CDC Software Acquires computility, a Cloud-Based SaaS Solution To Be Added To Its CDC gomembers platform for the Not-for Profit Market

SYDNEY, SHANGHAI, ATLANTA -24 February 2010 - CDC Software Corporation (NASDAQ: CDCS), a global provider of enterprise software applications and services, today announced it completed the acquisition of computility, a software as a service (SaaS) web-based association and membership management software solution, from privately held Alliance Technologies Inc., as part of its previously announced strategy to expand CDC Software’s offerings in the growing on-demand software market.

The computility solution will be integrated into the CDC gomembers enterprise product line and will add new functionality to that platform with an association management software solution featuring integrated web modules and web collaboration tools for Not-For-Profit (NFP) organisations. This solution, used by more than 100 NFP customers throughout the U.S., automates processes including membership, events services, communications and financials.

CDC Software acquired gomembers at the end of 2009 and offers SaaS and on-premise enterprise solutions for Not-For-Profit and Non-Governmental Organisations (NGO) market. The CDC gomembers platform is at the center of CDC Software’s strategy to acquire complimentary SaaS solutions targeting the NFP and NGO market. CDC Software also offers comprehensive on-premise and SaaS solutions for manufacturing, distribution, and retail industries including eCommerce, enterprise resource planning (ERP), supply chain management (SCM), customer relationship management (CRM).

“We are extremely excited to complete the acquisition of computility,” said Paul Plaia III, president of CDC gomembers. “It will add additional web functionality to the CDC gomembers solution and we believe it will provide one of the leading on-demand solutions for NFP organisations. We plan to continue acquiring more companies like these as we build scale and expand globally in the key NFP/NGO vertical market. We are also very delighted to welcome the computility customers and professional staff to the CDC Software family.”

According to Bruce Cameron, president of CDC Software, “The computility acquisition fits strategically, as well as meets our disciplined acquisition criteria. CDC Software is committed to expanding our SaaS solutions for NFP/NGO market and our eCommerce offerings in the growing Cloud computing space. Our corporate goal is to grow our recurring SaaS revenue stream, along with sticky maintenance revenue from our on-premise customers, to about 70 percent of our total revenueover next few years.Therefore, we plan to continue to make more investments in the SaaS market to further expand our solution offering in this growing market.”

CDC Software’s software as a service and on-demand expansion strategy is centered around several recent acquisitions: CDC gomembers, a provider of SaaS enterprise solutions for the NFP and NGO market and CDC Truition eCommerce, an on demand e-Commerce platform for retailers and brand manufacturers. These acquisitions, as well as past ones, are also part of CDC Software’s “acquire, integrate, innovate and grow” strategy. This corporate strategy is fueled by its global scalable business and technology infrastructure that includes multiple complementary applications and services, domain expertise in vertical markets, cost effective solution engineering centers in India and China and a worldwide network of direct sales and channel operations. By leveraging this global infrastructure, CDC Software has achieved a successful track record of integrating software companies that typically match a subscale profile and fit synergistically as well as add new functionality within CDC Software’s strategic product roadmap. CDC Software’s business and technology infrastructure also help integrate its acquisitions by driving more cross-sell synergy to its 6,000 customers globally, eliminating redundant expenses, streamlining efficiencies and positioning these businesses for organic growth and profitability.

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