Sohu.com Inc. today announced it has entered into a definitive agreement to acquire Beijing G. Feel Technology Co., Ltd. ('Goodfeel'), a Chinese provider of value added mobile data services for Wireless Applications Protocol (WAP).

This acquisition will bring 800,000 monthly paying subscribers of wireless value-added services, and strengthen the position of Sohu in the Chinese wireless data market. Sohu will pay US$18 million in cash for the deal upon closing.

WAP is a rapidly growing area in the Chinese wireless data market. Goodfeel, a Beijing-based WAP service provider, offers WAP services via China Mobile Communication Corporation (CMCC) throughout China. CMCC, China's largest wireless operator, allows subscribers Internet browsing on their mobile phones through a quick and convenient 'One Key Access' Monternet platform. Goodfeel is one of the leading WAP service providers to China Mobile, with its main product being ringtone and picture logos. Goodfeel enjoys preferential menu placement positioning on this Monternet platform, a key competitive advantage relative to other service providers. According to the report from Goodfeel's management team, the revenue for the 2003 reached US$1 million, while revenue for the first quarter of 2004 exceeded US$1.3 million.

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