SOHU / CYOU Joint Presentation November 2010 1 SOHU.COM INC. - PowerPoint PPT Presentation

SOHU / CYOU Joint Presentation November 2010 1 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

Safe Harbor Statement This presentation contains forward-looking statements. Statements that are not historical facts, including statements about Sohu and Changyou’s beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. 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 current global financial and credit markets crisis and its potential impact on the Chinese economy, the slower growth the Chinese economy experienced during the latter half of 2008 and in 2009, which could recur in the future, the uncertain regulatory landscape in the People's Republic of China, fluctuations in Sohu's quarterly operating results, and Sohu’s reliance on online advertising sales, online games and wireless services (most wireless revenues are collected from a few mobile network operators) for its revenues. Further information regarding these and other risks is included in Sohu's annual report on Form 10-K for the year ended December 31, 2009 and quarterly reports on Form 10-Q for the quarter ended June 30, 2010, Changyou’s annual report on Form 20-F for the year ended December 31, 2009, and other filings by Sohu and Changyou with the Securities and Exchange Commission. 2 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

Unique Combination of Strong Businesses: Sohu Portal - Changyou - Sogou- Leading Mainstream Media Platform Leading MMORPG Company Online Search Subsidiary Strong brand recognition Diversified game portfolio � � Sogou Pinyin - the � dominant software for User base of more than Acquisition of new users, � � Chinese language-input in 250m particularly teenagers China, with 70-80% market Extensive advertising Contribution of revenues/ share in China � � resources earnings/ strong cash flows Industry expertise of � 17173.com – China's largest gaming portal Portal business: traction is picking up as increasingly higher value advertising solutions are � provided to our advertising partners around China Online game business conducted by Changyou: a leading player in the MMORPG industry; � an effective way to drive high growth and high profitability as well as to generate strong cash flows Sogou search business: Strategic investment from Alibaba provides great opportunity to � compete and capture market share 3 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

Financial Track Record Q-o-Q Q-o-Q Y-o-Y 2010 Q4 2010 Q2 2010 Q3 % 2009 Q3 % Guidance % Total revenues $146.1m $164.1m 12% $136.6m 20% $163m~168m -1%~2% Brand advertising $53.2m $59.1m 11% $48.5m 22% $58m~60m -2%~2% Search $3.9m $5.4m 38% $2.3m 134% $6m 11% Online games (CYOU) $77.7m $85.6m 10% $68.7m 25% $86m~89m 0%~4% Operating margin (non- 39% 44% N/A 42% N/A N/A N/A GAAP)* Net income before NCI (non- $52.5m $61.3m 17% $51.6m 19% $59m~61.5m -4%~0% GAAP)* Net income after NCI for $37.5m $45.2m 21% $37.4m 21% $43m~45m -5%~0% diluted EPS (non-GAAP) * Diluted EPS after NCI (non- $0.96 $1.16 21% $0.96 21% $1.10~1.15 -5%~1% GAAP) * Cash Balance $599m $535m -11% $597m -10% N/A N/A Cash inflow from operations $58m $84m 45% $65m 29% N/A N/A * Non-GAAP operating income, net income and diluted EPS exclude the impact of share-based awards. Please refer to our earnings release, which is posted on the IR section of Sohu’s website at http://corp.sohu.com/investorrelations for GAAP numbers. Ranked by Fortune magazine as the 12 th fastest growing U.S.-listed company based on financial performance over the past three years 4 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

Supplementary Financial Data by Business Lines Non-GAAP GAAP Operating Operating Operating Operating 2010 Q3 Revenue Profit Margin Profit Margin Brand Advertising, wireless and others $73.1m $21.5m 29% $17.2m 24% Search $5.4m $-4.9m NA $-5.4m NA Subtotal $78.5m $16.6m 21% $11.8m 15% Online Games (before NCI) $85.6m $55.2m 64% $53.4m 62% Total $164.1m $71.8m 44% $65.2m 40% 5 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

Strong Results Delivered by an Experienced and Focused Team Title Years Title Years Dr. Charles Zhang 14 Mr. Tao Wang 6 Chief Executive Officer Chief Executive Officer 7 Mr. Alex Ho 6 Ms. Carol Yu Chief Financial Officer Co-President and Chief Financial Officer 11 Mr. Dewen Chen 6 Ms. Belinda Wang President and Chief Co-President and Chief Operating Officer Operating Officer Mr. Xiaojian Hong 6 Mr. Xiaochuan Wang 10 Chief Technology Officer Chief Technology Officer The management team has been making all the right moves over the past 5+ years and � is flush with confidence and strong execution capability 6 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

Portal Business: Brand Advertising 7 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

China Online Advertising Industry More advertising spending anticipated in 2010 � − Recovered from the global financial crisis − Ad spending has been stimulated by events such as World Cup and Asian Games − Online media continues to gain market share from traditional media � Greater efficiency and effectiveness � Ongoing advertising budgets shifting from offline to online � Internet penetration expansion − Online video is one of the fastest growing segments where Sohu has secured a leading position − Optimistic about the remainder of the year 8 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

SOHU Brand Advertising Performance by Industry Brand advertising revenue for 2010 is expected to grow by 18% - 20% as � compared to 2009, or by 24% - 25% as compared to 2008. IT-related industries, auto, online games, FMCG were fast growing sectors for � 2010 Q3. Auto & FMCG: will remain stable revenue growth in 2010 Q4. � Real Estate: � New government policies and regulations have negative impact on the – volume of sales. Overall, we’ll see a revenue growth, especially from second-tier cities in – 2010 Q4, through our efforts to offer more online promotion plans to advertisers. 9 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

Online video: our potential future revenue driver Online video is one of the fastest growing segments where Sohu has secured a leading � position – Ad revenues of the online video industry in China are expected to grow 73% in 2010, and over 65% each year from 2011 to 2013, reaching 11 billion RMB in 2013. (iResearch) – ComScore and iResearch: for 2010 Q3 Sohu ranked 3 rd in terms of the total number of online video views and total effective time spent watching videos in China. Further expansion of content offering and improvement on innovative applications to � enhance broadcast solutions for various devices. − E.g., we’ve made all of the content on our video site accessible to iPad and iPhone users to ensure that their user experience will be as dynamic as the devices they are using. Average daily video views of high-definition video channel grew by 40% Q-o-Q � The growing traffic attracted more advertising spending. Video revenues for 2010 Q3 � increased 71% Q-o-Q. 10 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

Online Search: Sogou 11 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

Sogou Business Sogou Pinyin Sogou Browser Sogou Search Sogou browser The dominant Sogou search has been software for engine now has a installed on Chinese 1.2% market roughly 10% of language-input in share based on China, installed PCs in China and the latest is No. 3 in terms on 70%~80% of iResearch report, of market share PCs in China and is No. 3 in in China China We’ll leverage Sogou Pinyin’s success to promote Sogou Browser which in turn will bring traffic to Sogou Search 12 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)

Search Revenue Mix 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 Bid listing $0.9m $1.3m $1.8m $2.3m $2.1m $3.1m $4.6m Paid listing $0.7m $0.5m $0.5m $0.6m $0.7m $0.8m $0.8m Total $1.6m $1.8m $2.3m $2.9m $2.8m $3.9m $5.4m 13 SOHU.COM INC. (NASDAQ: SOHU) CHANGYOU.COM LIMITED (NASDAQ: CYOU)