SINA.com Press Center

Click here to view Pro Forma P&L and Balance Sheet

0508

SINA.com Reports Its Third Quarter of Fiscal Year 2002 Financial Results
***
Quarterly Pro Forma Net Loss Narrowed by 22% Sequentially, Gross Margin Improved to 52%

BEIJING/San Mateo, Calif., May 8, 2002 – SINA (Nasdaq: SINA), a leading Chinese media and Internet services company today announced its financial results for the third quarter of fiscal year 2002 ended March 31, 2002. Financial Highlights:

·Quarterly pro forma net loss decreased by 22% sequentially, and an improvement of 67% as compared to the same period of the prior year
·Gross profit margin improved to 52% from 49% for the prior quarter
·Revenues from e-commerce and fee-based services increased by 44% quarter over quarter and increased by 607% year over year

For the quarter ended March 31, 2002, net revenues were $7.1 million, an increase of 5% from previous quarter and 16% from the same period of the previous year. On a GAAP (Generally Accepted Accounting Principles) basis, net loss for the quarter was $4.0 million, an improvement of 20% from $4.9 million for the previous quarter and of 56% from $9.0 million in the same period of the previous year. Net loss per share for the quarter was $0.09, as compared to $0.11 for the previous quarter and $0.22 for the same period of the previous year.

Pro forma net loss for the quarter ended March 31, 2002 was $1.8 million, representing a 22% improvement from $2.3 million for the previous quarter and a 67% improvement from $5.4 million for the same period of the previous year. Pro forma net loss per share for the quarter was $0.04, compared to $0.05 for the previous quarter and $0.13 for the same period of the previous year. Pro forma net loss excludes non-cash charges for amortization of intangibles, stock-based compensation and gains or losses from equity investments and one-time charges related to severance payment and office moving.

For the nine-month period ended March 31, 2002, net revenues were $19.9 million, compared to $20.9 million for the same period of the previous year. On a GAAP basis, net loss was $14.2 million for the nine-month period ended March 31, 2002, an improvement of 50% from a net loss of $28.1 million for the same period of the previous year.

Pro forma net loss for the nine-month period ended March 31, 2002 was $6.9 million, an improvement of 56% from a pro forma net loss of $15.9 million for the same period of the previous year. Pro forma net loss excludes non-cash charges for amortization of intangibles, stock-based compensation and gains or losses from equity investments and one-time charges related to severance payment and office moving.

As of March 31, 2002, the total balance of SINA's cash, cash equivalents and short-term investments was $93.6 million, representing a decrease of $2.4 million from the previous quarter. .

"We have accomplished another solid and growing quarter, even though we had anticipated a down quarter for revenues due to the advertising market seasonality,” said Charles Chao, Chief Financial Officer of SINA. “Our revenue diversification strategy has led to a rapid and steady revenue growth from the fee-based services including wireless short messaging services.”

“More importantly,” said Mr. Chao of SINA, “we have achieved revenue growth with further cost reduction. This was the fourth consecutive quarter that we were able to improve our pro forma net loss by 22% or more. In addition, our gross margin has increased to a record 52%, significantly leading all of our competitors in the industry, demonstrating that SINA has a much more profitable business franchise as a result of its leadership position.”

During the quarter, while continuously growing its core competency, SINA has completed the formation of its three major business lines - SINA.com, the Internet media business of SINA, focuses on providing information and content to the largest possible user base with advertising as its main source of revenue; SINA.net, the technology services business, focuses on providing Internet based technology solution and services to enterprises and governments with service and licensing fees as the main source of revenue; SINA Online, the telecom access and subscription business of SINA, focuses on providing bundled access and content services to end users with subscription fees as the main source of revenue. Since these three business lines are able to share common resources in technology, content publishing, management, marketing, branding and promotion while at the same time grow revenues independently, the management is confident in further improving operating efficiency and increasing market shares.

Also during the quarter, SINA was officially selected as the exclusive Internet partner of the Chinese National Soccer Team to provide real-time coverage, member interviews, highly acclaimed celebrity commentaries, full databank of player statistics, VIP chats, photo galleries and many other exclusive features to millions of Chinese soccer fans whose team for the very first time in its history marched to the 2002 World Cup finals.

“As a market leader, SINA has succeeded in further improving operational quality such as higher gross margin and lower net loss while continuing to grow the scale of revenue and market share. During the quarter, our management team has made several milestone achievements, including the launch of our exclusive partnership with Chinese National Soccer Team, and the creation of our .Net and SOL business lines as the foundation of SINA TMT strategy,” said Daniel Mao, Chief Executive Officer of SINA. “Increasingly, SINA will position to become a leading value-added Chinese information service provider via cross media and subscription-based services”

The conference call live webcast for the third quarter of fiscal year 2002 is scheduled on May 9, 2002 at 9:00 a.m. Hong Kong time (or 6:00 p.m. Pacific Standard Time on May 8, 2002) and also will be broadcast at www.sina.com/corp/invest.

About SINA

SINA, a leading Chinese media and Internet services company, offers Internet media and entertainment services, entrepreneurial technology services, and telecom access and subscription services through its three major business lines – SINA.com, SINA.net, and SINA Online.

SINA global network delivers China-related information inclusive of economy, finance, business, sports, entertainment, technology, as well as Chinese success stories and Chinese dreams via multiple devices and SINA English Channel to the world's largest population group. The network of four localized Web sites is produced and updated daily by local teams in China, Hong Kong, Taiwan and North America.

To learn more about SINA, visit the company's corporate site at http://www.sina.com/corp/ , or regional sites at http://www.sina.com , http://www.sina.com.cn , http://sina.com.hk and http://www.sina.com.tw .

Safe Harbor Statement

This company's announcement contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the Securities and Exchange commission on forms 10-K, 10-Q, 8-K, etc., in our annual report to shareholders, in our proxy statements, in our offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. Statements that are not historical facts, including statements about our 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, SINA historical and future losses, limited operating history, uncertain regulatory landscape in the People's Republic of China, fluctuations in quarterly operating results, the company's reliance on online advertising sales for a significant portion of its revenues. Further information regarding these and other risks is included in SINA's prospectus, 10K, 10Q and in its other filings with the Securities and Exchange Commission.

Contact Information:Grace Lee / SINA,
650-638-9228 or gracelee@staff.sina.com