t6pr.com - Chinainfo Holdings Limited (8206)

CHINAINFO HOLDINGS LIMITED
China Cyberport files proceedings against Haofang for infringement of license rights to computer games

Hong Kong, May 9, 2006 - Chinainfo Holdings Limited (HKGEM: 8206) (the "Group") reports that China Cyberport Co., Ltd. (神州奧美網絡有限公司, "CCP") filed a lawsuit with Shanghai No. 1 Intermediate People's Court on April 26, 2006 against Shanghai Haofang Online Technology Co. (上海浩方在線信息技術有限公司, "Shanghai Haofang"), a wholly-owned subsidiary of Shanda Interactive Entertainment Limited ("Shanda", Nasdaq: SNDA), for infringement of intellectual property rights to a number of popular computer games including "Warcraft", "Counter Strike" and "Starcraft". CCP is a subsidiary the Group's major shareholder China Communication Investment Ltd. (神州通信投資有限公司, "CCI"). The court case number is (2006)滬一中民五(知)初字第115號.

CCP's legal proceeding against Shanghai Haofang is based mainly on the following four aspects of infringements:

1. Shanghai Haofang has stolen the content of the above mentioned games, without authorization from licensee CCP, for the continuing operation of its profit-making games platform (www.cga.com.cn). Haofang was alleged to have leveraged the huge popularities of "Counter Strike", "Warcraft", "Starcraft" and "Diablo" to solicit the registration of 62 million online users and obtain profits illegally;

2. In August 2005, Shanghai Haofang and parent company Shanda used CCP-owned "Warcraft III: Frozen Throne" to organize unauthorized profit-making electronic sports tournaments named "七劍出浩方" (Seven Swords of Haofang) in several cities in the PRC including Beijing, Shanghai and Guangzhou;

3. Shanghai Haofang has used, without licensee's authorization, the text, graphics, figures and images of CCP-owned "Counter Strike", "Warcraft", "Starcraft", "Diablo" on its games platform (www.cga.com.cn);

4. Shanghai Haofang has provided, without licensee's authorization, downloading services for pirated software of games "Counter Strike",, "Warcraft", "Starcraft" and "Diablo".

With regard to Shanghai Haofang's infringement activities, CCP will claim damages of RMB 120 million or above. During the course of the legal proceeding, CCP will apply to the court for the engagement of auditors and valuers to assess the monetary loss of CCP before the damage claim is finalized.

CCP has appointed legal advisors to try to get in contact with Shanghai Haofang and its parent Shanda to request an immediate termination of the above mentioned infringement activities. Shanghai Haofang and Shanda have not responded to the request despite repeated telephone calls and mails made by the legal advisors. Infringement activities have in fact intensified.

CCP has filed complaints to all relevant PRC authorities based on the PRC Criminal Law, Copyright Law and other regulatory rules governing intellectual rights protection.

Mr He Chenguang, Chairman of Chinainfo Holdings and President of CCP, said: "We are confident that we have the capacities and sufficient evidence to bring the case to related bodes in the US. In order to stop the serious infringement of Shanghai Haofang, we will seek to inform the SEC when the situation warrants. We will vigorously fight the pirating acts of Shanda based on US laws. Under the discipline of the PRC Law and with ongoing government efforts to protect intellectual property rights, we believe that legal responsibilities will be apportioned for the infringement offences of Shanghai Haofang and Shanda."

About Chinainfo Holdings Limited
Chinainfo Holdings Limited (HKGEM: 8206) is a multi-media financial information services provider. It has initiated participation in China's computer game industry through acquisition of licensed rights from China Communication Investment Ltd., a wholly owned subsidiary of China Communication Co., Ltd.

Issued by :
Chinainfo Holdings Limited

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