Giant Interactive Announces Fourth Quarter and Fiscal Year 2012 Results and Regular Dividend of US$0.42 Per ADS or Ordinary

 Giant Interactive Announces Fourth Quarter and Fiscal Year 2012 Results and
            Regular Dividend of US$0.42 Per ADS or Ordinary Share

PR Newswire

SHANGHAI, Feb. 26, 2013

SHANGHAI, Feb. 26, 2013 /PRNewswire-FirstCall/ -- Giant Interactive Group Inc.
(NYSE: GA) ("Giant" or the "Company"), one of China's leading online game
developers and operators, announced today its unaudited financial results for
the fourth quarter and year ended December 31, 2012.

Fourth Quarter 2012 Highlights as Compared to Third Quarter 2012 ("QoQ") and
Fourth Quarter 2011 ("YoY"):

  oNet revenue was RMB571.7 million (US$91.8 million), up 5.2% QoQ and up
    15.5% YoY.
  oGross profit was RMB493.2 million (US$79.2 million), up 5.4% QoQ and up
    15.5% YoY. Gross profit margin for the fourth quarter 2012 was 86.3%.
  oNet income attributable to the Company's shareholders was RMB82.7 million
    (US$13.3 million), down 73.5% QoQ and down 66.4% YoY, primarily due to an
    impairment charge related to the Company's investment in Five One Network
    Development Co., Ltd ("51.com"). The margin of net income attributable to
    the Company's shareholders for the fourth quarter 2012 was 14.5%.
  oBasic and diluted earnings per American Depositary Share ("ADS") which
    represents one ordinary share, were RMB0.35 (US$0.06) and RMB0.34
    (US$0.05), respectively, compared to basic and diluted earnings per ADS of
    RMB1.32 and RMB1.28, respectively, for the third quarter 2012, and basic
    and diluted earnings per ADS of RMB1.05 and RMB1.05, respectively, for the
    fourth quarter 2011.
  oNon-GAAP net income attributable to the Company's shareholders was
    RMB350.0 million (US$56.2 million), up 2.2% QoQ and up 35.8% YoY. The
    margin of non-GAAP net income attributable to the Company's shareholders
    was 61.2%.
  oBasic and diluted non-GAAP earnings per ADS were RMB1.47 (US$0.24) and
    RMB1.43 (US$0.23), respectively, compared to basic and diluted non-GAAP
    earnings per ADS of RMB1.45 and RMB1.41, respectively, for the third
    quarter 2012, and basic and diluted non-GAAP earnings per ADS of RMB1.09
    and RMB1.09, respectively, for the fourth quarter 2011.
  oActive Paying Accounts ("APA") for online games was 2,300,000, up 2.6% QoQ
    and up 6.1% YoY.
  oAverage Revenue Per User ("ARPU") for online games was RMB238, flat QoQ
    and up 7.4% YoY.
  oAverage Concurrent Users ("ACU") for online games was 702,000, up 1.1% QoQ
    and up 5.1% YoY.
  oPeak Concurrent Users ("PCU") for online games was 2,370,000, up 1.8% QoQ
    and up 1.3% YoY.

Please refer to "Use of Non-GAAP Financial Measures" commencing on page 10 for
a reconciliation between net income attributable to the Company's shareholder
on a GAAP and non-GAAP basis.

Fiscal Year 2012 Highlights as Compared to Fiscal Year 2011:

  oNet revenue increased 20.1% to RMB2,151.9 million (US$345.4 million).
  oGross profit increased 21.4% to RMB1,863.5 million (US$299.1 million).
  oGross profit margin was 86.6% as compared to 85.6% for fiscal year 2011.
  oNet income attributable to the Company's shareholders increased 12.9% to
    RMB993.7 million (US$159.5 million).
  oNet income attributable to the Company's shareholders as a percentage of
    net revenue was 46.2%.
  oBasic and diluted earnings per ADS increased 10.8% and 9.0%, respectively,
    to RMB4.20 (US$0.67) and RMB4.13 (US$0.66), respectively.
  oNon-GAAP net income attributable to the Company's shareholders increased
    24.7% to RMB1,354.3 million (US$217.4 million).
  oNon-GAAP net income attributable to the Company's shareholders as a
    percentage of net revenue was 62.9%.
  oBasic and diluted non-GAAP earnings per ADS increased 22.2% and 20.1%,
    respectively, to RMB5.72 (US$0.92) and RMB5.62 (US$0.90), respectively.

Please refer to "Use of Non-GAAP Financial Measures" commencing on page 10 for
a reconciliation between net income attributable to the Company's shareholders
on a GAAP and non-GAAP basis.

Mr. Yuzhu Shi, Giant's Chairman and Chief Executive Officer commented, "2012
marked another year of strong growth. We have grown quarter over quarter for
the past twelve consecutive quarters, and once again, following the impressive
34% annual revenue growth in 2011, we delivered a 20% annual growth in our
total net revenue in 2012. Such growth was primarily driven by the continued
growth of our flagship game ZT Online 2 and contribution from its newly
launched micro-client version. We are especially proud of our achievements in
2012, as much of our resources were allocated to build up our webgame business
in addition to continued development of new MMOs. Yet, through solid execution
and prudent spending, we not only delivered top and bottom line growth, but
also maintained high margins. While we continue to provide new content for ZT
Online 2 and expect continued growth in 2013, we have also made significant
progress in diversifying our MMO game portfolio."

Mr. Shi continued, "In 2013, we will debut our next self-developed 3D MMO
flagship game, World of Xianxia. This game has gone through various testing
and has received positive results. The official closed beta testing and large
scale marketing campaign will begin in the second quarter of 2013. We
anticipate World of Xianxia to become our primary growth driver for 2013."

