CDC Software to Develop SaaS Applications for China Through Joint Venture with FlexSystem

The equally-owned Hong Kong-based joint venture intends to develop SaaS versions of CDC Software’s HRM payroll and attendance tracking applications, with the financial accounting and workflow applications from FlexSystem. This integrated SaaS business suite will initially be targeted for the millions of small to medium-size enterprises in China. The joint venture will leverage FlexSystem’s current SaaS platform and applications, as well as their current customers that have subscribed since their applications were launched in Hong Kong and Taiwan in 2006. The integrated SaaS solutions are expected to be available in the second quarter of 2008 with future plans that call for marketing and selling of these applications to be expanded globally. The joint venture will also seek to leverage CDC Software’s Nanjing and Shanghai development centers along with FlexSystem’s development center in Hong Kong as well as others.

Peter Yip, CEO of CDC Corporation, will serve as chairman and Adam Lok, CEO of FlexSystem, will also serve on the board of directors and take the role of managing director of the joint venture. Sean Yu, Chairman, CDC Software China of CDC Software will also serve on the board of directors.

"We are excited to form this joint venture with such a successful partner in the China market for enterprise software solutions," said Peter Yip, CEO of CDC Corporation and chairman of CDC Software. "This is a winning combination of CDC Software’s highly successful Platinum HRM solutions and FlexSystem’s leading accounting applications which already hold a significant market share in the financial services markets in Greater China, as well as with publicly traded companies on the Hong Kong Stock Exchange."

"From our experience developing and delivering SaaS applications, we believe that the combination of these highly complementary business applications will be well received in the China markets," said Adam Lok, CEO, FlexSystem. "We will kick-start the joint venture by leveraging our current SaaS platform and applications, as well as our customers already running these and making positive contributions to our business. We expect the SaaS subscription-based delivery model will be particularly appealing to the many small to medium-sized China companies who are looking for low up-front costs, streamlined implementations and reduced maintenance overhead."

The joint venture will leverage the deep knowledgebase and extensive network infrastructure of CDC Software’s sister companies, China.com, CDC Games and CDC Mobile, to facilitate the hosting of the SaaS applications throughout Greater China. CDC already leverages one of the most extensive network infrastructures in China spanning more than 30 provinces and four major municipalities and hosts services for more than 1,200 enterprises in China. This joint venture is the latest step in CDC Software’s plans to deliver SaaS applications worldwide. In the North American markets, CDC Software currently offers CDC MarketFirst, a hosted marketing automation solution for multi-channel marketing campaign management, and CDC Factory Schedule, an on demand production scheduling system for consumer product companies.