Taomee Announces Special Dividend

SHANGHAI, January 26, 2015 /PRNewswire/ — Taomee Holdings Limited ("Taomee" or the "Company") (NYSE: TAOM), a leading children’s entertainment and media company in China, announced that its Board of Directors declared a special one-time cash dividend of US$0.0325 per ordinary share, or US$0.65 per American Depositary Share ("ADS", each representing 20 ordinary shares).

Holders of the Company’s ordinary shares (including ordinary shares represented by ADSs) at the close of business on February 6, 2015 (the "Record Date") will be entitled to receive the special dividend. JPMorgan Chase Bank, N.A., the depositary for Taomee’s ADS program (the ADS Depositary), expects to pay out dividends to ADS holders on or around February 17, 2015. Dividends to be paid to the Company’s ADS holders through the ADS Depositary will be subject to the terms of the deposit agreement by and among the Company and the ADS Depositary, and the holders and beneficial owners of ADSs issued thereunder, including the fees and expenses payable thereunder.

The total amount of cash to be distributed for the special dividend is expected to be approximately US$24.6 million.

"As we analyze our business plans for the upcoming year, we found we have adequate cash to fund our current and potential plans. As effective stewards of capital for our shareholders, we also recognize the benefits of returning capital to shareholders as a means of maximizing return on equity. Today’s announcement of the US$0.65 per ADS special dividend is our latest effort in doing so. Our strong balance sheet, fiscal prudence and growth opportunities in China’s children entertainment and media industry enable us to provide shareholders with this dividend, while maintaining ample financial and operational flexibility to expand our business," commented Mr. Benson Wang Haibing, co-founder and chief executive officer of Taomee.

As of September 30, 2014, the Company had US$109.0 million in cash and cash equivalents.

About Taomee Holdings Limited

Taomee Holdings Limited ("Taomee" or "the Company") is a leader in China’s children’s entertainment and media. Its award winning content offerings are both engaging and educational, endearing it to children, as well as to parents and teachers. The Company was founded in 2007 with the mission to bring joy and inspiration to children. Its popular character franchises, including SEER and MOLE’S WORLD, are distributed online via virtual worlds, web games and mobile applications, as well as through traditional media, including animated box office films, TV series, books and consumer products, most notably interactive toys and trading cards. Its online community regularly achieves top search ranking in mainland China, Hong Kong and Taiwan. Taomee has been consistently recognized for its leadership and innovative contributions to the children’s market, including accolades from China’s Ministry of Culture and the China Animation Association.

For more information, please visit: http://www.taomee.com/en_taomee.html

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Safe Harbor Statements

This press release contains statements that may constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Among other things, the management’s quotations and outlook information contain forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Potential risks and uncertainties include, but are not limited to: the Company’s business strategies and initiatives as well as business plans; future business development, results of operations and financial condition; expected changes in revenues and certain cost or expense items; expectations with respect to increased revenue growth and the Company’s ability to sustain profitability; the Company’s services and products under development or planning; the Company’s ability to attract users and further enhance the Company’s brand recognition; and trends and competition in the children’s entertainment and media market and industry, including those for online entertainment. Further information regarding these and other risks is included in Taomee’s annual report on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as required under applicable law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, the Company cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

For further information, please contact

Angela Wang
Taomee Holdings Limited
+86-21-61280056 Ext 8651
ir@taomee.com

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