BEIJING, Nov. 18 Baidu.com, Inc. (Nasdaq: BIDU), theleading Chinese language Internet search provider, today issued this pressrelease in response to recent CCTV reports.
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Baidu focuses on providing customers with cost-effective and targetedmarketing solutions. Baidu's pay-for-performance ("P4P") paid search platformenables its customers to reach users who search for information related totheir products or services. Customers may use Baidu's automated online toolsto create text-based descriptions of their web pages and bid on keywords thattrigger the display of their links and web page information.
China Central Television ("CCTV"), the largest state-owned televisionnetwork in China, reported in its program "News in 30 Minutes" on November 15and 16 that Baidu had been including websites of medical companies that do nothold proper licenses in its paid search listings for some popular medicalterms, while excluding certain websites which did not buy keywords.
Shortly after the CCTV program was broadcast, Baidu initiated dialoguewith CCTV regarding this matter. At the same time, Baidu removed paid searchlistings of certain customers, particularly medical and pharmaceuticalcustomers without licenses on file with Baidu. Baidu will allow thesecustomers to resume access to Baidu's P4P paid search platform once theirrelevant licenses are provided to and reviewed by Baidu. These customersaccount for approximately 10-15% of Baidu's total revenues. Baidu believesthis immediate measure is the most prudent way to protect the interests ofBaidu's users. Currently, it is difficult to estimate how many removedcustomers will provide relevant licenses to Baidu and when they will do so.Baidu will work closely with customers to ensure those customers with properlicenses will be able to access Baidu's services again quickly. While Baiduis currently uncertain about the near term financial impact of this prudentmeasure, Baidu does not believe it would have significant impact on Baidu'sresults in the long term.
On November 17, 2008, Baidu issued a public statement in China,acknowledging that there could be cases where certain companies take advantageof Baidu's paid search platform for questionable purposes. Baidu is committedto social responsibility and will continue to improve its sales andoperational systems commensurate with its status as the leading Chineselanguage Internet search provider.
Separately, Baidu would like to affirm that Baidu has never excludedwebsites of any customers because they did not pay for keywords, and Baidudoes not tolerate such practices.
Baidu is committed to playing a leading role in shaping the standards forChina's Internet industry. Baidu strives to further strengthen itsoperational systems and infrastructure. With a more mature operation, Baiduwill grow even better able to serve increasing numbers of small and medium-sized enterprises ("SMEs"), the backbone of the Chinese economy.
Conference Call Information
Baidu will hold a live analyst conference call at 7:00 AM on November 19,2008 U.S. Eastern Time (8:00 PM on November 18, 2008 Beijing/Hong Kong time).
A replay of the conference call may be accessed by phone at the followingnumber until November 26, 2008:
Additionally, a live and archived webcast of this conference call will beavailable at http://ir.baidu.com .
Baidu.com, Inc. is the leading Chinese language Internet search provider.As a technology-based media company, Baidu aims to provide the best way forpeople to find information. In addition to serving individual Internet searchusers, Baidu provides an effective platform for businesses to reach potentialcustomers. Baidu's ADSs, each of which represents one Class A ordinary share,are currently trading on the NASDAQ Global Select Market under the symbol"BIDU."
Safe Harbor Statement
This announcement contains forward-looking statements. These statementsare made under the "safe harbor" provisions of the U.S. Private SecuritiesLitigation Reform Act of 1995. These forward-looking statements can beidentified by terminology such as "will," "expects," "anticipates," "future,""intends," "plans," "believes," "estimates," "confident" and similarstatements. Statements that are not historical facts, including statementsabout Baidu's beliefs and expectations, are forward-looking statements.Forward-looking statements involve inherent risks and uncertainties that couldcause actual results to differ materially from those contained in any forward-looking statements. Further information regarding these and other risks isincluded in our annual report on Form 20-F and other documents filed with theSecurities and Exchange Commission. All information provided in this pressrelease is as of November 18, 2008, and Baidu undertakes no duty to updatesuch information, except as required under applicable law.Dial-in details for the conference call are as follows: US: + 1-617-213-8842 UK: + 44-207-365-8426 Hong Kong: + 852-3002-1672 Passcode for all regions: 88779261
SOURCE Baidu.com, Inc.