eLong Reports FirstQuarter 2013 Unaudited Financial Results

         eLong Reports FirstQuarter 2013 Unaudited Financial Results

Net revenues increased 42% versus Q1 2012

PR Newswire

BEIJING, May 13, 2013

BEIJING, May 13, 2013 /PRNewswire/ -- eLong, Inc. (Nasdaq: LONG), a leading
online travel service provider in China, today reported unaudited financial
results for the first quarter ended March 31, 2013.

(Logo:http://photos.prnewswire.com/prnh/20041118/ELONGLOGO )

Highlights

  oHotel room nights sold in the first quarter increased 71%  to 4.9 million
    room nights compared to 2.8 million in the prior year period.
  oHotel commission revenue for the first quarter increased 47% to RMB180.1
    million (US$29.0 million), compared to RMB122.9 million (US$19.5 million)
    in the first quarter of 2012.
  oNet revenues for the first quarter increased 42% to RMB217.4 million
    (US$35.0 million), compared to RMB153.2 million (US$24.3 million) in the
    first quarter of 2012.
  oeLong's domestic hotel coverage network expanded 54% year-on-year.
    Customers can now book more than 205,000 hotels through eLong, including
    international hotels available via direct connection to Expedia.
  oeLong mobile applications reached approximately 10 million cumulative
    downloads. Mobile bookings (through mobile apps and mobile-optimized
    websites) comprised more than 15% of our total room nights. Our iPhone
    application, eLong Travel, also was recently featured as a "Great Free
    App" by the iTunes China Apple store.

"In Q1, we further expanded our hotel booking market share and further
strengthened our brand proposition of 'Book Hotel, Use eLong'," said Guangfu
Cui, Chief Executive Officer of eLong. "We are also seeing terrific growth in
mobile bookings which now comprise more than 15% of our room nights. We will
continue to invest in mobile and execute our mobile and online hotel
strategy." 

Business Results

Revenues

Total revenues by product for the first quarter of 2013 as compared to the
same period in 2012 were as follows (in RMB million):

                          Q1 2013      %          Q1 2012     %        Y/Y
                                       Total                  Total    Growth
Hotel reservations        180.1        78%        122.9       75%      47%
Air ticketing             31.7         14%        27.2        17%      17%
Other                     19.2         8%         13.8        8%       39%
Total revenues            231.0        100%       163.9       100%     41%[1]
[1] Note: Business tax, VAT and surcharges account for the difference in
growth rates of Total Revenues and Net Revenues.

Hotel Reservations

Hotel commission revenue increased 47% in the first quarter of 2013 compared
to the same period in 2012, primarily due to higher volume, partially offset
by lower commission per room night. Room nights sold in the first quarter
increased 71% year-on-year to 4.9 million. Commission per room night decreased
15% year-on-year, primarily due to growth of our coupon program and faster
rates of growth of lower average daily rate hotel room nights. Hotel
commission revenue grew to 78% of total revenues from 75% in the prior year
quarter.

Air Ticketing

Air ticketing commission revenue increased 17% in the first quarter of 2013
compared to the prior year quarter, driven by a 21% increase in air segments
to 672,000, partially offset by a 4% decrease in commission per segment.
Commission per segment decreased mainly due to our air coupon program, as well
as a decrease in average ticket price compared to the same quarter of 2012.
Air ticketing commission revenue decreased to 14% of total revenues from 17%
in the prior year quarter.

Other

Other revenue is primarily derived from advertising and travel insurance.
Other revenue increased 39% year-on-year in the first quarter of 2013, mainly
driven by increased advertising revenue. Other revenue was 8% of total
revenues, consistent with the prior year quarter.

Profitability

Gross margin in the first quarter of 2013 increased to 75%, compared to 73% in
the first quarter of 2012. The improvement in gross margin was driven by mix
shift to hotel and online bookings and operational efficiencies, and was
partially offset by lower hotel commission revenue per room night.

Operating expenses for the first quarter of 2013 as compared to the same
period in 2012 were as follows (in RMB million):

                                  Q12013  % of Net  Q12012  % of Net  Y/Y
                                           Revenue            Revenue   Growth
Service development               36.5     17%       27.2     18%       34%
Sales and marketing               112.6    52%       66.9     43%       68%
General and administrative        21.6     10%       14.8     10%       46%
Amortization of intangible        0.9      -         0.3      -         N/M
assets
Charges related to intangible     0.2      -         -        -         N/M
assets
Total operating expenses          171.8    79%       109.2    71%       57%

Total operating expenses increased 57% for the first quarter of 2013 compared
to the first quarter of 2012. Total operating expenses increased to 79% of net
revenues in the first quarter of 2013 from 71% in the prior year quarter which
led to an operating loss of RMB9.2 million compared to operating income of
RMB2.7 million in the prior year quarter.

