Shanda Games Reports Third Quarter 2013 Unaudited Results

          Shanda Games Reports Third Quarter 2013 Unaudited Results

- Net Revenues Increased 2.9% QoQ to RMB1,124.7 Million (US$182.9 Million)

- Mobile Game Revenues Increased 50.3% QoQ to RMB153.0 Million (US$24.9
Million)

PR Newswire

HONG KONG, Nov. 26, 2013

HONG KONG, Nov. 26, 2013 /PRNewswire/ -- Shanda Games Limited ("Shanda Games,"
or the "Company") (NASDAQ: GAME), a leading online game developer, operator
and publisher in China, today announced its unaudited consolidated financial
results for the third quarter ended September 30, 2013.

Non-GAAP Financial Highlights ^(1)

  oNet revenues were RMB1,124.7 million (US$182.9 million), up 2.9% QoQ and
    3.3% YoY.
  oGross profit was RMB818.3 million (US$133.2 million), down 1.3% QoQ and
    2.3% YoY. Gross margin was 72.8%, compared with 75.8% in Q2 2013 and 76.9%
    in Q3 2012.
  oOperating income was RMB483.1 million (US$78.6 million), up 3.6% QoQ and
    down 3.1% YoY. Operating margin was 43.0%, compared with 42.6% in Q2 2013
    and 45.8% in Q3 2012.
  oNet income attributable to the Company's shareholders was RMB429.0 million
    (US$69.9 million), down 16.2% QoQ and 2.8% YoY. Net margin was 38.1%,
    compared with 46.9% in Q2 2013 and 40.5% in Q3 2012. The sequential
    decrease was primarily due to a one-time benefit of RMB97.2 million
    (US$15.8 million) recorded in income tax expense in Q2 2013 associated
    with a tax refund for a subsidiary. Excluding the one-time tax impact,
    net income would have increased 3.4% QoQ.
  oEarnings per diluted ADS were RMB1.60 (US$0.26), compared with RMB1.92 in
    Q2 2013 and RMB1.60 in Q3 2012.

GAAP Financial Highlights ^(1)

  oNet revenues were RMB1,124.7 million (US$182.9 million), up 2.9% QoQ and
    3.3% YoY.
    -- Massively multi-player online (MMO) game revenues were RMB959.8 million
    (US$156.1 million), down 1.7% QoQ and 10.1% YoY.
    -- Mobile game revenues were RMB153.0 million (US$24.9 million), up 50.3%
    QoQ and up 7,185.7% from RMB2.1 million a year ago.
    -- Other revenues were RMB11.9 million (US$1.9 million), down 19.0% QoQ
    and 36.7% YoY.
  oGross profit was RMB802.1 million (US$130.5 million), down 1.4% QoQ and
    1.8% YoY. Gross margin was 71.3%, compared with 74.4% in Q2 2013 and
    75.0% in Q3 2012.
  oOperating income was RMB444.7 million (US$72.3 million), up 3.0% QoQ and
    down 2.3% YoY.Operating margin was 39.5%, compared with 39.5% Q2 2013 and
    41.8% in Q3 2012.
  oNet income attributable to the Company's shareholders was RMB398.9 million
    (US$64.9 million), down 17.9% QoQ and 1.6% YoY. Net margin was 35.5%,
    compared with 44.5% in Q2 2013 and 37.2% in Q3 2012. The sequential
    decrease was primarily due to a one-time benefit of RMB97.2 million
    (US$15.8 million) recorded in income tax expense in Q2 2013 associated
    with a tax refund for a subsidiary. Excluding the one-time tax impact,
    net income would have increased 2.6% QoQ.
  oEarnings per diluted ADS were RMB1.50 (US$0.24), compared with RMB1.82 in
    Q2 2013 and RMB1.46 in Q3 2012.

Operating Highlights ^(1)

  oMMO games operated in China and overseas:
    -- Average Monthly Active Users (average MAU) decreased 2.9% QoQ from 18.9
    million to 18.4 million, primarily due to a decline in the number of users
    playing "RIFT" as the game did not maintain the interest of gamers
    following its China launch in March 2013.
    -- Average Monthly Paying Users (average MPU) decreased 7.8% QoQ from 3.2
    million to 2.9 million. The decrease was mainly due to the continued
    implementation of the Company's strategy to increase user stickiness by
    introducing a number of free functions and game play, resulting in the
    conversion of some lower-spending paying accounts into free accounts. The
    decrease was also partially due to the decline in users of "RIFT."
    -- Monthly Average Revenue per Paying User (ARPU) increased 8.6% QoQ from
    RMB97.5 to RMB105.9, mainly due to a decline in lower-spending paying
    accounts.
  oMobile games operated in China and overseas:
    -- Average Daily Active Users (average DAU) increased 43.6% QoQ from
    400,300 to 574,900, mainly driven by the introduction of "Million Arthur"
    in China in July 2013.
    -- Average Revenue per Daily Active User (ARDAU) increased 3.5% QoQ from
    RMB2.8 to RMB2.9, primarily due to the higher ARDAU for "Million Arthur"
    in China in Q3 2013.

^(1) Notes:

1.Acquisition of Shengzhan and Shengjing.
    On August 31, 2013, Shanda Games completed the acquisition of Shengzhan
    and Shengjing, two affiliates responsible for the operating platform and
    prepaid card distribution businesses, respectively, from its parent
    company Shanda Interactive Entertainment Limited ("Shanda Interactive")
    (the "Transaction"). As Shanda Games and the acquired affiliates were
    (and continue to be) under common control by Shanda Interactive both
    before and after the closing of the acquisition, in accordance with the
    applicable accounting guidance in the Financial Accounting Standards
    Board's Accounting Standards Codification 805-50, Shanda Games' unaudited
    consolidated financial information reported in this press release, unless
    otherwise stated, has been prepared as if Shengzhan and Shengjing had been
    owned and operated by Shanda Games throughout the periods presented. For
    selected unaudited financial information of Shanda Games excluding the
    consolidation of Shengzhan and Shengjing (referred to as "Pre-Transaction
    Shanda Games" in this press release), please refer to the accompanying
    "Supplementary Notes – Reconciliations of Selected Data – Statements of
    Operations."
2.Starting with the first quarter of 2013, the Company adjusted the
    presentation of its financial statements in order to provide investors
    with a better understanding of the Company's changing business.
    Previously, the Company reported online game revenues derived in China
    (which included revenues from both MMO games and mobile games) and other
    revenues as its two principal revenue categories. Three revenue
    categories are now being reported. These include MMO game revenues,
    mobile game revenues, and other revenues. Each of these three categories
    includes revenues derived inside and outside China. Prior period amounts
    reported under the pre-Q1 2013 classifications have been reclassified to
    conform to the current presentation.
3.MAU refers to the number of users who play the Company's MMO games during
    a calendar month. Average MAU is the average of the MAU for each calendar
    month during a given period.
4.MPU refers to the number of paying users for the Company's MMO games
    during a calendar month. Average MPU is the average of the MPU for each
    calendar month during a given period.
5.ARPU refers to (i) the total MMO game revenues for a given period, divided
    by (ii) the number of months in that period, further divided by (iii) the
    average MPU during the period.
6.DAU refers to the number of users who play the Company's mobile games
    during a day. Average DAU is the average of the DAU for each day during a
    given period.
7.ARDAU refers to (i) the total mobile game revenues for a given period,
    divided by (ii) the number of days in that period, further divided by
    (iii) the average DAU during the period. ARDAU reflects overall
    monetization for mobile game users. DAU and ARDAU are metrics the Company
    uses most frequently to monitor its mobile game's performance.
8.The calculation of MAU, MPU and DAU for the Company's games in China and
    overseas does not include user data for games that were licensed to
    third-party game operators.

