BEIJING, CHINA, August 3, 2004 - SOHU.COM Inc. (Nasdaq: SOHU), China's leading online media, communications, commerce and mobile value-added services company, today unveiled its all-inclusive, proprietary search engine under the new brand name SoGou, which means 'Search Dog' in Chinese.

"We are now introducing the new 'Third Generation' interactive search, or '3G-Search' in China. We have built on our core search competence to deliver this new way of search in the fast growing Chinese market that has quickly come to critically rely on the Internet as the key source of daily information needs," said Charles Zhang, Chairman and CEO of SOHU.

The new search engine performs a pioneering interactive search through a built-in cutting-edge algorithm that combines the results generated from the hundreds of thousands of manually selected high-quality websites of SOHU's directory with hundreds of millions of pages that the engine searched from the World Wide Web. The user is taken through a fast and convenient interactive process to arrive at the most relevant selection of the integrated website and page search results.

SOHU, which means 'Search Fox' in Chinese, started as a search engine seven years ago with a proprietary directory, but has since evolved into a comprehensive portal inclusive of communication, information, media and entertainment offerings to Chinese Internet users under that brand name. To have a direct appeal to Internet users when they do online search, the newly launched search engine has been named SoGou on a separate domain www.sogou.com.

"The launch of SoGou marks a new stage in SOHU's search product development and brand strategy. The reason we select the 'Search Dog' image is to reflect loyalty to our users to give them incredibly smart, precise and relevant search technology. We believe our pioneering interactive search engine is the answer to Chinese consumers' ubiquitous and sophisticated needs, whether they need a shop address or a research paper," added Charles Zhang, Chairman and CEO of SOHU.

In early 2002, SOHU created a viable business model for sponsored search by finding a payment solution through a national agent network. Since then, the Company has built up a client base of 71,000 small and medium sized businesses (SME), estimated to be the largest SME client base in the Chinese online search market. In the second quarter of 2004 SOHU generated US$2.4 million in revenues from sponsored search, which includes both paid listing fees and pay-for-click advertising, an increase of 91% compared to the same period in 2003.

Online search marketing has great growth potential in China. Among the 21.6 million SMEs in China, only about 1.2% have adopted search engines as a marketing method, according to the 2003 Annual Report on Search Engine Marketing produced by Shanghai research company iResearch. Booming Internet usage, a burgeoning online advertising market and promising growth in e-commerce are likely to convince more businesses to join the ranks of the businesses that market themselves via sponsored online search.

"We are confident that our current and new advertisers will realize the significant value of the highly targeted marketing and highly relevant search experience enabled by SoGou," said Jianjun Wang, Vice-president of SOHU for Search Business.

Safe Harbor Statement
This announcement contains forward-looking statements. 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 possible 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, wireless services (most of which are collected from a few mobile 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, 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/