SOHU Advances into Online Games with Knight Online
BEIJING,
Feb. 25 /PRNewswire-FirstCall/ -- SOHU.COM Inc. (Nasdaq: SOHU - News), China's leading online
media, communications, commerce and mobile value-added services company, has
today announced the release of its first three-dimensional online game in
China, Knight Online. SOHU's strategic advance into the online games industry
coincides with the fifth anniversary of the SOHU web site (http://www.sohu.com ).
"SOHU's move into the
online game arena builds on the Company's success to date of turning our users
into paying consumers, leveraging our online product, user base and brand. Our
corporate strategy focuses on further diversifying revenues within our online
competence and building up new revenue streams from our existing assets on a
stable cost base, bringing into full play the scalability of our Internet
focused business model. Online games is a developing industry with very
promising potential in China," said Charles Zhang, Chairman and CEO of
SOHU.
Knight Online, produced by
the Korean game developer Wizgate Corporation, will go through a period of beta
testing before its commercial release in the second quarter of 2003.
Established in 1999, Wizgate is a leading Korean game developer that has rolled
out successful titles such as Dark Saver, Myth of Soma, Droiyan Online, and
Online Worms. SOHU and Wizgate signed the licensing agreement for Knight Online
in November 2002.
"SOHU is the most
comprehensive portal website in China with a young, urban registered user base
of more than 50 million. These users are the most desirable target audience for
online games, because they adopt new technology quickly and like to try new
products. The cooperation between Wizgate and SOHU is a timely, complementary
partnership in a high growth industry," said Seung Chul Son, CEO of
Wizgate.
The online games market in
China, while still in the early stages of development, is growing rapidly. The
Chinese market research firm CCID Consulting expects online games to attract
4.6 million new customers this year, increasing the total number of players in
China by 47 per cent from 9.7 million at the end of 2002 to 14.3 million by
year-end 2003.
"Compared to other
online games currently available in China, Knight Online distinguishes itself
as a brand new 3D online game with 360 degree viewing, which enables players to
experience the virtual scenery from any angle. Knight Online features wars
between two warrior states. Its rich 3D graphics, realistic sound and weather
effects, and new concepts emphasizing knightly virtues and teamwork make a far
more attractive game than the mostly 2D online games available at present,
raising the standard for online entertainment in China," said He Jinmei,
Vice-President of SOHU.
Safe Harbor Statement
This company's announcement
contains forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. We caution you that a number of important
factors could cause actual results to differ materially from those contained in
any forward-looking statement. Potential risks and uncertainties include, but
are not limited to, the uncertain growth rate of the online game market in
China, failure to successfully launch and/or gain users' acceptance of the
Knight Online game, SOHU's historical and future losses, limited operating
history, uncertain regulatory landscape in the People's Republic of China,
fluctuations in quarterly operating results, and the company's reliance on online
advertising sales, e-subscriptions and e-commerce for its revenues. Further
information regarding these and other risks is included in SOHU's prospectus,
10K, 10Q and in its other filings with the Securities and Exchange Commission.
About SOHU
SOHU.com is one of China's
most recognized and established Internet brands and indispensable to the daily
life of millions of Chinese who use the portal for e-mail, alumni club, short
messaging services, news, search, browsing and shopping. Apart from continuous
product and services development, SOHU.com also concentrates its efforts on
making the Internet ubiquitously available, whether in the office, at home or
on the road. SOHU.com Inc., established by Dr. Charles Zhang, one of China's
Internet pioneers, is in its seventh year of operation.