Beijing University Secures a Strategic Stake in SOHU.COM

Domestic Investor Confidence Soars as SOHU Gains Further Ground on Competitors



Apr 24, 2001, 01:00 ET from SOHU.COM

    BEIJING, April 24 /PRNewswire/ -- Leading Chinese Internet portal
 SOHU.COM (Nasdaq: SOHU) announced that Hong Kong Beida Jade Bird Science and
 Technology Ltd, a subsidiary of the Beijing University Jade Bird Group, has
 become a strategic investor in SOHU.COM, holding an equity position of 8.63%.
 On April 23, 2001, the Jade Bird Group filed Schedule 13D with the Securities
 and Exchange Commission in connection with its acquisition of just over
 3 million shares of SOHU common stock from Intel Corp. (Nasdaq: INTC).
     By taking this strategic stake in SOHU, the Jade Bird Group gives a clear
 signal to the capital markets that domestic Chinese companies understand the
 potential of the Mainland's Internet industry leader, and are willing to
 invest in dynamic enterprises with a proven track record in giving value to
 their customers.  "We are delighted to add a strong local investor to our
 current portfolio of international strategic backers.  Companies like the Jade
 Bird Group are close to the Chinese market and are therefore well-positioned
 to understand SOHU's strong competitive position in China," said Charles
 Zhang, CEO and president of SOHU.COM.
     Beijing University Jade Bird Group is one of the flagship businesses set
 up and owned by China's most prestigious academic institution, Beijing
 University.  The company has two listed subsidiaries on the Shanghai Stock
 Exchange and one on the Hong Kong GEM board.  These three public companies
 focus their research and management expertise on developing software, IC chip
 designs, media services and cable network operations.
     SOHU.COM and the Jade Bird Group have complementary assets that could
 yield strategic benefits.  "The Jade Bird Group is an information technology
 leader with interests in developing traditional media products and online
 education.  SOHU.COM is the leading Internet brand with nearly 20 million
 registered users among China's most progressive and educated social
 demographic," Charles Zhang commented.
     "We are looking for dynamic entrepreneurial companies that we can team up
 with to expand into profitable new business ventures and SOHU matches that
 profile," said Xu Zhendong, CEO of Beijing University Jade Bird Group.
     SOHU.COM recently surprised the market by announcing a strong 13% increase
 in revenue for the first quarter and a solid 21% reduction in its quarterly
 burn rate.  "These positive financial signals make SOHU an excellent
 investment for the Jade Bird Group," added Wang Chaoyong, Board Director of
 China Eagle (Dapeng) Securities, who advised the Beijing University group on
 the purchase of SOHU shares.
 
     About SOHU.com
     SOHU.com is one of mainland China's most recognized and established
 Internet brands and indispensable to the daily life of millions of Chinese who
 use the portal for their e-mail, home page, chat, messaging, news, search,
 browsing and shopping.  Apart from continuous product and services
 development, SOHU.com also concentrates its efforts on making the Internet
 ubiquitously available, whether in the office, at home or on the road.
 SOHU.com, established by Dr. Charles Zhang, one of China's Internet pioneers,
 is in its fifth year of operation.
 
     Safe Harbor Statement
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements involving risks
 and uncertainties that could cause actual results to differ materially from
 those in such forward-looking statements.  Potential risks and uncertainties
 include, but are not limited to, SOHU.com historical and future losses,
 limited operating history, uncertain regulatory landscape in the People's
 Republic of China, fluctuations in quarterly operating results, the company's
 reliance on online advertising sales for substantially all of its revenues and
 risks associated with management changes and the integration of ChinaRen's
 operations and management with our existing operations and management. Further
 information regarding these and other risks is included in SOHU.com's
 prospectus, annual report, 10-K filing, and in its other filings with the
 Securities and Exchange Commission.
 
 

SOURCE SOHU.COM
    BEIJING, April 24 /PRNewswire/ -- Leading Chinese Internet portal
 SOHU.COM (Nasdaq: SOHU) announced that Hong Kong Beida Jade Bird Science and
 Technology Ltd, a subsidiary of the Beijing University Jade Bird Group, has
 become a strategic investor in SOHU.COM, holding an equity position of 8.63%.
 On April 23, 2001, the Jade Bird Group filed Schedule 13D with the Securities
 and Exchange Commission in connection with its acquisition of just over
 3 million shares of SOHU common stock from Intel Corp. (Nasdaq: INTC).
     By taking this strategic stake in SOHU, the Jade Bird Group gives a clear
 signal to the capital markets that domestic Chinese companies understand the
 potential of the Mainland's Internet industry leader, and are willing to
 invest in dynamic enterprises with a proven track record in giving value to
 their customers.  "We are delighted to add a strong local investor to our
 current portfolio of international strategic backers.  Companies like the Jade
 Bird Group are close to the Chinese market and are therefore well-positioned
 to understand SOHU's strong competitive position in China," said Charles
 Zhang, CEO and president of SOHU.COM.
     Beijing University Jade Bird Group is one of the flagship businesses set
 up and owned by China's most prestigious academic institution, Beijing
 University.  The company has two listed subsidiaries on the Shanghai Stock
 Exchange and one on the Hong Kong GEM board.  These three public companies
 focus their research and management expertise on developing software, IC chip
 designs, media services and cable network operations.
     SOHU.COM and the Jade Bird Group have complementary assets that could
 yield strategic benefits.  "The Jade Bird Group is an information technology
 leader with interests in developing traditional media products and online
 education.  SOHU.COM is the leading Internet brand with nearly 20 million
 registered users among China's most progressive and educated social
 demographic," Charles Zhang commented.
     "We are looking for dynamic entrepreneurial companies that we can team up
 with to expand into profitable new business ventures and SOHU matches that
 profile," said Xu Zhendong, CEO of Beijing University Jade Bird Group.
     SOHU.COM recently surprised the market by announcing a strong 13% increase
 in revenue for the first quarter and a solid 21% reduction in its quarterly
 burn rate.  "These positive financial signals make SOHU an excellent
 investment for the Jade Bird Group," added Wang Chaoyong, Board Director of
 China Eagle (Dapeng) Securities, who advised the Beijing University group on
 the purchase of SOHU shares.
 
     About SOHU.com
     SOHU.com is one of mainland China's most recognized and established
 Internet brands and indispensable to the daily life of millions of Chinese who
 use the portal for their e-mail, home page, chat, messaging, news, search,
 browsing and shopping.  Apart from continuous product and services
 development, SOHU.com also concentrates its efforts on making the Internet
 ubiquitously available, whether in the office, at home or on the road.
 SOHU.com, established by Dr. Charles Zhang, one of China's Internet pioneers,
 is in its fifth year of operation.
 
     Safe Harbor Statement
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements involving risks
 and uncertainties that could cause actual results to differ materially from
 those in such forward-looking statements.  Potential risks and uncertainties
 include, but are not limited to, SOHU.com historical and future losses,
 limited operating history, uncertain regulatory landscape in the People's
 Republic of China, fluctuations in quarterly operating results, the company's
 reliance on online advertising sales for substantially all of its revenues and
 risks associated with management changes and the integration of ChinaRen's
 operations and management with our existing operations and management. Further
 information regarding these and other risks is included in SOHU.com's
 prospectus, annual report, 10-K filing, and in its other filings with the
 Securities and Exchange Commission.
 
 SOURCE  SOHU.COM