CMGE Announces Receipt of a Preliminary Non-Binding Proposal to Acquire the Company

China Mobile Games and Entertainment Group Limited ("CMGE" or the "Company")

, the largest publisher and a leading developer of mobile games in China, today announced that its Board of Directors (the "Board") has received a preliminary non-binding proposal from Orient Hongtai (Beijing) Investment Management Co., Ltd. ("Orient Investment"), a subsidiary of Orient Securities Company Limited ("Orient Hongtai"), to acquire all of the outstanding shares of the Company, including ordinary shares represented by American depositary shares (the "ADSs"), for $1.5357 in cash per Class A or Class B ordinary share, or $21.5 in cash per ADS. A copy of the proposal letter is attached hereto as Exhibit A. Orient Investment has separately indicated to the Company that it has secured committed equity financing from certain of its affiliates and co-investors in an aggregate amount of RMB5 billion. The proposal letter did not state any information pertaining to Orient Hongtai's or Orient Investment's current ownership of the Company's ordinary shares or ADSs. The Company is not aware through public filings or other documents that Orient Hongtai or Orient Investment may beneficially own 5% or more of the Company's ordinary shares. In addition, no members of the Board are affiliates of Orient Hongtai or Orient Investment. The Company has retained Kirkland & Ellis to act as its U.S. counsel and expects to engage a financial advisor to assist it in its review and evaluation of the proposal. The Company cautions its shareholders and others considering trading its securities that the Board has just received the proposal letter and has not had an opportunity to carefully review and evaluate the proposal yet, nor has the Board made any decision with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.