Sohu.com (SOHU)

We depend on online advertising for a significant portion of our revenues.

We derive a significant portion of our revenues, and expect to derive a significant portion of our revenues for the foreseeable future, from the sale of advertising on our websites. Advertising revenues represented approximately 66% and 60% of our total revenues for the quarter ended September 30, 2005 and 2004, respectively. For the quarter ended September 30, 2005, our five largest advertisers accounted for approximately 16% of our total advertising revenues. For the quarter ended September 30, 2004, our five largest advertisers accounted for approximately 12% of our total advertising revenues.

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Our ability to generate and maintain significant online advertising revenues in China will depend, among other things, on the development of a large base of users possessing demographic characteristics attractive to advertisers. Accordingly, we may not be successful in generating significant future online advertising revenues.

We depend on online advertising for a significant portion of our revenues.

We derive a significant portion of our revenues, and expect to derive a significant portion of our revenues for the foreseeable future, from the sale of advertising on our websites. Advertising revenues represented approximately 66% and 49% of our total revenues for the quarter ended June 30, 2005 and 2004, respectively. For the quarter ended June 30, 2005, our five largest advertisers accounted for approximately 11% of our total advertising revenues. For the quarter ended June 30, 2004, our five largest advertisers accounted for approximately 8% of our total advertising revenues.

Our ability to generate and maintain significant online advertising revenues in China will depend, among other things, on the development of a large base of users possessing demographic characteristics attractive to advertisers. Accordingly, we may not be successful in generating significant future online advertising revenues.

We depend on online advertising for a significant portion of our revenues.

We derive a significant portion of our revenues, and expect to derive a significant portion of our revenues for the foreseeable future, from the sale of advertising on our websites. Advertising revenues represented approximately 63% and 42% of our total revenues for the quarter ended March 31, 2005 and 2004, respectively. For the quarter ended March 31, 2005, our five largest advertisers accounted for approximately 17% of our total advertising revenues. For the quarter ended March 31, 2004, our five largest advertisers accounted for approximately 10% of our total advertising revenues.

Our ability to generate and maintain significant online advertising revenues in China will depend, among other things, on the development of a large base of users possessing demographic characteristics attractive to advertisers. Accordingly, we may not be successful in generating significant future online advertising revenues.

We depend on online advertising for a significant portion of our revenues.

We derive a significant portion of our revenues, and expect to derive a significant portion of our revenues for the foreseeable future, from the sale of advertising on our Websites. Advertising revenues represented approximately 54% and 37% of our total revenues for the year ended December 31, 2004 and 2003, respectively. For the year ended December 31, 2004, our five largest advertisers accounted for approximately 8% of our total advertising revenues. For the year ended December 31, 2003, our five largest advertisers accounted for approximately 10% of our total advertising revenues.

Our ability to generate and maintain significant online advertising revenues in China will depend, among other things, on the development of a large base of users possessing demographic characteristics attractive to advertisers. Accordingly, we may not be successful in generating significant future online advertising revenues.