SOHU'com

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SOHU.com
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SOHU.com Corporate Presentation May 2004
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Safe Harbor Statement
This presentation contains forward-looking
statements, including, among other things, a
statement of SOHUs expectations regarding future
profitability. 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, general economic
conditions, fluctuations in quarterly operating
results, and the Company's reliance on online
advertising sales, e-subscriptions (mainly short
messaging) and e-commerce for a significant
portion of its revenues. Further information
regarding these and other risks is included in
SOHU's Annual Report on Form 10K, its quarterly
reports on Form 10Q, and in its other filings
with the Securities and Exchange Commission.
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Corporate Fact Sheet

• Description Internet portal with 4 main
  web site properties
• Founded 1996
• Founder Dr. Charles Zhang
• of employees 1,100
• Acquisitions 17173.com (Dec 2003)
• Focus.cn (Dec 2003) Chinaren.com
  (Oct.2000)
• Market Nasdaq
• IPO July 2000
• Ticker Symbol SOHU

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SOHU Reasons to Invest
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SOHU Reasons to Invest
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SOHU Properties 1 in China
Reach with Internet Population average monthly
reach/user ratio for January February March
2004 (Source iResearch/Alexa)
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The Evolving Internet Economy..
..from youth market to mass market economic
platform
1million
Source CNNIC, Lehman Brothers research
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SOHU Online Properties..
..appeal to the increasingly segmented user
population in China
www.chinaren.com 1 online alumni club in China,
largest global alumni community
www.sohu.com prime online media property and
Chinas first search engine
www.focus.cn 1 real estate and home
furnishings website in Beijing, rolling out to
other cities
www.17173.com 1 online games information
portal in China
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Our Exclusive Partners in China

• Yao Ming
• Spokesperson
• for SOHU
• NBA
• Exclusive
• coverage of
• All Star (Feb.),
• final (May) and China games
• (Oct.)
• ACMilan
• League matches

• Disney Online
• Finding Nemo
• Pirate of Caribbean
• Disney Wireless
• Continuous product
• roll out for MMS
• NEC Wireless
• Branded ringtone
• picture downloads

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SOHU Reasons to Invest
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Sustainable 2C Revenue Model

• CONSUMERS..
• Wireless Services
• Online Games
• E-commerce

• CORPORATES..
• Brand Advertising
• Sponsored Search

By providing a win-win environment for both
client and consumer SOHU has built up
well-balanced, diversified revenue streams
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Business Diversification
Q1 2004 revenue break-down
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Corporate Advertising Search

Brand advertising and sponsored search are SOHUs
core performing business lines that will deliver
steady long-term growth

• CORPORATES..

US1millions
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Ad Search Growth Drivers

• SOHUs 2004 business outlook for Advertising and
  Search is strong
• Only 2 leading online media platforms for 80
  million young, affluent urban Internet users
• Increased acceptance of online marketing power
  branding lifestyle
• 70 year-on-year growth guided for 2004
• Positive advertising outlook for 2004
• Contribution from acquisitions
• Investment in sponsored search

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Strength in Search (Fox)

• Building on our Core Competence as the SOHU
  Search Fox
• Largest client base in China (64,000 retail
  clients)
• In-house Directory and Website Search since 1997
• News search since 2003
• July 2004 launch of in-house developed Web-Page
  Search

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Consumer Business Lines

Transition and opportunity in wireless valued
added services, online games and e-commerce
US1millions
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Wireless Transition Opportunity
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Online Games Opportunity

• Gaining a stronger foothold in online games
  industry
• Knight Online launched in 2003
• Blade Online open beta Q2commercial launch
  Q3
• 17173.com platform for online game
  advertising

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Early E-commerce Player

• SOHUs Store, after 3 years of operation, is well
  positioned to capture long-term growth potential
  of e-commerce in China
• 1.6 million registered users, with one-third
  buying customers
• top merchandise categories in stock books,
  DVD/CD, cosmetics, gifts
• currently exploring market opportunity for
  high-end products

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SOHU Business Outlook

• SOHUs Business Outlook in 2004
• Advertising and Search strong and visible growth
• 70 year-on-year growth over 2003
• Wireless E-Subscription Services
• Transition to MMS 2.5 G shows strong momentum
• New product development
• Localized sales and marketing network
• Online Games
• 2H 2004 launch of new game Blade Online
• E-commerce ready to scale as market takes off

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SOHU Reasons to Invest
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Consistent Growth Momentum
USD1millions
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Management The Right Team
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SOHU A Compelling Valuation
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SOHU.com