exv99w1

Exhibit 99.1

SINA Reports Q3 2006 Financial Results

Shanghai, China— (PR Newswire)—November 2, 2006—SINA Corporation (Nasdaq: SINA), a leading online media company and mobile value-added service (MVAS) provider for China and for the global Chinese communities, today announced its unaudited financial results for the quarter ended September 30, 2006.

Q3 2006 Highlights

	•		Net revenues increased 13% year-over-year to $56.1 million, exceeding the Company’s previous guidance of between $51.0 million and $54.0 million.

	•		Advertising revenues increased 42% year-over-year to $32.7 million, exceeding the Company’s previous guidance of between $31.0 million and $32.0 million.

	•		Non-advertising revenues declined 12% year-over-year to $23.4 million, exceeding the Company’s previous guidance of between $20.0 million and $22.0 million.

	•		GAAP net income was $10.7 million, or $0.19 diluted net income per share.

	•		Non-GAAP net income* was $14.6 million, or $0.25 non-GAAP diluted net income per share.

* Non-GAAP measures are described below and reconciled to the corresponding GAAP measures in the section below titled “Reconciliation of Non-GAAP to GAAP Results.”

“We are very pleased with another record revenue quarter for our advertising business, which grew 46% year over year in China and 42% worldwide. Our ability to leverage our brand strength, lead with broader and more superior content offerings and create innovative products has enabled us to grow our advertising business above 40% for the first nine months of 2006, compared to last year.” said Charles Chao, CEO of SINA. “On the mobile side, despite a much tougher operating environment, our team also showed solid execution as we managed to limit the decline of our MVAS revenues to 3% sequentially.”

Financial Results
For the third quarter of 2006, SINA reported net revenues of $56.1 million, compared to $49.6 million in the same period last year and $53.7 million last quarter.

Advertising revenues for the third quarter of 2006 totaled $32.7 million, representing a 42% increase from the same period last year and an 11% increase from last quarter. The growth in advertising revenues came primarily from the acquisition of new customers and, to a lesser extent, higher spending per advertiser. Advertising revenues in the third quarter of 2006 represented 58% of the Company’s total revenues, up from 46% for the same period last year and 55% for last quarter.

Non-advertising revenues for the third quarter of 2006 totaled $23.4 million, a 12% decrease from the same period last year and a 4% decrease from last quarter. Revenues from MVAS for the third quarter of 2006 were $21.8 million, representing a decline of 10% from the same period last year and a decline of 3% from last quarter. MVAS revenues for the third quarter of

2006 were higher than the Company’s original estimate primarily due to certain IVR promotions and initiatives with China Unicom. The Company expects the MVAS industry in China to continue to face a challenging and uncertain environment and, thus, expects further decline in its MVAS revenues in the future.

Gross margin for the third quarter of 2006 was 64%, down from 68% for the same period last year and up from 63% for last quarter. The advertising gross margin for the third quarter of 2006 was 65%, compared to 68% for the same period last year and 65% in the previous quarter. Advertising gross margin in the second and third quarters of 2006 included the impact of $0.4 million and $0.6 million in stock-based compensation, respectively, resulting from the adoption of Statement of Financial Accounting Standard No. 123 (revised 2004) “Share-Based Payment” (“SFAS 123R”) starting January 1, 2006. Non-GAAP advertising gross margin for the third quarter of 2006 was 67%, compared to 66% in the previous quarter.

MVAS gross margin for the third quarter of 2006 was 62%, compared to 66% for the same period last year and 60% last quarter. The year-over-year decline in MVAS gross margin was primarily a result of increased content costs and transmission costs paid to mobile operators.

Operating expenses for the third quarter of 2006 amounted to $25.6 million. Non-GAAP operating expenses for the third quarter of 2006 were $23.0 million, a decline of 3% from the same period last year and a decline of 1% from the previous quarter. The decreases were mainly a result of lower marketing spending in the third quarter of 2006, partially offset by higher payroll-related expenditures and bad debt expenses. Compared to the previous quarter, bad debt expenses increased by $1.0 million primarily as a result of aging receivables from the mobile business.

