CDC Software Unit Achieves CMM Level 3 for its Software Development Center in China

Demonstrating the company's commitment to developing quality software products that adhere to global standards

Hong Kong, June 27, 2003

CDC Software, a software unit and wholly owned subsidiary of chinadotcom corporation (NASDAQ: CHINA; Website:, a leading integrated Internet and enterprise solutions company in Asia, today announced that the software development processes of its Software Development Center in Shanghai have successfully achieved Capability Maturity Model ("CMM") Level 3, an internationally recognized standard for software development.

CDC Software is one of only a few software development companies in China that have passed the CMM Level 3 assessment. The CMM assessment of CDC Software's development center in Shanghai was evaluated by the Software Engineering Institute ("SEI"), an authorized Leader Assessor from Process Improvement Asia ("PIA"). SEI is a US Federally-funded research and development center sponsored by the U.S. Department of Defense through the Office of the Under Secretary of Defense for Acquisition, Technology and Logistics. Under the assessment, twelve key process areas ("KPAs") of software development have been evaluated and CDC Software has satisfied relevant KPAs required for CMM Level 3 certification.

Daniel Widdicombe, Chief Financial Officer of chinadotcom corporation, said, "We are proud of the continuous improvements made in various areas of software development by CDC Software. The CMM Level 3 is a modest achievement of our software initiatives. However, it demonstrates our ability to provide quality software products to our clients and our commitment to the continual upgrading of our capabilities to adhere global standard. Our next target is CMM Level 4 certification and a leading position in China's software industry."

The new certification should bolster CDC Software's outsourcing strategy of offering its own Software Development Center capabilities in China as an outsourcing conduit for low-cost, high-quality software development for internationally established software companies, that are looking to reduce their overall Research and Development costs as part of its overall restructuring initiatives.

"Achieving CMM Level 3 is a reward for us after years of hard work," said Alsen Hsien, Managing Director, China, for CDC Software. "This is not just a certificate, but a demonstration of our capability in developing world class software products at a low cost. We feel it will further strengthen the confidence that our international software partners and our clients have in us."

CMM was developed by the Software Engineering Institute to assist organizations in initiatives that include maturing their software development process to improve long-term business performance.

About CDC Software

CDC Software is the software unit of chinadotcom corporation (NASDAQ: CHINA), a leading integrated enterprise solutions company in Asia. CDC Software integrates a series of chinadotcom's self-developed products engineered in the two software development centers in China, which include PowerBooks, PowerHRP (Human Resources and Payroll), PowerATS (Attendance Tracking System), Power-eHR, PowerPay+, PowerCRM and Power eDM (a double-byte e-mail marketing technology). In addition, the company also broadens its serving offerings in software arenas by establishing strategic partnerships with leading international software vendors to localize and resell their software products throughout the Asia Pacific region.

chinadotcom's software arm currently has over 1,000 customer site installations and 600 enterprise customers located throughout the Asia Pacific region. Selected multinational and domestic customers include ACNeilsen, Carrefour, Legend Computer, Microsoft (China) Co. Ltd., Shenzhen Airlines, Swire Beverages, Shangri La Hotels and Resorts and Starwood Hotels and Resorts.

For more information about chinadotcom corporation and CDC Software, please visit the Web site

About chinadotcom corporation

chinadotcom corporation (NASDAQ: CHINA; Website: is a leading integrated enterprise solutions and software company offering technology, marketing, mobile and media services for companies throughout Greater China and the Asia-Pacific region, the US and the UK. With operations in 10 markets, with over 1,000 employees - the companies under the chinadotcom group have extensive experience in several industry groups including finance, travel and manufacturing, and in key business areas, including e-business strategy, packaged software implementation and development, precision marketing and supply chain management. chinadotcom leverages this expertise with alliances and partnerships to help drive innovative client solutions.

A separate software unit, CDC Software Corporation, spearheads the company's strategy to move up the value curve in the software services and products area. It focuses on building up the company's IP assets base, establishing partnerships with software vendors and broadening its overall software product offerings in the areas of enterprise solutions and integration. It currently has over 1,000 installations and more than 600 customers in the Asia Pacific region.

The company also established CDC Outsourcing, which allows for elements of workflow such as client and project management to be provided in the contracted country (i.e. UK, US or Australia), with technology and applications sourced from either of the company's low-cost, CMM-certified outsourcing centers in China or India.

In our Mobile and Portals unit, the company operates popular news, email and consumer service portal websites in China, Hong Kong and Taiwan. Through the recent acquisition of Newpalm (China) Information Technology Co., Ltd. ("Newpalm"), the company now offers consumer-based and enterprise-based SMS and mobile application software development services. We currently have over 3.25 million paid subscribers in China on a platform that works on both the CDMA and GSM systems, with connectivity and service agreements with local mobile network operators in 26 provinces. Newpalm is a wholly-owned subsidiary of Corporation, a mobile applications and portal arm and 81%-owned subsidiary of chinadotcom.

For more information about chinadotcom corporation, please visit

Safe Harbor Statement

This press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on chinadotcom management's current expectations and are subject to risks and uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein. All forward-looking statements included in this press release are based upon information available to chinadotcom as of the date of the press release, and it assumes no obligation to update or alter its forward looking statements whether as a result of new information, future events or otherwise. Further information on risks or other factors that could affect chinadotcom's results of operations is detailed in its filings with the United States Securities and Exchange Commission, including the Annual Report for the year ended December 31, 2002 on Form 20-F filed on June 16, 2003.

For More Information

Media Relations

Lorretta Gasper
CDC Software
(678) 259-8631

Investor Relations

Monish Bahl
CDC Corporation
(678) 259-8510

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