NetEase.com, Inc. (Nasdaq: NTES), one of China's leading Internet and online game services providers, today announced its unaudited financial results for the third quarter ended September 30, 2010.

William Ding, Chief Executive Officer and Director of NetEase, stated, "As a result of large-scale sales promotional and branding activities starting since the second quarter of 2010, Fantasy Westward Journey broke another record for peak concurrent users on July 4，2010. Fantasy Westward Journey's strong performance was the leading catalyst for our third quarter online game revenue growth of 6% quarter-over-quarter. This game continues to rank as one of the most popular massively multiplayer online games ever in the Chinese market. In addition to Fantasy Westward Journey, our year-over-year online games revenue growth of over 60% was primarily driven by World of Warcraft, a game licensed from Blizzard Entertainment, Heroes of Tang Dynasty and Tianxia II."

"Turning to our game expansion and development pipeline during the third quarter of 2010, expansion packs for Westward Journey Online II and III were released in August and September, respectively, and Secret of Dream Dragon, an expansion pack for Tianxia II, was launched in conjunction with the game's one year commercial anniversary on September 28. As a follow up to the success of Heroes of Tang Dynasty, we are working on expanding our 2.5D game market share with new games under development including Ghost which entered closed beta testing on July 22, 2010 and started to generate revenue during the third quarter. At the moment, we expect that the next expansion pack for Fantasy Westward Journey will be released in the first quarter of 2011."

"The World of Warcraft expansion pack Wrath of the Lich King was released in China on August 31, 2010 to tremendous player enthusiasm. World of Warcraft is a world-renowned massively-multiplayer online role-playing game, and with NetEase's strong regional promotional and sales support, we are optimistic about its continued growth opportunity throughout China."

"Advertising services revenue increased 11% quarter-over-quarter and 88% year-over-year for the third quarter of 2010," Mr. Ding continued. "These strong growth rates reflected our sponsorship and promotional activities supporting The 16th Asian Games in Guangzhou along with a seasonal upturn in advertising activity in the third quarter of 2010. Our continued investment and integration of technology, channels and products has brought about further improvement in our user traffic statistics, which we believe has attracted advertisers' attention and has been driving increasing demand for our advertising services. Email and mobile internet services each performed well during the third quarter, and we added important functionality to our micro-blog service. We are pleased to report a 40% increase in portal traffic year-to-date which has bolstered both our portal ranking and advertising returns on investment. Overall, the third quarter of 2010 marked another consecutively strong quarter of growth and innovation in our portal business."

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