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SINA and leading Korean game portal company Plenus join hands to launch game portal service in China

  SINA and Plenus have entered into a definitive license agreement to offer game portal service in China. The partnership will provide SINA the technology to develop and deploy its own casual games

  Seoul, Korea and Shanghai, China.--(PR Newswire)!February 20, 2004--SINA Corporation (Nasdaq:SINA), a leading online media company and value-added information service provider for China and for global Chinese communities, announced today that it has entered into a license agreement with Plenus Inc. (KOSDAQ: 37150) to introduce game portal service in China. Plenus, a leading entertainment company, offers casual games and community services through NetMarble (www.netmarble.net). With over 22 million registered users and 70 billion Korean Wons (US$68 million) in revenue in 2003, NetMarble is one of the most successful game portals in Korea.

  According to IDC, China¨s online game market reached RMB1.3 billion (US$159 million) in 2003 and is expected to grow to RMB6.7 billion (US$809 million) by 2007, representing a compounded annual growth rate of over 50 percent. Currently, online game market in China consists mostly of massive multi-player online role-playing games (MMORPG). However, as has been shown in Korea, over the next few years, casual games and game portal business could become an important part in the overall online game market in China.

  Under this license agreement, SINA will introduce the NetMarble game portal service and casual games to its vast registered user base. Furthermore, with technology transfer under the agreement, SINA will acquire the know-how¨s to develop and deliver its own casual games. Lastly, SINA will also receive other contents and technologies including Avatar and Mini-Hompy, which have achieved strong commercial success in Korea.

  "With the rapid advancement of Internet and online game industry in China, we believe that the growth of casual games and game portals will soon follow," said Wang Yan, CEO of SINA. "Our partnership with Plenus will give us the technology to develop our own games which represents a significant step forward in our strategy to posses in-house game development capabilities. ̄

  Under the license agreement, SINA will pay US$2 million in up front royalty with a running royalty of 10 percent of the net revenue of the game portal in China. The license period is five years and will be renewable. The transaction is subject to customary closing conditions including regulatory approvals and is expected to be completed in the first quarter of 2004.

  About SINA

  SINA Corporation (FKA: SINA.com) (NASDAQ: SINA) is a leading online media company and value-added information service ("VAS") provider for China and for global Chinese communities. With a branded network of localized web sites targeting Greater China and overseas Chinese, SINA operates four major business lines including SINA.com (online media and entertainment service), SINA Mobile (wireless VAS), SINA Online (consumer fee-based online VAS) and SINA.net (enterprise and government VAS), providing an array of services including online portals, premium email, wireless VAS, telecom VAS, virtual ISP, search, classified information, online games, e-learning, e-commerce and e-government solutions.

  Safe Harbor Statement

  This announcement contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the Securities and Exchange commission on forms 10-K, 10-Q, 8-K, etc., in our annual report to shareholders, in our proxy statements, in our offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, SINA¨s historical losses, its limited operating history, the uncertain regulatory landscape in the People's Republic of China, fluctuations in quarterly operating results, the Company's reliance on its mobile content value added services and online advertising sales for a majority of its revenues, the Company¨s reliance on mobile operators in China to provide wireless short messaging service, any failure to successfully develop and introduce new products and any failure to successfully integrate acquired businesses. Further information regarding these and other risks is included in SINA's prospectus, 10K, 10Q and in its other filings with the Securities and Exchange Commission.

Contact:
Denise Roche
646-536-7008
droche@theruthgroup.com
Chen Fu
(86-21) 62895678 ext. 6089
fuchen@staff.sina.com

 






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