Sohu.com (SOHU)

Plan for Confidential Filing of Draft Registration Statement for IPO of Changyou.com*

Sohu also announced today that it plans to submit on a confidential basis to the U.S. Securities and Exchange Commission (the “SEC”) a draft registration statement for a possible initial public offering (or “IPO”) of American Depositary Shares (or “ADSs”) representing ordinary shares of Changyou.com Limited (or “Changyou”), a recently-organized Cayman Islands company that is the Company’s online games business subsidiary. The number and dollar amount of ADSs proposed to be offered and sold have not yet been determined.

Sohu’s and Changyou’s purposes for conducting the IPO, if commenced, include allowing Sohu to focus principally on its core online media, communications, search, and mobile value-added services businesses, and providing Changyou a sharper focus on the online games business and related strategic opportunities, with Sohu remaining Changyou’s majority shareholder.

The IPO is expected to commence as market conditions permit, and is subject to Changyou’s filing with the SEC a registration statement on Form F-1 in compliance with the U.S. Securities Act of 1933, as amended (or the “Securities Act”), and the SEC’s declaring such registration statement effective.