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Baidu Announces Fourth Quarter and Fiscal Year 2005 Results
Feb 21, 2006
    Company Expanded Market Share in China's Rapidly Growing Search Market

BEIJING, Feb. 21 /PRNewswire-FirstCall/ -- Baidu.com, Inc. (Nasdaq: BIDU), the leading Chinese language Internet search provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2005(1).

    Fourth Quarter and Fiscal Year 2005 Highlights

    * Fourth quarter 2005 total revenues increased to RMB114.9 million ($14.2
      million), representing a 29.2% increase from the previous quarter and a
      167.7% increase from the corresponding period in 2004.

    * Fiscal year 2005 total revenues increased to RMB319.2 million ($39.6
      million), representing a 171.8% increase from 2004.

    * Fourth quarter 2005 net income increased to RMB24.5 million ($3.0
      million), representing a 188.7% increase from the previous quarter and a
      285.6% increase from the corresponding period in 2004. Basic and diluted
      earnings per share ("EPS") for the fourth quarter 2005 were RMB0.75
      ($0.09) and RMB0.71 ($0.09), respectively; basic and diluted EPS
      excluding share-based compensation expenses (non-GAAP) for the fourth
      quarter of 2005 were RMB1.06 ($0.13) and RMB1.01 ($0.13), respectively.

    * Fiscal year 2005 net income increased to RMB47.6 million ($5.9 million),
      representing a 296.5% increase from 2004. Basic and diluted EPS for 2005
      were RMB2.40 ($0.30) and RMB1.49 ($0.18), respectively; basic and
      diluted EPS excluding share-based compensation expenses (non-GAAP) for
      2005 were RMB4.10 ($0.51) and RMB2.53 ($0.31), respectively.

    * The number of active online marketing customers during the fourth
      quarter grew to over 63,000, an increase of 18.6% from the previous
      quarter.

"We are pleased that Baidu has achieved another quarter of strong revenue and earnings growth despite increased efforts by our peers in the Chinese language search market," said Robin Li, Baidu's Chairman and CEO. "The strength of the Baidu brand has helped us further enhance our market leadership position in 2005. We are proud to have won the confidence of millions of Chinese search users."

"Continued traffic growth, customer base expansion and the scalability inherent in our pay-for-performance business model contributed to strong financial results for the quarter," said Shawn Wang, Baidu's CFO.

"We achieved robust earnings growth while making significant investments in search technology, products, network capacity, sales and distribution, and most importantly, in people," continued Mr. Wang.

Baidu was named one of China's Top Ten Employers of the Year in 2005 by China Central Television.

"Going forward, we will continue to make aggressive yet focused investments in order to take advantage of the vast potential of China's search market," Mr. Wang concluded.

Fourth Quarter 2005 Results

Baidu reported total revenues of RMB114.9 million ($14.2 million) for the fourth quarter ended December 31, 2005, representing a 29.2% increase from the previous quarter and a 167.7% increase from the corresponding period in 2004. This result exceeded the top end of our previous revenue guidance of RMB106 million ($13.1 million) for the fourth quarter of 2005.

Online marketing revenues for the fourth quarter were RMB111.7 million ($13.8 million), representing a 30.1% increase sequentially and a 179.3% increase from fourth quarter 2004. The growth was driven by the increases in both the number of customers and revenue per customer. Baidu had more than 63,000 active online marketing customers as of December 31, 2005, representing an 18.6% increase from the previous quarter. Revenue per online marketing customer for the fourth quarter was RMB1,772.9 ($219.7), representing a 9.7% increase from the previous quarter.

Depreciation expenses of servers and other equipment as a component of cost of revenues were RMB9.1 million ($1.1 million). Bandwidth costs as a component of cost of revenues were RMB6.7 million ($0.8 million). Both figures increased slightly from the previous quarter. Capital expenditures for the fourth quarter of 2005 were RMB21.2 million ($2.6 million), compared to RMB38.9 million ($4.8 million) for the previous quarter. We substantially completed the expansion of a major data center by the end of the third quarter, and as a result, depreciation expenses and bandwidth cost in the forth quarter remained at similar levels as the previous quarter, and capital expenditures in fixed assets declined.

