8:00AM New York - Alibaba.com reported that net income increased 111.7% year-on-year to Rmb300.7 million, excluding the one-off interest income that was received from oversubscriptions during the IPO in the fourth quarter of 2007.

Quarterly Earnings Review

Alibaba.com reported that total revenue in the first quarter ended March 31st rose 53.2% year-on-year and 7.2% from the previous quarter to Rmb680.1 million.

For the quarter, net income increased 111.7% to Rmb300.7 million, excluding the one-off interest income that was received from oversubscriptions during the IPO in the fourth quarter of 2007. Earnings per share, basic and diluted was HK$6.47, an increase of 118.6% year-on-year and 160.9% quarter-on-quarter, excluding the above mentioned one-off interest income in the fourth quarter of 2007.

Operating profit in the quarter under review advanced 81% year-on-year, and 67.1% on the quarter, to Rmb311.9 million.

Also operating profit margin increased to 45.9% from 38.8% in the first quarter of 2007 and 29.4% in the fourth quarter of 2007.

Total operating expenses in the quarter rose 44.8% on the year at Rmb310.5 million on expansion projects that were implemented by the company.

Segment Review

Alibaba reported that the total number of registered users for the company’s combined marketplaces increased 37.3% from the comparable quarter a year ago to 29.7 million.

As at the end of the first three months of the year, the company had 4.9 million registered users on the international marketplace and 24.8 million registered users on the China marketplace.

In addition, the total number of storefronts on the marketplaces gained 44.7% year-on-year to 3.2 million, while at the end of the quarter the company had 753,066 storefronts on its international marketplace and 2.5 million storefronts on its China marketplace.

As a result the revenue from Alibaba’s China marketplace increased 81.2% year-on-year to Rmb215.9 million in the first quarter of 2008, reflecting a 31.7% increase of total revenue as the number of paying members and average spending per member gained.

The number of paying members of the combined marketplaces was 327,118, increasing 35.6% year-on-year and 7.1% quarter-on-quarter.

Revenue from the international marketplace also jumped 42.9% on the year and 4.3% quarter-on-quarter to Rmb464.2 million in the first quarter of 2008,contributing 68.3% of total revenue after increases in the number of Gold Supplier members and sales of value-added services.

The commission income from the sale of Alisoft Export Edition to customers helped spur revenue from the international marketplace by Rmb7.5 million in the first quarter.

At the end of the first quarter 2008 Alibaba.com''s International marketplace Gold Supplier members had a net increase of 8,484 from a year earlier to 28,548 and 1,164 from 27,384 at the end of 2007.

Growth in members from the previous quarter was slowed by the impact of seasonality in customer acquisition, the serious national snow storms that hit China in February and the consequent limited sales activities in certain regions across the country, including the restructuring of the sales force.

In the period, International TrustPass members had a net increase of 652 from a year ago and 381 at the end of 2007 at 12,533. However, it is forecasted that the launch of planned new initiatives in the second quarter 2007 will help to boost the number of International Pass members.

China TrustPass members in the China marketplace also rose climbed by 76,730 from the same quarter a year ago to 286,037 as sales of value-added services such as keyword bidding and premium placement banner displays grew significantly, positively impacting on the average spending per member.

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