Delight on Delivery strategy gives online shoppers convenience, reliability and speed at competitive prices; SOHU leverages large user-base with minimal marketing and customer acquisition costs.

BEIJING, CHINA, November 28, 2001 - China's leading online media, communications and commerce company SOHU.COM (NASDAQ: SOHU), today celebrated the success of its online B2C shopping network, SOHU Store (http://store.sohu.com), with the launch of a holiday season promotional campaign ahead of the Christmas and New Year celebrations and the traditional Chinese Spring Festival, a period that has become the busiest time for retail shopping in China.

Launched at the beginning of the year, SOHU store has grown into a popular shopping destination for online consumers in Beijing and Shanghai, and other major cities across China. In the third quarter of this year e-commerce revenues totaled US$0.55 million, representing 15% of all revenues for the quarter.

"SOHU is at the forefront of making e-commerce successful in China. SOHU's experience shows the company has found solutions for commonly cited obstacles to the rapid expansion of e-commerce in China, such as the lack of infrastructure payment systems, reliable delivery channels and customer support services," said Charles Zhang, CEO and president of SOHU.COM. "Clearly not all of the Mainland's e-commerce web sites have been successful, however, SOHU is leveraging its experience, dominant brand status and large consumer base of 33 million registered users to promote an e-commerce buying-culture. Our marketing and acquisition costs are negligible, unlike some of our rivals who are forced to spend millions of dollars building their brands."

Store.sohu.com specializes in four product lines and holds a wide variety of offerings in each category:
1. Audio and video products, including music, DVD/VCD
2. Books
3. IT products, including household electronic goods
4. Cosmetics including perfume, skin cream and make-up

In addition, SOHU store offers a select range of top quality health care products, toys, games, concert tickets, and sports equipment.

Online buyers are given a choice of payment options, including cash-on-delivery (COD), debit or credit card payments and postal delivery. Delivery charges are low, ranging between US$ 0.60 to US$ 1.50 depending on distance and type of delivery service.

SOHU is building a platform for e-commerce in China to take advantage of the considerable prospects that are predicted by leading research organizations. According to a recent IDC report on e-commerce in China, published in September 2001, B2C e-commerce is forecast to amount to US$16 billion by 2005. IDC expects growing consumer demand and consumer purchasing power within China's cities to provide impetus for a more favorable e-commerce environment.

Furthermore, a July 2001 study by China Internet Network Information Center (CNNIC) found that 32 % of China's online population had purchased products online during the past twelve months. The CNNIC survey also found that the top three factors driving consumers to purchase online were timesavings, convenience and competitive pricing. Respondents said their online products of choice were books, computer-related products, and audio/video products.

"The majority of SOHU users are technologically sophisticated early adopters, mostly between 22 and 35 years old, who are pioneering and popularizing e-commerce in China." Charles Zhang added. "SOHU is determined to help its customers save every penny by carefully selecting SOHU Store suppliers for their quality and price, shortening the supply chain, and guaranteeing Delight on Delivery. We are not trying to 'sell it all'. Our professional, young purchasing managers know what's hot among their peers, and what affluent young, urban users like to buy online. The increase in online sales in the first three quarters of this year is testament to our successful sales formula."

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/