Sohu.com Inc. (NASDAQ: SOHU) is China's premier online brand and indispensable to the daily life of millions of Chinese, providing a network of web properties and community based/web 2.0 products which offer the vast Sohu user community a broad array of choices regarding information, entertainment and communication.

Sohu has built one of the most comprehensive matrices of Chinese language web properties and proprietary search engines, consisting of:
? www.sohu.com, the mass portal and leading online media destination;
? www.sogou.com, an interactive search engine with over 2.5 billion retrieved Chinese web pages;
? www.chinaren.com, the #1 online alumni club;
? www.focus.cn, a top real estate and home furnishing website;
? www.17173.com, the #1 games information portal;
? www.goodfeel.com.cn, a wireless value-added services provider; and
? www.go2map.com, a leading online mapping service provider.

Sohu corporate services consist of brand advertising on its matrix of websites as well as paid listing and bid listing on its in-house developed search directory and engines. Sohu also offers three types of consumer services. Sohu offers wireless value-added services such as news, information, music, ringtone and picture content sent over mobile phones. The company also operates two massively multi-player online role-playing games as well as a casual game platform, and manages an e-commerce platform.

SOHU.COM, established by Dr. Charles Zhang, one of China's Internet pioneers, is in its tenth year of operation.

The Internet in China has developed into mainstream online medium in the past years, particularly for the urban youth who are spending more time online at the expense of watching television or reading traditional print media, making it the most effective marketing vehicle for companies to target this highly attractive segment in the Chinese market. Sohu's massive user base and strong brand presence in China make Sohu.com a household name throughout the country and the platform of choice for corporate clients to promote their business.

Through continuous product development and exclusive content partnerships SOHU works relentlessly to further strengthen and differentiate the portal as premier destination for Internet users in China and advertisers who aim to reach the most attractive consumer market segments in China, that of the young, affluent urban population. We invest back in brand and product through exclusive online content agreements with

-FIFA World Cup 2006 (online video clips and official songs)
-NBA
-Asian Cup
-China Open
-Formula One
-AC Milan
-Miss World 2004

Sohu (which means "Search Fox" in Chinese) has pioneered online search in China. It started as the country's first online search company in 1997 and has continuously developed its in-house search technology. With a search database of just over one billion indexed web pages and 500,000 manually selected, categorized websites, we believe SOHU has the world's largest online search database in the Chinese language. We have begun to monetize our search through sponsored search listings, and we expect the market for sponsored search to have a long-term growth potential. We expect the monetization to become even more meaningful with the development of e-commerce, which is still at a very early stage in China.

Through its pioneering roll-out of wireless services since 2000, SOHU contributes to making the Internet ubiquitously available, whether in the office, at home or on the road. Via SOHU wireless messaging services subscribers can receive the latest news, access their email account, stay in touch with friends and fellow alumni, get dates, play games or sign up for a host of other information, entertainment and communication applications that have made the mobile phone an essential tool in young people's daily lifestyle. SOHU offers mobile services on SMS (short messaging services), MMS (multi-media messaging services), WAP (Wireless Application Protocol), IVR (Interactive Voice Response), RBT (Ring Back Tones) and K-Java based platforms.

Online games business currently accounts for a small portion of Sohu.com's total revenue pie. The company will continue to operate this business as to maintain a smooth user experience as well as to be prepared for future market potentials.

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