Nival Online signs publishing deal with Perfect World Co, Ltd. on “Perfect World” MMORPG in Russia and CIS countries

Nival Online, a leading online game developer and operator in Russia, today announced that it has entered into an agreement with Perfect World Co., Ltd. (or the «Company»), a leading online game developer and operator in China, to license and operate the «Perfect World» game in Russia and other Russian-speaking countries and regions.
"Perfect World" was the Company's first online game exported to the overseas markets. So far, it has been licensed to companies in over ten countries and regions and has already been officially launched in nine of them. This new licensing agreement with Nival Online represents the Company's first step in expanding its products to the Russian-speaking online game and entertainment market. "Perfect World," a game rich in Chinese heritage and culture, will provide Russian-speaking game players an opportunity to experience the charm of Chinese online games.

"We are quite excited to add 'Perfect World' to our 2008 product portfolio," said Mr. Sergey Orlovsky, President of Nival Online, "We believe the elaborate graphics and in-game features of 'Perfect World' align perfectly with our high standards and will give us a tremendous competitive advantage in our local market. The game's item-based revenue model, which has been very successful in China, will also be highly beneficial as we help lead the future development of the online game market in Russia."

"I am very pleased with this agreement as it represents another milestone in our strategy to expand our relationships and licensing agreements in targeted overseas markets," commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World, "Since 2006, 'Perfect World' has been licensed to more than ten countries and regions, and this agreement with Nival Online marks the first time that our products have reached Russian-speaking countries. I believe that our joint effort will surely introduce an entirely new experience to Russian-speaking gamers."

About Perfect World Co., Ltd.

Perfect World Co., Ltd. ("Perfect World" or the "Company") is a leading online game developer and operator in China. Perfect World primarily develops three-dimensional ("3D") online games based on the proprietary Angelica 3D game engine and game development platform. The Company's strong technology and creative game design capabilities, combined with extensive local knowledge and experience, enable it to frequently and rapidly introduce popular games designed to cater to changing customer preferences and market trends in China. The Company's current portfolio of self-developed 3D massively multiplayer online role playing games ("MMORPGs") consists of "Perfect World," "Legend of Martial Arts," "Perfect World" and "Zhu Xian." The Company uses a time-based revenue model for "Perfect World," and an item-based model for "Legend of Martial Arts," "Perfect World" and "Zhu Xian." While most revenues are generated in China, the Company's games have been licensed to leading game operators in more than ten countries and regions. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

About Nival Online

Nival Online is a leading online game operator, publisher and developer in Russia/CIS. The company was created in 2006 as a spin-off from Nival Interactive, the top-ranked Russian PC game developer and publisher, well-known for its Heroes of Might and Magic, Blitzkrieg, Silent Storm, Etherlords, Allods and other franchises. The company has received US$20M of investments in 2006, and right now is focusing on delivering the best Massively Multiplayer Online Games to the Russian-speaking community.