"For our webgames offerings, after a year of intense development and
preparation, two webgames are set for commercial launch in the first half of
2013 and are expected to become major growth drivers for 2013."

"In 2013, mobile game development will be our new major strategic focus.
Mobile is the future of online access and we plan to keep delivering the best
game experiences regardless of how the games are delivered, whether through
PCs, tablets, or mobile phones. We have spent considerable amount of time
analyzing the differences between PC and mobile gamers including their
game-playing habits and preferences. The study will help us to better apply
our leading game design experience to our future mobile game development.
Furthermore, we started building our internal mobile game development team
last year with an aim to produce a few high quality mobile games in 2013. Not
only will we allocate sufficient resources to build a best-in-class mobile
game development team, but we will also actively seek merger and acquisition
and partnership opportunities to maximize our mobile game offerings."

"In addition to our home market, we plan to further expand our horizon
internationally. We will continue to work with our overseas business partners
to export our existing and pipeline games in PC, web or mobile format,
whichever is most suitable to the local market. We will also actively seek
opportunities to license and publish major foreign titles in China, to partner
with other game companies to jointly develop new games, or to invest in
foreign game companies."

Mr. Shi concluded, "Our long-term business objective remains firmly in
delivering shareholder value, through execution of our multi-year plan to (a)
broaden our user base through producing innovative and high quality games, (b)
expand our distribution channels through leveraging our strong relationships
with Internet platforms, and (c) increase our geographic footprint through our
overseas business partners. In light of our strong business fundamentals and
healthy cash flow, our Board of Directors has declared a cash dividend of
US$0.42 per ordinary share or ADS for fiscal year 2012. This dividend implied
a 50% pay-out of our earnings per share/ADS, excluding the impairment charge
related to our investment in 51.com, formerly a China-based social networking
company which transitioned into an online game developer and operator in
recent years. Commencing in 2013, we plan to pay dividends semi-annually.
Given our strong game pipeline and solid execution of business strategies, we
are confident that we will maintain our growth trends and reach new levels of
success in 2013."

Fourth Quarter Fiscal and Fiscal Year 2012 Unaudited Financial Results

Net Revenue. Net revenue for the fourth quarter 2012 was RMB571.7 million
(US$91.8 million), representing a 5.2% increase from RMB543.2 million in the
third quarter 2012, and a 15.5% increase from RMB494.8 million in the fourth
quarter 2011.

Revenue from online games in the fourth quarter 2012 totaled RMB555.7 million
(US$89.2 million), representing a 6.1% increase from RMB523.8 million in the
third quarter 2012, and an 18.3% increase from RMB469.6 million in the fourth
quarter 2011.The sequential as well as the year-over-year increases in online
game net revenue were primarily due to the continued growth of ZT Online 2 and
the contribution from its newly launched micro-client version.

For the fiscal year 2012, revenue from online games increased 22.0% to
RMB2,075.0 million (US$333.1 million), from RMB1,701.3 million in fiscal year
2011.

APA for online games in the fourth quarter 2012 was 2,300,000, representing a
2.6% sequential increase and a 6.1% increase compared to the fourth quarter
2011. The sequential and year-over-year increases in APA were mainly due to
the growth of the ZT Online franchise. ARPU for online games in the fourth
quarter 2012 was RMB238, nearly flat compared to the third quarter of 2012 and
up 7.4% compared to the fourth quarter 2011. The year-over-year increase in
ARPU was mainly due to ZT Online 2 users spending more as they progress
through the game. ACU for online games in the fourth quarter 2012 was 702,000,
representing a 1.1% sequential increase and a 5.1% increase over the fourth
quarter 2011. PCU for online games in the fourth quarter 2012 was 2,370,000,
representing a 1.8% sequential increase and a 1.3% increase over the fourth
quarter 2011. The sequential and year-over-year increases in ACU and PCU were
mainly due to the continued popularity of the ZT Online franchise.

Cost of Services. Cost of services for the fourth quarter 2012 was RMB78.5
million (US$12.6 million), representing a 4.5% increase from the third quarter
2012 and a 15.9% increase from the fourth quarter 2011. The sequential
increase in cost of services was mainly due to the year-end bonuses accrued
for related personnel, while the year-over-year increase was mainly due to the
overall growth of our business operations.

Cost of services increased 12.1% to RMB 288.4 million (US$46.3 million) for
the fiscal year 2012, from RMB257.2 million in 2011. This increase was
primarily attributable to the growth of our business.

Gross Profit and Gross Margin. Gross profit for the fourth quarter 2012 was
RMB493.2 million (US$79.2 million), representing a 5.4% increase from the
third quarter 2012 and a 15.5% increase from the fourth quarter 2011. Gross
margin for the fourth quarter 2012 was 86.3%, which remained flat compared
with the third quarter 2012 and the fourth quarter 2011.

Gross profit increased 21.4% to RMB1,863.5 million (US$299.1 million) for the
fiscal year 2012, from RMB1,535.0 million in 2011, driven by the increase in
net revenue. Gross margin for the fiscal year 2012 was 86.6%, compared with
85.6% in 2011.

Operating Expenses. Total operating expenses for the fourth quarter 2012 were
RMB159.2 million (US$25.6 million), representing a 12.3% increase from
RMB141.7 million in the third quarter 2012 and an 18.7% increase from RMB134.1
million in the fourth quarter 2011. As a percentage of revenue, total
operating expenses were 27.8% for the fourth quarter 2012, compared to 26.1%
in the third quarter 2012 and 27.1% in the fourth quarter 2011. The sequential
increase in operating expenses was mainly due to the increase in R&D expenses,
while the year-over-year increase in operating expenses was mainly
attributable to the increase in R&D and G&A expenses and less government
financial incentive, partially offset by less sales and marketing spending in
the fourth quarter 2012 as compared to the fourth quarter 2011.

