CDC Software Completes Acquisition of a Leading Aged-Care Software Solutions Provider in Asia/Pacific

SHANGHAI, ATLANTA, SYDNEY – 25 January, 2010 — CDC Software Corporation (NASDAQ: CDCS), a global provider of enterprise software applications and services, today announced that it has completed the acquisition of PeoplePoint Software Pty Ltd, a leading Australian-based provider of software solutions and services for the Aged Care Residential, Clinical and Community Services management market.

PeoplePoint was formerly a business of Eclipse Computing, a leading provider of business and industry-specific solutions. This acquisition helps CDC Software solutions expand into the aged care and not-for-profit markets in Australia and New Zealand while offering a platform to accelerate the expansion of PeoplePoint solutions in the fast growing aged care markets in North America and Europe.

CDC Software has a successful track record of integrating software companies like PeoplePoint, driving more cross-sell synergy to its 6,000 customers globally and positioning these businesses for organic growth and profitability. In fact, as previously announced, CDC Software, estimates a 30 percent growth in organic license revenue for its Q4 2009 results, and estimates an increase in Adjusted EBITDA margin to about 27 percent in 2009, an improvement over 2008 and 2007.

PeoplePoint Software delivers integrated and innovative solutions that enable care suppliers to achieve business efficiencies while improving the quality of care for their residents, the elderly and customers. PeoplePoint solutions are used by over 30 customers in Australia that include Hall and Prior, Lend Lease Primelife, and UnitingCare Ageing, to name a few, and has more than 1,500 concurrent users in Australia.

“We are very pleased about acquiring PeoplePoint, since we believe the aged care market is growing globally and we feel this is an ideal time to expand these solutions into the North American and European markets,” said Bruce Cameron, president of CDC Software. “We also believe that this acquisition offers us strong cross-selling opportunities, especially since our Front Office solutions already have installations in PeoplePoint’s key vertical markets of aged care and not for profit, and that it also offers us an opportunity to widely expand our solutions in the Australian and New Zealand markets. From a financial perspective, we believe this acquisition is earnings accretive immediately and fits our strict acquisition criteria. We also believe that PeoplePoint’s products could potentially contribute to our 2010 organic license revenue growth. Already, we have announced that we expect to see an estimated 30 percent increase in organic license revenues in the fourth quarter of 2009. With this solid momentum in organic license revenue and strategic acquisitions like PeoplePoint, we are cautiously optimistic on CDC Software’s long-term prospects for growth.”

“CDC Software offers a compelling platform, with its cost effective product engineering centers in India and China and a worldwide network of direct sales and channel operations, to expand PeoplePoint solutions globally,” said Bradley Stroop, CEO of Eclipse Computing. “We also believe that PeoplePoint customers will benefit immensely from CDC Software’s technology and support operations around the world, as well as the company’s broad portfolio of complementary solutions.”

PeoplePoint’s portfolio of applications include PeoplePoint Clinical Care solution, PeoplePoint Community Services solution, PeoplePoint Retirement Villages and PeoplePoint Residential Management solution that address the full continuum of care and services offered to the senior community and deliver a single health record as a basis for all interactions.

For further information please contact:
Jimmy Hong
CDC Software Australia
(02) 8870 7287
jimmy.hong@cdcsoftware.com.au