BEIJING, CHINA, July 29, 2005 –SOHU.COM Inc. (NASDAQ: SOHU),
China's leading online media, communications, commerce and mobile value-added
services company, today announced that it was notified by China Mobile
Communication Corporation ("CMCC") that its multimedia messaging services
("MMS") with CMCC, conducted by Beijing SOHU Online Information Services Co.,
Ltd. ("Sohu Online"), one of SOHU's variable interest entities, will be resumed
effective August 1, 2005, one month before the one year suspension would have
been lifted.
On July 29, 2005, SOHU received a formal notice from CMCC that it decided to
resume MMS cooperation with SOHU on its nationwide network from August 1, 2005.
Since SOHU had transferred its MMS business onto China Mobile’s MISC platform in
June 2005, the company is technically ready for the resumption of the MMS
business.
As SOHU will need to rebuild the MMS business after eleven months of
suspension, the company currently does not expect the resumption of its MMS
services will make its business outlook for the third quarter 2005 to be
materially different from the guidance disclosed in the earnings announcement on
July 27, 2005.
"We strongly appreciate China Mobile's decision to resume our MMS business
cooperation one month earlier than the one-year suspension expiry date. We will
leverage SOHU's resources to rebuild and develop the MMS business. Meanwhile, we
will cooperate with our online and wireless partner Disney to add MMS services
to our co-promotion efforts during the Disney On Ice event in August and the
Hong Kong Disneyland Opening in September. We believe our resumed MMS services
will give our wireless users a unique information and entertainment experience,"
said Charles Zhang, Chairman and CEO of SOHU.
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 wireless
revenues are collected from a few mobile telecom operators), online games and
e-commerce for its revenues. Further information regarding these and other risks
is included in SOHU's annual report on Form 10-K for the year ended December 31,
2004, Quarterly Report on Form 10-Q for the quarter ended March 31, 2005, and
other filings with the Securities and Exchange Commission.
About
SOHU SOHU.COM (NASDAQ: SOHU) is China's premier online brand and
indispensable to the daily life of millions of Chinese who use the portal
network for their e-mail, SMS messaging, news, search, browsing, games, instant
messaging and shopping. SOHU has built the most comprehensive matrix of web
properties in China, consisting of the mass portal and leading online media
destination www.sohu.com ; the
#1 online alumni club www.chinaren.com; #1 games portal www.17173.com and top real estate
website www.focus.cn. This
network of web properties offers the vast SOHU user community the broadest
possible choices regarding information, entertainment, communication and
commerce. SOHU.com, established by Dr. Charles Zhang, one of China's Internet
pioneers, is in its seventh year of operation. 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/
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