For the fiscal year 2012, total operating expenses increased 22.4% to RMB558.3
million (US$89.6 million) from RMB456.2 million in fiscal year 2011. The
increase was primarily due to the increase in R&D and G&A expenses, partially
offset by the decrease in sales and marketing expenses and higher government
incentive in 2012 as compared to 2011.

Research and product development ("R&D") expenses for the fourth quarter 2012
were RMB 96.5 million (US$15.5 million), representing a 26.9% increase from
RMB76.1 million in the third quarter 2012 and a 39.5% increase from RMB69.2
million in the fourth quarter 2011. As a percentage of revenue, R&D expenses
were 16.9% for the fourth quarter 2012, compared to 14.0% in the third quarter
2012 and 14.0% in the fourth quarter 2011. The sequential increase in R&D
expenses was mainly attributable to increased headcount allocated to our new
products and increased cash compensation for our R&D employees including pay
raises and performance based bonuses. The year-over-year increase was
primarily due to increased headcount allocated to our new products, increased
cash compensation and share-based compensation expenses related to restricted
shares granted at the end of November 2011.

For the fiscal year 2012, R&D expenses increased 42.0% to RMB326.8 million
(US$52.5 million) from RMB230.2 million in 2011. This increase was primarily
attributable to the expansion of our R&D department to accommodate additional
product development, increased cash compensation including regular pay raises
and performance based bonuses, and increased share-based compensation expenses
related to restricted shares granted at the end of November 2011.

Sales and marketing ("S&M") expenses for the fourth quarter 2012 were RMB38.9
million (US$6.2 million), representing a 4.0% increase from RMB37.4 million in
the third quarter 2012, and a 29.7% decrease from RMB55.3 million in the
fourth quarter 2011. As a percentage of revenue, S&M expenses were 6.8% in the
fourth quarter 2012, compared to 6.9% in the third quarter 2012 and 11.2% in
the fourth quarter 2011. The sequential increase in S&M expenses was minimal.
The year-over-year decrease in S&M expenses was primarily due to the large
scale marketing related to the open beta testing of ZT Online 2 and Elsword in
the fourth quarter of 2011, while in the fourth quarter of 2012, marketing
spending for these games reverted back to the normal scale.

For fiscal year 2012, S&M expenses were RMB146.5 million (US$23.5 million),
down 13.8% from RMB170.0 million for fiscal year 2011, mainly due to higher
marketing expenses incurred in 2011, which related to the commercial launch of
ZT Online 2 and Elsword.

General and administrative ("G&A") expenses for the fourth quarter 2012 were
RMB34.2 million (US$5.5 million), representing a 10.7% decrease from RMB38.3
million in the third quarter 2012, and a 24.7% increase from RMB27.4 million
in the fourth quarter 2011. As a percentage of revenue, G&A expenses were 6.0%
in the fourth quarter 2012, compared to 7.0% in the third quarter 2012 and
5.5% in the fourth quarter 2011. The sequential decrease in G&A expenses was
mainly due to higher reimbursements related to our ADR program in the fourth
quarter 2012, while the year-over-year increase was mainly attributable to the
share-based compensation expenses related to the restricted shares granted at
the end of November 2011 and fewer reimbursements related to our ADR program
during the fourth quarter 2012 as compared to the fourth quarter 2011.

For fiscal year 2012, G&A expenses increased 43.4% to RMB148.7 million
(US$23.9 million) from RMB103.7 million in fiscal year 2011. This increase was
primarily the result of the share-based compensation expenses related to the
restricted shares granted at the end of November 2011 and fewer reimbursements
related to our ADR program in fiscal year 2012 as compared to fiscal year
2011.

Government Financial Incentives.  The government financial incentives, which
mainly relate to the refund of business tax, value-added tax, and enterprise
income tax from the Shanghai municipal government, was RMB10.4 million (US$1.7
million) in the fourth quarter 2012. The Company records such government
financial incentive as a reduction in operating expenses.

The total financial incentive received for fiscal year 2012 increased to
RMB63.6 million (US$10.2 million) from RMB47.7 million in 2011.

Interest Income. Interest income for the fourth quarter 2012 was RMB26.6
million (US$4.3 million), representing a 15.1% decrease from RMB31.3 million
in the third quarter 2012, and a 83.1% increase from RMB14.5 million in the
fourth quarter 2011. The sequential decrease in interest income was mainly due
to the maturity of certain short-term investments in the fourth quarter 2012,
while the year-over-year increase was due to the growing cash balance and
higher returns on certain short-term investments.

For the fiscal year 2012, interest income decreased to RMB105.8 million
(US$17.0 million) from RMB141.6 million in fiscal year 2011. This decrease was
primarily attributable to the lower interest income earned from a lower cash
balance in 2012 compared to 2011, which was caused by the payment of a special
cash dividend of US$3.00 per ADS or ordinary share in September 2011.

Income Tax. Income tax expense for the fourth quarter 2012 was RMB28.7 million
(US$4.6million), compared to income tax expense of RMB30.9 million in the
third quarter 2012 and income tax expense of RMB39.9 million in the fourth
quarter 2011. The sequential decrease in income tax expense was slight, while
the year-over-year decrease was primarily due to the start of tax holiday
periods in 2012 for certain profitable subsidiaries of the Company.

