CDC Software Signs Term Sheet to Acquire a Provider of Supply Chain and Demand Planning Solutions

CDC Software Corporation (NASDAQ: CDCS), a global provider of enterprise software applications and services, today announced it has signed a term sheet to acquire a provider of supply chain management solutions.

In the event that this transaction is completed, we believe this targeted acquisition will allow us to offer new technology that includes integrated supply chain, demand planning and performance management solutions that are expected to complement CDC Software’s portfolio of back office applications. This acquisition is expected to generate new cross-selling opportunities with CDC Software’s CDC Supply Chain, Truition and Activplant solutions, where the product lines share similar Tier 1 vertical markets that include high tech and automotive customers. This targeted acquisition also offers a supply chain planning solution tailored specifically for the small to medium-size enterprise market that we believe can be sold with Ross Enterprise.

Founded more than a decade ago, this venture-capital financed company has more than 100 customers primarily in the industrial, high tech, and chemical markets.

“Based upon our analysis and projections performed to date, this planned acquisition is expected to be earnings accretive immediately, and we believe it would be an excellent cross-selling fit with our CDC Supply Chain, Ross Enterprise and the newly acquired Activplant and Truition solutions,” said Bruce Cameron, president of CDC Software. “This company’s solutions are used by some of the world’s leading brands in the high tech, industrial and CPG markets, and their international presence in Europe and Asia would also complement the established infrastructure CDC Software already has in those regions. We also believe this new technology will provide our customers with a 360 degree view of their supply and demand requirements and constraints, as well as the analysis needed to optimize their supply chains.”

This planned acquisition is the latest in several key moves made in recent months by CDC Software to acquire companies that help fill out its technology portfolio or to aid its expansion into new markets and geographic regions. In the last few months, CDC Software has acquired WKD Solutions, a supply chain event management software company, Activplant, a provider of manufacturing intelligence software, Truition, a cloud-based on demand e-Commerce platform provider for retailers and brand manufacturers, and gomembers, a provider of cloud-based software-as-a-service (SaaS) enterprise software for the Not-For-Profit (NFP) and Non-Governmental Organizations (NGO) markets.

The acquisition is subject to several customary closing conditions, including the execution of definitive documentation related to the acquisition, the receipt of all requisite approvals and consents, and the satisfactory completion of due diligence by CDC Software.

About CDC Software

CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a provider of enterprise software applications and services designed to help organizations deliver a superior customer experience, while increasing efficiencies and profitability. CDC Software provides customers with maximum flexibility in their solutions through multiple deployment options which best fit their business needs. Leveraging a service-oriented architecture (SOA), CDC Software offers multiple delivery options for their solutions such as on-premise, cloud-based or hybrid (blending of the two options) deployment offerings. CDC Software’s product suite includes: CDC Factory (manufacturing operations management), Activplant (enterprise manufacturing intelligence), CDC Ross ERP (enterprise resource planning), CDC Supply Chain (supply chain management , warehouse management and order management), CDC xAlerts (real-time supply chain event management), CDC Power (discrete ERP), CDC eCommerce, CDC NFP/NGO, CDC Pivotal CRM and Saratoga CRM (customer relationship management), CDC Respond (customer complaint and feedback management), c360 CRM add-on products, industry solutions and development tools for the Microsoft Dynamics CRM platform, CDC HRM (human resources) and business analytics solutions.

These industry-specific solutions are used by more than 6,000 customers worldwide within the manufacturing, financial services, health care, home building, real estate, wholesale and retail distribution industries. The company completes its offerings with a full continuum of services that span the life cycle of technology and software applications, including implementation, project consulting, technical support and IT consulting. For more information, please visit www.cdcsoftware.com.

About CDC Corporation

The CDC family of companies includes CDC Software (NASDAQ: CDCS) focused on enterprise software applications and services, CDC Global Services focused on IT consulting services, and outsourced R&D and application development, CDC Games focused on online games, and China.com China.com, Inc. (HKGEM:8006) focused on portals for the greater China markets. For more information about CDC Corporation please visit www.cdccorporation.net.

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