<P><FONT size=6>JPM：SOHU 1Q07 results</FONT></P>
<P><FONT size=6>30 April 2007 7Pages</FONT></P>

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<P>Sohu will report 1Q07 results after US market close on May 1.<BR>• We expect Sohu to report revenue inline with our prior estimate of<BR>US$33.3M vs. company guidance of US$32-34M. We expect<BR>online display ad revenue to be US$ 22.9M, up 4% QoQ or 37%<BR>YoY. WVAS (wireless value-added services) revenue forecast is<BR>US$5.4M, down 20% QoQ. However, further downside is<BR>possible, given the difficult market environment.<BR>• We expect Sohu to report GAAP EPS of US$0.14, or adjusted<BR>EPS $0.19, as against company guidance of US$0.18-0.20 (adj.).<BR>• From our channel checks, top-tier portals have recently submitted<BR>bids for online Olympics video broadcast rights. While bid results<BR>are yet to be announced, we do not expect significant earnings<BR>impact to Sohu. If Sohu were to outbid Sina (or other websites),<BR>costs for such rights would likely be very high, and</P>