NetEase Creates New Potential Revenue Source Through Launch of Short Messaging Service, Inc. (Nasdaq:NTES), a leading Internet technology company supporting China's top ranked Web sites, today announced the launch of its new Short Messaging Service. This new service is being launched in cooperation with China Mobile Communications Corporation, China's largest cellular services provider, and is timed to coincide with the start of a new century. The service is available to all China Mobile Communication Corporations users and can be accessed through the popular web site supported by NetEase,

The launch of this service marks Inc.'s continuing efforts to increase communications among China's rapidly expanding base of `Netizens.' The service also demonstrates the cooperation which NetEase has been able to achieve with one of China's leading telecommunications providers in bringing the power of the Internet to the mobile phone, allowing for `anytime, anywhere' communications.

According to the agreement between NetEase and China Mobile Communication Corporation, NetEase is entitled to charge a fee for messages sent on this service from China Mobile Communication Corporation's users. NetEase expects that the short messages will be both "pushed" and "pulled" through this service, thereby creating two bases of fee generation. First, information may be "pushed" by NetEase to the user in the form of messages containing such things as weather reports, traffic and news. China Mobile Communication Corporation users can choose to receive this information at specified times of the day or week. Second, information may be "pulled" from NetEase when, for example, a user sends a short personal message or greeting at his convenience.

The service is being launched with a special emphasis on sending Chinese Spring Festival messages and celebrating the start of a new century. With this service, users can simply and conveniently send messages and greetings to friends and family at a time of traditional family gatherings.

King Lai, CEO of NetEase, commented, "At present, China has over 70 million mobile phone users, many of which are also Internet users. This new service will combine the strengths of the fixed and wireless Internet. As a leader in Internet technology, from WAP to the launch of the Short Messaging Service, NetEase is focused on driving the continued development of new Internet services for China. NetEase will continue to work closely with all the players in the Internet field to fulfill the aim of the Internet to be `anytime, anywhere.'"

Susan Chen, COO of NetEase, added, "NetEase has strived to harness the combined strengths of the users of the NetEase Web site to create the best possible online experience. Great efforts have been made to increase communications between our users. By allowing increased interaction, the Internet can play a greater role in making people's lives more convenient and more enjoyable. These efforts include working with Google to provide superior search facilities and our Open Content Management. The strong cooperation with China Mobile Communication Corporation, which was necessary to launch this service, further proves our ability to combine expertise in order to bring the Internet closer to the people."

Drawing on her years of experience in the telecom industry, Susan Chen predicts that the new Short Messaging Service will be very welcome in China.

To use the service, users simply have to visit the website and register.

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