1. Why China is the Next Mobile Gaming Frontier? Chris Shen Vice President The9 Limited (Nasdaq: NCTY)

2. China: A Billion Mobile Phone Users…One of the Largest Mobile Markets in the World 980 million mobile phone users in China, with rapid growth of the market size

3. Smartphones Are Catching On Longtime popularity of feature phones Smart Phones: why now?

4. iOS vs. Android: Growth and Competition Apple –Officially bundled with China Unicom & China Telecom –10 million+ noncontract users with China Mobile –Partnerships for all 3 carriers in 2012? Android –More and cheaper devices = more users

5. Challenges for Global Devs

6. Challenge 1: Fragmented Channel Distribution Apple and Google aren’t in control –Numerous distribution channels –Unique requirements

7. Challenge 2: Regulations and Culture Differences Legality –Okay in the U.S., not necessarily in China Games with gambling, sex and violence Genre & Visual –Game category –Character style –Playability

8. Challenge 3: Monetization Chinese mobile gaming is all about freemium –In-app purchases and in-app advertising Pricing for micro-transaction Different distribution channel = different payment solution

9. Challenge 4: Piracy Pirates are everywhere –Even big-name enterprise doing that –Responsibility falls on local publishers

10. Tips for Global Developers Heading for China

11. Tip 1: Don’t Go It Alone Without a local partner, even great games can suffer on the distribution and piracy –Example: Fruit Ninja by Halfbrick

12. Tip 2: Know What’s Popular RPG is still the favorite, and good for monitization High expectations on social games Male users are the majority paying users

13. Tip 3: Choose the Right Monetization Model Pay-per-download isn’t the way to go In-app purchase and in-app advertising are key revenue streams iOS users are more likely to pay for micro-transactions Android users respond better to in-game ads

14. How The9 Can Help

15. How The9 Can Help: Some Background Established in 1999, early experience on PC virtual communities…before Facebook PC online game operation experience –Social gaming communities –Micro-transactions Engaged into the mobile gaming business since 2010

16. The9: Venturing into Mobile Social Gaming The9 Game Zone: Localized mobile social gaming platform powered by OpenFeint and connecting with major Chinese SNS The9 Game Zone Sina Weibo Tencent Weibo RenRen

17. The9: Single Publisher and Operator in China Partnerships –Major telecom carriers –Third-party channels –Device manufacturers … …

18. The9: One-Stop Shop for Western Developers in China Localization SDK Packaging Monetization Strategies Advertising Distribution Marketing and Promotion Anti-Piracy Solutions

19. Fast growth on licensed games: 880 titles up to mid of Apr. ’12; 12 million downloads at the publishing network Contracted distribution channels: 60+ Register member on The9 Game Zone: 10 million up to May ‘12 Our Global Partners Are Seeing Serious Growth

20. The9 Mobile Business Unit: Your Passport to China Chris Shen shenguoding@corp.the9.com m.the9.com/developer/en