Sohu.com (SOHU)

Year Ended December 31, 2006 compared to Year Ended December 31, 2005

In order to focus on our core business of online advertising, on June 20, 2006 we discontinued our unprofitable e-commerce business. As a result of the discontinuation of this business, the e-commerce business is accounted for as a discontinued operation. Accordingly, our statements of operations separate the discontinued operation for all periods presented.

Year Ended December 31, 2006 compared to
Year Ended December 31, 2005

In order to focus on our core business of online advertising, on June 20, 2006 we discontinued our unprofitable
e-commerce business. As a result of the discontinuation of this business, the e-commerce business is accounted for as a discontinued operation. Accordingly, our statements of operations separate the discontinued operation for all periods presented.

Year Ended December 31, 2006 compared to Year Ended December 31, 2005

Demonstrating our full dedication to our core business of online advertising, on June 20, 2006, we discontinued our unprofitable e-commerce business. As a result of the discontinuation of this business, the e-commerce business is accounted for as a discontinued operation. Accordingly, our statements of operations separate the discontinued operation for all periods presented.

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