"We continued our solid start to the year by growing our mobile game revenues
50.3% sequentially, accounting for 13.6% of our total revenues during the
third quarter of 2013," commented Mr. Xiangdong Zhang, Chief Executive Officer
of Shanda Games. "I am pleased with our mobile game performance during the
quarter and am proud of what we have accomplished thus far. In addition to
'Million Arthur's successful launch in Korea, Taiwan and China, we are now in
the final stages of preparation for its launch in Singapore and Malaysia. We
look forward to building upon its success with a number of new mobile games in
the pipeline including 'Guardian Cross,' 'Dragon Nest: Labyrinth' as well as
'Hell Lord.' We will continue to add to our mobile games pipeline going
forward.

"At the same time, we continued to improve our mobile game platform 'G-Home'
and invest in our MMO games. We have been working on the integration of our
distribution channels and customer service teams with the 'G-Home' platform.
We recently completed the first round of closed-beta testing of 'Final Fantasy
XIV' in China with favorable user feedback. 'Dungeon Striker' is also on
schedule to launch in Japan and China next year. In addition, we are
preparing for closed-beta testing of 'Age of Dawn' next year.

"Looking forward into 2014, we expect to have a strong product pipeline in
both MMOs and mobile games. With a committed community of users, great games,
strong distribution platforms and focused execution, I remain confident in our
long term potential."

Third quarter 2013 Unaudited Financial Results (GAAP)

Net Revenues. In the third quarter of 2013, net revenues were RMB1,124.7
million (US$182.9 million), an increase of 2.9% from RMB1,093.1 million in the
second quarter of 2013 and an increase of 3.3% from RMB1,088.9 million in the
third quarter of 2012. MMO game revenues, mobile game revenues, and other
revenues accounted for 85.3%, 13.6% and 1.1% of total net revenues,
respectively. China revenues and overseas revenues accounted for 89.5% and
10.5% of total net revenues, respectively. For Pre-Transaction Shanda Games,
net revenues were RMB1,118.5 million (US$181.9 million), representing an
increase of 3.1% quarter-over-quarter and 3.5% year-over-year.

Net revenues generated from MMO games declined 1.7% quarter-over-quarter and
10.1% year-over-year to RMB959.8 million (US$156.1 million) in the third
quarter of 2013. The sequential decrease was primarily due to a decline in
revenue from "AION" as the initial excitement surrounding the launch of its
4.0 expansion pack in April 2013 subsided, and a decline in revenue from "Mir
II" as the Company decelerated the monetization of the game to ensure a longer
lifecycle. These effects were partially offset by an increase in revenue from
"Dragon Nest" following the launch of an expansion pack during the third
quarter of 2013.

Average MAU for MMO games decreased 2.9% quarter-over-quarter to 18.4 million,
mainly due to a decline in the number of users playing "RIFT" as the game did
not maintain gamer interest following its China launch in March 2013. Average
MPU for MMO games decreased 7.8% quarter-over-quarter to 2.9 million. The
decrease was mainly due to the continued implementation of the Company's
strategy to increase user stickiness by introducing a number of free functions
and game play, resulting in the conversion of some lower-spending paying
accounts into free accounts. The decrease was also partially due to the
decline in users of "RIFT." As a result, ARPU increased 8.6%
quarter-over-quarter to RMB105.9.

Net revenues generated from mobile games were RMB153.0 million (US$24.9
million) in the third quarter of 2013, an increase of 50.3% from RMB101.8
million in the second quarter of 2013 and an increase of more than 70 times
from RMB2.1 million in the third quarter of 2012. The quarter-over-quarter
increase was primarily due to the revenue contribution from "Million Arthur"
in China following its launch in July 2013, which was partially offset by a
decline in revenues from mobile games overseas.

Average DAU for mobile games was 574,900 in the third quarter of 2013,
representing a 43.6% increase from 400,300 in the second quarter of 2013. The
quarter-over-quarter increase in average DAU was mainly driven by the launch
of "Million Arthur" in China in July 2013. ARDAU for mobile games increased
3.5% quarter-over-quarter to RMB2.9, primarily due to the higher ARDAU for
"Million Arthur" in China in the third quarter of 2013.

                           Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
MMO Games
Average MAU (in millions)  18.8    19.1    18.6    18.9    18.4
Average MPU (in millions)  3.6     3.4     3.4     3.2     2.9
ARPU (RMB)                 96.4    98.5    93.1    97.5    105.9
Mobile Games
Average DAU (in thousands) 15.6    41.0    302.3   400.3   574.9
ARDAU (RMB)                1.4     2.2     3.9     2.8     2.9



Other revenues were RMB11.9 million (US$1.9 million) in the third quarter of
2013, compared with RMB14.7 million in the second quarter of 2013 and RMB18.8
million in the third quarter of 2012.

Cost of Revenues.  Cost of revenues for the third quarter of 2013 was
RMB322.6 million (US$52.4 million), representing increases of 15.3% from
RMB279.9 million in the second quarter of 2013 and 18.5% from RMB272.2 million
in the third quarter of 2012. The quarter-over-quarter increase in the cost
of revenues was primarily attributable to an accelerated amortization of the
licensing fee paid for the MMO game "RIFT" whose commercial operation was
terminated during the third quarter of 2013 and an increase in royalty fees
paid to third parties as a result of increased revenues from licensed games.
Cost of revenues represented 28.7% of net revenues, compared with 25.6% in the
second quarter of 2013 and 25.0% in the third quarter of 2012.

Gross Profit.  Gross profit for the third quarter of 2013 was RMB802.1
million (US$130.5 million), representing decreases of 1.4% from RMB813.2
million in the second quarter of 2013 and 1.8% from RMB816.7 million in the
third quarter of 2012. Gross margin was 71.3% in the third quarter of 2013,
compared with 74.4% in the second quarter of 2013 and 75.0% in the third
quarter of 2012.

For Pre-Transaction Shanda Games, gross profit was RMB691.8 million (US$112.5
million), a decrease of 1.3% quarter-over-quarter and an increase of 1.1%
year-over-year. Gross margin for Pre-Transaction Shanda Games was 61.9% in
the third quarter of 2013, compared with 64.6% in the second quarter of 2013
and 63.4% in the third quarter of 2012. The increase in gross profit and
margins following the Transaction is a result of the integration of
Shengzhan's operating platform, as Shanda Games no longer incurs platform fees
paid to Shengzhan, which were previously reported in the costs of revenues.

Operating Expenses. Total operating expenses for the third quarter of 2013
were RMB357.4 million (US$58.2 million), representing a decrease of 6.3% from
RMB381.5 million in the second quarter of 2013 and a decrease of 1.1% from
RMB361.5 million in the third quarter of 2012. Operating expenses represented
31.8% of net revenues, a decrease from 34.9% in the second quarter of 2013 and
33.2% in the third quarter of 2012.

Product development expenses increased 0.1% quarter-over-quarter and 1.9%
year-over-year to RMB179.2 million (US$29.1 million) in the third quarter of
2013. Product development expenses represented 15.9% of net revenues,
compared with 16.4% in the second quarter of 2013 and 16.2% in the third
quarter of 2012.

