Alibaba.com Board Approves a Special Dividend

Board also announces changes of executive director appointment

HONG KONG--(BUSINESS WIRE)-- Alibaba.com Limited (HKSE: 1688) (1688.HK), the world’s leading small business e-commerce company, today announced a HK$1.1 billion special cash dividend. All shareholders whose names appear on the register of members as of December 31, 2010 will receive the dividend of 22 Hong Kong cents per share, which will be paid on or around January 31, 2011.

“This dividend is a special distribution in light of the company’s satisfactory performance in the first three quarters,” said David Wei, chief executive officer of Alibaba.com. “We prioritize to invest our cash into strategic investments while evaluating our financial position on an ongoing basis. After making five acquisitions in the last 15 months, there is no immediate major acquisition in the near future, thus we believe it is a right time to offer returns to our shareholders by a special dividend. In order to build long-term value for shareholders while at the same time balancing cash position and distributable reserves, we will consistently review our dividend policy while evaluating and prioritizing investment opportunities.”

In addition to the dividend distribution, Alibaba.com has also recently renewed the plan announced in 2008 to buy back up to HK$2 billion (approximately US$258 million) of its ordinary shares, expiring by its 2011 annual general meeting. The repurchasing of shares will take place from time to time subject to market conditions and at the discretion of its directors, demonstrating management’s confidence in the long-term performance of the business.

The Alibaba.com board also appointed Shao Xiaofeng as a new executive director of the company, replacing Deng Kangming, who is stepping down to focus on his new role as chief people officer of Alibaba Group. Shao joined Alibaba Group in 2005 and currently serves as general manager of Alibaba.com’s China Business Unit. The changes will take effect on January 1, 2011.

“We are grateful for the valuable contribution that Mr. Deng has brought to the company during his tenure as a director of Alibaba.com, and his re-direction to Alibaba Group will also contribute to the synergies with Alibaba.com. Mr. Shao’s past experience with multiple Alibaba Group companies including Taobao and Alipay and his expertise in e-commerce, online transactions and payment, risk management and security will bring a unique insight to the Alibaba.com board,” said Jack Ma, chairman of Alibaba.com.

The total number of directors on the Alibaba.com board will remain unchanged at 13 members.

About 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 transaction-based 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 56 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 also owns Vendio and Auctiva, leading providers of third-party e-commerce solutions for online merchants. Alibaba.com has offices in more than 60 cities across Greater China, India, Japan, Korea, Europe and the United States.

About Alibaba Group

Alibaba Group is a global e-commerce leader and the largest e-commerce company in China. Since it was founded in 1999, Alibaba Group has grown to include the following core businesses: Alibaba.com (HKSE: 1688; 1688.HK), Alibaba Group's flagship company and the world's leading B2B e-commerce company; Taobao, China's largest online retail website and a one-stop platform for shopping, socializing and information sharing; Alipay, China's leading third-party online payment service; Alibaba Cloud Computing, a developer of advanced data-centric cloud computing services; and China Yahoo!, one of China's leading Internet portals.

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Source: Alibaba.com Limited