quarter of 2009 increased 54.6% year-over-year and 13.8% quarter-over-quarter to RMB1,074.7 million (US$157.3million), accounting for 86.9% of net revenues. The sequential growth in MMORPG related revenues was primarily driven by newly launched games as well as the continued release of expansion packs for our existing games in the second quarter of 2009.

The number of APA for MMORPGs increased 19.4% sequentially to 8.58 million in the second quarter of 2009, mainly due to the Company's continuous efforts to convert free players to paying users and the launch of new games. As a result, ARPU for MMORPGs was RMB41.7 in the second quarter of 2009, compared with RMB43.8 in the first quarter of 2009.

Casual games(2) related revenues in the second quarter of 2009 decreased 4.3% year-over-year and 12.7% quarter-over-quarter to RMB102.9 million (US$15.1million). The sequential decrease in casual games(2) related revenues was primarily due to seasonality in casual games for which the first quarter of each year is usually a high season with the winter holidays and Chinese New Year.

The number of APA for casual games(2) decreased 9.6% sequentially to 1.86 million in the second quarter of 2009. As a result, ARPU for casual games(2) declined 3.4% sequentially to RMB18.4 in the second quarter of 2009.

Other revenues in the second quarter of 2009 increased 70.6% year- over- year and 33.6% quarter-over-quarter to RMB59.6 million (US$8.7 million).

Gross Profit. Gross profit for the second quarter of 2009 was RMB899.0 million (US$131.6 million), representing a 47.4% increase from RMB610.1 million in the second quarter of 2008 and a 12.3% increase from RMB801.0 million in the first quarter of 2009. Gross margin was 72.7% in the second quarter of 2009, compared with 72.8% in the second quarter of 2008 and 72.3% in the first quarter of 2009.

Income from Operations. Operating income for the second quarter of 2009 was RMB513.4 million (US$75.2 million), representing a 53.0% increase from RMB335.6 million in the second quarter of 2008 and a 12.7% increase from RMB455.7 million in the first quarter of 2009. Operating margin was 41.5% in the second quarter of 2009, compared with 40.1% in the second quarter of 2008 and 41.2% in the first quarter of 2009.

Share-based compensation was RMB18.1 million (US$2.7 million) in the second quarter of 2009, compared with RMB15.1 million in the second quarter of 2008 and RMB13.7 million in the first quarter of 2009.

Non-Operating Income. Net non-operating income for the second quarter of 2009 was RMB23.8 million (US$3.5 million), compared with RMB5.8 million in the second quarter of 2008 and RMB0.6 million in the first quarter of 2009. The quarter-over-quarter difference was primarily due to the difference in government financial incentives between the second quarter compared with the first quarter of 2009. Non-operating income contributed from government financial incentives amounted to RMB36.5 million (US$5.3 million) in the second quarter of 2009, compared with RMB5.4 million in the second quarter of 2008 and RMB1.6 million in the first quarter of 2009.

Income Tax Expense. Income tax expense for the second quarter of 2009 was RMB 110.3 million (US$16.2 million), as compared with income tax expenses of RMB61.5 million in the second quarter of 2008 and RMB95.3 million in the first quarter of 2009.

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 Enterprise was acknowledged by the local tax authority and these entities are entitled to a preferential tax rate of 15%, 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. The future tax benefits arising from the deductible temporary differences as of June 30, 2009 are recognized in the balance sheet to the extent it is considered recoverable upon management's periodic assessment.

Net Income Attributable to Ordinary Shareholders.