Sales and marketing expenses decreased 6.2% quarter-over-quarter and increased
32.6% year-over-year to RMB104.5 million (US$17.0 million) in the third
quarter of 2013. The quarter-over-quarter decrease in sales and marketing
expenses was primarily due to a decline in promotional expenses during the
third quarter of 2013. The year-over-year increase was mainly due to an
increase in marketing commissions paid to third-party platforms for
distributing mobile games in line with an increase in mobile game revenues.
Sales and marketing expenses represented 9.3% of net revenues, compared with
10.2% in the second quarter of 2013 and 7.2% in the third quarter of 2012.

General and administrative expenses increased 13.0% quarter-over-quarter and
decreased 3.7% year-over-year to RMB102.8 million (US$16.8 million) in the
third quarter of 2013. The sequential increase in general and administrative
expenses was primarily due to an increase in share-based compensation expenses
and an increase in sales tax in line with an increase in inter-Company
transactions during the third quarter of 2013. General and administrative
expenses accounted for 9.1% of net revenues, compared with 8.3% in the second
quarter of 2013 and 9.8% in the third quarter of 2012.

Share-based compensation expenses were RMB10.9 million (US$1.8 million) in the
third quarter of 2013, compared with RMB7.0 million in the second quarter of
2013 and RMB11.5 million in the third quarter of 2012. The
quarter-over-quarter increase was mainly due to a reversal of previously
recorded share-based compensation expenses during the second quarter of 2013
resulting from a failure to meet certain performance targets related to the
Company's performance-based stock option awards.

Operating expenses for the third quarter of 2013 included a net gain of
RMB59.9 million (US$9.7 million) relating to the settlement of litigation
actions with a former shareholder of the Company's subsidiary Chengdu SIMO
Technology Co., Ltd. ("SIMO"). Please refer to the "Business Highlights"
section in this press release for more details.

In relation to the aforementioned litigation actions concerning SIMO and the
expected impact of the former shareholder's departure on SIMO's business
performance, the Company determined that a triggering event had occurred.
Based on the Company's assessment of the recoverability of the recorded
goodwill of SIMO under U.S. GAAP, the Company also recorded goodwill
impairment within operating expenses of RMB30.8 million (US$5.0 million) in
the third quarter of 2013.

Operating Income. Operating income for the third quarter of 2013 was RMB444.7
million (US$72.3 million), an increase of 3.0% from RMB431.7 million in the
second quarter of 2013 and a decrease of 2.3% from RMB455.2 million in the
third quarter of 2012. Operating margin was 39.5% in the third quarter of
2013, compared with 39.5% in the second quarter of 2013 and 41.8% in the third
quarter of 2012.

For Pre-Transaction Shanda Games, operating income was RMB297.7 million
(US$48.4 million), an increase of 2.0% quarter-over-quarter and 6.1%
year-over-year. Operating margin for Pre-Transaction Shanda Games was 26.6%
in the third quarter of 2013, compared with 26.9% in the second quarter of
2013 and 26.0% in the third quarter of 2012. The increase in operating income
and margins following the Transaction is a direct effect of (i) the
elimination of the platform fees paid to Shengzhan formerly included in the
cost of revenues, and (ii) the elimination of the prepaid card distribution
fees paid to Shengjing formerly included in the sales and marketing expenses.

Government Financial Incentives.  Government financial incentives totaled
RMB48.6 million (US$7.9 million) in the third quarter of 2013, compared with
RMB43.5 million in the second quarter of 2013 and RMB76.0 million in the third
quarter of 2012. The Company's receipt of government financial incentives is
subject to time lags and inconsistent government administrative practices
relating to the timing of payments.

Other Income (Expense), Net. Other income was RMB15.2 million (US$2.5
million), compared with other expense of RMB4.0 million in the second quarter
of 2013 and RMB28.1 million in the third quarter of 2012. The
quarter-over-quarter change was mainly due to a gain from the sale of
marketable securities during the third quarter of 2013.

Income Tax Expense.  Income tax expense for the third quarter of 2013 was
RMB104.6 million (US$17.0 million), compared with RMB3.6 million in the second
quarter of 2013 and RMB121.7 million in the third quarter of 2012. The
quarter-over-quarter increase was primarily due to a reversal of RMB97.2
million (US$15.8 million) in income tax expenses during the second quarter of
2013, when one of the Company's subsidiaries obtained approval for a preferred
tax rate as a "key national software enterprise" for the years 2011 and 2012.

Net income attributable to the Company's shareholders.  Net income
attributable to the Company's shareholders for the third quarter of 2013 was
RMB398.9 million (US$64.9 million), compared with RMB486.1 million in the
second quarter of 2013 and RMB405.2 million in the third quarter of 2012.
Earnings per diluted ADS in the third quarter of 2013 were RMB1.50 (US$0.24),
compared with RMB1.82 in the second quarter of 2013 and RMB1.46 in the third
quarter of 2012.

For Pre-Transaction Shanda Games, net income was RMB262.9 million (US$42.8
million), a decrease of 29.8% quarter-over-quarter and an increase of 3.5%
year-over-year. Earnings per diluted ADS for Pre-Transaction Shanda Games
were RMB1.00 (US$0.16), compared with RMB1.40 in Q2 2013 and RMB0.92 in Q3
2012.

Net Cash.  In the third quarter of 2013, the Company generated RMB504.2
million (US$82.0 million) in cash flows from operating activities. The
Company's cash and cash equivalents, short-term investments and restricted
cash, net of loans and dividend payable, decreased from RMB4,474.3 million as
of June 30, 2013 to RMB2,617.3 million (US$425.7 million) as of September 30,
2013, primarily as a result of the Company paying cash in the amount of US$200
million and extinguishing, through a non-cash exchange, receivables due from
Shanda Interactive in the amount of US$167.6 million in partial satisfaction
of the purchase price for Shengzhan and Shengjing. The remaining balance of
approximately US$444 million related to the acquisition will be paid on or
before June 30, 2014.

Nine Months 2013 Unaudited Financial Results (GAAP)

Net Revenues. Net revenues for the first nine months of 2013 totaled
RMB3,315.3 million (US$539.2 million), a decrease of 8.5% from RMB3,623.3
million in the first nine months of 2012.

Gross Profit. Gross profit for the first nine months of 2013 was RMB2,435.5
million (US$396.1 million), a decrease of 10.6% from RMB2,725.1 million in the
first nine months of 2012. Gross margin was 73.5%, compared with 75.2% in the
first nine months of 2012.

Operating Income. Operating income for the first nine months of 2013 was
RMB1,329.3 million (US$216.2 million), a decrease of 19.3% from RMB1,647.9
million in the first nine months of 2012. Operating margin was 40.1%,
compared with 45.5% in the first nine months of 2012.

Net Income Attributable to Ordinary Shareholders. Net income for the first
nine months of 2013 was RMB1,252.5 million (US$203.7 million), a decrease of
11.0% from RMB1,408.0 million in the first nine months of 2012. Net margin
was 37.8%, compared with 38.9% in the first nine months of 2012. Earnings per
diluted ADS were RMB4.66 (US$0.76), compared with RMB5.04 in the first nine
months of 2012.

Net Cash. In the first nine months of 2013 the Company generated RMB1,266.9
million (US$206.1 million) in cash flows from operating activities. The
Company's cash and cash equivalents, short-term investments and restricted
cash, net of loans and dividend payable, decreased from RMB3,905.7 million as
of December 31, 2012 to RMB2,617.3 million (US$425.7 million) as of September
30, 2013.

