SOHO China - SOHO China reaches agreement to restructure Tiananmen South (Qianmen) project

For immediate release

SOHO China reaches agreement to restructure Tiananmen South (Qianmen) project

(Beijing, May 17, 2009) - SOHO China Limited ("SOHO China"; The Company ; HK Stock Code: 410), a leading Chinese commercial property developer, announced today that it will acquire 54,691 square meters of retail properties to the South of Tiananmen Square (Qianmen), Beijing through Beijing Danshi. These properties are to be obtained for a total consideration of approximately RMB 1.77 billion, or a unit price of RMB 32,328 per square meter. Of the 54,691 square meters to be acquired, 22,763 square meters are located on Qianmen Avenue, which have been fully built, and 31,928 square meters are located on the east side of Qianmen Avenue, largely yet to be built.

These agreements are intended to restructure the original agreements entered into in early 2007, under which the Company had the right to acquire from Beijing Danshi, a company controlled by SOHO Chairman Mr. Pan Shiyi, its 49% equity interest in the Tiananmen South (Qianmen) project. However, despite two years of intensive effort, the requisite government approvals for the transfer have not been forthcoming. Therefore, all parties have agreed to a revised framework under which SOHO China will acquire through Danshi the right to acquire direct ownership of the above-mentioned properties in the most desirable areas of the project. This restructuring is subject to Independent Shareholder approval.

According to SOHO China Chairman Mr. Pan Shiyi, This restructuring is the best solution for SOHO China as it allows us to acquire properties at the best locations in Qianmen project for the price of only RMB 32,328 per square meter. This favorable price is a result of Danshi s contribution of making a large initial investment of RMB 1.3 billion and taking painstaking effort over the last two years and ensuring that Qianmen Avenue was completed in time for the 2008 Olympic Games, as required by the government.

SOHO China will have the right of first refusal for the development of other parts of the project in the future.

SOHO China intends to keep these retail properties as investment holdings and lease them to businesses serving the enormous daily influx of locals and domestic and international tourists that go there to visit one of Beijing s most historic areas.

SOHO China also announces that the official opening of Qianmen Avenue is scheduled to take place this October 1 on National Day. The Company is now in the process of launching a large-scale marketing and leasing campaign for the stores along this pedestrian street.

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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

Hong Kong
Strategic Financial Relations (China) Limited
Ms. Anita Cheung Tel: (852) 2864 4827 Email: anita.cheung@sprg.com.hk
Mr. Marcus Keung Tel: (852) 2114 4967 Email: marcus.keung@sprg.com.hk
Ms. Janice Au Tel: (852) 2864 4874 Email: janice.au@sprg.com.hk
Ms. Grace Xu Tel: (852) 2864 4838 Email: grace.xu@sprg.com.hk
Ms. Cathy Zhang Tel: (852) 2114 4963 Email: cathy.zhang@sprg.com.hk