KongZhong Corporation Announces Strategic Investment in Ourgame International Holdings Limited

KongZhong Corporation Announces Strategic Investment in Ourgame International
                               Holdings Limited

PR Newswire

BEIJING, Jan. 31, 2014

BEIJING, Jan.31, 2014 /PRNewswire/ --KongZhong Corporation (NASDAQ: KONG), a
leading digital entertainment company in China, today announced it has entered
into definitive agreements to acquire a minority interest in Ourgame
International Holdings Limited ("Ourgame" also known as "LianZhong") for a
total consideration of RMB 100.0 mn in cash (equivalent to roughly US$ 16.5 mn
at current exchange rates). The board of directors of the Company has approved
the transaction, which is set to close before the end of February 2014.

Ourgame is one of the earliest and most popular providers of Internet-based
casual board and card games in China. It has developed and currently operates
over 300 board and card games with cross-platform support for PC and mobile.
Through this strategic investment, Ourgame will accelerate its strategy of
being a leader in casual board and card games in the China market, increase
its plans to develop and promote 20-30 additional new products in the near
future, and expand and enhance its platform offerings to the browser-based and
mobile games market.

Over the past few years, Ourgame has significantly expanded their casual PC
game presence to mobile with the success of its Dou Dizhu application on
Android in China, especially card-based mobile games. Ourgame's Dou Dizhu
application had over 40.0 mn downloads is one of the most popular card games
in the China smartphone market. In addition, Ourgame has a number of other
card games in its mobile game portfolio including Poker World, Texas Hold'em,
etc..

Board and Card games is one of the earliest and most popular game genres to
first develop on the PC and more recently on mobile. Based on The 29^th China
Internet Network Development State Statistic Report conducted by  China
Internet Network Information Centre ("CNNIC"), the number Internet board and
card game users in China reached 259.0 mn, making up 80% of all game users in
China.

Through this strategic investment, KONG and Ourgame will seek to pursue
co-development, co-marketing and co-distribution synergies through their
respective smartphone and PC game businesses.

About KongZhong:

KongZhong (NASDAQ:KONG), listed in Nasdaq in 2004, is one of the leading
providers of digital entertainment services for consumers in the PRC. We
operate three main business units, namely WVAS, mobile games and Internet
games. Within Internet games, KONG has the exclusive publishing rights for
World of Tanks, World of Warplanes, World of Warships, Guild Wars 2 and other
titles in mainland China. Since the acquisition of our proprietary smartphone
game engine platform in 2011, KONG has expanded our smartphone game
development team across 4 cities in China currently developing over 10
smartphone games across various genres, including MMORPG, RTS, military, and
fantasy.

About Ourgame

Founded in 1998, Ourgame (also known as LianZhong), Ourgame is one of the
earliest and most popular providers of Internet-based casual board and card
games in China. Currently Ourgame owns two large platforms: Ourgame Link and
Ourgame New World. It's products provide cross-platform support for PC,
browsers and mobile terminals with more than 300 board and card games,
mahjong, casual games and large graphic games. In addition, Ourgame is also
the organizer of the largest online board game e-sports event in China.

Safe  Harbor Statements

This press release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended. Such forward-looking statements include,
without limitation, statements regarding trends in the wireless value-added
services, wireless media, mobile games and online games industries and our
future results of operations, financial condition and business prospects.
Although such statements are based on our own information and information from
other sources we believe to be reliable, you should not place undue reliance
on them. These statements involve risks and uncertainties, and actual market
trends and our results may differ materially from those expressed or implied
in these forward looking statements for a variety of reasons. Potential risks
and uncertainties include, but are not limited to, continued competitive
pressure in China's wireless value-added services, wireless media, mobile
games and online games industries and the effect of such pressure on revenues;
our ability to develop new products that are commercially successful;
unpredictable changes in technology, consumer demand and usage preferences in
the markets we operate; our ability to protect our intellectual property
rights; the short operating history of certain of our business segments, in
particular the online games segment; the state of and any change in our
relationship with China's telecommunications operators; our dependence on the
billing systems of telecommunications operators for our performance; the
outcome of our investment of operating income generated from the WVAS segment
into the development of our wireless Internet, mobile games and online games
segments; changes in the regulations or policies of the Ministry of Industry
and Information Technology and other government authorities relevant to our
businesses; and changes in political, economic, legal and social conditions in
China, including the Chinese government's policies with respect to economic
growth, foreign exchange, foreign investment and entry by foreign companies
into China's telecommunications and online games markets. For additional
discussion of these risks and uncertainties and other factors, please see the
documents we file from time to time with the Securities and Exchange
Commission. We assume no obligation to update any forward-looking statements,
which apply only as of the date of this press release.

SOURCE KongZhong Corporation

Website: http://www.kongzhong.com
Contact: KongZhong, Investor Contact: Jay Chang, Chief Financial Officer, Tel:
(+86-10) 8857 6000, Fax: (+86-10) 8857 5891, E-mail: ir@kongzhong.com, or
Media Contact: Yuan Liu, Manager, Tel: (+86-10) 8857 6000, Tel: (+86-10) 8857
5900, E-mail: liuyuan@kongzhong.com
 
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