NetEase's Board Approves New Share Repurchase Program
Beijing -August 29, 2006
(Beijing -August 29, 2006) -NetEase.com, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced that its board of directors has approved a new share repurchase program of up to US$100 million of the company's outstanding American Depositary Shares (ADSs) for a period not to exceed six months.The new authorization follows NetEase's completion of a share buyback program previously announced on May 18, 2006 pursuant to which approximately 2.4 million of the company's issued and outstanding ADSs were purchased for an aggregate purchase consideration of US$50.3 million (including transaction costs).
Under the terms of the approved program, NetEase may repurchase its issued and outstanding ADSs in open-market transactions on the NASDAQ Global Select Market. The timing and dollar amount of repurchase transactions will be subject to Securities and Exchange Commission (SEC) Rule 10b-18 requirements.It is also expected that such repurchases will be effected pursuant to a plan in conformity with SEC Rule 10b5-1.NetEase plans to fund repurchases made under this program from available working capital.
Commenting on this announcement, William Ding, Chief Executive Officer and Director of NetEase, said, "The completion of our previous US$50 million program is a testament to our confidence in the long-term growth prospects for our company. By doubling the size of the new authorization to US$100 million, we are reaffirming our confidence and optimism for NetEase's future." Mr. Ding continued, "With our strong balance sheet and significant free cash flow, we maintain the flexibility to invest in our current business and will continue to repurchase our ADSs. We continue to firmly believe that the purchase of our ADSs is an attractive investment for the company and for shareholders."
NetEase.com, Inc. is a leading China-based Internet technology company that pioneered the development of applications, services and other technologies for the Internet in China. Our online communities and personalized premium services have established a large and stable user base for the NetEase websites which are operated by our affiliates. For the month of June 2006, the NetEase websites had more than 702 million average daily page views, making us one of the most popular destinations in China and on the World Wide Web. In particular, NetEase provides online game services to Internet users through the licensing or in-house development of massively multi-player online role-playing games, including Westward Journey Online II and Fantasy Westward Journey.
NetEase also offers online advertising on its websites which enables advertisers to reach our substantial user base. In addition, NetEase has paid listings on its search engine and web directory and classified ads services, as well as an online mall, which provides opportunities for e-commerce and traditional businesses to establish their own storefront on the Internet. NetEase also offers wireless value-added services such as news and information content, matchmaking services, music and photos from the Web which are sent over SMS, MMS, WAP, IVR and Color Ring-back Tone technologies.
Other community services which the NetEase websites offer include instant messaging, online personal ads, matchmaking, alumni clubs, personal home pages and community forums. NetEase is also the largest provider of free e-mail services in China. Furthermore, the NetEase websites provide various channels of content. NetEase aggregates news content on world events, sports, science and technology, and financial markets, as well as entertainment content such as cartoons, games, astrology and jokes, from over one hundred international and domestic content providers.