Sohu.com (SOHU)

Interest Income and Exchange Difference

For the three months ended March 31, 2009, interest income and exchange difference was $1,122,000, comprising interest income of $1,042,000 and the exchange income of $80,000. For the three months ended March 31, 2008, interest income and exchange difference was $166,000, comprising interest income of $755,000, which was offset by the exchange loss of $589,000.

Interest Income and Exchange Difference

For the year ended December 31, 2008, interest income and exchange difference were $4.3 million, comprising interest income of $4.4 million and exchange loss of $0.1 million. For the year ended December 31, 2007, interest income and exchange difference was $2.8 million, comprising interest income of $2.6 million and exchange gain of $0.2 million.

Interest Income and Exchange Difference

Interest income and Exchange Difference includes net interest income and foreign currency exchange gains. For the year ended December 31, 2007, interest income was $2.8 million as compared to $3.2 million for the year ended December 31, 2006. The decrease was mainly due to the repayment of our convertible notes of $58.5 million in July, which decreased the average cash balance for the year.

Interest Income and Exchange Difference

FACE="Times New Roman" SIZE="2">Interest income and Exchange Difference includes net interest income and foreign currency exchange gains. For the year ended December 31, 2007, interest income was $2.8 million as compared to $3.2 million for the
year ended December 31, 2006. The decrease was mainly due to the repayment of our convertible notes of $58.5 million in July, which decreased the average cash balance for the year.

FACE="Times New Roman" SIZE="2">Income Tax Expense

For the year ended December 31, 2007, income tax expense was $1.5 million as compared to
$1.6 million for the year ended December 31, 2006.

Interest Income and Exchange Difference

For the three months ended September 30, 2008, interest income and exchange difference was $1.4 million, comprising interest income of $1.3 million and exchange gain of $0.1 million. This was compared with $0.6 million in the corresponding period of 2007 with interest income of $0.5 million and exchange gain of $0.1 million. For the nine months ended September 30, 2008, interest income and exchange difference was $3.1 million, primarily comprising interest income. This was compared with $2.4 million in the corresponding period of 2007 with interest income of $2.0 million and exchange gain of $0.4 million.

Interest Income and Exchange Difference

For the three months ended June 30, 2008, interest income and exchange difference was $1.5 million, comprising interest income of $1.0 million and exchange gain of $0.5 million. This was compared with $1.1 million in corresponding period of 2007 with interest income of $0.9 million and exchange gain of $0.2 million. For the six months ended June 30, 2008, interest income and exchange difference was $1.6 million, comprising interest income of $1.7 million and exchange loss of $0.1 million. This was compared with $1.8 million in corresponding period of 2007 with interest income of $1.5 million and exchange gain of $0.3 million.

Interest Income and Exchange Difference

For the three months ended March 31, 2008, interest income and exchange difference was $166,000, comprising interest income of $755,000, which was offset by the exchange loss of $589,000. For the three months ended March 31, 2007, interest income and exchange difference was $769,000, comprising interest income of $664,000 and the exchange gain of $105,000.