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Changyou Announces Closing of Initial Public Offering and Underwriters' Exercise of Option to Purchase Additional Shares


Beijing, China, April 8, 2009 – Limited ("Changyou" or the "Company") (NASDAQ: CYOU), a leading online game developer and operator in China, today announced the closing of its initial public offering of a total of 8,625,000 American Depositary Shares ("ADSs") at the public offering price of $16 per share. The offering included a total of 1,125,000 ADSs sold by (Game) Limited ("the selling shareholder"), an indirect wholly-owned subsidiary of Inc. (NASDAQ: SOHU), pursuant to the underwriters' over-allotment option, which was exercised in full.

The Company sold 3,750,000 ADSs and the selling shareholder sold 4,875,000 ADSs, including the over-allotment, in the offering. Proceeds to the Company and the selling shareholder from ADSs sold in the offering are estimated to be approximately $55.8 million and $72.5 million, respectively, for total proceeds of approximately $128.3 million after deducting underwriting discounts and commissions but before deducting offering expenses payable by the Company or the selling shareholder. Inc. now holds approximately 68.5% of the total outstanding equity interest in Changyou and controls approximately 80.8% of the total voting power.

Credit Suisse Securities (USA) LLC and Merrill Lynch & Co. acted as joint book runners, Citigroup Global Markets Inc. acted as senior co-manager, and Susquehanna Financial Group, LLLP acted as co-manager for the offering.

About Changyou Limited ("Changyou") (NASDAQ: CYOU) is a developer and operator of online games in China. Changyou currently operates two MMORPGs, including the in-house developed Tian Long Ba Bu and the licensed Blade Online. Changyou has three pipeline games scheduled to begin open beta testing in 2009 and 2010, including the in-house developed Duke of Mount Deer, as well as the licensed Immortal Faith and Legend of the Ancient World.

For investor and media inquiries, please contact:

In China:
Mr. Yaobin Wang
Investors Relations Manager Limited
Tel: +86 (10) 6272-7777

Mr. Derek Mitchell
Ogilvy Financial, Beijing
Tel: +86 (10) 8520-6284

In the United States:
Mr. Thomas Smith
Ogilvy Financial, New York
Tel: +1 (212) 880-5269