Jun Tang: Our strategy is to have more diversified games including broad-based type of games. For example, over the last 12 months, we probably will have more than 10 games, and it''s difficult to have each of them be successful, but we believe it''s more difficult to have none of them be successful. That''s our strategy. That''s why I try to maintain our revenue very stable. Our whole strategy is to try to reduce that to be a more stabilized business model which is stable diversification strategy. We generally do not publicly have the particular numbers for each of the games but again, due to the fact that we have over 15 games in our operation each of the games will contribute. Some of them may probably be a very high contribution, but some of them may not be that high but again, we are moving to a very healthy diversification of our games.

Andrey Glukhov (Brean Murray, Carret): Could you discuss the timing of Changchun, which is your biggest title for the year? When do you expect to commercialize it?

Jun Tang: We had a closed beta testing, we attracted over 600,000 applicants for only 10,000 accounts and the feedback was extremely positive. We are working to tune the game a little bit more and we hope we can have our open beta testing or commercializing in the next quarter or so. That''s our plan.

Tony Gikas (Piper Jaffray): Of the 20 games that you have in the pipeline, could you characterize how many of those will be licensed properties? How many of those will be developed internally by your development studios?

Jun Tang: In upcoming games, we have eight MMORPG games and four of them will be internally developed games including the majority ownership of the Actoz, which are half of them and half of them will be licensed. If you look, our existing titles we''re operating and the numbers involved are the same. Half of them are licensed and half of them are internally developed, and that''s our strategy. Our strategy is to have two pipelines; one is internally developed and one is licensed and we try to balance in terms of the total numbers.

Tony Gikas (Piper Jaffray): Could you give an update on the tax rate that we should using for 2008?

Grace Wu: No, the new income tax law just got announced late last year and there was a subsequent explanation announced in early January. Again, before it gives detailed rules about how to apply and the procedures for the new tax preferential treatment, there is a statutory tax rate of 25%. However, based on our own assessment, we believe that there is a very good likelihood we can still enjoy certain preferential treatment from the tax authorities. Currently our estimated tax rate for 2008 would be somewhere between 18% and 25%.

Alicia Yap (Citigroup): On the overall industry, do you think that some of the winners may take shares from some of the losers or do you think the market is expanding?

Grace Wu: The very impressive performance by all the industry during the fourth quarter of 2007, it''s very solid evidence to tell people how large the growth potential is for the whole industry. We never believed that it had to be a very highly competitive or very secular environment. We believe there is robust potential out there for every industry player to find it''s own position and excel. Everyone should work together to enlarge the industry and help the industry to have healthy growth. That''s how we see this industry and that''s how we position ourselves as the leader in this industry.

Alicia Yap (Citigroup): For your longer-term plan, we heard that you might be interested in getting back to a set-top box strategy, similar to the EZ box strategy some time ago. Can you comment whether you are still moving in that direction or whether you are still focusing more on the games?

Jun Tang: Our 3C strategy covers a lot of things. We try to make our entertainment content pushable to the PC, over the wireless sets and also the home set. We try to pick on these type of things and we never gave up on any of them and we will continue to pursue that opportunity if the time and everything is ready.

Paul Cheung (Oppenheimer): How big is your sales and marketing force and how big is your R&D team?

Jun Tang: We currently have about 700 people, including the top sales and the R&D people.

Paul Cheung (Oppenheimer): How big is the customer service people team?

Jun Tang: We have around 300 customer service people based in Shanghai. Also we have a couple of hundred in other locations.

Paul Cheung (Oppenheimer): How fast do you think you''re going to be expanding these teams, both R&D and the sales force in 2008?

Jun Tang: We are having several in-house developed games and we don''t expect to have dramatic growth in terms of headcount. We may increase a little in this area but not in terms of the headcount itself, both R&D, sales and marketing and also customer service. The headcount virtually will be flat.

Paul Cheung (Oppenheimer): The casual games sector rose fast now. Do you think the casual game will grow faster in terms of revenue contribution than MMORPGs?

Jun Tang: If you look back at the last few quarters, casual games is a very seasonally factored type of a game. If you look at Q3, it was particularly strong and the other quarters may not be as strong as Q3. But seasonally, sometimes it will go faster than MMO, sometimes it will probably be lower than MMO but in general we think the growth rate should be similar to our overall revenue growth.

Paul Cheung (Oppenheimer): What''s the percentage of revenue is contributed by casual games now?