Alibaba.com Year-on-Year Net Profit1 Climbs 45.7 Percent and Revenue Climbs 48.

6 Percent in Second Quarter Company Continues to Drive Growth in Membership and Value-Added Services Revenue
Second Quarter Highlights Registered users reached 53.4 million, adding 10.7 million y-o-y China Gold Supplier members grew 50.2 percent y-o-y to 105,810 China TrustPass members saw record high quarterly net additions of 51,821 in Q2 totaling 593,498, up 34.3 percent y-o-y Quarterly revenue grew by 48.6 percent y-o-y to RMB1.37 billion (US$200.9 million) due to strong paying member acquisition and increased revenue from value-added services (VAS) Deferred revenue grew 34.7 percent y-o-y to RMB3.72 billion (US$547.3 million) Pre-SBC EBITA margin remained strong at 35.4 percent due to accelerated growth of VAS revenue HONG KONG, August 10, 2010 Alibaba.com Limited (HKSE:1688) (1688.HK), the world's leading small business e-commerce company, today announced its unaudited interim financial results for the three months and half-year ended June 30, 2010. Results demonstrated that our long-term strategy of providing products and services targeted at small businesses continues to bear fruit. Second Quarter 2010 Unaudited Financial Highlights
Q2 2009 RMB million (Restated) 919.3 269.0 249.2 50.4 2,763.6 426.7 34.7% Q2 2010 RMB million YoY Change Q1 2010 RMB million QoQ Change

FINANCIAL HIGHLIGHTS (UNAUDITED) Revenue Earnings before interest, taxes and amortization (EBITA) Profit attributable to equity owners Share-based compensation expense Deferred revenue and customer advances Recurring free cash flow Pre-share-based compensation expense EBITA margin (Pre-SBC EBITA margin) Earnings per share, basic (HK$) Earnings per share, diluted (HK$)

1,366.2 404.3 363.0 79.0 3,721.8 483.3 35.4%

+48.6% +50.3% +45.7% +56.8% +34.7% +13.3% +0.7%pts

1,220.6 374.6 330.0 51.1 3,567.9 438.4

+11.9% +7.9% +10.0% +54.7% +4.3% +10.2%

34.9% +0.5%pts

5.60 cents 5.58 cents

8.20 cents 8.18 cents

+46.4% +46.6%

7.45 cents 7.37 cents

+10.1% +11.0%

Excludes profit attributable to non-controlling interests.

First-Half 2010 Unaudited Financial and Operational Highlights

Six months ended June 30, 2009 2010 RMB million RMB million Change (Restated) 1,736.6 529.5 495.8 90.4 2,763.6 769.6 2,586.8 778.9 693.0 130.1 3,721.8 921.7 +49.0% +47.1% +39.8% +43.9% +34.7% +19.8%

FINANCIAL HIGHLIGHTS (UNAUDITED) Revenue Earnings before interest, taxes and amortization (EBITA) Profit attributable to equity owners Share-based compensation expense Deferred revenue and customer advances Recurring free cash flow Pre-share-based compensation expense EBITA margin (Pre-SBC EBITA margin) Earnings per share, basic (HK$) Earnings per share, diluted (HK$)

35.7% 11.15 cents 11.10 cents

35.1% -0.6%pts 15.65 cents 15.55 cents +40.4% +40.1%

OPERATIONAL HIGHLIGHTS Registered users International marketplace China marketplace Storefronts International marketplace China marketplace Paying members (Note 1) China Gold Supplier Global Gold Supplier China TrustPass

June 30, 2009 42,781,218 9,462,705 33,318,513 5,509,260 1,126,645 4,382,615 531,471 70,453 19,219 441,799

June 30, 2010 53,437,054 13,643,361 39,793,693 7,812,354 1,559,881 6,252,473 712,867 105,810 13,559 593,498

YoY Change

March 31, 2010

QoQ Q2 2010 Change Net Adds +6.3% +8.5% +5.6% +7.3% +5.6% +7.8% +8.2% +5.1% -17.0% +9.6% 3,187,115 1,065,431 2,121,684 533,584 83,097 450,487 54,166 5,116 -2,771 51,821

+24.9% 50,249,939 +44.2% 12,577,930 +19.4% 37,672,009 +41.8% +38.5% +42.7% +34.1% +50.2% -29.5% +34.3% 7,278,770 1,476,784 5,801,986 658,701 100,694 16,330 541,677

Note 1: Includes paying members with active storefront listings on our international and China marketplaces as well as paying members who have paid membership package subscription fees but whose storefronts have not been activated. Note 2: Certain comparative figures have been restated pursuant to the business combination under common control upon acquisition of the business management software division of Alisoft Holding Limited and its subsidiaries.

