Increased Synergies with Alibaba Group will Enhance Benefits to Customers
Shareholders of Alibaba.com Limited (HKSE:1688.HK) (HK.1688), the world's leading business-to-business e-commerce company, today approved overwhelmingly the renewal and expansion of the continuing connected transactions agreements between Alibaba.com and Alibaba Group Holding Limited at the company's Extraordinary General Meeting (EGM).
"We foresee the need for synergies with Alibaba Group expanding in the years to come as we create a total ecosystem to help small businesses succeed globally, and that's why we asked our shareholders for permission to continue these relationships," said David Wei, chief executive officer of Alibaba.com. "We are grateful our shareholders agreed, and now we will deliver."
Alibaba.com and Alibaba Group first entered into the continuing connected transactions agreements in October 2007 to share resources, marketing services and technologies, providing a broader array of targeted services and applications that are tailored to the needs of Alibaba.com's small business customers faster at a lower overall cost. As the existing agreements are close to expiration, Alibaba.com submitted a request to shareholders on November 10, 2009 to renew and expand the existing agreements both in content and amounts for each of the three years ending December 31, 2010, 2011 and 2012. The approval of the request at today's EGM means that Alibaba.com can continue to benefit from resources sharing with Alibaba Group and its member companies.
The new continuing connected transactions agreements consist of four framework agreements, each with distinct benefits to Alibaba.com and its customers, three of which require shareholder approval: the Cooperation Framework Agreement, which gives Alibaba.com and Alibaba Group ready access to each others' business applications and services; the Cross-Selling Services Framework Agreement, which enables Alibaba.com and Alibaba Group to cross-sell each other's products and services to their respective customers; and the Technology and Intellectual Property Framework License Agreement, which allows Alibaba.com and its customers to benefit from technologies developed by Alibaba Group and from third-party licenses the Group already holds. TheTechnology Services Framework Agreement, which allows Alibaba.com access to the resources and capabilities of Alibaba Group's engineers and technicians, does not require shareholder approval.
About Alibaba.com Limited
Alibaba.com (HKSE:1688) (HK.1688) is the global leader in business-to-business (B2B) e-commerce and the flagship company of Alibaba Group. Founded in 1999, Alibaba.com makes it easy for millions of buyers and suppliers around the world to do business online through three marketplaces: a global trade marketplace (www.alibaba.com) for importers and exporters, a Chinese marketplace (www.alibaba.com.cn) for domestic trade in China, and, through an associated company, a Japanese marketplace (www.alibaba.co.jp) facilitating trade to and from Japan. Together, its marketplaces form a community of more than 45 million registered users from more than 240 countries and regions. Alibaba.com also offers business management software solutions targeting small businesses across China under the "Alisoft" brand and incubates e-commerce talent for SMEs in China through Ali-Institute. Founded in Hangzhou, China, Alibaba.com has offices in more than 50 cities across Greater China, 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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Contacts:
Alibaba.com
Lindy Lau, +852 2215 5215 (investors)
lindylau@hk.alibaba-inc.com
Linda
Kozlowski, +852 9028 5150 (media)
lkozlowski@hk.alibaba-inc.com
