Shanda and Universal Music Team Up to Launch a New Digital Entertainment Service to Music Consumers in China

Shanda and Universal Music Team Up to Launch a New Digital Entertainment Service to Music Consumers in China

Digital Distribution of Music Reaches Out to Online Gamers and Internet Users

SHANGHAI, China, April 13 /Xinhua-PRNewswire/ -- Shanda Interactive Entertainment Limited (NASDAQ:SNDA), the largest operator of online games in China, today announced a strategic partnership with Universal Music, the world's leading music company. Pursuant to a memorandum of understanding, Shanda will have access to Universal Music's online music repertoire, which will be offered to Shanda's millions of users through streaming and, in the future, on a downloadable basis over Shanda's interactive entertainment portal at http://www.poptang.com/ , as well as within the game operation platform. Additionally, Universal Music will provide music, artist-related information and news materials to be offered on Shanda's platform.

The strategic partnership between Shanda and Universal Music signifies pioneering steps for the two entertainment leaders, as Shanda will extend its interactive entertainment content offerings into the music arena for the first time. It also will mark Universal Music's first online music offering in the China market.

The alliance service is expected to be launched in June 2005 and users will be able to easily and legitimately access the best of Chinese-language songs by Universal Music's artists via an interactive song-streaming channel operated by Shanda. The services may be combined with Shanda's other offerings, including online games, as users may select song streaming as background music for game playing. Users may also select and dedicate songs to one another through the online game community. The music will be offered through a variety of alternatives, including a la carte selection, monthly subscription or bundled purchases. Users will be able to pay for this additional service conveniently by using Shanda's established payment and distribution system that covers over 300,000 retail points throughout China.

Harry Hui, President of Universal Music South East Asia, said, ''What's hot in China right now is online games, the Internet and mobile technology. With the consumption of music heading towards the digital, mobile and personal, we're making sure that music plays an active part of all the exciting experiences for Chinese youths today. Shanda, as the most successful interactive entertainment platform in China, makes an ideal partner for us.''

''This Digital music offering is another important addition to Shanda as we envision building a broad portfolio of interactive entertainment content offerings delivered through our operational platform to millions of users, including an increasing number of home users,'' said Tianqiao Chen, Chief Executive Officer of Shanda. ''We are excited about launching our music services with Universal Music, the leading music company, through this partnership.''

About Shanda Interactive Entertainment Limited

Shanda Interactive Entertainment Limited (NASDAQ:SNDA) is the largest operator of online games in China. Shanda offers a portfolio of massively multi-player and casual online games that users play over the Internet, including several of the most popular online games in China. Shanda's game platform attracts a large and loyal user base, each member of which can interact with thousands of others, which creates a strong community among users. For more information about Shanda, please visit http://www.snda.com/ .

About Universal Music Group

Universal Music Group is the world's largest music company with wholly owned record operations or licensees in 77 countries. Its businesses also include Universal Music Publishing Group, one of the industry's largest global music publishing operations.

Universal Music Group consists of record labels Decca Record Company, Deutsche Grammophon, DreamWorks Nashville, Interscope Geffen A&M Records, Geffen Records, Island Def Jam Music Group, Lost Highway Records, MCA Nashville, Mercury Nashville, Mercury Records, Philips, Polydor Records, Universal Music Latino, Universal Motown Records Group, and Verve Music Group as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. The Universal Music Group owns the most extensive catalogue of music in the industry, which is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Universal Strategic Marketing (outside the U.S.). Universal Music Group also includes eLabs, a new media and technologies division.

Universal Music Group is a unit of Vivendi Universal, a global media and communications company.

Artists under the Universal Music roster include Eason Chan, Energy, Jacky Cheung, Cecilia Cheung, Leslie Cheung, Kelly Chen, Andy Hui, Sam Hui, eVonne Hsu, Hacken Lee, Wilbur Pan, Alan Tam and Teresa Tang.

Safe Harbor Statement

This announcement contains forward-looking statements that are based on current expectations, assumptions, estimates and projections about the companies and the industry. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to statements regarding the future business cooperation between Shanda and Universal, the future availability of music downloads from Shanda's interactive entertainment portal and the launch date for the music services. These forward-looking statements involve various risks and uncertainties. Although the companies believe that the expectations expressed in these forward-looking statements are reasonable, the companies cannot assure you that the expectations will turn out to be correct. Important risks and uncertainties could cause actual results to be materially different from expectations include but not limited to the possibility that the signing of a legally binding agreement in accordance with the terms of the memorandum of understanding could be delayed or that technical difficulties could arise in connection with implementing such agreement. Additional risks are set forth in Shanda's filings with the U.S. Securities and Exchanges Commission, including Shanda's registration statement on Form F-1.

Source: Shanda Interactive Entertainment Limited

CONTACT: Donglei Zhou, Director of Investor Relations, Shanda Interactive Entertainment Limited, +86-21-5050-4740, or IR@shanda.com.cn; Todd St.Onge, stonge@braincomm.com, Michael DiPaolo (media), dipaolo@braincomm.com, or +1-212-986-6667 both of Brainerd Communicators, Inc. for Shanda; Ruikang Zhou of Universal Music Group (CHINESE), +86-21-6390-6437, or ruikang.zhou@umusic.com, Davena Mok (ENGLISH) of Universal Music South East Asia, +852-9525-5667, davena.mok@umusic.com

Web Site: http://www.poptang.com/ http://www.snda.com/

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