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Shanda and China Hewlett Packard Forge Strategic Partnership

Shanda and China Hewlett Packard Forge Strategic Partnership

Agreement Will Bundle HP's Digital Home Products With Shanda EZ Pods

SHANGHAI, China, April 18 /Xinhua-PRNewswire/ -- Shanda Interactive Entertainment Limited , one of the leading interactive entertainment media companies in China, today announced a strategic partnership with China Hewlett-Packard, or China HP, a subsidiary of Hewlett-Packard Company, or HP, one of the world's leading information technology companies.

Pursuant to a memorandum of understanding, the two companies will work closely together, leveraging their resources in the respective fields to take advantage of rich interactive entertainment content offerings on Shanda's EZ platform and HP's expertise in information technology infrastructure solutions tailored for home entertainment. As an important part of this strategic partnership, China HP will bundle its digital home products with EZ Pods. In addition, the two companies will explore opportunities for promotional campaigns as well as cross-marketing.

EZ Pod is the proprietary product that is designed and developed by Shanda. It includes EZ Center software and a remote control that together upgrade a standard PC platform to an interactive entertainment platform, offering a diversified portfolio of internet content that includes literature, music, movies, radio, finance, e-commerce, travel, news and education programs.

''As the pioneer of innovative technologies for more than 65 years, HP is dedicated to the development and production of a complete information technology infrastructure solution specifically tailored for digital entertainment,'' commented Cheng-Yaw Sun, President of China HP. ''We look forward to working with Shanda in bringing a more enjoyable digital entertainment experience to HP users, while also promoting the digital living concept across China.''

"Shanda has built a comprehensive interactive entertainment solution suitable for Chinese home users and established broad scope collaborative partnerships with content providers and strategic partners," commented Tianqiao Chen, CEO of Shanda. "We believe the cooperation with world-leading information technology company, Hewlett-Packard, signifies another important milestone in the continued execution of our home strategy."

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 the statement that China HP will bundle its digital home products with EZ Pods and statements regarding the future promotion, marketing, distribution and development cooperation between Shanda and China HP. These forward-looking statements involve various risks and uncertainties. Although the companies believe that their expectations expressed in these forward-looking statements are reasonable, they cannot assure you that their 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 risk that Shanda and China HP fail to enter into definitive agreements regarding the proposed cooperation or the proposed cooperation is otherwise not successfully executed and the risks set forth in Shanda's filings with the U.S. Securities and Exchanges Commission, including Shanda's annual report on Form 20-F.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended Jan. 31, 2006, HP revenue totaled $87.9 billion. More information about HP is available at http://www.hp.com/ .

About Shanda Interactive Entertainment Limited

Shanda Interactive Entertainment Limited is a leading interactive entertainment media company in China. Shanda offers a portfolio of diversified entertainment content including some of the most popular massively multi-player and casual online games in China, along with online chess and board games, a network PC game platform and a variety of cartoons, literary and music content. Shanda's interactive entertainment platform attracts a large and loyal user base. Each user can interact with thousands of others and enjoy the interactive entertainment content that Shanda provides. Interaction enriches your life. For more information about Shanda, please visit http://www.snda.com/ .

Shanda Interactive Entertainment Limited

CONTACT: Frank Liang, Associate Director of Investor Relations of Shanda
Interactive Entertainment Limited, +86-21-5050-4740, or [email protected];
or Todd St.Onge (investors), [email protected],
or Nancy Zakhary (media), [email protected], both of Brainerd Communicators,
Inc., +1-212-986-6667, for Shanda

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

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