CDC Software advances based on organic growth and high customer satisfaction in 2005
Atlanta, July 13, 2006 — CDC Software, a wholly owned subsidiary of CDC Corporation (NASDAQ: CHINA) and a provider of enterprise software applications, today announced that it ranked in the 18 th position on Manufacturing Business Technology's 2006 Global 100 List of Enterprise and Supply Chain Management Application vendors, a ranking determined by total company revenues for 2005. The results were published in the July, 2006 issue of Manufacturing Business Technology magazine and online at http://www.mbtmag.com/global100/default.asp.
During 2005, CDC Software grew organically through increased software sales to new customers, expanded implementations with current customers and broadened services offerings. Much of this growth is attributed to new customers which accounted for approximately 40 percent of total software license revenue. This ratio is among the highest in the enterprise software industry and indicates continued healthy expansion of the business and strong demand for industry-specific applications. Additionally, maintenance retention rates exceeded 90 percent, indicating a high degree of customer satisfaction. Customer satisfaction was also reflected by repeat business in the form of expanding deployments of successful software implementations worldwide.
"We are very proud, and not at all surprised by our advancement into the elite Top-20 list of global enterprise vendors," said Peter Yip, executive chairman of the board and CEO of CDC Software. "This is especially satisfying because our growth during 2005 was driven based on our consistent ability to deliver measurable value to our customers. It is also important to note that we are the only vendor of Asian origin to be included in the Top-20 list. Looking ahead, we believe our positioning will improve even further as we continue to grow through our global Franchise Partner program and targeted acquisitions of complementary companies."
About CDC Software
CDC Software, The Customer-Driven Company™, is a provider of enterprise software applications designed to help organizations deliver a superior customer experience while increasing efficiencies and profitability. CDC Software's product suite includes the Pivotal CRM (customer relationship management), c360 CRM add-on products, industry solutions and development tools for the Microsoft Dynamics CRM platform, Ross ERP (enterprise resource planning) and SCM (supply chain management), IMI warehouse management and order management, Platinum China HR (human resource) and business analytics solutions.
These industry-specific solutions are used by more than 5,000 customers worldwide within the manufacturing, financial services, health care, home building, real estate, and wholesale and retail distribution industries. The company completes its offerings with a full continuum of services that span the life cycle of technology and software applications, including implementation, project consulting, outsourced business services, application management and offshore development. CDC Software is the enterprise software unit of CDC Corporation (NASDAQ: CHINA). For more information, please visit www.cdcsoftware.com.
About CDC Corporation
CDC Corporation (NASDAQ: CHINA) is focused on enterprise software, mobile applications and online games. As part of its strategic review, the company has reorganized into two primary operating business units, CDC Software and China.com Inc. For more information about CDC Corporation, please visit the website: www.cdccorporation.net.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements relating to the expected growth of the company, future development of enterprise software on a global scale, growth in CDC Software's business in targeted geographic markets and the ability to provide expansion and support to developing countries. These statements are based on management's current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, including the following: the completion of the acquisition of an equity stake and option for additional equity in CMT Latin America, the ability to make changes in business strategy, development plans and product offerings; the ability to identify and enlist additional partners in the Franchise Partner Program and the development of the enterprise software sector on a global scale. Further information on risks or other factors that could cause results to differ is detailed in filings or submissions with the United States Securities and Exchange Commission made by CDC Corporation in its Annual Report for the year ended December 31, 2005 on Form 20-F filed on June 21, 2006. All forward-looking statements included in this press release are based upon information available to management as of the date of the press release, and you are cautioned not to place undue reliance on any forward looking statements which speak only as of the date of this press release. The company assumes no obligation to update or alter the forward looking statements whether as a result of new information, future events or otherwise.
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