Sohu.com Acquires Goodfeel

SOHU.COM to acquire Goodfeel, mobile value-added service provider

May 17, 2004

2 Min Read

BEIJING -- SOHU.COM Inc. (NASDAQ: SOHU) , China's leading online media, communications, commerce and mobile value-added services company, today announced it has entered into a definitive agreement to acquire Beijing G. Feel Technology Co., Ltd. ('Goodfeel'), a leading Chinese provider of value added mobile data services for Wireless Applications Protocol (WAP). This acquisition will bring 800,000 monthly paying subscribers of wireless value-added services, and strengthen the leading position of SOHU in the Chinese wireless data market.

WAP is a rapidly growing area in the Chinese wireless data market. Goodfeel, a Beijing-based WAP service provider, offers WAP services via China Mobile Communication Corporation (CMCC) throughout China. CMCC, China's largest wireless operator, allows subscribers Internet browsing on their mobile phones through a quick and convenient 'One Key Access' Monternet platform. Goodfeel is one of the leading WAP service providers to China Mobile, with its main product being ringtone and picture logos. Goodfeel enjoys preferential menu placement positioning on this Monternet platform, a key competitive advantage relative to other service providers. According to the report from Goodfeel's management team, the revenue for the 2003 reached US$1 million, while revenue for the first quarter of 2004 exceeded US$1.3 million.

"Of China's nearly 300 million mobile phone users, a growing number of mobile users are enjoying the fun of using WAP services. SOHU believes the next generation services, in particularly WAP, will bring new growth momentum in the wireless data market because of the enhanced audio-visual quality and content-rich multi-media of value added services. At present, SOHU enjoys a leading position in the short messaging services (SMS) and multimedia messaging services (MMS) market. This acquisition will strengthen our differentiation in cutting edge mobile value-added services offerings, providing an opportunity to SOHU to develop services on various platforms for the wireless data market," said Charles Zhang, Chairman and CEO of SOHU.com.

SOHU.com

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