and

and

welcome you to our webcast:

Riding the Chinese M&A wave in the U.S.

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Introduction

Moderator:

Mary Kathleen Flynn Senior Editor/Video ProducerThe Deal LLC

REMINDER: Listeners will be in listen-only mode. We encourage you to e-mail questions via the Q&A panel box

to the right of your screen. Select questions will be answered during the last 10 minutes of the program.

We will be providing several poll questions throughout the discussion. These questions will also appear in a panel

box on the right of your screen.

If you are having technical difficulties, please call customer support at 866-229-3239.

Monish Bahl Senior Vice President,

Business Development and M&A

CDC Corp.

Lance GillilandManaging Director

Tudor, Pickering, Holt, & Co.

EXPERT PANEL

Gene RamirezManaging Director

Morgan Joseph TriArtisan Inc.

Charles ComeyPartner

Morrison & Foerster LLP

Todson Page Transaction Services Partner

PricewaterhouseCoopers

EXPERT PANEL

• China’s annual real GDP growth has averaged 9.9% from 1980 t0 2010, triple the worldwide rate of 3.3%

• The Chinese government has supported outbound M&A. The China Development Bank, for example, has loaned $30 billion to state-owned China National Petroleum Corp. for

more overseas M&A in energy resources

Source: Robert W. Baird Co.

What conditions are currently encouraging Chinese-based companies to pursue U.S. assets?

11

19

12 11

18

8

2006 2007 2008 2009 2010 Q1 11

VVolume trendsCChina into U.S. - No. of deals

$1,609

$10,390

$1,189

$4,411 $4,402

$2,804

2006 2007 2008 2009 2010 Q1 11

VValue trendsCChina into U.S. - $ in millions

Values are stabilizing, with technology and energy sectors leading the way

Financials11%

High Technology

33%

Consumer Products

6%

Energy and Power22%

Industrials6%

Materials17%

Healthcare6%

2010

Financials12%

High Technology

37%

Consumer Products

6%

Energy and Power38% Q1 ‘11

SSource: Thomson Reuters 4/15/2011

The coveted targeted sectors: Energy and tech

• Computers and electronics has been the leading outbound target sector over the past 10 years. Lenovo acquired IBM’s personal-computer business for $1.75 billion in ’04.

• U.S. companies have become the most frequent targets by Chinese firms. Firms headquartered in the U.S. have accounted for 18% of outbound targets since 2001.

Source: Robert W. Baird Co.

What do you believe is the biggest factor driving increased Chinese M&A activity in the

U.S.?

AUDIENCE SURVEY QUESTION:

A. Strength of the Chinese yuan vs. U.S. dollarB. Strengthening of global economyC. Increased demand in China for U.S. products and services

D. Political and financial instability in other global economies

E. Other

SELECT RECENT CHINESE ACQUISITIONS IN THE U.S.

Buyer Target Date Amount

AVIC Automobile Industry Holding Co. Ltd. China-based auto manufacturer

51% of Nexteer Automotive

U.S.- based automobile manufacturer

April 9, 2011 $229.5 million

Aviation Industry Corp.

Cirrus IndustriesU.S. aircraft maker

Feb. 28, 2011 $210 million

Tencent Holdings Ltd.

Riot Game Inc.Los Angeles-based online game developer

Feb. 4, 2011 $350 million

Cnooc International Ltd.

33.3% stake of Denver-Julesburg and Powder River Basins project

Jan. 30, 2011 $570 million

Source: Morgan Joseph TriArtisan LLC

SELECT RECENT CHINESE ACQUISITIONS IN THE U.S.

Buyer Target Date Amount

Industrial and Commercial Bank of China Ltd.

80% stake in Bank of East Asia National Association

Jan. 23, 2011 $140 million

LDK Solar Co. Ltd. 71.83% stake in Solar Power Inc.

California-based solar company

Jan. 6, 2010 $35 million

China Huaneng Group

InterGen NV

U.S.- based provider of power generation and fuel management services

Nov. 28, 2010 $1.23 billion

Source: Morgan Joseph TriArtisan LLC

Challenges for China-based acquirers in the U.S.

Deal structure trends of Chinese acquirers: Minority stakes and joint

ventures

What effect do you believe increased Chinese M&A activity will have on the pricing of U.S.

acquisition targets?A. Greatly increased prices

B. Somewhat increased prices

C. None

D. Somewhat decreased prices

E. Greatly decreased prices

AUDIENCE SURVEY QUESTION:

Attributes Chinese-based acquirers bring to table besides capital

The effects of turmoil in the Middle East and nuclear crisis in Japan on Chinese acquirers in the

U.S.

Closing remarks:Outlook for Chinese acquirers in

the U.S.

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•thank you for joining our webcast

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