Recent Business Highlights

September 6, 2013 - Shanda Games began open-beta testing for its in-house
developed 3D fantasy MMO game "World Zero" in China.

September 12, 2013 - The Shanghai Higher People's Court ("the Court"),
determined in a final verdict that Shanghai Shulong Technology Co., Ltd.
("Shanghai Shulong"), an entity controlled by Shanda Games, should pay a
former shareholder of Chengdu SIMO Technology Co. ("SIMO"), a previously
recorded acquisition-related consideration of RMB48.8 million in connection
with the purchase of all of the outstanding shares of SIMO by Shanghai Shulong
plus accrued interest of approximately RMB10.1 million. At the same time, in
a related suit, the Court supported Shanghai Shulong's claim and determined
that the former shareholder of SIMO should compensate Shanghai Shulong RMB70
million due to the shareholder's failure to perform the obligations under the
relevant share purchase agreement. These verdicts are final and therefore the
Company recorded a net gain of RMB59.9 million (the RMB70.0 million gain less
the RMB10.1 million interest) as other income within operating income. The
net amount to be received by the Company is RMB11.1 million (the RMB70.0
million gain less the RMB10.1 million interest and the previously recorded
acquisition consideration of RMB48.8 million). This amount is reflected
within "prepayments and other current assets" on the Company's balance sheet.
For more background information about these claims, please refer to the
Company's latest annual report on Form 20-F filed with the SEC.

September 12, 2013 - Shanda Games launched an expansion pack for its 3D
action-based MMO "Dragon Nest" in Mainland China. The expansion pack offers
players a new "Assassin" occupation.

September 19, 2013 - VTC Online JSC, a Vietnamese MMO game and mobile game
distributor, began commercial operation of "Championship Manager Online" in
Vietnam, a 2D soccer-themed game licensed from Shanda Games.

September 22, 2013 - Shanda Games began the first round of close-beta testing
for "Final Fantasy XIV," a 3D fantasy MMO game licensed from Square Enix, in
Mainland China.

Conference Call and Webcast Notice

Shanda Games will host a conference call at 9:00 a.m. on November 27, 2013
Beijing/Hong Kong time (8:00 p.m. on November 26, 2013 Eastern Time), to
discuss its third quarter results.

Dial-in details for the live conference call are as follows:
U.S. Toll Free: 1866-519-4004
Mainland China Toll: 400-620-8038
Mainland China Toll Free: 800-819-0121
Hong Kong Toll Free: 800-930-346
U.K. Toll Free: 0808-234-6646
International Toll: +65-6723-9381
Passcode: 12767698

A replay of the conference call will be available from 12:00 pm (Beijing/Hong
Kong time) on November 27, 2013 for 7 days.
U.S. Toll Free: 1855-452-5696
International Toll: +61-2-8199-0299
Passcode: 12767698

A live and archived webcast of the conference call will also be available on
Shanda Games' investor relations website at http://ir.shandagames.com/.

Currency Convenience Translation

The United States dollar (US$) amounts disclosed in this press release are
presented solely for the convenience of the reader. The conversion of
Renminbi (RMB) into U.S. dollars is based on RMB6.1480 to US$1.00 as published
by the People's Bank of China on September 30, 2013. The Company makes no
representation that the Renminbi or U.S. dollar amounts referred to in this
release could have been, or could be, converted into U.S. dollars at such rate
or at all. The percentages stated are calculated based on the RMB amounts.

Note to the Financial Information

The unaudited financial information disclosed above is preliminary and subject
to adjustments. Adjustments to these preliminary financial statements may be
identified when audit work is performed for the year-end audit, which could
result in significant differences from this preliminary unaudited financial
information.

On August 31, 2013, Shanda Games completed the acquisition of Shengzhan and
Shengjing, two affiliates providing operating platform and prepaid card
distribution services, respectively, from its parent company Shanda
Interactive for an aggregate purchase price of US$811.5 million (the
"Transaction"). The purchase price was partially settled in the third quarter
of 2013 through (i) a cash payment in the amount of US$200 million (reported
as an investing cash flow in the accompanying unaudited condensed consolidated
statement of cash flows) and (ii) the non-cash exchange of a receivable due
from Shanda Interactive in the amount of US$167.6 million. The remainder of
approximately US$444 million (reported in "other payables due to related
parties" in the accompanying unaudited condensed consolidated balance sheet)
will be settled in cash on or before June 30, 2014, with approximately US$300
million due on or before December 31, 2013 and the balance due thereafter.
For more detail regarding the Transaction, please refer to the Company's press
release dated July 28, 2013.

Shanda Games and the acquired affiliates were, and are, under common control.
Accordingly, the Transaction was accounted for as a reorganization of entities
under common control, with the acquired assets and liabilities thereof
consolidated into Shanda Games' financial statements at their carrying values
(book values). The excess of the purchase price over the net book value of
the businesses acquired was recorded in the Company's consolidated balance
sheet at the date of the Transaction in a manner similar to a dividend through
a charge to retained earnings, with the residual amount being recorded to
appropriate components of equity.

Pursuant to applicable U.S. GAAP principles, the Transaction constituted a
"change in reporting entity" for which retrospective consolidation of the
commonly controlled businesses is required for all historical periods since
the inception of common control by Shanda Interactive. Accordingly, in a form
of accounting called "as-if pooling of interests," Shanda Games' unaudited
consolidated financial information has been prepared as if the acquired
businesses had been part of Shanda Games for all periods presented. Given the
acquired businesses are part of Shanda Games' single vertically integrated
business model and will not be evaluated on a separate basis internally for
performance measurement, the Company's online game business continues to be
presented as a single operating segment.

Non-GAAP Financial Measures

In addition to disclosing financial results in accordance with United States
(U.S.) generally accepted accounting principles (GAAP), this earnings release
contains non-GAAP financial numbers including non-GAAP gross profit, non-GAAP
operating income, non-GAAP net income attributable to the Company's
shareholders and non-GAAP earnings per share data.

The non-GAAP financial measures disclosed by the Company exclude share-based
compensation, amortization of acquisition-related intangible assets, and the
related income tax effects. These non-GAAP measures are not in accordance
with, or an alternative for, measures prepared in accordance with generally
accepted accounting principles and may be different from non-GAAP measures
used by other companies. In addition, these non-GAAP measures are not based
on any comprehensive set of accounting rules or principles. Shanda Games
believes that non-GAAP measures have limitations in that they do not reflect
all of the amounts associated with Shanda Games' results of operations as
determined in accordance with GAAP and that these measures should only be used
to evaluate the Company's results of operations in conjunction with the
corresponding GAAP measures.

