Commercial Launch of Chinese Tournament Product

Launch marks the largest P2P prize tournaments to be held in China

(27 Sept 2007 – Hong Kong) — C Y Foundation  (SEHK: 1182), the interactive media entertainment company focused on providing quality entertainment across China, is delighted to announce the commercial launch of its Peer to Peer (P2P) card tournament product following a number of successful beta testing tournaments organised throughout China over the past few months.

The official commercial launch will be showcased through a “Mega” tournament to be launched on 16th October 2007 in Wuxi City, Zhejiang province. This is a Doudizhu tournament with a total guaranteed prize package of no less than RMB 1.0 million – the largest prize ever for a Doudizhu tournament. The Mega tournament will run from 16th October until the end of April culminating in a national final to be held in Shanghai at Enternet, C Y Foundation’s newly opened flagship entertainment center.

The tournament will be held on China Youth Electronic Tournaments (CYET), C Y Foundation’s proprietary tournament platform.  CYET is a long-term brand to promote instructive electronic tournaments across China.  C Y Foundation has continued to work alongside the Network Movie Center of the CYL throughout the planning stages of the Mega tournament.  Mr. Cao Dong Xin, Director of Network Movie Center commented:

“We have worked closely with C Y Foundation Culture Company Limited to come up with the best tournament plan featuring healthy network gaming products.  We strongly believe that this will help create a better internet culture and improve the electronic tournament level for China’s young online game players.”  The official launch of this tournament is supported by the “China Youth Green Internet Movement” committee which was jointly developed by fourteen China government ministries and commissions. 

Once opened nationally the Doudizhu tournament will take place through a total network of 2,000 internet cafes, consisting of C Y Foundation’s existing network of nearly 500 internet cafes, the Communist Youth League’s network of 1,000 internet cafes and the T-Matrix network of 1,000 cafes, which is a fully owned subsidiary of C Y Foundation. This combined network is situated across China and it is expected that a minimum of 100,000 players will participate in this tournament. 

Teddy Cheng, Executive Chairman of C Y Foundation, commenting on the launch, said

“The commercial launch of our P2P online tournaments is a landmark moment for C Y Foundation. Our extensive beta testing throughout China has been an outstanding success and we are now in a position to start the rollout of our internet cafe network in earnest. We look forward to using the Mega tournaments as a springboard for accelerating the plans of the company over the next six to nine months.  As the player network rapidly grows, we are confident that the number of daily tournaments will increase and the frequency of the Mega tournaments will accelerate.”

Sam Woelm, Chief Executive Officer of C Y Foundation added:

“The Mega tournament is the culmination of months of hard work and preparation coming together - the acquisition of T-Matrix, the installation of our technical network, the beta tests, the development of our tournament management team and the attainment of official software approval and Network Movie Center tournament authorization. This provides us with a solid base on which to build and we look forward to aggressively expand our player base over the next few months.”

For more information:

Strategic Financial Relations Limited

Esther Chan
Tel: (852) 2864 4825 
Email: esther.chan@sprg.com.hk

Mandy Go 
Tel: (852) 2864 4812 
Email: mandy.go@sprg.com.hk

Shelby Lai 
Tel: (852) 2114 4956 
Email: shelby.lai@sprg.com.hk

Fax:(852) 2804 2789 / (852) 2527 1196