Income tax expense for fiscal year 2012 decreased to RMB124.2 million (US$19.9
million), compared to RMB352.4 million for fiscal year 2011. The decrease in
income tax expense was mainly due an one-time withholding tax accrued in the
second quarter 2011 in connection with the repatriation of cash for a special
cash dividend paid in September 2011, partially offset by the recognition of
RMB63.0 million in deferred tax assets (an increase in deferred tax asset on
the balance sheet and a corresponding income tax benefit on the income
statement).

Investment Income (Loss). During the fourth quarter 2012, we recorded an
impairment charge of RMB240.7 million (US$38.6 million), which relates to our
2008 investment in 51.com, a Chinese online social networking service
provider, as the decline in the fair value of this investment was determined
to be other-than-temporary. This investment loss resulted from 51.com's lower
than expected core business revenue and operating cash flow, and delay in its
R&D activities and planned promotion campaigns of its newly launched games.

Net Income Attributable to the Company's Shareholders. Net income attributable
to the Company's shareholders for the fourth quarter 2012 was RMB82.7 million
(US$13.3 million), representing a 73.5% decrease from RMB311.7 million in the
third quarter 2012, and a 66.4% decrease from RMB246.4 million in the fourth
quarter 2011. The sequential and year-over-year decreases in net income
attributable to the Company's shareholders was primarily due to the investment
loss which relates to our investment in 51.com in 2008, partially offset by
the Company's general business growth. The margin of net income attributable
to the Company's shareholders for the fourth quarter 2012 was 14.5%, compared
to 57.4% in the previous quarter and 49.8% in the fourth quarter 2011.

Fiscal year 2012 net income attributable to the Company's shareholders was
RMB993.7 million (US$159.5 million), a 12.9% increase from RMB880.0 million in
2011. Fiscal year 2012 net income attributable to the Company's shareholders
as a percentage of net revenue decreased to 46.2% from 49.1% in 2011, which
was primarily due to the investment loss related to 51.com.

Non-GAAP net income attributable to the Company's shareholders for the fourth
quarter 2012 was RMB350.0 million (US$56.2 million) representing a 2.2%
increase from RMB342.5 million in the third quarter 2012, and a 35.8% increase
from RMB257.7 million in the fourth quarter 2011. The margin of non-GAAP net
income attributable to the Company's shareholders was 61.2%, compared to 63.0%
in the previous quarter and 52.1% in the fourth quarter of 2011. Please refer
to "Use of Non-GAAP Financial Measures" commencing on page 10 for a
reconciliation between net income attributable to the Company's shareholder on
a GAAP and non-GAAP basis.

For fiscal year 2012 non-GAAP net income attributable to the Company's
shareholders was RMB1,354.3million (US$217.4 million) representing a 24.7%
increase from RMB1,086.3 million in fiscal year 2011. The increase was due to
the growth of the Company's game operations. The margin of non-GAAP net income
attributable to the Company's shareholders was 62.9% for the fiscal year 2012,
compared to 60.6% in the fiscal year 2011.

Cash and Cash Equivalents and Short-Term Investments. As of December 31, 2012,
the Company's cash and cash equivalents and short-term investments totaled
RMB2,682.4 million (US$430.6 million), compared to RMB2, 337.7 million as of
September 30, 2012. The sequential increase was primarily due to the growth of
the Company's game operations.

Goodwill. The Company recorded RMB77.1 million of goodwill in the fourth
quarter 2012 associated with the reacquisition of a controlling equity
interest in Beijing Huayi Giant Information Technology Co., Ltd. ("Beijing
Huayi Giant") from Huayi Brothers Media Corporation ("Huayi"), which was
previously sold to Huayi in December 2010. Upon the completion of the
reacquisition, Beijing Huayi Giant became a consolidated subsidiary of the
Company.

Investment in Equity Investees. In September 2011, the Company invested in
Yunfeng e-Commerce Funds for the purpose of purchasing shares of the Alibaba
Group. Based on the Company's best estimation relying on public information
available as of December 31, 2012, the Company increased the carrying value of
its investment in Yunfeng e-Commerce Funds from RMB310.7 million to RMB353.5
million (US$56.7 million), and recorded a cumulative unrealized holding gain
of approximately RMB45.5 million (US$7.3 million) within Accumulated Other
Comprehensive Income on the Consolidated Balance Sheets, and also within
Unrealized Holding Income/(Loss), as a component of Other Comprehensive
Income/(Loss) on the Consolidated Statements of Operations and Comprehensive
Income. Further adjustments to such investment in Yunfeng e-Commerce Funds may
be recorded based on information available after this release and before
issuance of Form 20-F by the Company. However, if there are any adjustments
recorded to Investment in equity investees and Other comprehensive income
(loss), then the effects of which will have no impact on Net income
attributable to the Company's shareholders and Earnings per share.

Cash Dividend. The Company announced a cash dividend of US$0.42 per ADS or
ordinary share on its outstanding shares. The ordinary cash dividend is
payable to shareholders of record at the close of trading on May 20, 2013
(Eastern Time). The total cash payment will be approximately US$100.5 million.
Commencing in 2013, the Company intends to pay regular cash dividends
semi-annually. The payment amounts and dates are subject to, among other
things, approval by the Board of Directors and compliance with applicable
laws.

Business Highlights and Outlook

Existing Games

ZT Online 1 Series - During the fourth quarter 2012, the Company held several
ZT Online player killing ("PK") tournaments to celebrate the 8th anniversary
of the game, which received positive feedback from gamers. The Company updated
gameplays and introduced a new PK system to encourage player enthusiasm and
online interactions. For ZT Online Classic Edition, the Company also added new
gameplays and skills, and optimized the maps within the game. For ZT Online
Green Edition, the Company held a large-scale PK tournament and introduced
several new functions, having drawn immense attention from gamers.