Traffic acquisition cost as a component of cost of revenues was RMB8.9 million ($1.1 million), representing 7.8% of total revenues, compared to 7.0% in the corresponding period in 2004.

Selling, general and administrative expenses for the fourth quarter were RMB42.4 million ($5.3 million), representing an increase of 40.5% from the previous quarter and 210.9% from the corresponding quarter in 2004, mainly due to expansion of direct sales force as well as incremental expenditures associated with being a public company.

Research and development expenses were RMB11.0 million ($1.4 million), remaining stable from the previous quarter and representing an increase of 197.0% from the corresponding period in 2004 primarily due to the expansion of R&D headcount.

Operating profit on a GAAP basis was RMB14.2 million ($1.8 million), representing a 105.6% increase from the previous quarter and a 137.1% increase from the corresponding period in 2004. Operating profit excluding share-based compensation expenses (non-GAAP) was RMB24.7 million ($3.1 million) for the fourth quarter of 2005, a 39.2% increase sequentially and a 124.6% increase from the corresponding period in 2004.

Net income on a GAAP basis was RMB24.5 million ($3.0 million), representing a 188.7% increase from the previous quarter and a 285.6% increase from the corresponding period in 2004. Net income excluding share-based compensation expenses (non-GAAP) was RMB35.0 million ($4.3 million), an 81.3% increase from the previous quarter and a 208.3% increase from the corresponding period in 2004. Basic and diluted EPS for the fourth quarter of 2005 amounted to RMB0.75 ($0.09) and RMB0.71 ($0.09), respectively. Basic and diluted EPS excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2005 was RMB1.06 ($0.13) and RMB1.01 ($0.13), respectively.

Adjusted EBITDA (non-GAAP), which is defined in this announcement as earnings before interest, taxes, depreciation, amortization, other non- operating income and share-based compensation expenses, were RMB36.6 million ($4.5 million) for the fourth quarter of 2005, representing a 31.6% increase from the previous quarter and a 143.5% increase from the corresponding period in 2004.

Fiscal Year 2005 Results

Total revenues for 2005 were RMB319.2 million ($39.6 million), representing a 171.8% increase from the previous year.

Online marketing revenues were RMB307.4 million ($38.1 million), representing a 187.6% increase from the previous year.

Depreciation expenses of servers and other equipment as a component of cost of revenues were RMB25.3 million ($3.1 million), representing a 257.2% increase from the previous year. Bandwidth costs as a component of cost of revenues were RMB21.3 million ($2.6 million), representing a 151.0% increase from the previous year. Capital expenditures totaled RMB88.7 million ($11.0 million) for 2005, representing a 248.8% increase from the previous year. These increases were primarily attributable to expenses and costs associated with the major data center expansion to strengthen our ability to support increasing traffic.

Traffic acquisition costs in 2005 were RMB21.2 million ($2.6 million), representing 6.6% of total revenues compared to 9.3% in 2004, reflecting the faster growth of our organic traffic compared to that of union traffic for the whole year.

Selling, general and administrative expenses in 2005 were RMB112.0 million ($13.9 million), representing an increase of 187.1% from the previous year, mainly due to increased investment in branding, expansion of direct sales force, strengthening of our distributor network, and incremental expenditures associated with being a public company in the third and fourth quarters.

Research and development expenses totaled RMB34.4 million ($4.3 million) in 2005, representing a 201.7% increase from 2004 primarily due to expansion of R&D headcount.

Operating profit in 2005 on a GAAP basis was RMB35.8 million ($4.4 million), a 225.7% increase from 2004. Operating profit excluding share-based compensation expenses (non-GAAP) in 2005 was RMB69.4 million ($8.6 million), representing a 152.3% increase from 2004.

Net income in 2005 on a GAAP basis was RMB47.6 million ($5.9 million), representing a 296.5% increase from 2004. Net income excluding share-based compensation expenses (non-GAAP) in 2005 was RMB81.2 million ($10.1 million), reflecting a 184.7% increase from 2004. Basic and diluted EPS for 2005 amounted to RMB2.40 ($0.30) and RMB1.49 ($0.18), respectively. Basic and diluted EPS excluding share-based compensation expenses (non-GAAP) for 2005 was RMB4.10 ($0.51) and RMB2.53 ($0.31), respectively.

