NetDragon Invests in Big Data Smart Education Platform - "Eiduo"

HONG KONG,Nov. 14,2018 --NetDragon Websoft Holdings Limited ("NetDragon" or "the Company") (Hong Kong Stock Code: 777),a global leader in building internet communities,is excited to announce its strategic investment in Anhui Xueyun Education Technology Co.,Ltd. ("Xueyun Education").

This extensive collaboration with Xueyun Education adheres to the principles of mutual benefit and win-win. Through the model of big data sharing,combined with the Company's resources such as online learning community and interactive classroom technologies,NetDragon further expands in the education industry and increases its market coverage.

Xueyun Education is a company that promotes education development with artificial intelligence and big data,with currently about 240,000 registered users and over 120,000 monthly active users. Its major product,Eiduo,is a learning platform for K12 teachers,students and parents. It designs customized learning programmes via collection and analysis of students' learning information and pain points through functions such as progress assessment and smart grading,combined with features including smart lesson preparation,precise teaching and performance report. Eiduo allows students to learn effectively,teachers to teach precisely and parents to easily coach.

Through this in-depth cooperation,NetDragon will promote the integration between its flagship lesson preparation and delivery software 101 Education PPT and Xueyun Education's services. At the same time,through the collection and analysis of big data,the two parties will further develop new products and services. With the network resources and technology advantages of Xueyun Education,NetDragon will have access to more user traffic,education resources and accurate student data analysis,in order to create more effective teaching and value-added products for teachers to improve teaching efficiency.

Ben Yam,Chief Financial Officer of NetDragon,commented,"NetDragon is committed to creating a new pattern for the education sector,via integrating elements such as hardware,software and online communities,to create a seamless education platform for students covering pre-class,in-class and after-class learning environments. Following our successful acquisition of Edmodo,the world's largest online learning community,in May 2018,we continue to deploy on areas like online education services and big data. Seeing Xueyun Education's advantage in education big data,this investment will create synergy with NetDragon's current products including 101 Education PPT and Edmodo,while optimizing NetDragon's monetization model. Leveraging the three smart value-added products that will be launched by Eiduo,including DuoFenBao (student performance analysis reports),DuoFenCe (tailor-made exercises) and DuoFenKeTang (personalized live lessons),we will be able to obtain more student performance data and to provide targeted services to teachers,students and parents,while further enhancing our profitability."

Zhang Yuanping,Chairman and General Manager of Xueyun Education,"I'm very pleased to receive the investment from NetDragon. Combining with NetDragon's overall product strategy and the two parties' channels,we are confident that we will cover 20-40% of K12 schools nationwide and 20 million online student users in 3-5 years."

About NetDragon Websoft Holdings Limited

NetDragon Websoft Holdings Limited (HKSE: 0777) is a global leader in building internet communities. Established in 1999,NetDragon is a vertically integrated,cutting-edge R&D powerhouse with a highly successful track record which includes the development of flagship MMORPGs including Eudemons Online,Heroes Evolved (formerly known as Calibur of Spirit) and Conquer Online. The company also established China's number one online gaming portal,17173.com,and China's most influential smartphone app store platform,91 Wireless,which was sold to Baidu in 2013 in what was at the time the largest Internet M&A transaction in China. Being China's pioneer in overseas expansion,NetDragon also directly operates a number of game titles in over 10 languages internationally since 2003. In recent years,NetDragon has emerged as a major player in the global online and mobile learning space as it works to leverage its mobile Internet technologies and operational know-how to develop a game-changing learning ecosystem. For more information,please visit www.netdragon.com.

About Anhui Xueyun Education Technology Co.,Ltd.

Anhui Xueyun Education Technology Co.,Ltd. is a company that promotes education development with artificial intelligence and big data. Its main product,"Eiduo",is an evaluation and customisation-enabled application system for primary and secondary education in the era of big data via applying artificial intelligence and big data technology to teaching and learning in primary and secondary schools. Through dynamic big data acquisition,it builds a learner-centered academic evaluation system that fully exploits the value of data to help schools improve the accuracy of lesson preparation,teaching and management,as well as the self-learning effectiveness of students.