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NetEase to Redeem its Zero Coupon Convertible Subordinated Notes
2008/06/16 11:36:51
(Beijing June 13, 2008) NetEase.com,Inc. (NASDAQ: NTES), one of China’s leading Internet and online game services providers, today announced that it has called for redemption of its Zero Coupon Convertible Subordinated Notes due July 15, 2023 (the “Notes”). The redemption date is July 15, 2008. The redemption price is equal to the outstanding principal amount of the Notes. If all of the currently outstanding Notes are redeemed without any conversion of the Notes into the Company’s ordinary shares prior to the redemption, the aggregate redemption amount would be approximately US$87.98 million.
The Notes may be converted at any time before the close of business on July 11, 2008 at the conversion price of US$0.4815 per ordinary share. NetEase intends to use its available working capital to fund the redemption of the Notes.
Additional information regarding the conversion and/or redemption of the Notes is available from The Bank of New York Mellon, the trustee, paying agent and conversion agent for the Notes at the following address and facsimile number: The Bank of New York Mellon, Global Trust Services, One Temasek Avenue, #02-01 Millenia Tower, Singapore 039192. Facsimile : +65-6883-0338.
About NetEase
About 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. NetEase’s online communities and personalized premium services have established a large and stable user base for the NetEase websites which are operated by its affiliates. 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 Fantasy Westward Journey, Westward Journey Online II, Westward Journey Online III, Tianxia II and Datang.
NetEase also offers online advertising on its websites which enables advertisers to reach its 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 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.
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This press release contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that the redemption and/or conversion of notes will have a material impact on NetEase’s liquidity; NetEase will not be successful in its product diversification efforts, including its focus on item- and fee-based games and exploration of strategic licensing opportunities; the risk that the online game market will not continue to grow or that NetEase will not be able to maintain its leading position in that market, which could occur if, for example, its new online games or expansion packs and other improvements to its existing games do not become as popular as management anticipates; the ability of NetEase to effectively market its games and other services and achieve a positive return on its marketing expenditures; the risk that changes in Chinese government regulation of the online game market may limit future growth of NetEase’s revenue or cause revenue to decline; the risk that NetEase may not be able to continuously develop new and creative online services; the risk that NetEase will not be able to control its expenses in future periods; competition in NetEase’s existing and potential markets; governmental uncertainties (including possible changes in the effective tax rates applicable to NetEase and its subsidiaries and affiliates and the ability of NetEase to receive approvals of the preferential tax treatments previously available to certain of its subsidiaries and VIEs in China), general competition and price pressures in the marketplace; the risk that security, reliability and confidentiality concerns may impede broad use of the Internet and e-commerce and other services; the risk that fluctuations in the value of the Renminbi with respect to other currencies could adversely affect NetEase’s business and financial results; and other risks outlined in NetEase’s filings with the Securities and Exchange Commission. NetEase does not undertake any obligation to update this forward-looking information, except as required under applicable law.
About NetEase.com, Inc.
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Contact:
Liddy LiNetEase.com, Inc.
IR@service.netease.com
8610-8255 8163x8208