Shanda Games believes that the presentation of non-GAAP financial measures
when shown in conjunction with the corresponding GAAP measures provides useful
information to investors and management regarding financial and business
trends relating to its financial condition and results of operations. Shanda
Games' management also believes that the non-GAAP financial measures are
appropriate for period to period comparisons in the Company's budget, planning
and evaluation processes. From time to time in the future, there may be other
items that Shanda Games may exclude in reviewing its financial results.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Statements in this announcement that are not
historical facts, including but not limited to statements regarding the
long-term growth of the Company; the sustainability of existing games; the
expansion into mobile games; the introduction and potential success of new MMO
game titles and mobile game titles including but not limited to "Million
Arthur," "Final Fantasy XIV," "Dungeon Striker," "Age of Dawn," "Guardian
Cross," "Dragon Nest: Labyrinth" and "Hell Lord"; the introduction and
potential success of the mobile platform "G-Home" and the expansion into
global market represent only the Company's current expectations, assumptions,
estimates and projections and are forward-looking statements. These
forward-looking statements involve various risks and uncertainties. Important
risks and uncertainties that could cause the Company's actual results to be
materially different from expectations include but are not limited to the risk
that the expansion packs for existing games are not well received by users;
there are delays in the launch of, or the Company is unable to launch, the
games the Company intends to release; such games and any related expansion
packs are not well received by users; the games fail to meet the expectations
of end users; the games that the Company operates overseas or has licensed to
partners globally are not well received by end users in these countries; the
mobile platform "G-Home" is not well-received by users; the Company fails to
execute its mobile strategy and the Company fails to deliver long-term growth,
as well as the risks set forth in the Company's filings with the U.S.
Securities and Exchange Commission, including the Company's annual report on
Form 20-F. The Company does not undertake any obligation to update any
forward-looking statement, except as required under applicable law.

About Shanda Games

Shanda Games Limited (NASDAQ: GAME) is a leading online game developer,
operator and publisher in China. Shanda Games offers a diversified game
portfolio, which includes some of the most popular massively multiplayer
online (MMO) games and mobile games in China and in overseas markets,
targeting a large and diverse community of users. Shanda Games manages and
operates online games that are developed in-house, co-developed with
world-leading game developers, acquired through investments or licensed from
third parties. For more information about Shanda Games, please visit
http://www.ShandaGames.com.

Contact

Shanda Games Limited:
Ellen Chiu, Investor Relations Director
Maggie Zhou, Investor Relations Associate Director
Phone: +86-21-5050-4740 (Shanghai)
Email: IR@ShandaGames.com

Christensen:
Christian Arnell
Phone: +86-10-5826-4939 (China)
Email: carnell@ChristensenIR.com

Linda Bergkamp
Phone: +1-480-614-3004 (U.S.A.)
Email: lbergkamp@ChristensenIR.com



SHANDA GAMES LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except for share and per share data)
                        December 31    June 30        September 30
                        2012 ^(1)      2013 ^(1)      2013
                        RMB            RMB            RMB          US$
ASSETS
Current assets:
Cash and cash           2,132.4        1,903.9        1,726.3      280.8
equivalents
Restricted cash         1.0            -              -            -
Short-term investments  1,663.3        1,342.8        899.5        146.3
Marketable securities   7.2            16.7           -            -
Accounts receivable,
net of allowance for    103.8          154.0          228.9        37.3

 doubtful accounts
Accounts receivable due 89.1           73.0           30.8         5.0
from related parties
Deferred licensing fees 3.9            8.3            11.2         1.8
and related costs
Prepayments and other   196.7          204.3          177.4        28.9
current assets
Other receivables due   2,903.0        2,659.8        58.3         9.5
from related parties
Deferred tax assets     79.7           78.3           97.8         15.8
Total current assets    7,180.1        6,441.1        3,230.2      525.4
Investments in          184.1          190.2          202.5        32.9
affiliated companies
Property and equipment, 262.1          224.2          207.0        33.7
net
Intangible assets       579.8          561.8          481.6        78.3
Goodwill                329.2          329.2          298.4        48.5
Long-term deposits      55.6           66.2           70.6         11.5
Other long-term assets  202.6          176.9          170.2        27.6
Non-current deferred    21.0           22.0           32.7         5.5
tax assets
Total assets            8,814.5        8,011.6        4,693.2      763.4
LIABILITIES
Current liabilities:
Short-term borrowings   1,668.8        286.1          -            -
Accounts payable        60.1           59.6           80.8         13.1
Accounts payable due to 40.1           30.0           18.3         3.1
related parties
Licensing fees payable  160.6          184.6          179.0        29.1
Taxes payable           191.1          166.7          157.8        25.7
Deferred revenue        315.1          288.6          322.6        52.5
Other payables and      671.2          611.8          449.7        73.1
accruals
Other payables due to   990.4          967.7          2,730.5      444.1
related parties
Dividend payable        11.5           9.1            8.5          1.4
Deferred tax            53.6           31.5           45.0         7.2
liabilities
Total current           4,162.5        2,635.7        3,992.2      649.3
liabilities
Long-term liabilities   26.0           24.3           30.0         4.9
Non-current deferred    102.4          90.2           84.5         13.7
tax liabilities
Non-current deferred    37.9           22.8           34.9         5.7
revenue
Total liabilities       4,328.8        2,773.0        4,141.6      673.6
Redeemable
non-controlling         14.0           14.0           14.0         2.4
interests
SHAREHOLDERS' EQUITY
Ordinary shares         540,947,314    534,829,766    536,118,676  536,118,676
outstanding
ADS equivalent          270,473,657    267,414,883    268,059,338  268,059,338
outstanding
Ordinary shares         39.7           39.3           39.4         6.4
(US$0.01 par value)
Additional paid-in      1,648.8        1,655.8        5.8          0.9
capital
Statutory reserves      161.0          165.7          165.7        27.0
Accumulated other       (38.4)         (67.4)         (50.5)       (8.2)
comprehensive loss
Retained earnings       2,607.2        3,162.7        72.5         11.8
Total Shanda Games
Limited shareholders'   4,418.3        4,956.1        232.9        37.9

 equity
Non-controlling         53.4           268.5          304.7        49.5
interests
Total shareholders'     4,471.7        5,224.6        537.6        87.4
equity
Total liabilities and   8,814.5        8,011.6        4,693.2      763.4
shareholders' equity


Note:

(1) Amounts presented revised for all historical periods to reflect the
acquisition of certain commonly controlled businesses from the Company's
parent. Please refer to the "Note to the Financial Information" section in
this press release for further information.



SHANDA GAMES LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except for share and per share data)
                          Three months ended
                          September 30  June 30      September 30

                          2012 ^(1)     2013 ^(1)    2013
                          RMB           RMB          RMB           US$
Net revenues:
MMO game revenues ^(2)    1,068.0       976.6        959.8         156.1
Mobile game revenues ^(2) 2.1           101.8        153.0         24.9
Other revenues ^(2)       18.8          14.7         11.9          1.9
Total net revenues        1,088.9       1,093.1      1,124.7       182.9
Cost of revenues          (272.2)       (279.9)      (322.6)       (52.4)
Gross profit              816.7         813.2        802.1         130.5
Operating expenses:
Product development       (175.9)       (179.1)      (179.2)       (29.1)
Sales and marketing       (78.8)        (111.4)      (104.5)       (17.0)
General and               (106.8)       (91.0)       (102.8)       (16.8)
administrative
Goodwill impairment       -             -            (30.8)        (5.0)
Settlement of gain
contingency with former   -             -            59.9          9.7

 shareholder
Total operating expenses  (361.5)       (381.5)      (357.4)       (58.2)
Income from operations    455.2         431.7        444.7         72.3
Interest income, net      32.7          24.1         20.7          3.4
Government financial      76.0          43.5         48.6          7.9
incentives
Other income (expense),   (28.1)        (4.0)        15.2          2.5
net
Income before income tax
expense and equity
                          535.8         495.3        529.2         86.1
 in loss of
affiliated companies
Income tax expense        (121.7)       (3.6)        (104.6)       (17.0)
Income from continuing
operations, net of        414.1         491.7        424.6         69.1

tax
Equity in loss of         (4.9)         (2.1)        (0.1)         (0.1)
affiliated companies
Net income                409.2         489.6        424.5         69.0
Net income attributable
to non-controlling        (4.0)         (3.5)        (25.6)        (4.1)