Our goal of focusing on customers and offering relevant value-added services that address our customers needs has once again resulted in a solid financial performance, said David Wei, chief executive officer of Alibaba.com. We continued to build our membership base by enhancing our product offerings and followed our strategy to acquire technology through building, buying or partnering to meet customer needs. In this quarter, we made our first international acquisition designed to help small businesses grow and prosper. Through the acquisition of the U.S.-based company, Vendio, we are able to attract fast-growing U.S. buyers to our wholesale transaction platform AliExpress and the main sourcing platform Alibaba.com, which helps not only those small businesses in the U.S. but also our paying members in locations like China, India and Turkey.
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Outlook We continue to take a cautious view on the global economy and small business development and expect a slowdown in export growth for the following quarters," Wei continued. "Nevertheless e-commerce remains an irreversible trend and an effective tool for small businesses to create opportunities for business growth. We remain positive and confident about the outlook of e-commerce and our company, Wei added. As we have laid out in our strategy, our membership plus VAS model is the key to long-term success of our customers and our business. We believe small businesses can easily ride on the e-commerce trend and grasp the opportunities to enhance market competitiveness by purchasing VAS tailored to their business needs. We are delighted to see that VAS penetration on both marketplaces is steadily progressing as users see the value in these services. We may see some slow down in customer net additions in both marketplaces in the following quarters, on the other hand, we believe VAS development and penetration may further accelerate." Second Quarter 2010 Financial and Operational Results Paying Members and Revenue The number of paying members in our marketplaces continued to grow significantly. As of June 30, 2010, we had 712,867 paying members, representing a 34.1 percent increase from the second quarter of 2009 and an 8.2 percent increase from the first quarter of 2010. As of the end of the first half of 2010, the number of China Gold Suppliers was 105,810, up 50.2 percent y-o-y and 5.1 percent q-o-q. Reflecting new business initiatives on the China marketplace, the number of China TrustPass members reached 593,498, up 34.3 percent y-o-y, up 9.6 percent q-o-q. Deferred revenue and customer advances were RMB3,721.8 million (US$547.3 million) as of June 30, 2010, representing a 34.7 percent increase from RMB2,763.6 million (US$406.4 million) as of June 30, 2009. The increase was mainly due to the continued healthy growth in China Gold Supplier membership and the strong growth of our China marketplace as we launched new business initiatives. As a result of the increase in the number of paying members and VAS revenue, total revenue in the second quarter was RMB1,366.2 million (US$200.9 million), representing a 48.6 percent increase y-o-y or up 11.9 percent q-o-q. International Marketplace Revenue from our international marketplace was RMB791.0 million (US$116.3 million) for the