ZT Online 2 - In October 2012, the Company launched part 2 of the second
expansion pack for ZT Online 2, which included two new professions. In
December 2012, the Company launched a large annual PK tournament, which ran
throughout the Chinese New Year holiday and will end by the end of March 2013.
The Company will add new maps, functions and other gameplays to the game by
the end of the first quarter 2013. The micro-client version has shown strong
performance on Qihoo 360's platform by attracting new players and contributing
incremental revenue.

Elsword - During the fourth quarter 2012, upon the anniversary of the
commercial launch of the game, the Company ran various online promotional
activities as well as adding new professions to the game. In 2013, the Company
will continue to introduce new professions, new dungeons and other new content
to keep the gamers engaged.

Allods Online  - Gamers who enjoy playing western-style MMOs have welcomed
Allods Online. The game has shown fairly steady performance throughout the
fourth quarter 2012. In the first quarter 2013, the Company plans to release a
new expansion pack.

Pipeline Games

World of Xianxia - On November 30, 2012, unlimited closed beta testing began
for World of Xianxia, with the goal of testing gamers' acceptance of the
innovative GvG (Group vs. Group) social structure and its unique virtual item
system. Having received positive feedback, the game is ready for a formal
launch. During the first quarter 2013, the Company plans to add new
professions and maps. Official closed beta testing with large scale marketing
campaign is scheduled to begin in April 2013. The Company expects World of
Xianxia to become its latest flagship game.

Webgames - Genesis of the Empire is an action role playing game ("ARPG") based
on the Three Kingdoms era of ancient Chinese history. The Sky is an ARPG
incorporating certain core gameplays from the ZT Online series. The Company
expects to commercially launch these two games in the first half of 2013.

Glorious Mission - Glorious Mission is the Company's first self-developed
first person shooter ("FPS") game and is currently the only game in the world
that is playable from the perspective of the Chinese military, the People's
Liberation Army ("PLA"). During the third quarter 2012, the Company released
an upgraded single-player campaign version of the game based on the version
which the Company delivered to the PLA in June 2011, and has attracted over
one million downloads. The development team is currently working on the online
version and is targeting the first half of 2013 for an engineering testing.

First Quarter 2013 Guidance -The Company expects total revenue for the first
quarter 2013 to be approximately the same as total revenue for the fourth
quarter 2012, due to the first quarter typically being a weak season in our
business because many gamers travel during the Chinese New Year holiday, and
because of the lack of new game launches.

Conference Call

Giant's senior management will host a conference call on February 26, 2013 at
8:00 pm (US Eastern Time)/5:00 pm (US Pacific Time), which is 9:00 am on
February 27, 2013 (Beijing Time) to discuss the 2012 fourth quarter and fiscal
year financial results and recent business activities.

The conference call may be accessed using the following numbers:

US:            +1-866-519-4004
China:         400-620-8038
Hong Kong:     800-930-346
International: +65-6723-9381
Passcode:      Giant

Please dial in approximately 10 minutes before the scheduled time of this
call.

A replay of the conference call will be available starting from 11:00 pm (US
Eastern Time) on February 26, 2013 to 11:00 pm (US Eastern Time) on March 5,
2013 using the following numbers:

US:         +1-855-452-5696
Outside US: +61-2-8199-0299
Passcode:   97691588

A live webcast of the conference call and replay will be available on the
investor relations page of Giant Interactive Group's website at
http://www.ga-me.com/earningsannouncements.php.

Currency Convenience Translation

This earnings press release contains translations of certain Renminbi (RMB)
amounts into US dollars (US$) at the rate of US$1.00 to RMB6.2301, which was
the noon buying rate as of December 31, 2012 in the City of New York for cable
transfers in Renminbi per US dollar as certified for customs purposes by the
Federal Reserve Bank of New York. The Company makes no representation that the
Renminbi or US dollar amounts referred to in this release could have been, or
could be, converted into US dollars at such rate or at all.

Use of Non-GAAP Financial Measures

The Company has reported net income attributable to the Company's shareholders
for the period indicated below on a non-GAAP basis excluding non-cash
share-based compensation, accrued withholding tax associated with the
repatriation of cash for the special dividend, recognition of additional
deferred tax assets, foreign exchange gains on the payment of a special
dividend and the impairment charge related to the Company's 51.com investment.
The Company believes that both management and investors benefit from referring
to these non-GAAP financial measures in assessing the performance of the
Company as well as when planning and forecasting future periods.

In addition, during the fourth quarter of fiscal year 2012, the Company
recorded an investment loss of RMB240.7 million (US$38.6 million) related to
the investment in 51.com in 2008, as the decline in its fair value was
determined to be other-than-temporary. This investment loss resulted from
lower than expected core business revenue and operating cash flow from 51.com,
and delay in its R&D activities as well as promotion campaign of newly
launched games.

We do not believe that these charges are indicative of future operating
results. We believe that investors benefit from excluding these charges from
our operating results to facilitate a more meaningful evaluation of current
operating performance and comparisons of past operating performance.

Readers are cautioned not to view non-GAAP results on a stand-alone basis or
as a substitute for results under GAAP, or as being comparable to results
reported or forecasted by other companies, and should refer to the
reconciliation of GAAP results with non-GAAP results in the attached financial
information.

