BEIJING, CHINA, October 30, 2003 - SOHU.com (NASDAQ: SOHU), China's leading online media, communications, commerce and mobile value-added services company, and the Walt Disney Internet Group (WDIG) today announced an agreement that will leverage SOHU.com’s China market expertise and consumer reach with WDIG’s experience as a leading content provider across multiple business lines to deliver innovative Disney online and wireless content and services to China. Beginning today SOHU.com will provide design, production and hosting services for Disney’s Disney.com.cn web site. The company also has licensed Disney Mobile Short Messaging Services (SMS) and Multimedia Messaging Services (MMS) content for distribution via Disney.com.cn and the SOHU.com portal.

The agreement follows a successful three-month trial cooperation in which SOHU built the official Chinese website for Disney/Pixar’s Finding Nemo. The companies plan to expand into additional online content areas in the future.

The Disney Mobile content distributed by SOHU.com is among the first Disney-branded mobile content available in China. Color wallpapers, animated cards, black and white logos and picture messages will feature Disney’s favorite classic characters, including Mickey Mouse and Donald Duck, as well as characters from modern Disney classics such as Beauty and the Beast and The Lion King. Visitors to Disney Mobile on SOHU.com (http://disneymobile.sohu.com) will be able to purchase the mobile content online and have it delivered directly to their mobile phone.

WDIG entered the mobile content market in 1999 with some of the first informational, text-based content services in the U.S. The following year, WDIG partnered with NTT DoCoMo on iMode in Japan to introduce the widely recognized Disney-i service including Disney branded graphics, ring tones, games and utilities. Today, Disney Mobile is the number one premium mobile content provider in Japan and is a leading global content provider, with services available in 21 markets with 34 mobile carriers around the world.

Disney.com.cn, launched in August 2001, has been significantly re-designed as part of this agreement and will be made available to the millions of monthly visitors on the SOHU.com portal. As the official online presence for the Walt Disney Company China, Disney.com.cn contains the latest information and entertainment from Disney Mobile, Dragon Club TV, movies, home entertainment, publishing, music, consumer products, Disney On Ice and theme parks. The site also features online entertainment such as games and activities based on Mickey Mouse, Winnie the Pooh, The Lion King and the popular Princess collection. Apart from residing on Disney.com.cn, Disney content and additional branded content owned by Disney including promotional content from Touchstone Pictures, Miramax, Hollywood Pictures, ABC and ESPN will also be integrated throughout the SOHU.com site.

“China presents a very strong market opportunity for WDIG. Chinese consumers are very sophisticated in their adoption of technology and we’re pleased to localize our portfolio of products and services for the fast growing Chinese Internet and wireless audience. It is great new entertainment for Chinese users to discover,” said Mark Handler, executive vice president and managing director for WDIG’s international operations. “We spent a considerable amount of time analyzing the market and believe we have found a great operational and creative fit with the outstanding team at SOHU.”

“This agreement combines Disney’s exciting products with SOHU.com’s online and wireless business lines and we are very pleased to work with Disney as they expand their presence in the Chinese Internet market. By introducing Disney’s products to SOHU’s users, we will enhance the entertainment value to our consumers in what is potentially the largest consumer market of the 21st century,” said Charles Zhang, Chairman and CEO of SOHU.com.

Internet usage in China, where currently 68 million people are online, is growing particularly fast in homes and in schools, according to the semi-annual CNNIC surveys. As the Internet penetrates a younger audience in China, the demand for trustworthy quality entertainment with educational value is growing. Disney’s online website produces on-line activities that are fun and entertaining for kids while simultaneously promoting valuable information and skills.

The mobile phone market in China reached 250 million subscribers at the end of September 2003, with an estimated two-thirds using messaging service on their handsets. The mobile phone market is expected to surpass 355 million subscribers by the end of 2005 (source: BDA China, 2003). In 2002, value-added service mobile messaging in China generated US$320 million in revenues, which are expected to grow to US$3.3 billion in 2006 (source: China Online SMS Research Report, iResearch, August 2003).

“Our cooperation with Disney will be an advantage in making SOHU a strong innovator in the promising wireless value-added industry. Chinese fans of Disney’s animated characters overlap to a large extent with the young demographics of SOHU’s wireless users. As we move from the black-and-white SMS age to the MMS color screen age, Disney’s rich products help us differentiate in a growing market as consumers demand more exciting, relevant and branded content,” said Victor Koo, Chief Operating Officer of SOHU.com.

About Walt Disney Internet Group (WDIG)
Walt Disney Internet Group (WDIG) provides strategic leadership and operational management for The Walt Disney Company's (NYSE:DIS) Internet properties including category leaders Disney.com, ESPN.com and ABCNEWS.com. A market leader in developing and distributing entertainment and informational content to new platforms, WDIG is committed to creating and delivering products for broadband distribution including: ABC News On Demand, a subscription video news service that offers the Internet's first 24-hour, live Internet-only news channel and top ABC News programs for on demand viewing; Disney Connection; and WDIG Motion, a proprietary video technology for broadband users. Through relationships with some of the world's largest wireless carriers, WDIG distributes content and services to wireless users under the Disney, ESPN and ABC brands. Additionally, WDIG has led the way in developing interactive content for televised programming through its Enhanced TV service. Steve Wadsworth is president of WDIG, which is headquartered in North Hollywood and has operations in Seattle, New York, Orlando, Fla., Tokyo and London.

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/