Enhanced limit of the schemes to align long-term interests and drive success

HONG KONG--(BUSINESS WIRE)-- Shareholders of Alibaba.com Limited (HKSE:1688) (1688.HK), the world’s leading small business e-commerce company, today approved overwhelmingly the amendments to the share option scheme and restricted share unit scheme and the refreshment of the limit of these schemes to 156 million shares at the company’s extraordinary general meeting (EGM).

“The fast-growing development of our company in the past 10 years is attributable to the dedication and hard work of the entire staff of Alibaba.com, and we will continue to value our human assets, which bring value to our customers, thus contributing returns to our shareholders,” said David Wei, chief executive officer of Alibaba.com. “We are grateful that our shareholders agreed, and we are confident that the schemes will streamline and align the long-term interests of our shareholders as well as our management and staff, driving mutual success of our customers and our business.”

The original limit of both schemes was 135.1 million shares, which represented approximately 2.67 percent of the issued share capital of Alibaba.com when it was listed in 2007. The refreshed limit of 156 million shares that shareholders have approved today represents approximately 3.1 percent of Alibaba.com’s current issued share capital. This is significantly lower than the limit of 10 percent permitted under the Listing Rules.

The purposes of the share option scheme are to attract skilled and experienced personnel, to incentivize them to remain with Alibaba.com and give effect to the company’s customer-focused corporate culture and to motivate them to strive for the future development and expansion of Alibaba.com by providing them with the opportunity to acquire equity interests in the company. The purposes of the restricted share unit scheme are to attract and retain the best available personnel by providing incentives to employees and consultants who contribute to the business growth and success of the company. The directors of Alibaba.com consider that a refreshment of the limit of both schemes will allow the company to continue utilizing the schemes to pursue these purposes, hence aligning the long-term interests of all of its stakeholders.

At the same time, the HK$1.1 billion special cash dividend that Alibaba.com announced earlier today was also approved by its board of directors. All shareholders registered as of December 31, 2010 will receive a cash dividend of 22 Hong Kong cents per share, which will be paid on or around January 31, 2011.

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.HK), Alibaba Group's flagship company and the world's leading B2B e-commerce company; Taobao, China's largest Internet retail Web site 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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CONTACT:

Alibaba.com Limited
For investor inquiries:
Lindy Lau, +852 2215 5215
lindylau@hk.alibaba-inc.com
For media inquiries:
Jasper Chan, +852 2215 5213
jasperchan@hk.alibaba-inc.com

KEYWORDS:   Asia Pacific  Hong Kong

INDUSTRY KEYWORDS:   Technology  Online Retail  Internet  Other Technology  Retail  Other Retail

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