BEIJING, CHINA, July 25, 2001 - Following a successful financial quarter, China's leading online media, communications and commerce company, SOHU.COM (Nasdaq: SOHU), announced today that the Beijing Communications Management Bureau under the Ministry of Information Industry (MII) has granted the company a license to operate Bulletin Board Systems (BBS).

This first batch of BBS licenses came directly after SOHU.COM posted its best quarterly performance to date with 70% revenue growth to US$2.9 million, and a 22% quarter-to-quarter reduction in the company's proforma net loss to US$3.3 million. SOHU.COM's strong financial performance has been driven by intelligent revenue diversification and strict cost containment.

"SOHU.COM's unstoppable growth momentum is driven by the key strategic decisions being made by the company's management, and by the continuing good-will that has been developing over time between SOHU and the Chinese government," said Charles Zhang, CEO, President and Chairman of SOHU.COM.

This is the first time the government has granted BBS licenses to the country's Internet industry, making SOHU once again one of the first private Internet companies in China to receive official approval to promote this popular messaging technology on the web.

SOHU.COM remains the stickiest website in China, and its popular bulletin board system (http://bbs.sohu.com) covers a diverse range of discussion topics including the Olympics, travel, business, sport, literature, English and information technology.

About SOHU.com
SOHU.com is the leading Internet portal in Mainland China with current daily page views exceeding 12 million. It provides navigation/search, news, sports, business and finance, real estate channel, entertainment, chat, email and e-commerce activities for a solid and wide base of visitors. Dr. Charles Zhang founded SOHU.com in 1997. Its investors include Intel, Dow Jones, IDG, the Morningside China Group, PCCW, Legend and Hikari. Its content partners include CNET, DOW Jones and dozens of local media organizations in China.

For further information:
Dahlia Wei
SOHU Investor Relations and Communications
Tel: +86 10 6272 6598
E-mail: ir@sohu-inc.com
http://www.sohu.com/about/English/