Changyou.com (NASDAQ: CYOU) is a leading developer and operator of online games in China. We began operations in 2003 as Sohu.com’s massively multi-player online games (“MMORPG”) business unit, before our carve-out as a separate, stand-alone company in December 2007 and subsequent listing on the NASDAQ Global Select Market in April 2009. We now operate one of the most popular MMORPGs in China, and have enjoyed strong growth in user data and revenues for our games.

We have a leading in-house technology platform that includes our advanced 2.5D graphics engine, a uniform game development platform, effective anti-cheating and anti-hacking technologies, proprietary cross-networking technology and advanced data protection technology. Our product development team and game operations team work closely together to translate game player feedback into game updates and expansion packs on a timely basis. In addition, our close relationship with Sohu provides us with unique competitive advantages including strategic guidance, pre-launch game reviews, marketing and operational support and access to over 250 million registered users on Sohu’s portal.

Our award-winning, in-house developed game, Tian Long Ba Bu, or TLBB, has been instrumental in our success. Adapted from the popular Chinese martial arts novel by the same name, which in English means “Novel of Eight Demigods,” TLBB is a 2.5D martial arts-style fighting and community-building MMORPG. In 2007, TLBB was ranked by International Data Corporation, or IDC, as the third-most popular online game in China and second-most popular in China among locally-developed online games. By collecting feedback from our game players and issuing timely game updates and expansion packs, we continue to capture additional users while driving revenue growth.

We currently have three new games in the pipeline: Duke of Mount Deer, an in-house developed 2.5D MMORPG, which received an award as one of China’s most anticipated online games; Immortal Faith, a licensed 2D MMORPG set against the backdrop of a number of ancient Chinese myths and folklore with game-play emphasizing player vs. player competition; and Legend of the Ancient World, a licensed 2.5D MMORPG set in ancient China at the beginning of Chinese civilization and combining martial arts and fantasy game-play.