 interests
Net income attributable
to the Company's          405.2         486.1        398.9         64.9

 shareholders
Earnings per ordinary
share
Basic                     0.73          0.91         0.75          0.12
Diluted                   0.73          0.91         0.75          0.12
Earnings per ADS
Basic                     1.46          1.82         1.50          0.24
Diluted                   1.46          1.82         1.50          0.24
Weighted average ordinary
shares outstanding
Basic                     554,753,776   535,519,805  535,156,207   535,156,207
Diluted                   554,759,632   535,524,325  536,678,693   536,678,693
Weighted average ADS
outstanding
Basic                     277,376,888   267,759,902  267,578,104   267,578,104
Diluted                   277,379,816   267,762,163  268,339,347   268,339,347
Reconciliation from non-GAAP measures to GAAP measures
Non-GAAP gross profit     837.6         828.9        818.3        133.2
Intangible asset
amortization arising from (20.9)        (15.8)       (15.8)       (2.6)

 acquisitions
Share-based compensation  -             0.1          (0.4)        (0.1)
cost
GAAP gross profit         816.7         813.2        802.1        130.5
Non-GAAP operating income 498.8         466.2        483.1        78.6
Intangible asset
amortization arising from (32.1)        (27.5)       (27.5)       (4.5)

 acquisitions
Share-based compensation  (11.5)        (7.0)        (10.9)       (1.8)
cost
GAAP operating income     455.2         431.7        444.7        72.3
Non-GAAP net income
attributable to the
                          441.3         512.2        429.0        69.9
 Company's
shareholders
Intangible asset
amortization arising from (32.1)        (27.5)       (27.5)       (4.5)

 acquisitions
Share-based compensation  (11.5)        (7.0)        (10.9)       (1.8)
cost
Income tax effect         7.0           5.8          5.7          0.9
Intangible asset
amortization arising from

 acquisitions         0.5           2.6          2.6          0.4
attributable to
non-controlling

 interests
GAAP net income
attributable to the
                          405.2         486.1        398.9        64.9
 Company's
shareholders
Non-GAAP diluted earnings 0.80          0.96         0.80         0.13
per share
Non-GAAP expense per      (0.07)        (0.05)       (0.05)       (0.01)
share
GAAP diluted earnings per 0.73          0.91         0.75         0.12
share
Non-GAAP diluted earnings 1.60          1.92         1.60         0.26
per ADS
Non-GAAP expense per ADS  (0.14)        (0.10)       (0.10)       (0.02)
GAAP diluted earnings per 1.46          1.82         1.50         0.24
ADS



Supplemental disclosure of intangible asset amortization arising from
acquisitions included in:

Cost of revenues           (20.9)  (15.8)  (15.8)  (2.6)
Product development        (6.9)   (7.9)   (7.9)   (1.3)
Sales and marketing        (1.8)   (1.4)   (1.4)   (0.2)
General and administrative (2.5)   (2.4)   (2.4)   (0.4)
Total                      (32.1)  (27.5)  (27.5)  (4.5)



Supplemental disclosure of share-based compensation cost included in:

Cost of revenues        -               0.1            (0.4)          (0.1)
Product development     (4.8)           (4.2)          (1.5)          (0.2)
Sales and marketing     (0.3)           0.1            (0.1)          (0.0)
General and             (6.4)           (3.0)          (8.9)          (1.5)
administrative
Total                   (11.5)          (7.0)          (10.9)         (1.8)


Notes:

(1) Amounts presented revised for all historical periods to reflect the
acquisition of certain commonly controlled businesses from the Company's
parent. Please refer to the "Note to the Financial Information" section in
this press release for further information.



(2) Starting with the first quarter of 2013, the Company adjusted the
presentation of its financial statements in order to provide investors with a
better understanding of the Company's changing business. Previously, the
Company reported online game revenues derived in China (which included
revenues from both MMO games and mobile games) and other revenues as its two
principal revenue categories. Three revenue categories are now being reported.
These include MMO game revenues, mobile game revenues, and other revenues.
Each of these three categories includes revenues derived inside and outside
China. Prior period amounts reported under the pre-Q1 2013 classifications
have been reclassified to conform to the current presentation.



SHANDA GAMES LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except for share and per share data)
                                        Nine months ended
                                        September 30  September 30

                                        2012 ^(1)     2013
                                        RMB           RMB          US$
Net revenues:
MMO game revenues ^(2)                  3,516.1       2,907.7      473.0
Mobile game revenues ^(2)               2.1           361.3        58.8
Other revenues ^(2)                     105.1         46.3         7.4
Total net revenues                      3,623.3       3,315.3      539.2
Cost of revenues                        (898.2)       (879.8)      (143.1)
Gross profit                            2,725.1       2,435.5      396.1
Operating expenses:
Product development                     (526.0)       (528.0)      (85.9)
Sales and marketing                     (232.7)       (326.0)      (52.9)
General and administrative              (318.5)       (281.3)      (45.8)
Goodwill impairment                     -             (30.8)       (5.0)
Settlement of gain contingency with     -             59.9         9.7
former shareholder
Total operating expenses                (1,077.2)     (1,106.2)    (179.9)
Income from operations                  1,647.9       1,329.3      216.2
Interest income, net                    82.8          74.0         12.0
Government financial incentives         127.7         110.3        17.9
Other income (expense), net             (19.0)        3.7          0.7
Income before income tax expense and    1,839.4       1,517.3      246.8
equity in loss of affiliated companies
Income tax expense                      (396.8)       (217.8)      (35.4)
Income from continuing operations, net
of                                      1,442.6       1,299.5      211.4

tax
Equity in loss of affiliated companies  (13.0)        (5.6)        (0.9)
Net income                              1,429.6       1,293.9      210.5
Net income attributable to              (21.6)        (41.4)       (6.8)
non-controlling interests
Net income attributable to the          1,408.0       1,252.5      203.7
Company's shareholders
Earnings per ordinary share
Basic                                   2.52          2.33         0.38
Diluted                                 2.52          2.33         0.38
Earnings per ADS
Basic                                   5.04          4.66         0.76
Diluted                                 5.04          4.66         0.76
Weighted average ordinary shares
outstanding
Basic                                   558,751,392   536,936,248  536,936,248
Diluted                                 558,786,563   537,448,107  537,448,107
Weighted average ADS outstanding
Basic                                   279,375,696   268,468,124  268,468,124
Diluted                                 279,393,282   268,724,053  268,724,053
Reconciliation from non-GAAP measures to GAAP measures
Non-GAAP gross profit                   2,793.3       2,483.3      403.9
Intangible asset amortization arising   (68.0)        (47.4)       (7.7)
from acquisitions
Share-based compensation cost           (0.2)         (0.4)        (0.1)
GAAP gross profit                       2,725.1       2,435.5      396.1
Non-GAAP operating income               1,784.5       1,440.9      234.4
Intangible asset amortization arising   (106.3)       (82.5)       (13.4)
from acquisitions
Share-based compensation cost           (30.3)        (29.1)       (4.8)
GAAP operating income                   1,647.9       1,329.3      216.2
Non-GAAP net income attributable to the 1,517.6       1,338.9      217.8
Company's shareholders
Intangible asset amortization arising   (106.3)       (82.5)       (13.4)
from acquisitions
Share-based compensation cost           (30.3)        (29.1)       (4.8)
Income tax effect                       24.9          17.3         2.8
Intangible asset amortization arising
from acquisitions attributable to       2.1           7.9          1.3
non-controlling interests
GAAP net income attributable to the     1,408.0       1,252.5      203.7
Company's shareholders
Non-GAAP diluted earnings per share     2.72          2.49         0.41
Non-GAAP expense per share              (0.20)        (0.16)       (0.03)
GAAP diluted earnings per share         2.52          2.33         0.38
Non-GAAP diluted earnings per ADS       5.44          4.98         0.82
Non-GAAP expense per ADS                (0.40)        (0.32)       (0.06)
GAAP diluted earnings per ADS           5.04          4.66         0.76