The table below sets forth the reconciliation of GAAP measures to non-GAAP
measures for the indicated periods:

Giant Interactive Group Inc.
Reconciliation of GAAP to Non-GAAP (Unaudited)
                                              Three months ended
                                              December31,   September30,  December31,  December31,
                                              2011           2012           2012          2012
                                              (RMB)          (RMB)          (RMB)         ( US$ )
GAAPnetincomeattributabletothe 246,445,824    311,659,943    82,690,299    13,272,707
 Company's shareholders:
Share-based compensation                      11,206,516     30,827,515     26,554,599    4,262,308
Impairment of 51 investment                                                 240,725,709   38,639,140
Non-GAAP net income attributable to the       257,652,340    342,487,458    349,970,607   56,174,155
 Company's shareholders : 
Non-GAAP earnings per share:
Basic                                         1.09           1.45           1.47          0.24
Diluted                                       1.09           1.41           1.43          0.23
Weighted average ordinary shares:
Basic                                         235,584,292    236,534,154    238,308,804   238,308,804
Diluted                                       235,584,292    243,395,859    243,966,387   243,966,387
                                              For the year ended
                                              December 31,   December 31,   December 31,
                                              2011           2012           2012
                                              (RMB)          (RMB)          (US$)
GAAP net income attributable to the           879,966,874    993,720,006    159,503,059
 Company's shareholders :
Share-based compensation                      29,335,180     119,892,890    19,244,136
Accrued withholding tax associated with       259,647,915
  the repatriation of cash for the special
 dividend
Recognizing additional deferred tax assets    (63,240,829)
Foreign exchange gains for the payment of the (19,437,460)
 special dividend
Impairment of 51 investment                                  240,725,709    38,639,140
Non-GAAP net income attributable to the       1,086,271,680  1,354,338,605  217,386,335
Company's shareholders :
Non-GAAP earnings per share:
Basic                                         4.68           5.72           0.92
Diluted                                       4.68           5.62           0.90
Weighted average ordinary shares:
Basic                                         232,004,879    236,796,818    236,796,818
Diluted                                       232,004,879    240,821,127    240,821,127

Statement Regarding Unaudited Condensed Financial Information

The unaudited financial information set forth above is preliminary and subject
to potential adjustments. Adjustments to the consolidated financial statements
may be identified when audit work has been performed for the Company's
year-end audit, which could result in significant differences from this
preliminary unaudited condensed financial information.

About Giant Interactive Group Inc.

Giant Interactive Group Inc. (NYSE: GA) is a leading online game developer and
operator in China in terms of market share, and focuses on massively
multiplayer online role playing games. Currently, Giant operates multiple
games, including the ZT Online 1 Series, ZT Online 2, Elsword, and Allods
Online. The Company has built a nationwide distribution network to sell the
prepaid game cards and game points required to play the Company's games. For
more information, please visit Giant Interactive Group on the web at
www.ga-me.com.

Safe Harbor Statement

Statements in this release contain "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and as defined in the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes," "estimates" and
similar statements and among others, include statements regarding the
Company's expectation for continued growth in 2013, the ability of World of
Xianxia to become the Company's next flagship game; the ability of Genesis of
the Empire and The Sky to become the Company's major growth drivers in 2013;
the ability of the Company to implement its strategy in connection with
webgames and mobile games, such as the expected commercial launches of Genesis
of the Empire and The Sky; the ability of the Company to apply its game design
experience in the development of mobile games; the ability of the Company to
allocate sufficient resources and build a best-in-class mobile game
development team; the ability of the Company to seek merger, acquisition and
partnership opportunities for maximizing its mobile game offerings or further
expand into overseas markets; the ability of the Company to continue to pay
dividends based on future cash flows; the timetable for testing and release of
new games and expansion packs in the Company's game pipeline, and the
Company's expectation that total revenue in the first quarter 2013 will be
approximately the same as total revenue in the fourth quarter 2012. These
forward-looking statements are not historical facts but instead represent only
our belief regarding future events, many of which, by their nature, are
inherently uncertain and outside of our control. Our actual results and
financial condition and other circumstances may differ, possibly materially,
from the anticipated results and financial condition indicated in these
forward-looking statements. Among the factors that could cause the Company's
actual results to differ from what the Company currently anticipates may
include a deterioration in the performances of the ZT Online 1 Series and ZT
Online 2, unexpected delays in developing expansion packs or in the timetable
for testing and launching our games, our dependence on ZT Online Franchise,
which currently account for the majority of our historical net revenues,
failure of our webgames, MMO pipeline games, first FPS game or other
diversification or distribution efforts to grow as successful as expected,
failure of World of Xianxia to become the Company's latest flagship game,
inability of World of Xianxia, Genesis of the Empire, and The Sky to become
drivers for revenue growth, the Company's total revenue in the first quarter
2013 not at least matching the Company's total revenue in fourth quarter 2012,
our uncertainties with respect to the PRC legal and regulatory environments
and the volatility of the markets in which the Company operates. The financial
information contained in this release should be read in conjunction with the
consolidated financial statements and notes thereto included in our annual
report on Form 20-F for the fiscal year 2011, as filed with the Securities and
Exchange Commission on April 23, 2012 and in our amended annual report on Form
20-F/A for fiscal year 2011, as filed with the Securities and Exchange
Commission on September 26, 2012; both of which are available on the
Securities and Exchange Commission's website at www.sec.gov. For additional
information on these and other important factors that could adversely affect
our business, financial condition, results of operations and prospects, see
"Risk Factors" beginning on page 6 of our annual report for fiscal year 2011.
Our actual results of operations for the fourth quarter of and full year 2012
are not necessarily indicative of our operating results for any future
periods. Any projections in this release are based on limited information
currently available to the Company, which is subject to change. Although such
projections and the factors influencing them will likely change, the Company
undertakes no obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise, after the
date of this press release. Such information speaks only as of the date of
this release.



