Evolution Provides Update on CDC Corporation Matter

   E1 Fund Ltd. ("E1") Evolution CDC SPV Ltd. ("SPV") and Evolution Master Fund Ltd. SPC (together, "Evolution") today announced an update on the dispute with CDC Corporation (NASDAQ: CHINA) in connection with Evolution's pending litigation against CDC to collect in excess of $64 million owed to Evolution under certain 3.75 percent Senior Exchangeable Convertible Notes ("Notes") which Evolution had put back to CDC on November 13, 2009 pursuant to written notice under the terms of the Notes.

Since Evolution's previous press release on November 11, 2010, the following notable events have occurred:

• The Court denied CDC's motion to renew and to reargue the injunction order that Evolution had won enjoining CDC from unilaterally nullifying the covenants in the parties' Note Purchase Agreement during the pendency of the litigation, and from repudiating certain affirmative and negative covenants that CDC owes to Evolution;
• A motion to withdraw filed by CDC's outside counsel citing CDC's failure to pay them as well as "other professional issues" was granted.
• Evolution's motion for discovery sanctions against CDC was granted. The Court ordered that CDC pay Evolution $50,000 as a sanction and the Court also struck CDC's defenses that Evolution was responsible for the withdrawal of the CDC Software IPO and CDC Games IPO.
• CDC filed an offer to compromise with the Court offering Evolution a structured payment of $41,225,000 for its Notes, or par value, payable in 2011 and 2012. Evolution rejected this offer given that the amount currently owed is over $64 million including interest and costs.

While none of these developments is a final determination of its claims, Evolution is pleased with the progress of the case and looks forward to adjudicating its rights. Evolution intends to continue to pursue this action until CDC pays Evolution. Even though the litigation has had the effect of delaying payment to Evolution, interest continues to accrue, and regardless of the litigation and the position of the parties with respect to Evolution's put, the maturity date for the Notes by their terms is fast approaching on November 13, 2011.

A full copy of the rulings and filings of the case are publicly available at http://iapps.courts.state.ny.us/webcivil/FCASSearch.

About Evolution

Evolution is managed by Evolution Capital Management LLC ("ECM"), a global investment firm specializing in asset management, market-making and enterprise financial software that was founded in 2002 to focus on global investment opportunities. ECM manages and trades portfolios across several fund products that primarily focus on equity and equity derivative trading strategies in Asia. ECM has made substantial investments in infrastructure and technology to support first class functions in operations, risk management and trading.