"Strong brand marketing, advanced Internet technology and diversified online content have allowed SOHU.com to extend its leading position in China's quickly evolving cyberspace," said Charles Zhang, CEO of SOHU.com, " SOHU.com have a firm belief in China's e-commerce market potential and have been striving to develop an integrated and reliable web-based platform to implement it," said Mr. Zhang, " The time is now right."

The exponential rise in Internet usage in China during the first half of 1999 has lured increasing numbers of online firms to consider entering the e-commerce marketplace. But building the right foundation for successful e-commerce requires a solid strategy on suitable web-based platform, delivery fulfillment system and online payment system.

Sohu's e-commerce implementation involves Intel's architecture, Microsoft's MCIS solution and its consulting service, Compaq's hardware and its integrated fulfillment system, as well as China Merchant Bank's well-developed online payment system.

SOHU.com believes all of these elements are essential to the security and integrity of e-commerce transactions. It also said that its ability to secure a major "eyeball share" of Internet usage in China had laid a solid foundation for a successful e-commerce operation. "

SOHU.com enjoys exceptional advantages of pioneering e-commerce in China," said Charles Zhang, CEO of SOHU.com, "We have China's most powerful Internet brand and the largest group of loyal users base. We will leverage this substantial mind share to e-tailing and auctions in China. We hope, in mainland China, SOHU.com will be the Internet's most popular place where consumers browse, bid or buy items from the comfort of their computers."

Mr. Zhang said SOHU.com was delighted to be working with the three most established names in the world of information technology and leverage their market positions to bring secure online commerce to Chinese consumers. "I respect these strong market players very much in terms of their brand establishment, business operation, high quality products and after-sales services. I believe, success in e-commerce will not only be driven by one player, but rather based on cross-industry cooperation."

Mr. Zhang said SOHU.com was not saying it solved every problem. But he noted, "The point is that if you are not taking the first step forward, you're missing a world of opportunities. Besides our current portfolio of strategic partners, we will continue to add new products and services by working with additional partners. With more and more companies and banks partnering with SOHU.com in E-commerce with their high quality products, integrated delivery network and secure payment system, SOHU.com is winning for a stronger foothold in Internet market."

About SOHU.com:
SOHU.com (www.sohu.com), the leading internet portal in China with a current (February, 2000) page view posting of 10million per day, is the first major Chinese language web destination on the Internet. SOHU.com has pioneered many firsts, including the introduction of banner advertising and the setting of standard for Web traffic assessment in China. "SOHU.com is the top brand in the Chinese Internet and NOKIA is the top brand in wireless communications. We are proud to be a partner of NOKIA in this important project", said Dr. Charles Zhang, President and CEO of SOHU.com.