Adjusted EBITDA (non-GAAP) were RMB103.2 million ($12.8 million) in 2005, representing a 175.6% increase from 2004.

As of December 31, 2005, the Company had cash and cash equivalents of RMB900.6 million ($111.6 million). Full year net operating cash flow and capital expenditures were RMB162.4 million ($20.1 million) and RMB88.7 million ($11.0 million), respectively. We made a pre-payment of RMB77.2 million ($9.6 million) against non-current asset in 2005 in connection with our acquisition of the land use right for approximately 44,000 square meters of land intended for building a new headquarter in Beijing. The aggregate consideration for acquiring the land use right is approximately RMB92.4 million ($11.4 million).

As of December 31, 2005, Baidu had 1,307 full time employees, up from 349 at the end of 2004.

Outlook for First Quarter 2006

Baidu currently expects to generate total revenues in an amount ranging from RMB125 million ($15.5 million) to RMB130 million ($16.1 million) for the first quarter of 2006, representing a 174% to 185% increase from the corresponding period in 2005. This forecast reflects Baidu's current and preliminary view, which is subject to change.

Conference Call Information

Baidu's management will hold an earnings conference call at 8 P.M. on February 21, 2006 U.S. Eastern Standard Time (9 AM on February 22, 2006 Beijing/Hong Kong time).

    Dial-in details for the conference call are as follows:

     US: 617 847 8705
     UK: 44 207 365 8426
     Hong Kong: 852 3002 1672
     Passcode for all regions: 86834403

A replay of the conference call may be accessed by phone at the following number until 11 P.M. on February 24, 2006 U.S. Eastern Standard Time.

International: 617 801 6888

Passcode: 89696538

Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com.

About Baidu

Baidu.com, Inc. is the leading Chinese language Internet search provider. As a technology-based media company, Baidu aims to provide the best way for people to find information. In addition to serving individual Internet search users, Baidu provides an effective platform for businesses to reach potential customers. Baidu's ADSs, each of which represents one Class A ordinary share, currently trade on the NASDAQ Global Market under the symbol "BIDU".

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for first quarter 2006 and quotations from management in this announcement, as well as Baidu's strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, results of operations and financial condition; our ability to attract and retain users and customers; competition in the Chinese language Internet search market; changes in our revenues and certain cost or expense items as a percentage of our revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; the expected growth of the Chinese language Internet search market and the number of Internet and broadband users in China; and Chinese governmental policies relating to the Internet and Internet content providers. Further information regarding these and other risks is included in our registration statement on Form F-1, as amended, filed with the Securities and Exchange Commission. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following measures defined as non-GAAP financial measures by the SEC: adjusted EBITDA, operating profit excluding share-based compensation expenses, net income excluding share-based compensation expenses and basic and diluted EPS excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures" and "Reconciliation from net cash provided by operating activities to adjusted EBITDA" set forth at the end of this release.

Baidu believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the performance of Baidu's liquidity and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical liquidity. Baidu computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.

    (1) This announcement contains translations of certain RMB amounts into
        U.S. dollars at specified rates solely for the convenience of the
        reader.  Unless otherwise noted, all translations from RMB to U.S.
        dollars are based on the effective exchange rate as of December 31,
        2005, which was RMB8.0702 to US$1.00.