Net income for the third quarter of 2006 was $10.7 million. Non-GAAP net income for the third quarter of 2006 was $14.6 million, an increase of 46% from the same period last year and 19% from the previous quarter. Non-GAAP diluted net income per share for the third quarter of 2006 was $0.25, compared to $0.17 in the same period last year and $0.21 last quarter.

As of September 30, 2006, SINA’s cash, cash equivalents and investments in marketable securities amounted to $345.3 million as compared to $312.5 million as of June 30, 2006. Cash flow from operating activities for the third quarter of 2006 was $27.7 million.

Business Outlook
The Company estimates its total revenues for the fourth quarter of 2006 to be between $53.0 million and $56.0 million, with advertising revenues to be between $34.0 million and $35.0 million and non-advertising revenues to be between $19.0 million and $21.0 million. Stock-based compensation for the fourth quarter of 2006 is expected to be approximately $2.4 million, which excludes any new shares that may be granted.

Conference Call
SINA will host a conference call at 8:00 p.m. Eastern Time today to present an overview of the

Company’s financial performance and business operations for the third quarter ended September 30, 2006. The dial-in number for the call is 617-847-3007. The pass code is 68414515. A live Webcast of the call will be available from 8:00 p.m. — 9:00 p.m. ET on Thursday, November 2, 2006 (9:00 a.m. — 10:00 a.m. Beijing Time on November 3, 2006). The call can be accessed through SINA’s corporate web site at http://corp.sina.com. The call will be archived for 12 months on SINA’s corporate web site at http://corp.sina.com. A replay of the conference call will be available through November 9, 2006 at midnight eastern time. The dial-in number is 617-801-6888. The pass code for the replay is 99922654.

Non-GAAP Measures
To supplement the unaudited consolidated financial statements presented in accordance with the United States Generally Accepted Accounting Principles (“GAAP”), the Company uses non-GAAP financial measures to evaluate its ongoing operations and for internal planning and forecasting purposes as well as to enhance the investors’ overall understanding of the Company’s current financial performance and prospects for the future. These non-GAAP measures include non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income, non-GAAP diluted net income per share and non-GAAP advertising gross margin.

The Company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of its core operating results and business outlook. In addition, because the Company has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP measures provides consistency in the reporting of the Company’s financial results.

The Company’s reference to these measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Reconciliations of the Company’s non-GAAP measures to the nearest GAAP measures are set forth in the section below titled “Reconciliation of Non-GAAP to GAAP Results.”

The Company’s management believes excluding stock-based compensation from its non-GAAP financial measures is useful for itself and investors as such expense will not result in future cash payment and is otherwise unrelated to the Company’s core operating results. Non-GAAP measures that exclude stock-based compensation also enhance the comparability of results against prior periods.

The Company’s management believes excluding the non-cash amortization expense of intangible assets resulting from business acquisitions from its non-GAAP financial measures of operating expenses, income from operations and net income and excluding the non-cash amortization expense of intangible assets resulting from equity-method investments from its non-GAAP financial measure of net income are useful for itself and investors because they

enable a more meaningful comparison of the Company’s cash performance between reporting periods. In addition, such charges will not result in cash settlement in the future.

The Company’s management believes excluding non-cash amortization expense of issuance cost relating to convertible bonds from its non-GAAP financial measure of net income is useful for itself and investors as such expense does not have any impact on cash earnings.

The Company’s management believes excluding gains and losses on the sale of a business and investments from its non-GAAP financial measure of net income is useful for itself and investors because such gains and losses are not indicative of the Company’s core operating results.

The Company’s management believes excluding gains and losses on investment from its non-GAAP financial measure of net income is useful for itself and investors because the Company does not typically invest in common stock of other companies. Therefore, these charges are otherwise unrelated to the Company’s ongoing business operations.

About SINA
SINA Corporation (NASDAQ: SINA) is a leading online media company and value-added information service (VAS) provider for China and for global Chinese communities. With a branded network of localized web sites targeting Greater China and overseas Chinese, SINA provides services through five major business lines including SINA.com (online news and content), SINA Mobile (mobile value-added services), SINA Online (community-based services and games), SINA.net (search and enterprise services) and SINA E-Commerce (online shopping). Together these provide an array of services including region-focused online portals, mobile value-added services, search and directory, interest-based and community-building channels, free and premium email, online games, virtual ISP, classified listings, fee-based services, e-commerce and enterprise e-solutions.