GIANT INTERACTIVE GROUP INC.

CONSOLIDATED BALANCE SHEETS


                                                                                                 Audited          Unaudited        Unaudited        Unaudited
                                                                                                 December31 ,    September30,    December31,     December31,
                                                                                                 2011             2012             2012             2012
                                                                                                 (RMB)            (RMB)            (RMB)            ( US$ )
ASSETS
Current assets:
Cash and cash equivalents                                                                        950,321,028      1,017,685,858    1,943,061,530    311,882,880
Prepayments and other current assets                                                             111,951,828      179,988,925      236,446,037      37,952,206
Accounts receivable                                                                              13,692,673       12,082,488       12,106,819       1,943,278
Due from related parties                                                                         3,410,114        15,516,480       7,370,022        1,182,970
Inventories                                                                                      317,019          562,208          333,195          53,481
Deferred tax assets                                                                              179,779,122      164,684,388      157,885,822      25,342,422
Short-term investments                                                                           919,774,660      1,319,976,950    739,314,900      118,668,224
Total current assets                                                                             2,179,246,444    2,710,497,297    3,096,518,325    497,025,461
Non-current assets:
Property and equipment, net                                                                      349,667,907      343,946,307      340,242,374      54,612,667
Intangible assets, net                                                                           26,448,716       28,831,697       32,799,853       5,264,739
Due from research and development entity partners                                                7,637,000        12,637,000       7,637,000        1,225,823
Goodwill                                                                                         22,201,960       22,201,960       99,316,001       15,941,317
Investment in equity investees                                                                   351,400,224      346,657,534      354,166,222      56,847,598
Long-term investment                                                                             29,495,239       39,331,600       48,331,600       7,757,757
Available-for-sale securities                                                                    386,851,118      345,966,664      78,740,916       12,638,788
Held-to-maturity securities                                                                      100,000,000      190,000,000      190,000,000      30,497,103
Deferred tax assets                                                                              17,100,182       23,666,048       25,345,455       4,068,226
Other assets                                                                                     81,182,192       35,987,666       25,541,335       4,099,667
Total non-current assets                                                                         1,371,984,538    1,389,226,476    1,202,120,756    192,953,685
Total assets                                                                                     3,551,230,982    4,099,723,773    4,298,639,081    689,979,146
LIABILITIES AND

SHAREHOLDER'S EQUITY
Current liabilities:
Payables and accrued expenses                                                                    171,610,885      172,464,838      238,594,085      38,296,991
Advances from distributors                                                                       82,327,669       88,701,101       93,468,209       15,002,681
Due to related parties                                                                           540,345          1,145,433        598,953          96,139
Deferred revenue                                                                                 529,204,385      502,029,007      486,024,501      78,012,311
Unrecognized tax benefit                                                                         44,451,522       47,579,967       47,579,967       7,637,111
Tax payable                                                                                      38,561,157       32,646,444       48,121,958       7,724,107
Deferred tax liabilities                                                                         148,219,632      112,482,669      112,282,639      18,022,606
Total current liabilities                                                                        1,014,915,595    957,049,459      1,026,670,312    164,791,946
Non-current liabilities:
Deferred tax liabilities                                                                         14,882,313       25,228,303       32,311,676       5,186,382
Total non-current liabilities                                                                    14,882,313       25,228,303       32,311,676       5,186,382
Total liabilities                                                                                1,029,797,908    982,277,762      1,058,981,988    169,978,328
Shareholders' equity
Ordinary shares

(Par value US$0.0000002 per share; 500,000,000
shares authorized as at Dec 31, 2011, Sep 30,
 2012 and Dec 31, 2012 respectively; 273,110,626                                            430              430              430              69
 shares issued and 235,234,959 shares outstanding
at Dec 31,2011 , 273,110,626 shares issued and
236,479,772 shares outstanding at Sep 30, 2012,
 273,110,626 shares issued and 239,252,672 shares
 outstanding at Dec 31, 2012)
Additional paid-in capital                                                                       4,350,262,526    4,483,677,511    4,456,659,188    715,343,123
Statutory reserves                                                                               14,125,819       14,125,819       48,596,713       7,800,310
Accumulated other comprehensive loss                                                             (401,229,786)    (408,478,961)    (392,313,594)    (62,970,674)
Retained earnings                                                                                655,013,363      1,119,740,300    1,087,615,133    174,574,266
Treasury stock                                                                                   (2,122,524,316)  (2,145,387,206)  (2,006,420,168)  (322,052,642)
Total Giant Interactive Group Inc.'s equity                                                      2,495,648,036    3,063,677,893    3,194,137,702    512,694,452
Non controlling interests                                                                        25,785,038       53,768,118       45,519,391       7,306,366
Total shareholders' equity                                                                       2,521,433,074    3,117,446,011    3,239,657,093    520,000,818
Total liabilities and shareholders' equity                                                       3,551,230,982    4,099,723,773    4,298,639,081    689,979,146