    Baidu.com, Inc.
    Condensed Consolidated Statements of Income

                                                 For the Three Months Ended

    (in RMB thousands except for             December     December   September
     share, per share information)               31,         31,         30,
                                                2005        2004        2005
                                             Unaudited    Unaudited  Unaudited
     Revenues:
       Online marketing services              111,739      40,003      85,884
       Others                                   3,161       2,916       3,052
     Total revenues                           114,900      42,919      88,936

     Operating costs and expenses:
       Cost of revenues (note 1)              (36,852)    (14,600)    (30,042)
       Selling, general and administrative    (42,378)    (13,631)    (30,166)
       Research and development               (10,994)     (3,702)    (11,004)
       Share-based compensation (note 2)      (10,453)     (4,986)    (10,807)
     Total operating costs and expenses      (100,677)    (36,919)    (82,019)

     Operating profit                          14,223       6,000       6,917

     Interest income                            8,162         740       3,721
     Foreign exchange loss, net                  (109)        -          (550)
     Other income, net                            125         107         285
     Total other income                         8,178         847       3,456

     Net income before tax                     22,401       6,847      10,373

     Taxation                                   2,148        (481)     (1,869)

     Net income                                24,549       6,366       8,504


    Earnings per share for Class A and
     Class B ordinary shares:
      Basic                                      0.75        0.56        0.35
      Diluted                                    0.71        0.22        0.26
    Weighted average aggregate number of
     Class A and Class B ordinary shares
     outstanding:
      Basic                                32,945,046  11,304,795  24,010,660
      Diluted                              34,584,637  29,233,297  32,904,458

    Pro forma earnings per share for
     Class A and Class B ordinary
     shares(2):
      Basic                                      0.75        0.23        0.27
      Diluted                                    0.71        0.22        0.26
    Pro forma weighted average aggregate
     number of Class A and Class B
     ordinary shares outstanding
     on an as converted basis for Class A
     and Class B ordinary shares:
      Basic                                32,945,046  27,953,672  31,249,302
      Diluted                              34,584,637  29,233,297  32,904,458

     (1) Cost of revenues is detailed as
         follows:
          Business tax and surcharges          (7,470)     (2,476)     (5,723)
          Traffic acquisition costs            (8,943)     (3,025)     (5,660)
          Bandwidth costs                      (6,728)     (4,169)     (6,693)
          Depreciation costs                   (9,117)     (2,532)     (7,711)
          Operational costs excluding share
           based compensation                  (4,594)     (2,398)     (4,255)
          Total cost of revenues              (36,852)    (14,600)    (30,042)

     (2) Share-based compensation expenses
         are allocated as follows:
          Cost of revenues                       (170)       (367)       (343)
          Selling, general and
           administrative                      (6,981)     (3,719)     (6,776)
          Research and development             (3,302)       (900)     (3,688)
                                              (10,453)     (4,986)    (10,807)


                                                      Twelve Months Ended

    (in RMB thousands except for                   December          December
     share, per share information)                     31,              31,
                                                      2005              2004
                                                   Unaudited         Unaudited
     Revenues:
       Online marketing services                    307,363           106,854
       Others                                        11,852            10,597
     Total revenues                                 319,215           117,451

     Operating costs and expenses:
       Cost of revenues (note 1)                   (103,427)          (39,527)
       Selling, general and administrative         (111,967)          (39,004)
       Research and development                     (34,407)          (11,406)
       Share-based compensation (note 2)            (33,571)          (16,510)
     Total operating costs and expenses            (283,372)         (106,447)

     Operating profit                                35,843            11,004

     Interest income                                 13,580             1,135
     Foreign exchange loss, net                        (659)              -
     Other income, net                                  752               347
     Total other income                              13,673             1,482

     Net income before tax                           49,516            12,486

     Taxation                                        (1,911)             (481)

     Net income                                      47,605            12,005


    Earnings per share for Class A and
     Class B ordinary shares:
      Basic                                            2.40              1.09
      Diluted                                          1.49              0.43
    Weighted average aggregate number of
     Class A and Class B ordinary shares
     outstanding:
      Basic                                      19,808,058        10,983,478
      Diluted                                    32,043,888        28,124,327

    Pro forma earnings per share for Class
     A and Class B ordinary shares(2):
      Basic                                            1.58              0.45
      Diluted                                          1.49              0.43
    Pro forma weighted average aggregate
     number of Class A and Class B
     ordinary shares outstanding
     on an as converted basis for Class A
     and Class B ordinary shares:
      Basic                                      30,213,606        26,696,323
      Diluted                                    32,043,888        28,124,327

