Mood:  amorous

By George, she doesn't have it. I dare say we shall needs send her to diction lessons. LOTS of diction. Oh, Emily??

http://www.cdcsoftware.com/news/pr/items/20060306a.aspx

CDC Corporation Issues Clarification to Its Q4 2005 Preliminary Results Announcement

BEIJING and ATLANTA, March 6, 2006—CDC Corporation (NASDAQ: CHINA ; www.cdccorporation.net) today announced that in connection with its strategic review and preparations for Sarbanes Oxley, it had reviewed its expense controls by examining various historical costs incurred by the company. The review process uncovered areas in which recovery actions against former employees may be warranted with an aggregate amount that is not currently expected to exceed US$600,000. This includes a matter involving a former executive officer of CDC Software, Asia Pacific in which the company has filed suit against the former executive in the High Court of Hong Kong for breach of fiduciary duties as a result of alleged conflicts of interest stemming from an arrangement with a third party and failure to comply with the company's travel and expense policies. The former executive has denied the allegations and indicated his intention to defend against the suit. The proceeding is at a preliminary stage and no timetable has yet been set for discovery or trial.

The alleged wrongdoing does not affect the company's previously announced results, and will not impact the 2005 audit or future financial statements. The company has taken corrective action with respect to its expense controls to prevent a reoccurrence of such incidents.

Posted by Portuno Diamo at 3:50 PM EDT

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