Intel Capital Signs US$40m Investment Agreement with Neusoft

Investment is expected to leverage cooperation in solutions, community & home medical products, embedded systems, and IT training

Shanghai, September 26, 2006-The global IT leader, Intel Corporation, signed an investment agreement today with Neusoft Group Ltd., a leading Chinese software and solutions provider, by which Intel Capital, Intel s venture investment arm, has agreed to invest US$40 million in Neusoft from the Intel Capital China Technology Fund, subject to regulatory approvals and other customary conditions. This investment will be the largest to date by the Fund. Neusoft and Intel also announced signing of a business cooperation agreement to further strengthen their strategic cooperation in solutions, community & home medical products, embedded systems, and IT training. The signing ceremony was witnessed by Ms. Renee James, Intel Corporation Vice President and General Manager, Software and Solutions Group, Dr. Liu Jiren, Chairman & CEO of Neusoft Group Ltd., as well as other executives of both sides.

Under the terms of the business cooperation agreement, both Intel and Neusoft will streamline and leverage their respective advantages and resources to promote the development and innovation of solutions, community & home medical products, embedded systems, and IT training in China. Neusoft will establish a Solution Performance Optimization Competency Center based on Intel architecture and platform for solutions porting, optimizations, new solution showcase, proof of concepts for enhancing customer experience and satisfactions on its solutions performance.

The customer experience center will be managed by Neusoft with its rich experience and technical advantages in informatization and customer s key operation integration capability in a wide range of industries. Intel will contribute expertise, software development tools, and the Intel performance optimization methodology. Besides, the cooperation also includes design and development of community & home medical/healthcare products.

Meanwhile, the Neusoft Institute of Information (NII) will co-develop with Intel an interactive education and practical certification training program with universities, and establish a technology development center with enterprises to push the adoption and popularity of Intel technology and platform.

These collaborations will enable Neusoft to cultivate technical professionals who can master the Intel open architecture technologies and tools for software and solutions development and accelerate the growth of China s home appliance industry and medical consumables market by supplying a large number of talents in demand.

Neusoft and Intel have been maintaining very close business relations, said Dr. Liu Jiren, Chairman and CEO of Neusoft Group, This cooperation will further strengthen our strategic relationship with Intel, showing our common confidence in continued cooperation for a win-win future. Neusoft has gained many technologies and experience in software solutions and digital health through innovation in the past years and obtains a leader position in the market.

The cooperation with Intel will also help Neusoft to enhance the self innovation capability of Neusoft products and solutions. It will enable Neusoft to provide better products and solutions in line with international norms for customers and drive the development of the Chinese IT software industry.

Mr. Arvind Sodhani, President of Intel Capital, stated: The investment in Neusoft, the largest to date by the Intel Capital China Technology Fund, demonstrates our continuing efforts to encourage entrepreneurship and technical capabilities in China. Mr. Sodhani continued: Intel Capital's investments combined with our active company building efforts will foster the growth
and competitiveness of Chinese technology companies both at home and around the world. We remain committed to fostering the growth of high technology in China.

The cooperation with Neusoft marks a further step in Intel s on-going commitment to the development of China s software industry around Intel architectures, says Ms. Renee James, Intel Corporate Vice President and General Manager, Software and Solutions Group. This collaboration will enhance the core technology and market development capabilities of domestic software enterprises. We expect our cooperation and technical support of local software enterprises to shorten R&D cycles and inspire software and solution innovations based on Intel's newest Core microarchitecture. Through the strategic cooperation with Neusoft, enterprises can enjoy the best performance of localized software and solutions running across Intel s platforms.

About Neusoft
Neusoft Group is a leading software and solution provider in China. Founded in 1991, Neusoft has three inter-promoting business units that are engaged respectively in software & services, medical systems and IT education & training, supported by a total staff of over 10,000. In addition, the Company has set up software parks in Shenyang, Dalian, Chengdu and Nanhai for further R&D and HR reserves. After successfully constructing a complete sales & service network covering over forty cities around China, it has further extended its branches to the US and Japan. At present, Neusoft offers products and services to over 8,000 large customers, maintaining leading market shares in telecommunications, social insurance, enterprises, electric power, tobacco, network security and other sectors. It is also China s largest offshore software outsourcing service provider. For more information, please visit http://www.neusoft.com.

About Intel
Intel is the world's largest chip maker, also a leading manufacturer of computer, networking and communications products. It is dedicated to constantly pushing the boundaries of innovation in order to make people's lives more exciting, more fulfilling, and easier to manage. For more information, please visit http://www.intel.com/pressroom.

About Intel Capital
Intel Capital, Intel's venture capital organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software and services targeting enterprise, home, mobility, health, consumer Internet and semiconductor manufacturing. Since 1991, Intel Capital has invested more than US$4 billion in more than 1,000 companies spanning more than 30 countries. During this time, about 160 portfolio companies have been acquired and another 150 have gone public on exchanges around the world. In 2005, Intel Capital invested about US$265 million in about 140 deals with approximately 60 percent of funds invested outside the United States. For more information on Intel Capital and its differentiated advantages, please visit www.intelcapital.com.

About Intel s Software and Solutions Group (SSG)
Intel s Software and Solutions Group (SSG) offers expertise, software products, professional services, and other resources to global application & OS developers, OEM manufactures, and system integrators for enhanced competitive divergence and more customer value. SSG delivers a wide range of support to various industries, including programs, services, expertise, and resources. It also encourages innovation among developer communities. For more information, please visit http://www.intel.com/go/software.

For more information, please contact:

Neusoft Group Ltd.
Evelyn Tang, PR Dept., BCC, Neusoft Group Ltd.
Tel: 024-83665663
Fax: 024-83663451
Email: tangyi@neusoft.com

Intel China Ltd.
Issac Huang, Marketing Communications Dep.
Tel: 010-85298800*6211
E-mail: issacx.huang@intel.com