CDC Software Acquires Respond Group and Adds Key Customers in Target Verticals including Aegon, AXA Insurance and Barclays

BEIJING, ATLANTA - 16 February 2007

Industry-Specific Applications for Customer Service and Feedback Management
Strengthen CDC’s Position as a Leading Provider of Vertical CRM Solutions

CDC Software, a wholly owned subsidiary of CDC Corporation (NASDAQ: CHINA) and a global provider of industry-specific enterprise software applications and consulting services, announced today the acquisition of Respond Group, Ltd. a leading European provider of software applications for improving customer service through the management of complaints and enterprise feedback. Mirroring CDC Software with an established leadership position in key vertical industries, the Respond applications and organization are highly complementary to CDC Software’s Pivotal CRM solutions. Respond brings 800 customers to the CDC Software family of more than 5,000.

With customers including AXA Insurance, Barclays, Aegon and many others, Respond is recognized as a market-leading provider of enterprise complaint and feedback management solutions to the financial services industries. Similarly, with customers including Allianz Dresdner Asset Management, Julius Baer Investment Management and Morgan Keegan & Company, the Pivotal CRM applications for marketing, sales and relationship management are recognized as industry-leading solutions in the financial services markets. In October 2006, Pivotal CRM was selected to the SecuritiesTech 50 list of top front-office solutions in financial services.

The Respond solutions are also widely deployed in government organizations which will create opportunities for cross-selling the Pivotal CRM applications, as well as other enterprise software and consulting service offerings from CDC Software. Additionally, the Pivotal CRM sales and marketing applications are widely deployed in the home building and real estate industries. The importance of complaint management, improving customer service and increasing satisfaction in these industries is expected to create additional cross-selling opportunities for the Respond applications.

In addition to the synergies of the product lines and industry expertise, both CDC Software and Respond are Microsoft Certified Partners, and the respective applications share complementary architectures based on standard Microsoft platforms. The applications are deployed securely via the Internet, enabling a low cost, low maintenance browser-based deployment. The Respond applications and Pivotal CRM are also both designed to be highly flexible and easily adapted to model the unique business practices of each customer.

“The combination of Respond and CDC Software is an excellent business decision from all perspectives,” said James Heavey, CEO of Respond. “As a company focused on delivering industry-specialized solutions and services, CDC Software has been building momentum and posting performance metrics well above average in enterprise software. At Respond we mirror that industry focus with complementary applications that will create a variety of new choices and expanded set of solutions for both customer bases.”

“We are very excited to have Respond join our global organization that is achieving consistent success as a leader in industry-specialized software solutions,” said Eric Musser, president of CDC Software. “We are clearly demonstrating that CDC Software is not taking the slash-and-burn approach of the typical consolidators. Rather, we are creating real value by expanding the depth of our industry applications through investments in organic innovation, as well as targeted acquisitions. Adding the complementary industry expertise and applications of Respond will yield very positive results for our respective customer bases.”

"Respond and CDC Software are a perfect fit,” said Alison Blackmore, Head of Customer Care, AXA Insurance. “There is an obvious synergy between the two companies rooted in shared values and a common commitment to helping businesses become customer-driven market leaders."

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