HONG KONG - September 4, 2007 - Kingdee International Software Group today announced that it has sealed a joint venture agreement with Ygl Convergence Berhad, to expand Kingdee's K/3 ERP system in Southeast Asian markets. This foray into Southeast Asia comes soon after IBM and Lehman Brothers increase their stake in Kingdee International Software Group to become Kingdee's shareholder, and provides strong ammunition to Kingdee to extend its leadership position internationally.

Under the terms of agreement, the two companies will jointly set up Kingdee Southeast Asia Software Group Sdn Bhd in Malaysia to promote, market and distribute Kingdee K/3 ERP solution for Small- and Medium-sized companies in Southeast Asia. In addition, the Joint Venture will also be involved in the development, production and sales of K/3 ERP including pre and post sales and technical support. Since the inauguration of the company, Kingdee Southeast Asia Software Group has already gained more than 10 customers in the region. Currently, Ygl has strong market coverage in Southeast Asia and will be continue to ramp up sales for Kingdee as part of its sales strategy.

This milestone by Kingdee paves the way for the company to expand in Southeast Asia and internationally.

"By collaborating with Ygl, a market leader in IT solutions in Malaysia, Singapore and Thailand, Kingdee has gained a robust foundation in Southeast Asia's IT market to combat rising competition globally. Kingdee Southeast Asia Software Group will aggressively pursue localization plans and build systematic distribution partnerships in the Southeast Asia region, thus strengthening Kingdee's footing in the market and becoming the market leader in the industry in Asia Pacific," remarks Robert Xu, Chairman, Kingdee Software International.

Zeng Liang, Vice President and General Manager of Asia Pacific, Kingdee Software International added that the joint venture would accelerate Kingdee's penetration into Southeast Asia market. "Kindgee has already started dealing with customers in Malaysia, Singapore and Indonesia. With this JV, SMEs in Southeast Asia will be able to obtain higher quality localized enterprise management and e-Business applications to propel them to compete more effectively in the global business world."

"It is indeed a feather in our cap to be selected by Kingdee, one of Asia Pacific's premier software companies to be its partner in Southeast Asia. Kingdee has over 400,000 customers in China, Hong Kong and the rest of Asia. Their proven track record has given Ygl a strong business edge to expand the business with Kingdee in Southeast Asia within a short period of time. "states Yeap Kong Chean, Chief Executive Officer, Ygl Convergence Berhad.

About Ygl Convergence Berhad
Ygl is listed on the Mesdaq Market of Bursa Malaysia. With a market capitalisation of approximately RM97 million, Ygl is one of the largest enterprise solution providers in Asia with more than 600 tier 1 and tier 2 customers across the Asia region. Ygl is represented in five countries, namely Malaysia, Singapore, Thailand, Hong Kong and China.

Ygl comprises two synergistic divisions, namely ERP consulting and business software development. Software development is undertaken by the wholly owned MSC status subsidiary company, Ygl Multimedia Resources Sdn Bhd. The consulting division partner world class principals in implementing and supporting world class solutions to customers across Asia. Ygl customers range from government to multinational, listed and small and medium enterprises. As at 31 December 2006, the issued and paid-up share capital of Ygl Group was RM6.68 million comprising 66.8 million ordinary share of RM0.10 each. Based on the audited financial statements of Ygl Group as at 31 December 2006, the group's revenue and profit after taxation amounted to RM10.90 million and RM3.05 million respectively.