     (1) Cost of revenues is detailed as
         follows:
          Business tax and surcharges               (20,770)           (6,542)
          Traffic acquisition costs                 (21,212)          (10,901)
          Bandwidth costs                           (21,274)           (8,475)
          Depreciation costs                        (25,259)           (7,072)
          Operational costs excluding share
           based compensation                       (14,912)           (6,537)
          Total cost of revenues                   (103,427)          (39,527)

     (2) Share-based compensation expenses
          are allocated as follows:
           Cost of revenues                            (974)           (1,665)
           Selling, general and administrative      (22,804)          (11,720)
           Research and development                  (9,793)           (3,125)
                                                    (33,571)          (16,510)


    (2) Pro forma basic and diluted earnings per share are computed by
        dividing net income by weighted average number of ordinary shares
        outstanding for the period plus the number of ordinary shares
        resulting from the assumed conversion of all the outstanding
        redeemable convertible preferred share upon closing of the initial
        public offering as if the conversion had occurred at the beginning of
        the period, or when the preferred shares were issued, if later.



    Baidu.com, Inc.
    Condensed Consolidated Balance Sheets

                                             December     September   December
                                                 31,          30,        31,
    (in RMB thousands)                          2005         2005       2004
                                             Unaudited    Unaudited    Audited

     ASSETS
         Current assets:
             Cash and cash equivalents        900,593      966,309    200,196
             Accounts receivable, net          22,353       21,456      9,645
             Prepaid expenses and other
              current assets                   10,957        8,797      2,421
             Deferred tax asset, net            1,449          -          -
         Total current assets                 935,352      996,562    212,262

         Non-current assets:
            Fixed assets, net                  96,420       91,362     35,932
            Prepayment for land use rights     77,200          -          -
            Intangible assets, net             13,303       13,169     12,953
            Goodwill                            9,287        8,741        -
            Investments under cost method       2,018        2,023        -
            Deferred tax asset, net             2,843          -          -
            Others                                -            -        1,059
         Total non-current assets             201,071      115,295     49,944

     TOTAL ASSETS                           1,136,423    1,111,857    262,206

     LIABILITIES, REDEEMABLE CONVERTIBLE
      PREFERRED SHARES AND SHAREHOLDERS'
      EQUITY (DEFICIT)
         Current liabilities:
          Accrued expenses and other
           liabilities                         53,137       74,309     21,900
          Customers' deposits                  70,327       57,367     25,990
          Deferred revenue                      7,658        7,954      6,302
          Deferred income                         124          -          -
         Total current liabilities            131,246      139,630     54,192

         Non-current liabilities:
          Deferred income                         124          -          -
     Total liabilities                        131,370      139,630     54,192

     Redeemable convertible preferred shares      -            -      211,352

     Shareholders' equity (deficit)
      Ordinary Shares, Par value US$0.00005
       per share, 853,751,123 shares
       authorized and 11,306,372 shares
       issued and outstanding as at
       December 31, 2004                          -            -            4
      Class A Ordinary Shares, Par value
       US$0.00005 per share, 825,000,000
       shares authorized and 9,460,426
       shares issued and outstanding as at
       December 31, 2005                            4            2        -
      Class B Ordinary Shares, Par value
       US$0.00005 per share, 35,400,000
       shares authorized and 23,485,336
       shares issued and outstanding as at
       December 31, 2005                           10           12        -
      Additional paid-in capital            1,009,488      999,001     43,261
      Foreign currency translation
       adjustment                              (5,451)      (3,241)       -
      Retained earnings / Accumulated
       losses                                   1,002      (23,547)   (46,603)
     Total shareholders' equity (deficit)   1,005,053      972,227     (3,338)

     TOTAL LIABILITIES, REDEEMABLE
      CONVERTIBLE PREFERRED SHARES AND
      SHAREHOLDERS' EQUITY (DEFICIT)        1,136,423    1,111,857    262,206



    Reconciliations of non-GAAP
     results of operations measures
     to the nearest comparable GAAP
     measures(*) (in RMB thousands,
     unaudited)

                           Three months ended       Three months ended
                            December 31, 2004       September 30, 2005