second quarter, an increase of 37.6 percent y-o-y and 10.0 percent q-o-q. For the first half of 2010, revenue from our international marketplace increased to RMB1,510.0 million (US$222.1 million), representing a 39.8 percent increase from the same period in 2009. The growth for both the half-year and the quarter was mainly resulted from the increase of China Gold Supplier members and revenue from VAS. As of June 30, 2010, there were 13,643,361 registered users and 1,559,881 storefronts on our international marketplace. In the second quarter of 2010, registered users increased by 1,065,431 and storefronts grew by 83,097. The sustained growth in our user base continued to drive traffic and buyer activities on the international marketplace. Gold Supplier Our China Gold Supplier members reached 105,810 as of June 30, 2010, representing an increase of 35,357 or 50.2 percent from June 30, 2009. The number of Global Gold Supplier members declined to 13,559 as of June 30, 2010, representing a 29.5 percent decrease from June 30, 2009. Despite the decrease in our Global Gold Supplier member numbers, our revenue from Global Gold Suppliers in the first half of 2010 increased to RMB42.4 million (US$6.2 million), representing a 52.1 percent increase y-o-y. This was due to the upgrade of the Global Gold Supplier package, which included the addition of product features and higher pricing, in July 2009. While our user base is expanding, we still continue to manage our customer renewal rates and growth in VAS adoption among renewed China Gold Supplier customers. The VAS revenue contribution to China Gold Supplier revenue grew faster than what we anticipated. VAS revenue accounted for about 25 percent of China Gold Supplier revenue in the first half of 2010. Going forward, we will continue to serve our members by introducing more applications and functionalities that cater to the varying needs of their businesses. AliExpress We officially launched AliExpress, our online wholesale cross-border transaction platform, in April 2010. Since the launch, we have seen a healthy increase in both user activity and transaction volume. At launch, we announced a US$100 million investment in building the AliExpress business, funds that are being spent mainly on user acquisition, marketing and technology infrastructure. As a first step of this investment, in July 2010, we completed an acquisition of Vendio Services, Inc. (Vendio), an e-commerce platform providing a one-stop solution for small businesses that are selling across multiple online retail channels. Vendios services are delivered via a Software as a Service (SaaS) cloud-computing model to nearly 80,000 small merchants in the U.S. that we believe can benefit by sourcing products from suppliers on AliExpress and Alibaba.com. Vendio will be integrated directly with the AliExpress platform, and users will also have access to the Alibaba.com base of suppliers, bringing even more value to small merchants in the U.S. as well as our global suppliers.
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To further support the development of AliExpress, we expanded online payment methods available on the platform to include bank transfers, Visa and MasterCard and PayPal. In addition, we have established a strategic partnership with UPS to provide favorable international logistic rates for AliExpress users, making it faster, easier and more cost-effective to source and sell internationally. China Marketplace Revenue from our China marketplace was RMB470.7 million (US$69.2 million) in the second quarter, representing a 41.1 percent increase y-o-y and a 15.9 percent increase q-o-q. For the first half of 2010, revenue from our China marketplace increased to RMB876.9 million (US$129.0 million), a 38.2 percent increase from the same period in 2009. Our China TrustPass membership reached 593,498 as of June 30, 2010, representing an increase of 151,699 or 34.3 percent from June 30, 2009, and up 9.6 percent when compared to the end of the first quarter of 2010. This solid membership growth was largely due to positive effects from various new business initiatives introduced at the beginning of this year. Besides the revamp of our China site and change to a new domain, 1688.com, to refocus the online wholesale transaction features of our marketplace, we launched China TrustPass Basic in April 2010. Following the successful introduction of the Gold Supplier Starter Pack, we priced China TrustPass Basic at RMB1,688 per year and positioned it as an entry-level product. In the second quarter in particular, we posted record high quarterly net additions of 51,821 China TrustPass members, bringing the total number of China TrustPass members to 593,498 as of June 30, 2010. This growth was accompanied by a positive trend in VAS revenue, which grew to account for almost 20 percent of China TrustPass revenue in the first half of 2010. Ali-Loan