Safe Harbor Statements
This announcement contains forward-looking statements that relate to, among other things, SINA’s expected financial performance (as described without limitation in the “Business Outlook” section and in quotations from management in this press release) and SINA’s strategic and operational plans. SINA may also make forward-looking statements in the Company’s periodic reports to the U.S. Securities and Exchange Commission on Forms 10-K, 10-Q, 8-K, etc., in its annual report to shareholders, in its proxy statements, in its offering circulars and prospectuses, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. SINA assumes no obligation to update the forward-looking statements in this release and elsewhere. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, SINA’s historical losses, its limited operating history, the uncertain regulatory landscape in the People’s Republic of China, the recent changes by China Mobile to its policies for MVAS (as

described in the Company’s press release dated July 7, 2006), the Company’s ability to develop and market other usage-based SMS products, fluctuations in quarterly operating results, the Company’s reliance on MVAS and online advertising sales for a majority of its revenues, the Company’s reliance on mobile operators in China to provide MVAS, any failure to successfully develop and introduce new products and any failure to successfully integrate acquired businesses. Further information regarding these and other risks is included in SINA’s Annual Report on Form 10-K for the year ended December 31, 2005 and its recent quarterly reports on Form 10-Q, as well as in its other filings with the Securities and Exchange Commission.

Contact:
SINA Corporation
Chen Fu, (86-21) 62895678 ext. 6089
fuchen@staff.sina.com
or
The Ruth Group
Denise Roche, 646/536-7008
droche@theruthgroup.com

SINA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. Dollar in thousands, except per share data)

Three months ended

Nine months ended

September 30,

June 30,

September 30,

2006

2005

2006

2005

Net revenues:

Advertising

32,697

22,968

29,454

84,332

59,989

Non-advertising

23,362

26,656

24,224

72,117

81,613

56,059

49,624

53,678

156,449

141,602

Cost of revenues:

Advertising (a)

11,333

7,410

10,317

29,948

19,845

Non-advertising

8,715

8,670

9,343

27,805

25,504

20,048

16,080

19,660

57,753

45,349

Gross profit

36,011

33,544

34,018

98,696

96,253

Operating expenses:

Sales and marketing (a)

12,210

15,735

13,497

37,512

37,937

Product development (a)

5,082

3,816

4,993

14,685

11,038

General and administrative (a)

7,832

4,210

7,427

20,416

13,985

Amortization of intangibles

468

602

469

1,405

2,684

25,592

24,363

26,386

74,018

65,644

Income from operations

10,419

9,181

7,632

24,678

30,609

Non-operating income:

Interest and other income

2,156

1,698

2,012

6,108

4,794

Gain (loss) on sale of business and investments, net

(134

)

1,487

2,006

1,660

1,487

Loss on investments, net

(270

)

(1,458

)

—

(270

)

(2,740

)

Loss on equity investments

(185

)

(996

)

(162

)

(690

)

(2,420

)

Amortization of convertible debt issuance cost

(172

)

(172

)

(171

)

(514

)

(514

)

1,395

559

3,685

6,294

607

Income before income taxes

11,814

9,740

11,317

30,972

31,216

Provision for income taxes

(1,095

)

(647

)

(878

)

(2,778

)

(1,860

)

Net income

10,719

9,093

10,439

28,194

29,356

Basic net income per share

0.20

0.17

0.19

0.53

0.56

Diluted net income per share

0.19

0.16

0.18

0.49

0.51

Shares used in computing basic net income per share

53,690

53,099

53,554

53,561

52,214

Shares used in computing diluted net income per share

58,419

58,774

58,444

58,484

58,680

Net income used for diluted net income per share calculation:

Net income

10,719

9,093

10,439

28,194

29,356

Amortization of convertible debt issuance cost

172

171

514

10,891

9,265

10,610

28,708

29,870

(a) Stock-based compensation included under SFAS 123R was as follows:

Cost of revenues — advertising

568

—

350

1,268

—

Sales and marketing

531

—

353

1,145

—

Product development

606

—

377

1,317

—

General and administrative

1,001

—

1,943

3,515

—

2,706

—

3,023

7,245

—

SINA CORPORATION
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
(U.S. Dollar in thousands, except per share data)