                                          Non-                        Non-
                         GAAP    Adjust-  GAAP      GAAP    Adjust-   GAAP
                         Result   ment   Results    Result   ment    Results

    Operating profit     6,000   4,986   10,986     6,917   10,807   17,724


                           Three months ended
                            December 31, 2005

                                          Non-
                         GAAP   Adjust-   GAAP
                        Result   ment    Results

    Operating profit    14,223  10,453   24,676


                          Twelve months ended         Twelve months ended
                            December 31, 2005           December 31, 2004

                                          Non-                        Non-
                        GAAP    Adjust-   GAAP      GAAP    Adjust-   GAAP
                        Result    ment   Results   Result    ment    Results

    Operating Profit    35,843   33,571   69,414   11,004   16,510   27,514


                           Three months ended       Three months ended
                            December 31, 2004       September 30, 2005

                                          Non-                        Non-
                         GAAP    Adjust-  GAAP      GAAP    Adjust-   GAAP
                         Result   ment   Results    Result   ment    Results


    Net income           6,366    4,986   11,352    8,504   10,807   19,311


                           Three months ended
                            December 31, 2005

                                          Non-
                         GAAP   Adjust-   GAAP
                        Result   ment    Results

    Net income          24,549   10,453   35,002


                          Twelve month ended 2005    Twelve month ended 2004

                                          Non-                        Non-
                        GAAP    Adjust-   GAAP      GAAP    Adjust-   GAAP
                        Result    ment   Results   Result    ment    Results

    Net income          47,605   33,571   81,176   12,005   16,510   28,515


    (*) The adjustment is only for share-based compensation.


Reconciliation from net cash provided by operating activities to adjusted EBITDA(*) (in RMB thousands, unaudited):

                        Three              Three              Three
                        months             months             months
                        ended     As a     ended     As a     ended    As a
                       December   % of    September  % of    December  % of
                       31, 2004  revenues 30, 2005  revenues 31, 2005 revenues
    Net cash provided
     by operating
     activities         21,376     50%     53,462     60%     62,045    54%

     Changes in assets
      and liabilities,
      net of effects of
      acquisitions      (5,997)   -14%    (24,094)   -27%    (15,155)  -13%
     Provision for income
      taxes                481      1%      1,869      2%     (2,148)   -2%
     Interest income and
      other, net          (847)    -2%     (3,456)    -4%     (8,178)   -7%

    Adjusted EBITDA     15,013     35%     27,781     31%     36,564    32%


                                 Twelve              Twelve
                                 months              months
                                 ended     As a      ended      As a
                                December   % of     December    % of
                                31, 2005  revenues  31, 2004   revenues
    Net cash provided
     by operating
     activities                  162,352    51%       56,509     48%

    Changes in assets
     and liabilities,
     net of effects of
     acquisitions                (47,374)  -15%      (18,051)   -15%
    Provision for income
     taxes                         1,911     1%          481      0%
    Interest income and
     other, net                  (13,673)   -4%       (1,482)    -1%

    Adjusted EBITDA              103,216    33%       37,457     32%

    (*) Definition of adjusted EBITDA: earnings before interest, taxes,
        depreciation, amortization,  other non-operating income and share-
        based compensation expenses.
SOURCE  Baidu.com, Inc.
    -0-                             02/21/2006
    /CONTACT:  China: Cynthia He of Baidu.com, Inc. (Beijing),
+8610-8262-1188, ir@baidu.com, or Christina Splinder of Ogilvy Public
Relations Worldwide (Beijing), +8610-8520-6550, christina.splinder@ogilvy.com,
for Baidu.com, Inc., or U.S.: Thomas Smith of Ogilvy Public Relations
Worldwide (New York), +1-212-880-5269, thomas.smith@ogilvypr.com, for
Baidu.com, Inc./
    /Web site:  http://www.baidu.com
                http://ir.baidu.com /
    (BIDU)

CO:  Baidu.com, Inc.
ST:  China
IN:  MLM CPR
SU:  ERN ERP CCA

MV
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6033 02/21/2006 17:26 EST http://www.prnewswire.com