Investment in Company

7 Mar 2007 11:20

Origo Sino-India PLC07 March 2007 ORIGO INVESTMENT IN CHINESE ONLINE GAMES COMPANY PROVIDES INSTANT CAPITAL APPRECIATION Origo Sino-India PLC ("Origo")(LSE:OSI), the investment and strategic advisorycompany focused on the private equity markets of China and India, recentlyannounced a US$1.5 million investment in Possibility Space Incorporated ("PSI"),an unlisted China based online game company. At the time of the investment, PSIhad a pre-money valuation of US$10 million. Origo is now pleased to announcethat CDC Games Corporation ("CDC"), the NASDAQ listed global provider ofEnterprise Software Solutions to medium and large enterprises, has signed a termsheet to acquire up to 17.24% of the issued share capital in PSI at a pre-moneyvaluation of US$12 million. Commenting, Chris Rynning, Origo's CEO said: "We are delighted that such a significant on-line games market participant asCDC should have decided to co-invest with Origo. As well as this being a veryreal endorsement of our investment decision, the new valuation of PSI is a 20%increase over the price we paid just 4 weeks ago." END For further information please call: Christopher Joll/Tim McCall, MJ2 020 7491 7776 Notes to Editors 1. Origo Sino-India plc ("Origo"): •Origo is an established and profitable private equity investor and strategic consultancy business, which provides its shareholders with exposure to growth opportunities and private equity returns in China and India. • Origo's business model is to generate capital gains from private equity investment in growth companies from which it also generates fees for consultancy services related to further fundraisings, M&A and strategic development. • Origo is aligned with two major institutions which provide a source of high quality deal flow. In China, Origo work closely with China Equity, a leading private equity firm, whose chief executive is on Origo's board. In India, Origo has entered into a memorandum of understanding with SBI Capital Markets, one of longest established companies in the Indian Capital Markets. A former chairman of SBI is on the board of Origo. • Origo has signed agreements with 4 Chinese companies and 7 Indian companies to provide both financing and advisory services and more than 20 potential investments in the pipeline. • At the AIM Placing in December 2006 Origo raised £12.8 million gross of new money via a placing of 25,673,238 Ordinary Shares at 50 pence per share. Each Ordinary Share carries a Warrant exercisable at 55p. Seymour Pierce Ltd is the nominated adviser and broker. 2. Possibility Space Incorporated • Possibility Space Incorporated ("PSI") is a British Virgin Island registered entity. PSI controls a Wholly Foreign Owned Enterprise ("WOFE") in China in order to hire and retain top Chinese development and design talent. • PSI's founders are game industry veterans Gage Galinger and Feng Zhu. Gage successfully built the games departments of GameHub and Enorbus (two venture backed China based game studios), with previous game development experience from various US studios including Ensemble Studios (Microsoft), EA and Blizzard. Feng has previously held positions as Creative Art Director and Designer with both game developers and feature film developers including Lucas film, Lightstorm Entertainment, NC Soft, Liquid Entertainment and EA. • PSI, which currently employs 28 game developers in Beijing, will complete its first game, "Warrior Epic", by Q3 2007. PSI has a pipeline of prospective clients in Korea, India, Philippines and China. • Gage and Feng have worked on world industry leading games titles such as "Starcraft; Battle Realms; Age of Mythology (Microsoft); Command and Conquer III (EA); Full Auto II (SEGA); The Sims universe related projects (EA); Guild Wars (NCsoft); Gears of War (Epic Games); XBOX development (Microsoft) "; and design for feature films such as "Transformers; the Movie (Michael Bay); Star Wars, Episode III, Revenge of the Sith (George Lucas/Steven Spielberg); and Teenage Mutant Ninja Turtles, the Movie (Imagi / Warner Brothers)". • The PSI platform allows users to start playing in the PSI game world for free within minutes of deciding to download a game. PSI games will be instantly and easily playable with a wide character cast and delivering top quality 3D graphics and animation on low spec systems. • Warrior Epic is an action adventure game mixing Sims style elements with short battle missions, with a playing cycle from 15 to 30 minutes. Designed to be free and simple to play, the game is accessible to new players who traditionally would not have the patience for a regular MMRPG. This information is provided by RNS The company news service from the London Stock Exchange