SouFun Management Commented on a Short Seller's Report

            SouFun Management Commented on a Short Seller's Report

PR Newswire

BEIJING, April 5, 2013

BEIJING, April 5, 2013 /PRNewswire/ -- SouFun Holdings Limited (NYSE: SFUN,
"SouFun"), the leading real estate and home related product and services
Internet portal in China, responded to a short seller's report today:

A short seller (Glaucus Research Group: "We are short seller. We are biased.")
published a report yesterday on SouFun. We think their conclusions are
misleading. Here are our comments with respect to the report's 7 summaries:

1.Our Chairman's family formed a not-for-profit corporation called Research
    Center on Natural Conservation (Research Center) to purchase the Arden
    House, a former Columbia University Executive Programs training center.
    Our Chairman's family (not SouFun) paid full for the purchase. The
    Research Center did use SouFun's New York office address to receive
    corresponding letters before the completion of the purchase (and some
    corresponding letters may still coming to SouFun's New York office address
    as the change of address may take longer). Our Chairman (also a director
    of the Research Center) occasionally invites SouFun's visiting employees
    and clients to use the Arden House for free. SouFun's New York office
    contact on the website of Arden House is to answer any question from
    SouFun's visiting employees and clients.
2.SouFun purchased 72 Wall Street for its long term strategy of SouFun's
    internal global training programs collectively called SouFun Business
    School. The facility needs renovation and is now not in a condition for
    full operations. The company has been using it as a temporary office and
    occasionally for visiting SouFun employees and clients (62 visitors in
    2011, 241 visitors in 2012, and planning for 350 visitors in 2013). It is
    preliminarily planned to open in full in two years from today. SouFun's
    visiting employees and clients for training purposes are mostly arranged
    by a related party called Wall Street Global Training Center (a not for
    profit organization in application), of which our Chairman is a director.
    In the past two plus years, SouFun paid roughly $2 million (which has been
    disclosed with SEC) to Wall Street Global Training Center for the 300 plus
3.SouFun's properties in Sanya, Hainan Island purchased in March 2012 have
    been in use for SouFun's training and employee award and other business
4.Shun Cheong Holdings (HKEX: 0650), a public company on the Hong Kong Stock
    Exchange, is about 60% owned by our Chairman's family and the company is
    in full compliance with Hong Kong Stock Exchange in respect to its
    shareholders, directors, and employees.
5.SouFun has been with its current auditor E&Y for more than 5 years and the
    company keeps a transparent and professional way in working with E&Y. All
    auditing related information past and present has been fully disclosed
    with SEC.
6.SouFun had three dividends since it has been listed with NYSE two and half
    years ago. Its cash will be used for its business expansion as first
    priority and then the company will need a $100-150 million cash reserve
    and after that the company may consider dividend to its shareholders.
7.SouFun's VIE structure has been there since it was founded in 1999 and has
    never been changed since almost 14 years ago.

SouFun welcomes all kinds of opinions and comments with respect to its
business and corporate governance even if some of them may not correctly
reflect the fact. We regard these opinions and comments as useful to improve
our future operations. We are confident that SouFun will be bigger, better,
and stronger with its continuous efforts and positive attitude from its
management and staff members.

About SouFun

SouFun operates the leading real estate Internet portal in China in terms of
the number of page views and visitors to its websites. Through our websites,
we provide marketing, e-commerce, listing and other value-added services for
China's fast-growing real estate and home furnishing and improvementsectors.
Our user-friendly websites support active online communities and networks of
users seeking information on, and other value-added services for, the real
estate and home furnishing and improvementsectors in China. SouFun currently
maintains about 100 offices to focus on local market needs and its website and
database contains real estate related content covering more than 320 cities in
China. For more information about SouFun, please visit

VP of Finance:
Hong Zhao, +86 (10) 5631 8707,

IR Manager:
Yiwen Zhang, +86 (10) 5631 8659,

SOURCE SouFun Holdings Limited

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