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Many people have been addicted to internet and game. The addiction has aroused great concern from the public and specialists. In this paper we measure the psychological state of internet addicts by some famous mental scales, and investigate their life qualities by some questionnaires. When we get basic data we make some basic statistical analysis, and use structural equations model (SEM) to analyze the relationship between the psychological health and life qualities of internet addicts. By means of SEM we discovered some interesting results. Meanwhile, we offer a new algorithm of SEM which is useful for psychological analysis.