The Ali-Loan program continued to gain traction since it was launched in 2008. As of June 30, 2010, the cumulative number of loans issued by our partner banks to our paying members was more than 5,500, totally amounted to RMB13 billion (US$1.9 billion). The program has catered for the financial needs of small businesses while also increasing our members stickiness to our platforms. It brings long-term benefit to the company although it does not serve as a revenue driver. Financial Results Gross profit in the second quarter increased to RMB1,139.0 million (US$167.5 million), representing a 45.5 percent increase y-o-y and an 11.0 percent q-o-q. Gross profit for the first half of 2010 increased to RMB2,165.3 million (US$318.4 million), up 45.6 percent from RMB1,487.0 million (US$218.7 million) in the first half of 2009. Gross profit margin in the quarter
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declined slightly to 83.4 percent, compared with 85.2 percent in the same period last year and gross profit margin in the first half-year also declined from 85.6 percent last year to 83.7 percent this year. The y-o-y decrease in margin is primarily due to a higher cost of revenue due to the combined results of HiChina, which had a relatively low gross profit margin. Total operating expenses were RMB752.9 million (US$110.7 million) in the second quarter, representing a 32.6 percent increase from the same period last year. Total operating expenses were RMB1,459.0 million (US$214.6 million) in the first half of 2010, representing a 43.7 percent increase y-o-y from RMB1,015.2 million (US$149.3 million) in the same period last year. As a percentage of revenue, total operating expenses were 56.4 percent for the first half of 2010, compared with 58.5 percent from the same period in 2009. The increase in operating expense in the second quarter and the half-year was mainly due to an increase in direct sales costs given the increase in revenue; an expansion in our service and technology team; the consolidation of expenses incurred by HiChina; and the marketing campaign that we launched to promote brand awareness and new offerings on our China marketplace. The decrease of operating expense as a percentage of revenue was largely a result of scale benefits that we realized from sales and marketing and general and administration functions as well as the increase in VAS revenue, which contributed to a higher margin. Our profit margin before interest, tax and amortization and share-based compensation expense (Pre-SBC EBITA margin) (non-GAAP) in the second quarter was 35.4 percent for the period, a slight increase from 34.7 percent of the same period last year. Pre-SBC EBITA margin for the first half was 35.1 percent, slightly decreased from 35.7 percent in the same period last year. The flat Pre-SBC EBITA margin was mainly due to the diluting effect of the consolidation of HiChina's results, offset by a lower operating expense as a percentage of revenue due to lower sales and marketing expenses and lower general and administration expense as a percentage of revenue as well as a higher margin contribution from VAS revenue. Profit attributable to equity owners was RMB363.0 million (US$53.4 million) in the second quarter, an increase of 45.7 percent from the same period last year. Profit attributable to equity owners for the first half-year was RMB693.0 million (US$101.9 million), an increase of 39.8 percent from the same period in 2009, largely from the increase in revenue contributed by our larger paying customer base. Earnings per share, basic and diluted for the second quarter were 8.20 Hong Kong cents (1.05 US cents) and 8.18 Hong Kong cents (1.05 US cents), respectively, compared to 5.60 Hong Kong cents (0.72 US cents) and 5.58 Hong Kong cents (0.72 US cents) (basic and diluted, respectively). Earnings per share, basic and diluted for the first half-year were 15.65 Hong Kong cents (2.01 US cents) and 15.55 Hong Kong cents (1.99 US cents), respectively, compared to 11.15 Hong Kong cents (1.43 US cents) and 11.10 Hong Kong cents (1.42 US cents) (basic and diluted,
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respectively). Cash and bank balances as of June 30, 2010 were RMB7,790.6 million (US$1,145.7 million), representing a 9.7 percent increase from June 30, 2009 and an 8.0 percent increase from December 31, 2009. As of June 30, 2010, 95.0 percent (December 31, 2009: 95.5 percent) of our cash and bank balances were denominated in Renminbi. Recurring free cash flow (nonGAAP) was RMB483.3 million (US$71.1 million), representing a 13.3 percent increase y-o-y, and a 10.2 percent increase q-o-q. Recurring free cash flow (non-GAAP) in the first half-year was RMB921.7 million (US$135.5 million), representing a 19.8 percent increase y-o-y.
Note: All U.S. dollar conversions are based on an exchange rate of US$1.00=HK$7.80 and US$1.00=RMB6.80.

