Sohu.com, Inc., (SOHU), is a leading online brand in China. Services provided by the company include news, search, e-mail, games and wireless messaging. The company offer services through one of the most comprehensive matrices of Chinese language web properties and proprietary search engines, consisting of the mass portal and online media destination sohu.com interactive search engine sogou.com online mapping service provider go2map.com online alumni club chinaren.com games information portal 17173.com real estate website focus.cn and wireless value-added services provider goodfeel.com.cn. SOHU markets its products and services to clients primarily in China. The company has approximately 1,000 employees. SOHU competes with various Internet service providers, including Web directories, search engines, content sites, and sites maintained by the government and educational institutions. In the first three quarters of 2007, the company derived about 69% of its revenue from online advertising. Wireless business and online games contributed 31% of the company's revenue.

SOHU reported blockbuster financial results for the third quarter of 2007. Both the company's revenue and earnings exceeded market expectations because of strong growth in online game and advertising business. Gross margin of 66.7% in the third quarter of 2007 increased from 60.6% in the previous quarter. Brand advertising revenues were US$29.8 million, up 42% year-over-year and 12% quarter-over-quarter. Online games revenues were US$12.7 million, up 473% year-over-year and 232% quarter-over-quarter.

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