GIANT Interactive Group Inc .
CONSOLIDATED statements of operations AND COMPREHENSIVE INCOME
                                                        Three months ended
                                                        December31    September30   December31    December31
                                                        2011           2012           2012           2012
                                                        (RMB)          (RMB)          (RMB)          ( US$ )
                                                        Unaudited      Unaudited      Unaudited      Unaudited
Netrevenue:
Online games                                            469,614,866    523,808,979    555,672,075    89,191,518
Licensing revenues                                      14,333,706     14,550,927     10,032,855     1,610,384
Other revenue, net                                      10,898,184     4,869,426      5,963,877      957,268
Total net revenue                                       494,846,756    543,229,332    571,668,807    91,759,170
Cost of services                                        (67,711,021)   (75,139,809)   (78,505,482)   (12,600,999)
Gross profit                                            427,135,735    468,089,523    493,163,325    79,158,171
Operating (expenses) income:
Research and product development                        (69,199,217)   (76,055,754)   (96,545,750)   (15,496,661)
Sales and marketing                                     (55,258,951)   (37,388,125)   (38,870,216)   (6,239,100)
General and administrative                              (27,430,720)   (38,290,384)   (34,208,506)   (5,490,844)
Government financial incentives                         17,746,000     10,000,000     10,430,000     1,674,130
Total operating expenses                                (134,142,888)  (141,734,263)  (159,194,472)  (25,552,475)
Income from operations                                  292,992,847    326,355,260    333,968,853    53,605,696
Interest income                                         14,497,627     31,266,605     26,552,367     4,261,949
Other income, net                                       8,441,963      6,578,424      9,269,933      1,487,927
Investment income(loss)                                 666,667        -              (243,937,113)  (39,154,606)
Income before income tax expenses                       316,599,104    364,200,289    125,854,040    20,200,966
Income tax expense                                      (39,880,797)   (30,860,090)   (28,686,961)   (4,604,575)
Share of loss of equity investee                        (5,591,915)    (1,179,641)    (424,473)      (68,133)
Net Income                                              271,126,392    332,160,558    96,742,606     15,528,258
Net income attributable to non controlling interests    (24,680,568)   (20,500,615)   (14,052,307)   (2,255,551)
Net income attributable to the Company's shareholders   246,445,824    311,659,943    82,690,299     13,272,707
Other comprehensive income
 (loss) , net of tax
Foreign currency translation (loss) gain                (4,075,051)    2,119,300      (2,853,565)    (458,029)
Unrealized holding (losses) income                      (8,879,464)    (1,133,685)    19,018,933     3,052,749
Total other comprehensive income                        (12,954,515)   985,615        16,165,368     2,594,720
 (loss), net of tax
Comprehensive income                                    233,491,309    312,645,558    98,855,667     15,867,427
Earnings per share:
Basic                                                   1.05           1.32           0.35           0.06
Diluted                                                 1.05           1.28           0.34           0.05
Weighted average ordinary shares:
Basic                                                   235,584,292    236,534,154    238,308,804    238,308,804
Diluted                                                 235,584,292    243,395,859    243,966,387    243,966,387

GIANT INTERACTIVE GROUP INC.
CONSOLIDATED statements of operations AND COMPREHENSIVE INCOME
                                             For the year ended
                                             December31    December31    December31
                                             2011           2012           2012
                                             (RMB)          (RMB)          ( US$ )
                                             Audited        Unaudited      Unaudited
Net revenue:
Online games                                 1,701,343,096  2,074,950,188  333,052,469
Licensing revenues                           54,537,719     52,186,105     8,376,447
Other revenue, net                           36,336,494     24,758,274     3,973,977
Total net revenue                            1,792,217,309  2,151,894,567  345,402,893
Cost of services                             (257,246,446)  (288,361,076)  (46,285,144)
Gross profit                                 1,534,970,863  1,863,533,491  299,117,749
Operating (expenses) income:
Research and product development             (230,209,370)  (326,792,503)  (52,453,813)
Sales and marketing                          (169,981,540)  (146,452,268)  (23,507,210)
General and administrative                   (103,727,165)  (148,708,274)  (23,869,324)
Government financial incentives              47,746,000     63,644,000     10,215,566
Total operating expenses                     (456,172,075)  (558,309,045)  (89,614,781)
Income from operations                       1,078,798,788  1,305,224,446  209,502,968
Interest income                              141,587,341    105,833,413    16,987,434
Other income, net                            43,558,342     34,844,307     5,592,897
Investment income(loss)                      3,047,619      (243,626,993)  (39,104,829)
Income before income tax expenses            1,266,992,090  1,202,275,173  192,978,470
Income tax expenses                          (352,378,221)  (124,203,884)  (19,936,098)
Share of loss of an equity investee          (8,218,001)    (6,117,163)    (981,872)
Net income                                   906,395,868    1,071,954,126  172,060,500
Net income attributable to non-controlling   (26,428,994)   (78,234,120)   (12,557,442)
interest
Net income attributable to the Company's     879,966,874    993,720,006    159,503,058
shareholders
Other comprehensive loss, net of tax
Foreign currency translation                 (84,727,808)   2,745,239      440,641
Unrealized holding (losses) income           (15,997,558)   6,170,954      990,506
Totalothercomprehensiveincome(loss),net (100,725,366)  8,916,193      1,431,147
of tax
Comprehensive income                         779,241,508    1,002,636,199  160,934,205
Earnings per share:
Basic                                        3.79           4.2            0.67
Diluted                                      3.79           4.13           0.66
Weighted average ordinary shares:
Basic                                        232,004,879    236,796,818    236,796,818
Diluted                                      232,004,879    240,821,127    240,821,127



SOURCE Giant Interactive Group Inc.

Website: http://www.ga-me.com
Contact: INVESTOR CONTACTS: Giant Interactive Group Inc., Rich Chiang, IR
Director, +86-21-3397-9959, ir@ztgame.com; Giant Interactive Group Inc.,
Kristie Chen, IR Manager, +86-21-3397-9971, ir@ztgame.com; Fleishman-Hillard,
Hon Gay Lau, +852-2530-0228, giantinteractive@fleishman.com
 
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