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CDC Corporation Announces Completion of Purchases of Convertible Notes From Multiple Note Holders Below Par Value

Monday 05. January 2009 - CDC Corporation (NASDAQ: CHINA), a leading global enterprise software and new media company, announced today that, on December 31, 2008, an affiliate of the Company completed closings with multiple holders of the Company’s outstanding 3.75 percent Senior Exchangeable Convertible Notes Due 2011 (Notes) to purchase such holders’ entire holdings at less than par value.

These closings follow the previously announced agreement last week with certain holders to purchase their entire holdings at less than par value. CDC Corporation intends to continue to pursue, active discussions, both directly and through its affiliates and third-parties, about possible early purchases or redemptions of outstanding Notes with the remaining Note holders.

CDC Corporation’s closing of agreements with certain note holders at a price below par value is consistent with Company management’s current SFAS 157 valuation estimate and the results of a previously reported valuation by a third party independent consultant, which valued the Notes at approximately $0.76 per $1.00 of original principal (par) value.

“We are very pleased with the ongoing progress that we are making to reduce debt by closing agreements with certain note holders for the purchase of their holdings at a price below par value,” said Peter Yip, CEO of CDC Corporation. “By leveraging our cash on hand for the negotiated purchases, we feel this strategy will not only help to decrease our debt, but also help further strengthen our financial condition and prospects. We also feel these negotiated purchases of Notes below par value are fair for both parties in light of current overall economic conditions. We expect to continue to make progress and come to amicable settlements on the fair value of the remaining portion of our Notes.”