BEIJING, CHINA, July 8, 2003 - SOHU.COM Inc. (Nasdaq: SOHU), China's leading online media, communications, commerce and mobile value-added services company, today announced its intention to offer, subject to market and other conditions, approximately US$65 million aggregate principal amount of Zero Coupon Convertible Senior Notes due 2023 (the “Offering”) in a private, unregistered offering. SOHU expects the Offering to include an option for the initial purchaser an additional approximately US$15 million aggregate principal amount of the notes. The notes bear a zero coupon and will be priced at par. The notes will be convertible into SOHU common stock. All or some of the notes may be redeemed at the option of the relevant holders in 2007, 2013 and 2018 at 100% of the principal amount of the notes. SOHU may also redeem all or a portion of the notes for cash at any time on or after 2008 at 100% of the principal amount of the notes if the closing price of our common stock for each of the 30 consecutive trading days prior to such time was at least 130% of the conversion price. Final terms of the notes are to be determined by negotiations between SOHU and the initial purchaser.

The net proceeds of the offering will be used for general corporate purposes, including possible future acquisitions and investments.

The notes to be offered and the common stock issuable upon conversion of the notes have not been registered under the Securities Act of 1933 or the securities laws of any other jurisdiction. Unless they are registered, the notes may be offered and sold only in transactions that are exempt from registration under the Securities Act of 1933 and the securities laws of any other jurisdiction.

This announcement does not constitute an offer to sell these securities nor is it a solicitation of an offer to purchase these securities.

Safe Harbor Statement
This company's announcement contains forward-looking statements. It is currently expected the Business Outlook will not be updated until the release of SOHU's next quarterly earnings announcement; however, SOHU reserves the right to update its Business Outlook at any time for any reason. We may also make written or oral forward-looking statements in our periodic reports to the Securities and Exchange Commission on Forms 10-K, 10-Q, 8-K, etc., in our annual report to shareholders, in our proxy statements, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them.
Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, SOHU’s historical and future losses, limited operating history, uncertain regulatory landscape in the People's Republic of China, fluctuations in quarterly operating results, and the company's reliance on online advertising sales, e-subscriptions (most of which are collected from a few telecom operators) and e-commerce for its revenues. Further information regarding these and other risks is included in SOHU's Annual Report on Form 10K for the year ended December 31, 2002, Quarterly Report on Form 10Q for the quarter ended March 31, 2003 and other filings with the Securities and Exchange Commission.

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/