Lunar Capital Management and CDC Corporation Disclose Proposal for Investment in Linktone Ltd.

Lunar Capital Management and CDC Corporation Disclose Proposal for Investment in Linktone Ltd.

November 26, 2007

Investment Proposal Part of Three-Point Restructuring Plan
for Linktone with the Goal of Repositioning the Company to
Increase Shareholder Value

    BEIJING and HONG KONG, Nov. 26
/Xinhua-PRNewswire-FirstCall/ -- Lunar Capital Management
("LCM") and CDC Corporation (Nasdaq: CHINA)
and/or its subsidiaries and affiliates ("CDC",
and taken together with LCM, the "Strategic
Investors"), today disclosed that they have presented
a formal proposal for an investment in, and restructuring
of, Linktone Ltd. (Nasdaq: LTON) ("LTON" or
"Linktone"). 

    The Strategic Investors have proposed to purchase
either common shares or convertible preferred shares
convertible into a minimum of 19.9% of the fully-diluted
equity capitalization of LTON. The purchase price would be
at a premium to Linktone's most recent closing price, in
the case of convertible preferred shares, or at a discount,
in the case of common shares. The Strategic Investors would
seek to appoint up to 3 directors to Linktone's Board of
Directors in order to effect a proposed restructuring of
Linktone's business. Furthermore, the Strategic Investors
would enter a lock up agreement not to sell the shares for
a minimum of 6 months. The consideration for the
transaction will be made entirely in cash.

    The Strategic Investors are making this proposal in
order to reposition Linktone in China's wireless and media
markets for the increased benefit of Linktone's
shareholders. This repositioning would leverage the
Strategic Investor's resources and the Company's talented
management team. The Strategic Investors believe they have
the operational expertise and skill set necessary to work
with the Company to effect a restructuring of the business,
and that this proposal offers an exciting opportunity for
Linktone shareholders. If elected by the shareholders,
directors nominated by the Strategic Investors will propose
that Linktone: (1) restructure its core Wireless Value-Added
Services Business through cost cutting, product refocus and
leveraging greater synergies with partner companies; (2)
restructure new media assets into a separate stand-alone
entity with greater access to media expertise and clearer
performance metrics; and (3) actively build a pipeline of
transformative transactions aimed at increasing shareholder
value through leveraging Strategic Investor resources.

    The Strategic Investors believe that this clear
three-point proposal will build value for Linktone
shareholders by leveraging outside expertise and
re-clarifying business lines in order to focus and
improving financial performance. Additionally, the
Strategic Investors believe that the proposed restructuring
will reposition Linktone as an internet, media and
telecommunications asset with significant growth potential
in China-one of the world's fastest growing telecoms, media
and technology markets.

    The Strategic Investors believe that they have the
resources and operational expertise to implement the above
three point plan and deliver results. LCM is a
China-focused private equity fund manager that takes
selective stakes in businesses where it believes it can
drive value creation through applying intensive operational
expertise. Partners of LCM include former senior executives
of China's leading publicly-listed wireless, internet and
media companies and global financial services leaders. CDC
has a proven track record of acquiring attractive,
underperforming assets and growing them into industry
leading enterprises.  This has been demonstrated by CDC's
acquisition and turn around of Ross Systems, Pivotal
Corporation and IMI and their subsequent evolution into CDC
Software, now independently ranked as 12th largest vendor of
enterprise and supply chain software in the world. CDC's
investments in the wireless sector include an investment in
BBMF, one of the leading 3G mobile content providers in
Japan.  

    Accordingly, Linktone and its shareholders should
consider LCM and CDC as value-added investors that will
provide the Company with the merger and acquisition, China
and global operational expertise to help the business
evolve in a manner which delivers increased shareholder
value. 

    The Strategic Investors are confident that the proposed
transaction is in the best interest of the Company and its
shareholders. This proposal is being made in good faith and
is intended to be a friendly approach from value-added
investors to assist the Company during this difficult
period. The Investors have a high-degree of confidence in
the Company and its Management, both of which are factors
in deciding to proceed with this proposal. 

    Strategic Investors additionally believe that the terms
of the Transaction are appropriate for the acquisition of
the proposed minority stake, particularly in light of the
resources that the Strategic Investors intend to devote to
the Company. The proposed transaction would be subject to
certain closing conditions, including, but not limited to,
the Strategic Investors' completion of its due diligence,
the completion of definitive transaction documents,
relevant regulatory requirements, Linktone's effecting the
resignation of at least three of the current non-executive
directors of and the election by the shareholders of three
directors representing the Strategic Investors. The
Strategic Investors will nominate directors that ensure
that the Company is compliant with the independence
requirements of both NASDAQ and the United States
Securities and Exchange Commission.  Furthermore, given
potential concerns regarding CDC as an investor due to
certain potential overlapping businesses, any director
nominated by or affiliated with CDC will be asked to
abstain from consideration, evaluation and approval of any
proposed transactions that may arise between CDC or its
affiliates and Linktone. The Strategic Investors believe
that the addition of three new directors each representing
shareholders with a substantial financial stake in
Linktone's future is the best possible way to ensure a
clear focus on building shareholder value and protecting
minority shareholder interests.  No firm response has been
received from the Company.

    Speaking on behalf of the Strategic Investors, Maria
Tsui, spokesperson for LCM, stated, "We believe that
Linktone's shareholders would benefit tremendously if the
Board of Directors were to approve our proposed
transaction. We are presenting this proposal in a spirit of
good faith because we firmly believe that it is clearly in
the best interest of shareholders, and would assist the
Company in meeting its goals of building a stronger
business in China. Furthermore, we intend to fully involve
management and make this a team effort to transition back
to profitability and increased value. Lastly, we believe
that the operational expertise that the Strategic Investors
can deliver to the Company will result in an ability to
generate greater returns from Linktone's tangible and
intangible assets for shareholders."
    
    Cautionary Note Regarding Forward-Looking Statements
    This press release includes "forward-looking
statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995, and
includes statements relating to the ability of CDC and LCM,
such as the ability improve efficiencies, improve customer
service, drive cost savings and competitive advantage.
These statements are based on current expectations and are
subject to risks and uncertainties and changes in
circumstances. There are important factors that could cause
actual results to differ materially from those anticipated
in the forward looking statements including, among others:
the conditions of market, the continued ability to develop
solutions, demand for and market acceptance of new and
existing services, development of new functionalities which
would allow companies to compete more effectively. If any
such risks or uncertainties materialize or if any of the
assumptions proves incorrect, our results could differ
materially from the results expressed or implied by the
forward-looking statements we make.  Further information on
risks or other factors that could cause results to differ is
detailed in filings or submissions with the United States
Securities and Exchange Commission made by CDC Corporation
in its Annual Report for the year ended December 31, 2006
on Form 20-F filed on July 2, 2007. All 
forward-looking statements included in this press release
are based upon information available to management as of
the date of the press release, and you are cautioned not to
place undue reliance on any forward looking statements which
speak only as of the date of this press release. The company
assumes no obligation to update or alter the forward looking
statements whether as a result of new information, future
events or otherwise.

    For More Information:

    Investor Relations 
     Monish Bahl 
     CDC Corporation 
     Tel:   [phone] 
     Email: [e-mail] 

    Media Relations	
     Maria Tsui
     Lunar Capital Management
     Tel:   [phone]     
     Email: [e-mail]