Supplemental disclosure of intangible asset amortization arising from
acquisitions included in:

Cost of revenues           (68.0)   (47.4)  (7.7)
Product development        (20.6)   (23.6)  (3.8)
Sales and marketing        (7.9)    (4.2)   (0.7)
General and administrative (9.8)    (7.3)   (1.2)
Total                      (106.3)  (82.5)  (13.4)



Supplemental disclosure of share-based compensation cost included in:

Cost of revenues           (0.2)   (0.4)   (0.1)
Product development        (14.9)  (9.2)   (1.5)
Sales and marketing        (0.3)   (0.1)   (0.0)
General and administrative (14.9)  (19.4)  (3.2)
Total                      (30.3)  (29.1)  (4.8)



Notes:

(1) Amounts presented revised for all historical periods to reflect the
acquisition of certain commonly controlled businesses from the Company's
parent. Please refer to the "Note to the Financial Information" section in
this press release for further information.



(2) Starting with the first quarter of 2013, the Company adjusted the
presentation of its financial statements in order to provide investors with a
better understanding of the Company's changing business. Previously, the
Company reported online game revenues derived in China (which included
revenues from both MMO games and mobile games) and other revenues as its two
principal revenue categories. Three revenue categories are now being reported.
These include MMO game revenues, mobile game revenues, and other revenues.
Each of these three categories includes revenues derived inside and outside
China. Prior period amounts reported under the pre-Q1 2013 classifications
have been reclassified to conform to the current presentation.



SHANDA GAMES LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions, except for share and per share data)
                                              Nine months ended
                                              September 30  September 30

                                              2012 ^(1)     2013
                                              RMB           RMB        US$
Cash flows from operating activities:
Net income                                    1,429.6       1,293.9    210.5
Adjustments for:
Share-based compensation expenses             30.3          29.1       4.7
Depreciation and amortization                 227.8         248.8      40.5
Other                                         60.1          (53.4)     (8.7)
Changes in operating assets and liabilities,
net of effect of acquisitions:
Prepayments and licensing fees and royalties  9.6           (15.0)     (2.4)
Other                                         36.2          (236.5)    (38.5)
Net cash provided by operating activities     1,793.6       1,266.9    206.1
Cash flows from investing activities:
Purchase of property, equipment and           (48.2)        (36.8)     (6.0)
intangible assets, net
Acquisitions (net of cash acquired) and       (42.6)        (1,316.6)  (214.2)
purchase of equity investments
(Increase) / decrease in short-term           (127.5)       762.1      124.0
investments
(Increase) / decrease in loan receivable and  (1,276.3)     1,724.6    280.5
other receivables due from related parties
Other                                         (11.1)        12.4       2.1
Net cash (used in) / provided by investing    (1,505.7)     1,145.7    186.4
activities
Cash flows from financing activities:
Cash injection in subsidiaries by             -             194.8      31.7
non-controlling shareholders
Repurchase of common stock                    (170.5)       (64.1)     (10.4)
Proceeds from loan borrowings and other       3,570.3       88.4       14.4
payables due to related parties
Repayment of loan borrowings and other        (1,403.5)     (2,694.5)  (438.3)
payables due to related parties
Dividends paid                                (1,809.3)     (3.2)      (0.5)
Net distribution to Shanda Interactive        (483.8)       (325.5)    (52.9)
Other                                         (243.9)       2.4        0.3
Net cash (used in) financing activities       (540.7)       (2,801.7)  (455.7)
Effect of exchange rate changes on cash and   7.4           (17.0)     (2.8)
cash equivalents
Net decrease in cash and cash equivalents     (245.4)       (406.1)    (66.0)
Cash and cash equivalents, beginning of       1,895.8       2,132.4    346.8
period
Cash and cash equivalents, end of period      1,650.4       1,726.3    280.8



Note:

(1) Amounts presented revised for all historical periods to reflect the
acquisition of certain commonly controlled businesses from the Company's
parent. Please refer to the "Note to the Financial Information" section in
this press release for further information.



SUPPLEMENTARY NOTES – RECONCILIATIONS OF SELECTED DATA – RESULTS OF OPERATIONS
(in RMB millions, except for share and per share data)
                  Three months ended September 30, 2013
                                   Businesses                   Shanda Games
                  Pre-Transaction
                                   acquired from  Eliminations  (as currently
                  Shanda Games
                                   Shanda                       reported)
                                   Interactive
GAAP:
Net revenues      1,118.5          219.9          (213.7)       1,124.7
Cost of revenues  (426.7)          (42.0)         146.1         (322.6)
Gross profit      691.8            177.9          (67.6)        802.1
Total operating   (394.1)          (31.0)         67.7          (357.4)
expenses
Income from       297.7            146.9          0.1           444.7
operations
Net income
attributable to
the               262.9            135.9          0.1           398.9

Company's
shareholders
Earnings per
ordinary share
Basic             0.50             0.25                         0.75
Diluted           0.50             0.25                         0.75
Earnings per ADS
Basic             1.00             0.50                         1.50
Diluted           1.00             0.50                         1.50
Non-GAAP:
Net revenues      1,118.5          219.9          (213.7)       1,124.7
Cost of revenues  (410.5)          (42.0)         146.1         (306.4)
Gross profit      708.0            177.9          (67.6)        818.3
Total operating   (371.9)          (31.0)         67.7          (335.2)
expenses
Income from       336.1            146.9          0.1           483.1
operations
Net income
attributable to   293.0            135.9          0.1           429.0
the Company's
shareholders
Earnings per
ordinary share
Basic             0.55             0.25                         0.80
Diluted           0.55             0.25                         0.80
Earnings per ADS
Basic             1.10             0.50                         1.60
Diluted           1.10             0.50                         1.60
Basic ordinary    535,156,207      535,156,207                  535,156,207
shares
Diluted ordinary  536,678,693      536,678,693                  536,678,693
shares
Basic ADS         267,578,104      267,578,104                  267,578,104
Diluted ADS       268,339,347      268,339,347                  268,339,347



SUPPLEMENTARY NOTES – RECONCILIATIONS OF SELECTED DATA – RESULTS OF OPERATIONS
(in RMB millions, except for share and per share data)
                  Three months ended June 30, 2013
                                   Businesses
                  Pre-Transaction                               Shanda Games
                                   acquired from  Eliminations  (as currently
                  Shanda Games
                                   Shanda                       reported)
                                   Interactive
GAAP:
Net revenues      1,085.1          223.2          (215.2)       1,093.1
Cost of revenues  (384.4)          (42.1)         146.6         (279.9)
Gross profit      700.7            181.1          (68.6)        813.2
Total operating   (408.7)          (41.4)         68.6          (381.5)
expenses
Income from       292.0            139.7          -             431.7
operations
Net income
attributable to
the               374.4            111.7          -             486.1

