Editorial Summary

Shanda Interactive Entertainment Ltd. (Nasdaq: SNDA) announced the establishment of Shanda Literature Limited, its third business unit, after market close on Thursday. Shanda Literature currently operates Qidian.com, boasting over 20 million registered accounts and daily traffic of 220 million page views, Hongxiu.com, with 1.8 million registered users, and female-targeted Jjwxc.com, with 700,000 registered accounts.

Shanda Literature will focus on the publication of original user-generated literature with Hou Xiaoqiang as CEO, Wu Wenhui as president, and Shang Xuesong, Sun Peng, and Liu Xudong as vice presidents. Hou Xiaoqiang joins Shanda from Sina (Nasdaq: SINA) where he served as deputy editor-in-chief in charge of Sina's blog, video, reading and female channels, reports Sohu. Hou was named deputy editor-in-chief in 2004 after being recruited by Sina in 2001. Wu Wenhui is the founder of Qidian.com, according to the Sohu report.

Shanda CEO Chen Tianqiao said the company expects to draw story lines from user-generated literary works to develop new online games. Based on a novel originally published on Qidian.com, Shanda's 3D MMORPG "Gui Chui Deng Online" began alpha testing on June 18. Shanda acquired Jjwxc.com and Hongxiu.com in August, 2007 and March, 2008, respectively. Shanda took over Qidian.com in October, 2004.