Three months ended

September 30, 2006

September 30, 2005

June 30, 2006

Non-GAAP

Actual

Adjustments

Results

Actual

Adjustments

Results

Actual

Adjustments

Results

568

(a)

350

(a)

Gross profit

36,011

568

36,579

33,544

—

33,544

34,018

350

34,368

(2,138

)(a)

(2,673

)(a)

(468

)(b)

(602

)(b)

(469

)(b)

Operating expenses

25,592

(2,606

)

22,986

24,363

(602

)

23,761

26,386

(3,142

)

23,244

2,706

(a)

3,023

(a)

468

(b)

602

(b)

469

(b)

Income from operations

10,419

3,174

13,593

9,181

602

9,783

7,632

3,492

11,124

2,706

(a)

468

(b)

602

(b)

3,023

(a)

172

(c)

172

(c)

469

(b)

134

(d)

(1,487

)(d)

171

(c)

270

(e)

1,458

(e)

(2,006

)(d)

145

(b)

191

(b)

177

(b)

Net income

10,719

3,895

14,614

9,093

936

10,029

10,439

1,834

12,273

Diluted net income per share

0.19

0.25

0.16

0.17

0.18

0.21

Shares used in computing diluted net income per share

58,419

58,774

58,444

Net income used in computing diluted net income per share:

Net income

10,719

14,614

9,093

10,029

10,439

12,273

Amortization of convertible debt issuance costs

172

—

172

—

171

—

10,891

14,614

9,265

10,029

10,610

12,273

Gross margin — advertising

Nine months ended

September 30, 2006

September 30, 2005

Non-GAAP

Actual

Adjustments

Results

Actual

Adjustments

Results

1,268

(a)

Gross profit

98,696

1,268

99,964

96,253

—

96,253

(5,977)

(a)

(1,405)

(b)

(2,684)

(b)

Operating expenses

74,018

(7,382

)

66,636

65,644

(2,684

)

62,960

7,245

(a)

1,405

(b)

2,684

(b)

Income from operations

24,678

8,650

33,328

30,609

2,684

33,293

7,245

(a)

1,405

(b)

2,684

(b)

514

(c)

514

(c)

(1,660)

(d)

(1,487)

(d)

270

(e)

2,740

(e)

499

(b)

191

(b)

Net income

28,194

8,273

36,467

29,356

4,642

33,998

Diluted net income per share

0.49

0.62

0.51

0.58

Shares used in computing diluted net income per share

58,484

58,680

Net income used in computing diluted net income per share:

Net income

28,194

36,467

29,356

33,998

Amortization of convertible debt issuance costs

514

—

514

—

28,708

36,467

29,870

33,998

Gross margin — advertising

(a) To adjust stock-based compensation charges
(b) To adjust amortization of intangible assets
(c) To adjust amortization of convertible debt issuance cost
(d) To adjust (gain) loss on the sale of business and investments, net
(e) To adjust loss on investments, net

SINA CORPORATION
UNAUDITED SEGMENT INFORMATION
(U.S. Dollar in thousands)

Three months ended

Nine months ended

September 30,

June 30,

September 30,

2006

2005

2006

2005

Net revenues

Advertising

32,697

22,968

29,454

84,332

59,989

Mobile related

21,811

24,134

22,448

66,953

73,267

Others

1,551

2,522

1,776

5,164

8,346

56,059

49,624

53,678

156,449

141,602

Cost of revenues

Advertising

11,333

7,410

10,317

29,948

19,845

Mobile related

8,313

8,279

8,925

26,638

24,323

Others

402

391

418

1,167

1,181

20,048

16,080

19,660

57,753

45,349

SINA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollar in thousands)


	September 30,		December 31,
	2006		2005
Assets
Cash, cash equivalents and investments in marketable securities	$	345,343	$	300,689
Accounts receivable, net		42,064		33,940
Property and equipment, net		23,230		22,207
Long-term investments		1,616		3,977
Goodwill and intangible assets, net		90,949		92,354
Other assets		11,815		15,554

Total assets	$	515,017	$	468,721


Liabilities and Shareholders’ Equity
Liabilities	$	49,416	$	49,099
Convertible Debt		100,000		100,000
Shareholders’ equity		365,601		319,622


Total liabilities and shareholders’ equity	$	515,017	$	468,721