-EndAbout Alibaba.com Limited

Alibaba.com (HKSE: 1688) (1688.HK) is the global leader in e-commerce for small businesses and the flagship company of Alibaba Group. Founded in 1999 in Hangzhou, China, Alibaba.com makes it easy for millions of buyers and suppliers around the world to do business online through three marketplaces: a global trade platform (www.alibaba.com) for importers and exporters; a Chinese platform (www.1688.com) for domestic trade in China; and, through an associated company, a Japanese platform (www.alibaba.co.jp) facilitating trade to and from Japan. In addition, Alibaba.com offers a wholesale platform on the global site (www.aliexpress.com) geared for smaller buyers seeking fast shipment of small quantities of goods. Together, these marketplaces form a community of more than 53 million registered users in more than 240 countries and regions. Alibaba.com also offers business management software and Internet infrastructure services targeting businesses across China, and provides educational services to incubate enterprise management and e-commerce professionals. Alibaba.com has offices in more than 60 cities across Greater China, India, Japan, Korea, Europe and the United States.

For investor inquiries please contact: Lindy Lau Tel: +852 2215 5215 Email: lindylau@hk.alibaba-inc.com For media inquiries please contact: Linda Kozlowski Tel: +852 2215 5210 Email: lkozlowski@hk.alibaba-inc.com Jasper Chan Tel: +852 2215 5213 Email: jasperchan@hk.alibaba-inc.com For photos and broadcast-standard video supporting this press release, please visit www.thenewsmarket.com/alibaba. If you are a first-time user, please take a moment to register. If you have any questions, please email journalisthelp@thenewsmarket.com.
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SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION

Q2 2009 RMB000 (Restated) Revenue International marketplace China marketplace Others Total revenue Cost of revenue Gross profit Sales and marketing expenses Product development expenses General and administrative expenses Other operating income, net Profit from operations Finance income, net Share of losses of associated companies, net of tax Profit before income taxes Income tax charges Profit for the period Other comprehensive income Net fair value gains on available-forsale investments Currency translation differences Total comprehensive income for the period Profit/(loss) for the period attributable to Equity owners of our Company Non-controlling interests Profit for the period Total comprehensive income/(expense) for the period attributable to Equity owners of our Company Non-controlling interests Total comprehensive income for the period Dividends Earnings per share, basic (RMB) Earnings per share, diluted (RMB) Earnings per share, basic (HK$) (Note 3) Earnings per share, diluted (HK$) (Note 3)
Note 3:

Q2 2010 RMB000 791,038 470,738 104,454 1,366,230 (227,208) 1,139,022 (498,084) (132,279) (122,542) 7,789 393,906 43,102 437,008 (74,055) 362,953

Q1 2010 RMB000 718,949 406,137 95,524 1,220,610 (194,357) 1,026,253 (466,246) (117,367) (122,467) 49,321 369,494 33,125 (3,802) 398,817 (68,719) 330,098

Q2 2010 RMB000 791,038 470,738 104,454 1,366,230 (227,208) 1,139,022 (498,084) (132,279) (122,542) 7,789 393,906 43,102 437,008 (74,055) 362,953

574,766 333,502 10,998 919,266 (136,485) 782,781 (385,681) (85,741) (96,262) 61,008 276,105 35,694 (9,800) 301,999 (52,842) 249,157

2 (4,820) 244,339 249,157 249,157

100 (3,162) 359,891 362,959 (6) 362,953

240 (644) 329,694 329,999 99 330,098

100 (3,162) 359,891 362,959 (6) 362,953

244,339 -

359,897 (6)

329,595 99

359,897 (6)

244,339 888,261 4.94 cents 4.91 cents 5.60 cents 5.58 cents

359,891 7.19 cents 7.18 cents 8.20 cents 8.18 cents

329,694 6.55 cents 6.48 cents 7.45 cents 7.37 cents

359,891 7.19 cents 7.18 cents 8.20 cents 8.18 cents

The translation of Renminbi amounts into Hong Kong dollars has been made at the rate of RMB0.8793 and RMB0.8771 to HK$1.0000 for the first and second quarter of 2010 (second quarter of 2009: RMB0.8812 to HK$1.0000). No representation is made that the Renminbi amounts have been, could have been or could be converted into Hong Kong dollars or vice versa, at that rate, or at any rate or at all.

SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION (CONTINUED)

Q2 2009 RMB000 (Restated) Revenue International marketplace China Gold Supplier Global Gold Supplier 559,771 14,995 574,766 China marketplace China TrustPass Other revenue (Note 4) 317,310 16,192 333,502 Others (Note 5) Total Recurring free cash flow (Non-GAAP) Net cash generated from operating activities Purchase of property and equipment, excluding payment for land use rights and construction costs of corporate campus project Others Total Share-based compensation expense Amortization of intangible assets and lease prepayment 467,553 547,765 431,534 547,765 10,998 919,266 444,420 26,318 470,738 104,454 1,366,230 390,427 15,710 406,137 95,524 1,220,610 444,420 26,318 470,738 104,454 1,366,230 768,248 22,790 791,038 699,336 19,613 718,949 768,248 22,790 791,038 Q2 2010 RMB000 Q1 2010 RMB000 Q2 2010 RMB000

(40,895) 426,658 50,405 1,950

(64,476) 483,289 79,015 8,401

(44,360) 51,259 438,433 51,090 8,345

(64,476) 483,289 79,015 8,401

As of June 30, 2009 RMB000 (Restated) Cash and bank balances Deferred revenue and customer advances 7,101,043 2,763,634

As of June 30, 2010 RMB000

As of March 31, 2010 RMB000

As of June 30, 2010 RMB000

7,790,635 3,721,805

7,531,557 3,567,882

7,790,635 3,721,805

Note 4: Other revenue earned with respect to our China marketplace mainly represented advertising fees paid by third-party advertisers. Note 5: Other revenue mainly represented revenue earned from the sale of Internet infrastructure and application services and certain software products.