SOHO China - Another sales miracle: SOHO China records RMB 635 Million in sales for ZhongGuanCun SOHO in first day of launch

ZhongGuanCun SOHO

(Beijing, May 8, 2009) - SOHO China Limited ("SOHO China"; HK Stock Code: 410), a leading Chinese commercial property developer, announced at its showroom that ZhongGuanCun SOHO recorded RMB 635 Million in contracted sales today, the first day of its official sales launch. Testing the waters in Beijing s West for the first time, SOHO China also announced that the project s sales price for office and first floor retail space averaged 33,000 RMB/m2 and 90,000 RMB/m2 respectively.

Following on the heels of the 8.0 billion in sales realized at 2008-launched Sanlitun SOHO, the successful launch of ZhongGuanCun SOHO marks another instance of SOHO China obtaining phenomenal sales results in the midst of an overall laggard market.

ZhongGuanCun SOHO is located in the heart of the ZhongGuanCun area, which has been without a new project up for sale in nearly two years. The sales of ZhongGuanCun SOHO will re-establish a price benchmark for the zone, and are expected by industry insiders to result in substantially higher prices for neighboring office space in the second-hand market. At the same time, ZhongGuanCun is once again seen to have strong upside valuation potential, as it is a mature commercial district catering primarily to local enterprises, sufficiently insulated from the global economic downturn.

SOHO China Chairman Pan Shiyi has remarked that he expects the ZhongGuanCun SOHO sales campaign to be executed swiftly and with force, with the project having a smaller scale than the company s other projects in eastern CBD. Nevertheless, the market reception to this sales launch is set to capture widespread attention, as SOHO s first entry in ZhongGuanCun lays the groundwork for the company s other future forays beyond Beijing s CBD.

Pan Shiyi expressed complete confidence in the project, likening it to former successes in CBD in two regards. The first regard is its uniqueness; while other developers have blindly built up what is now an excess of residential housing, SOHO has continually focused on commercial real estate. The second is its mainstream appeal; while CBD is targeted at the Global Fortune 500, SOHO products are especially developed with the fast-growing Chinese small to medium size enterprises in mind.

The effectiveness of this strategy is apparent amidst the backdrop of this once-in-a-lifetime financial crisis, with the offices of SOHO s five projects in CBD maintaining an average rental rate of 95%, housing the operations of some 3000 companies and 110,000 employees.

With ZhongGuanCun SOHO s location in a mature business area, the district government of Haidian has also attached great importance on the project, positioning the building as PE Mansion and offering office rental subsidies to private equity and other related businesses that take up residence there. Confident of the project s ensuing success, Pan Shiyi has expressed that, through the experience of this launch, SOHO will have a greater understanding of the Haidian and ZhongGuanCun markets, useful in preparation for the company s next large-scale step in the vicinity.

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About Zhongguancun SOHO

ZhongGuanCun SOHO is a commercial project acquired by SOHO China in August 2008 at a state of near completion, marking the company s expansion into Western Beijing, in what is the city s IT CBD. ZhongGuanCun is called the Silicon Valley of China and is home to many multinational high-tech firms and research centers. The total GFA of the project is 58,850 square meters, with office and retail saleable area of 44,208 square meters.

The acquisition of this development, SOHO China s fourth since listing, marks the Group s expansion into another dynamic, fast-growing commercial center of Beijing. The Group has previously developed most of its projects in East Beijing, in particular the city s central business district (CBD). ZhongGuanCun SOHO will be the Company s first project in a prime location in West Beijing and complements the existing SOHO China portfolio well. ZhongGuanCun, often referred to as the "Silicon Valley of China" with many IT corporate headquarters and research centers based there such as Microsoft, Lenovo, Sina.com and Baidu.com. The commercial atmosphere of ZhongGuanCun is mature and vibrant, with buildings that possess modern design qualities, high rental income and great price appreciation potential.

About SOHO China

Founded in 1995, SOHO China is the industry leader in developing high-profile branded commercial properties in central Beijing. The company collaborates with internationally-recognized architects, translating their innovative designs into iconic real estate which possesses strong appeal to property investors and the local businesses and customer bases which they serve.

On October 8, 2007, SOHO China was successfully listed on the Stock Exchange of Hong Kong as the largest IPO from China s private sector and the largest IPO for commercial real estate developers in Asia. The company was named as one of the "Most Admired Companies" in China by Fortune (China) Magazine from 2006 to 2008.

Media Inquiries:

Beijing
Ms. Chunlei Wang, SOHO China
Tel: (010) 5878 8326
wangchunlei@sohochina.com