Cheetah Mobile, Tencent Announce Supplemental Agreement, Increasing Annual Cap for Promotional Services Fees Payable to Cheetah

Cheetah Mobile Inc.

today announced it has entered into a supplemental agreement with Shenzhen Tencent Computer Systems Company Limited ("Tencent Shenzhen"), a subsidiary of Tencent Holdings Limited

, which increases the annual cap for promotional services fees payable by Tencent and its subsidiaries and associates to Cheetah Mobile for the year ending  December 31, 2015. For the first nine months of 2015, the historical transaction amount for the promotion services fees payable by Tencent to Cheetah Mobile was RMB211 million.  As demand for Cheetah Mobile's mobile advertising services on the Tencent Guang Dian Tong ("GDT") advertising platform continues to grow, it is expected that the promotion service fees payable by Tencent to Cheetah Mobile will increase accordingly. Under the new supplemental agreement, the annual cap for the year ending December 31, 2015 has further increased from RMB250 million to RMB340 million. Aside from the aforementioned revision, all existing terms and conditions under the original Strategic Cooperation Agreement (as described in "Background Information"