Nin Hao ! In the spirit of drilling down the dynamics of the Internet in China , We have published a data filled , action packed slideshow “Handbook of Online China” on the eve of Beijing Olympics inauguration . The report focus on three key themes - China as an online leader , China Insider - the competitive landscape in Search , IM & Web 2.0 & Business in Online China - that are essentially key indicators of the ongoing development of the dynamic Internet market in China. The report is unique of its kind & we are sure as an online china observer , analyst & investor you will find the slideshow really handy. If you want a copy of this presentation ,drop us a note.We shall be happy to mail you the same.

1. Handbook of Online China Brought to you by: Olympics Eve, August 2008

2. Brought to you by: 1 . China Leads WWW

3. 253 M 223 M Source : CNNIC

4. Source : eMarketer ,Nielsen ,CITA Country Mobile Phones (MM) Internet Users (MM) Mobile Phone to Internet Users Ratio China 574 221 2.59 :1 US 256 216 1.18:1 Japan 107 89 1.2 :1 South Korea 43.49 34.4 1.26 :1 UK 70.99 36.8 1.93 : 1

5. ~ Half of Top 20 Trafficked Asia Pacific Sites are in China * Asia Pacific Reach Source : Comscore Rank Site Name Country Reach * 1 Yahoo ! Sites USA 66.8 2 Google Sites USA 62.5 3 Micros. Sites USA 57.9 4 Baidu.com China 22.7 5 Tencent China 22.7 6 Wikipedia Sites USA 20.1 7 SINA.com China 18.5 8 NetEase China 15.2 9 eBay USA 15.2 10 CNET Networks USA 15.1 Rank Site Name Country Reach * 11 Amazon Sites USA 14.3 12 Sohu.com China 14.2 13 Alibaba.com China 13.1 14 Apple Inc USA 12.9 15 AOL USA 12.2 16 Rakuten Japan 11.2 17 Friendster USA 11.2 18 FC2 Inc Japan 10.8 19 NTT Group Japan 10.0 20 Xunlei Networking China 9.9

6. Brought to you by: 2. China Insider

7. Growth of Internet Users In Million China's Internet Penetration Rate At the end of June 08, China's Internet penetration rate reached 19.1% . This rate was slightly lower than the global average of 21.1% Internet penetration rate . Source : CNNIC

8. 68.6% of Chinese netizens are 30 years or younger. 39% of netizens are high school graduates.30% of the users are students. 30.5% of netizens monthly earn below 500 Yuan ($ 68.50). Female represents 46.4 % of netizens. Source : CNNIC

9. Source : CNNIC

11. 3. Top Players – Online China

12. Source : Comscore 1 2 3 4 5 6 7 8 9 10

13. Source : Comscore Rank Site Name Unique Visitors Major Business 1 QQ.Com 62,248 IM 2 Baidu.Com 60,174 Online Ad ( 64%) 3 Sina.Com.Cn 48,373 Portal (Online Ad) 4 163.Com 40,805 Portal (Online Game) 5 Yahoo.Com.Cn 38,852 Paid Search 6 Google.Cn 34,882 Paid Search 7 Sohu..Com 31,184 Online Games & MVAS 8 Soso.Com 30,602 Paid Search 9 Microsoft.Com 27,999 Online Ad ,SNS 10 Taobao.Com 25,778 Online Auction

14. 2008 Q2 China Search Market Source : Comscore , Analysis International Google share of search

15. 3. China 2.0

16. Prepared by Yupoo.com for China Blogger Conference 2007 , Beijing. IDC :By 2011, China’s Web 2.0 market will reach US$645.8M Web 2.0 logo postcard

17. Comparison Index to Global Average Share of Daily Usage on Various Categories Reading Blogs Writing Blogs China ranks above daily Global average in reading & writing blogs Source : Universal McCANN Korea China France Germany Japan UK US

18. Comparison Index to Global Average Share of Daily Usage on Various Categories Social Network Uploading Photo China ranks above daily Global average in social networks & photo upload Source : Universal McCANN Korea China France Germany Japan UK US

19. Comparison Index to Global Average Share of Daily Usage on Various Categories Uploading Video Watching Video Clips China ranks above daily Global average in uploading & watching videos Source : Universal McCANN Korea China France Germany Japan UK US

20. Comparison Index to Global Average Share of Daily Usage on Various Categories Downloaded Podcasts Subscribed RSS China ranks above daily podcast download & RSS subscribes Source : Universal McCANN Korea China France Germany Japan UK US

21. BBS in China are acting as ecommerce hub & grape vine to spread buzz like “ Fake Tiger Scams “ & “ Nail House ” . Per Day Time Spent on BBS Sites 60% of users - at least 3 BBS sites more than 3 times each week. 98% of users have contributed to a BBS by publishing articles, replying to posts, participating in polls, etc.. Source : iResearch Time Spent / Day % of Users 1-3 Hrs 36.3% 3-8 Hrs 44.7% More than 8 Hrs 15.1%

24. Facebook (“Rebel Alliance” ?) FB apps FB apps FB apps FB apps iLike = Announced Platform / API = Unannounced Platform / API RockYou Slide Flixster Widgets Widgets SocialMedia ClearSpring Widgetbox Gigya iGoogle Google Gadgets MySpace (“Clone Army”?)

25. Xiaonei Apps Apps = Announced Platform / API = Unannounced Platform / API Widgets Widgets Hainei Apps Apps Widgets Widgets Widgets 5GSNS UCenter QQ? MySpace.Cn

26. 3. Business – Online China

27. Source : Cheil , Zenith Optimedia

28. Source : Cheil , Zenith Optimedia

29. Source : Cheil , Zenith Optimedia

30. Source: Company Reports; Figures rounded off 2004 : MVAS revenue was 2x > than Online Gaming & 3x > than Online Ad. 2008 : Gaming & Online Ad Market are real HOT ! Company 2008 Q1 Revenue Million US $ % of Revenue Operating Margin MVAS Gaming/IVAS Advertising Sohu $84.4 10% 49% 41% 40 % Baidu $ 81.9 - - 100% 27 % Sina $71.3 33% - 67% 19 % Shanda $111 - 97% 3% 40 % NetEase $93 - 86% 14% 63 % Tencent $204.1 20% 70% 10% 51 % Total $ 646 11% 58% 31% 40%

31. 1 2 3 50% growth in online advertising market in China in 2008, driven by 2008 Beijing Olympics. The branded advertising market will witness a 38% YoY growth rate in 2008. PPC search market enjoys a higher growth rate of 82% to $562 million. Baidu will remain dominant player to take around 65-70% market share . Source : JP Morgan

32. Million China’s mobile market remains a 2G market (including EDGE, GPRS, 1x). GSM dominates China’s mobile market with over 540 M subs, or 90% of the market. Source : Company Info

34. iPod owners express interest in the iPhone Source : Pearl Research 68 % heard about iPhone trendiness and design Key Reason To Buy 88 % $ 500 Reason of Disinterest ? iPhone copycats $200 - $300

35. Brought to you by: Stay Tuned.. Olympics 2008

36. China’s Olympic: August 2008 official Olympics website

37. China’s Olympic: Who’s Following? Australian and New Zealand audiences are leading the charge to the official Olympics website i

38. Explore More Trends & Buzz at: www.trendsspotting.com Discover our trend tools: