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(Continued)     The RFS Newsletter, August 6, 2005. Page 7
“The copyright issue has cast great uncertainty over Baidu’s future business models and revenue,” said Gu Feng, a technology analyst at Shenyin Wanguo Securities Co. in Shanghai. “This is something investors should take into account.” The government, under pressure from the United States and Europe, is stiffening punishments for intellectual property theft. China on Dec. 21, 2004 made such piracy punishable by as much as seven years in prison.

In other news on Wednesday, Yahoo has launched its beta network for small publishers. Currently available through invitation only, as Yahoo tests and refines the new platform, small- and medium-sized publishers can easily sign up online and access new revenue sources and enhanced Yahoo! content through our new self-serve platform. Our goal is to extend the beta to more publishers by the end of the year. We spoke to many Web publishers throughout our alpha phase to get a sense of what you want out of a publishing platform. Several things became clear: In addition to the obvious -- competitive revenue opportunities - you expressed a desire for more ways to enhance the content of your sites and connect with your users.

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