Company's
shareholders
Earnings per
ordinary share
Basic             0.70             0.21                         0.91
Diluted           0.70             0.21                         0.91
Earnings per ADS
Basic             1.40             0.42                         1.82
Diluted           1.40             0.42                         1.82
Non-GAAP:
Net revenues      1,085.1          223.2          (215.2)       1,093.1
Cost of revenues  (368.7)          (42.1)         146.6         (264.2)
Gross profit      716.4            181.1          (68.6)        828.9
Total operating   (389.9)          (41.4)         68.6          (362.7)
expenses
Income from       326.5            139.7          -             466.2
operations
Net income
attributable to   400.5            111.7          -             512.2
the Company's
shareholders
Earnings per
ordinary share
Basic             0.75             0.21                         0.96
Diluted           0.75             0.21                         0.96
Earnings per ADS
Basic             1.50             0.42                         1.92
Diluted           1.50             0.42                         1.92
Basic ordinary    535,519,805      535,519,805                  535,519,805
shares
Diluted ordinary  535,524,325      535,524,325                  535,524,325
shares
Basic ADS         267,759,902      267,759,902                  267,759,902
Diluted ADS       267,762,163      267,762,163                  267,762,163



SUPPLEMENTARY NOTES – RECONCILIATIONS OF SELECTED DATA – RESULTS OF OPERATIONS
(in RMB millions, except for share and per share data)
                  Three months ended September 30, 2012
                                   Businesses
                  Pre-Transaction                               Shanda Games
                                   acquired from  Eliminations  (as currently
                  Shanda Games
                                   Shanda                       reported)
                                   Interactive
GAAP:
Net revenues      1,080.5          270.1          (261.7)       1,088.9
Cost of revenues  (396.0)          (51.1)         174.9         (272.2)
Gross profit      684.5            219.0          (86.8)        816.7
Total operating   (403.9)          (43.9)         86.3          (361.5)
expenses
Income from       280.6            175.1          (0.5)         455.2
operations
Net income
attributable to
the               253.9            151.8          (0.5)         405.2

Company's
shareholders
Earnings per
ordinary share
Basic             0.46             0.27                         0.73
Diluted           0.46             0.27                         0.73
Earnings per ADS
Basic             0.92             0.54                         1.46
Diluted           0.92             0.54                         1.46
Non-GAAP:
Net revenues      1,080.5          270.1          (261.7)       1,088.9
Cost of revenues  (375.1)          (51.1)         174.9         (251.3)
Gross profit      705.4            219.0          (86.8)        837.6
Total operating   (381.2)          (43.9)         86.3          (338.8)
expenses
Income from       324.2            175.1          (0.5)         498.8
operations
Net income
attributable to   290.0            151.8          (0.5)         441.3
the Company's
shareholders
Earnings per
ordinary share
Basic             0.53             0.27                         0.80
Diluted           0.53             0.27                         0.80
Earnings per ADS
Basic             1.06             0.54                         1.60
Diluted           1.06             0.54                         1.60
Basic ordinary    554,753,776      554,753,776                  554,753,776
shares
Diluted ordinary  554,759,632      554,759,632                  554,759,632
shares
Basic ADS         277,376,888      277,376,888                  277,376,888
Diluted ADS       277,379,816      277,379,816                  277,379,816



SUPPLEMENTARY NOTES – RECONCILIATIONS OF SELECTED DATA – RESULTS OF OPERATIONS
(in RMB millions, except for share and per share data)
                   Nine months ended September 30, 2013
                                    Businesses
                   Pre-Transaction                               Shanda Games
                                    acquired from  Eliminations  (as currently
                   Shanda Games
                                    Shanda                       reported)
                                    Interactive
GAAP:
Net revenues       3,288.3          682.4          (655.4)       3,315.3
Cost of revenues   (1,198.3)        (129.2)        447.7         (879.8)
Gross profit       2,090.0          553.2          (207.7)       2,435.5
Total operating    (1,202.8)        (111.0)        207.6         (1,106.2)
expenses
Income from        887.2            442.2          (0.1)         1,329.3
operations
Net income
attributable to
the                882.2            370.4          (0.1)         1,252.5

Company's
shareholders
Earnings per
ordinary share
Basic              1.64             0.69                         2.33
Diluted            1.64             0.69                         2.33
Earnings per ADS
Basic              3.28             1.38                         4.66
Diluted            3.28             1.38                         4.66
Non-GAAP:
Net revenues       3,288.3          682.4          (655.4)       3,315.3
Cost of revenues   (1,150.5)        (129.2)        447.7         (832.0)
Gross profit       2,137.8          553.2          (207.7)       2,483.3
Total operating    (1,139.0)        (111.0)        207.6         (1,042.4)
expenses
Income from        998.8            442.2          (0.1)         1,440.9
operations
Net income
attributable to    968.6            370.4          (0.1)         1,338.9
the Company's
shareholders
Earnings per
ordinary share
Basic              1.80             0.69                         2.49
Diluted            1.80             0.69                         2.49
Earnings per ADS
Basic              3.60             1.38                         4.98
Diluted            3.60             1.38                         4.98
Basic ordinary     536,936,248      536,936,248                  536,936,248
shares
Diluted ordinary   537,448,107      537,448,107                  537,448,107
shares
Basic ADS          268,468,124      268,468,124                  268,468,124
Diluted ADS        268,724,053      268,724,053                  268,724,053



SUPPLEMENTARY NOTES – RECONCILIATIONS OF SELECTED DATA – RESULTS OF OPERATIONS
(in RMB millions, except for share and per share data)
                   Nine months ended September 30, 2012
                                     Businesses
                   Pre-Transaction   acquired                   Shanda Games
                                                  Eliminations  (as currently
                   Shanda Games      from Shanda
                                                                reported)
                                     Interactive
GAAP:
Net revenues       3,600.5           860.4        (837.6)       3,623.3
Cost of revenues   (1,337.2)         (151.3)      590.3         (898.2)
Gross profit       2,263.3           709.1        (247.3)       2,725.1
Total operating    (1,191.9)         (136.1)      250.8         (1,077.2)
expenses
Income from        1,071.4           573.0        3.5           1,647.9
operations
Net income
attributable to
the                899.1             505.4        3.5           1,408.0

Company's
shareholders
Earnings per
ordinary share
Basic              1.61              0.91                       2.52
Diluted            1.61              0.91                       2.52
Earnings per ADS
Basic              3.22              1.82                       5.04
Diluted            3.22              1.82                       5.04
Non-GAAP:
Net revenues       3,600.5           860.4        (837.6)       3,623.3
Cost of revenues   (1,269.0)         (151.3)      590.3         (830.0)
Gross profit       2,331.5           709.1        (247.3)       2,793.3
Total operating    (1,123.5)         (136.1)      250.8         (1,008.8)
expenses
Income from        1,208.0           573.0        3.5           1,784.5
operations
Net income
attributable to    1,008.7           505.4        3.5           1,517.6
the Company's
shareholders
Earnings per
ordinary share
Basic              1.81              0.91                       2.72
Diluted            1.81              0.91                       2.72
Earnings per ADS
Basic              3.62              1.82                       5.44
Diluted            3.62              1.82                       5.44
Basic ordinary     558,751,392       558,751,392                558,751,392
shares
Diluted ordinary   558,786,563       558,786,563                558,786,563
shares
Basic ADS          279,375,696       279,375,696                279,375,696
Diluted ADS        279,393,282       279,393,282                279,393,282





SOURCE Shanda Games Limited

Website: http://www.ShandaGames.com
Website: http://ir.shandagames.com