SOHU.COM Achieves US GAAP Profitability In Q3, 2002 (Wednesday October 23, 11:29 am ET)

BEIJING, Oct. 21 /PRNewswire-FirstCall/ -- SOHU.COM (Nasdaq: SOHU - News), China's leading online media, communications, commerce and wireless services company, today reported results for the third quarter ended September 30, 2002.

Business Highlights

*US GAAP profitability of US$112,000 achieved well ahead of schedule

* Positive cash flow from operations for the first nine months of 2002

* Revenues rise 111% year-on-year to US$7.5 million beating company guidance of US$6.7 million

* 9 consecutive quarters of double-digit quarterly sequential revenue growth

* Non-advertising and advertising revenue contribute to a balanced, diversified 51%-49% revenue mix ahead of schedule

* Advertising revenues grow by 52% year-on-year to US$3.7 million, reflecting widening domestic client base

* Non-advertising revenues soar 237% year-on-year to US$3.8 million through sustained conversion of SOHU's user base into consumers

* Gross margins reach record high of 55%

* Q4 2002 and full year 2003 US GAAP profitability guidance maintained