Cellphone Online Game Business
Market Overview
Jun 2009
Larry Zhang
CEO
Troodon Enter-Tech Inc.

PC Online Game Business in China
— Of all the 14 public Chinese internet companies in US capital market, 6
are PC online game companies.
NASDAQ: NTES SNDA CYOU GA PWRD NCTY
— In 2009Q1, these 6 companies’ total market value is 12B USD(50%),
revenue is 505M USD (60% ) , net profit is 226M USD (70%),
— PC online game is by far the most successful internet business in China

Common conceptions of Cellphone Online Game
— Players only play Cell phone Online Game (COG) for short periods of
time
— Because game effect is limited by the small cellphone screen, players
would not pay as much as they pay for PC online games
— Cellphone Online Game (COG) businesses will have a much smaller
market than PC Online Game (POG) businesses

COG – Who are playing
According to our operations data
— Users play for 4.5 hours per day on average;
— most have their battery charger on when they play
— Users spend most of their leisure time in the game
COG User Characters
— Have a lot of free times
— Do not have any other better entertainment options
during their main free time
Conclusions
— COG users have limitations in entertainment activities during the majority of their free time
— They regard COG as their best and primary form of entertainment

COG – How much they pay
Business Index of Online Game Business
Peak Concurrent User (PCU) Average Concurrent User (ACU)
Average Revenue Per ACU (ARPU) = Product Revenue / ACU
ARPU/ACU Compare (Virtual Item Selling Model)
08Q4 PC Online Game Company
ICYOU: 299 PWRD:202 GA: 212
09Q1 Troodon Games
190 ~ 300
Customers pay as much as, or even more than, what they pay for PC
online games

Troodon Brief Introduction
Incorporated in September 2002
Major Business
Cell phone online game development and operations
Product Concepts
Oriented towards 2.5G and 3G
Focus on interactive entertainment
Share enjoyment, provide instant pleasure

Troodon Products & Services Structure
Cell phone MMO
- Users are addicted and pay a lot
- Cash cow for Troodon
Casual online games
Cellphone - Cultivate users’ habit of playing
MMO online
- Future point of profit increase
Casual Online Games
Light Games & Friends WAP community for gamers
Making
- Accumulate customer base
Mobile SNS for Gamers
In production - Bring in new customers for games
Satisfy customers’ need for interactive entertainment anytime anywhere

Profile: Growth landmarks
Development of cellphone online games started in July 2002
In Mar. 2004, Troodon’s first product, “Sword of Troodon”, won the Top 3 Games of The
Year Award at Qualcomm’s Global BREW Forum
In Apr. 2004, Troodon’s product launched on China Unicom’s BREW platform, making
Troodon the first cell phone online game service provider
In 2005, Troodon became profitable
In May 2006, Troodon received first round investment from WIH
In 2006, Troodon migrated its products from CDMA network to GSM network and changed
its business model from charging based on time to charging by items. These two actions
dramatically enlarged Troodon’s user base
In Feb. 2008, Troodon get second round investment led by Steamboat (Disney)
At present, Troodon is the No. 1 Market Share Leader in Cellphone Online MMO Game
market

COG – How fast and how big the market will grow
COG market is still facing long-term obstacles
— Traffic fee is still not affordable by normal users
— User need more time to have the habit of going online with cellphones
— Too many kinds of phones and OS (iphone gphone symbian WM…)
— Carriers have too much influence in mobile internet business
COG market will become much bigger than POG market eventually
– COG’s user base is much bigger than POG user base
– Customers pay no less for COG than for POG

Troodon Entertainment Technology
Larry Zhang
Email: larryzhang@troodo.com
Thanks!