William Blair & Company Initiates Coverage of Baidu.com, Inc. With Market Perform Rating

Business Wire, Oct 22, 2008

CHICAGO -- William Blair & Company initiated research coverage of Baidu.com, Inc. (Nasdaq:BIDU) ($254.38), the largest Internet media company in China, with a Market Perform rating and an Aggressive Growth company profile.

Analyst Troy Mastin estimated that the company will generate earnings per share of $4.51 in 2008, $6.83 in 2009, and $9.66 in 2010.

"We view Baidu as a dominant player with a defensible competitive position in a rapidly growing market," Mastin said. "The company's success directly results from its position as the leading search engine in China, with an estimated 65% share of searches. We expect that the company will strengthen this position due to network or scale effects, thus improving the consumer experience; the Baidu brand, which is a uniquely Chinese search entity; and commanding market share and specialized ad sales and support, which help attract consumers, advertisers, and distribution partners."

William Blair & Company, L.L.C. intends to seek or expects to receive compensation for investment banking services from this company in the next 3 months.

William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position.

William Blair & Company, L.L.C. is a global investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. Since 1935, we have been committed to helping clients achieve their financial objectives. As an independent, employee-owned firm, our philosophy is to serve our clients' interests first and foremost. We place a high value on the enduring nature of our client relationships, the quality of our products and services, and the continuity and integrity of our people. William Blair & Company is based in Chicago, with office locations including Boston, London, New York, San Francisco, Shanghai, Tokyo, and Zurich. For more information, please visit www.williamblair.com

For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/Pages/news_story_dept.asp?uid=1427&depID=4

Additional information is available upon request.