Service development expenses consist of expenses related to technology and our
product offering, including our websites, platforms and other system
development, as well as our supplier relations function. Service development
expenses increased 34% compared to the prior year quarter, mainly driven by
higher personnel expenses. Service development expenses decreased to 17% of
net revenues in the first quarter of 2013 from 18% in the same quarter of
2012.

Sales and marketing expenses for the first quarter of 2013 increased 68% over
the prior year quarter, mainly driven by increased spending on online
marketing, hotel commission payments to affiliates and brand marketing
advertising expenses. Sales and marketing expenses increased to 52% of net
revenues in the first quarter of 2013 from 43% in the same quarter of 2012.

General and administrative expenses for the first quarter of 2013 increased
46% compared to the prior year quarter, mainly driven by higher share-based
compensation charges, personnel expenses and professional fees. General and
administrative expenses were 10% of net revenues, consistent with the same
quarter of 2012.

Other income represents interest income, foreign exchange losses and other.
Other income was RMB14.6 million in the first quarter of 2013 compared to
other income of RMB12.4 million in the first quarter of 2012, primarily driven
by an increase in interest income.

As of March 31, 2013, eLong held cash and cash equivalents, short-term
investments and restricted cash of RMB1.9 billion (US$311 million),
substantially all of which was held in Renminbi.

Net income for the first quarter of 2013 was RMB2.8 million, compared to net
income of RMB11.9 million during the prior year quarter.

Basic net income per ADS and diluted net income per ADS for the first quarter
of 2013 were each RMB0.08 (US$0.012), compared to basic net income per ADS and
diluted net income per ADS of RMB0.34 (US$0.06) in the prior year quarter.

Business Outlook

eLong currently expects net revenues for the second quarter of 2013 to
increase by 15% to 25% compared to the second quarter of 2012. This outlook
reflects eLong's current and preliminary view, which is subject to change.

CFO Transition

Mike Doyle, eLong's Chief Financial Officer for the past four years, will be
leaving the Company on May 31, 2013."Mike has made outstanding contributions
to eLong's growth and development, and we wish him continued success in his
future endeavors," said Guangfu Cui."I am proud of the progress we have made
in turning around eLong's business and in building a strong finance
organization. I remain confident in eLong's future and the ability of the team
to achieve our objective to become China's largest online hotel booking
service provider," said Mike Doyle.

eLong has appointed Philip Yang, as Interim CFO and Chief Accounting Officer,
effective June 1, 2013. Mr. Yang is currently Vice President of Finance and
Financial Controller of eLong."Philip has been a trusted leader in our
finance department for nearly seven years, and I am delighted that he will now
assume a larger role in the execution of our mobile and online hotel strategy.
In addition, we are considering external candidates to further strengthen our
finance leadership team," said Guangfu Cui.

Since joining eLong in 2006, Mr. Yang has held a number of leadership
positions within eLong's Finance department, including Internal Audit Director
and Financial Controller. Prior to joining eLong, Mr. Yang was a senior
auditor with Deloitte Touche Tohmatsu and also previously worked at Protiviti
and TOM Group Limited. Mr. Yang is a graduate of Beijing Polytechnic
University with a Bachelors Degree of Business Administration and Civil
Engineering. He is a PRC Certified Public Accountant and a Certified
Management Accountant.

Safe Harbor Statement

It is currently expected that the Business Outlook will not be updated until
the release of eLong's next quarterly earnings announcement; however, eLong
reserves the right to update its Business Outlook at any time for any reason.

Statements in this press release concerning eLong's future business, operating
results and financial condition are "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E
of the Securities Exchange Act of 1934, as amended, and as defined in the
Private Securities Litigation Reform Act of 1995. Words such as "anticipate,"
"believe," "estimate," "expect," "forecast," "intend," "may," "plan,"
"project," "predict," "future," "is/are likely to," "should" and "will" and
similar expressions as they relate to eLong are intended to identify such
forward-looking statements, but are not the exclusive means of doing so. These
forward-looking statements are based upon management's current views and
expectations with respect to future events and are not a guarantee of future
performance. Forward-looking statements include, but are not limited to,
statements about our anticipated growth strategies, our future business
development, results of operations and financial condition, our ability to
control costs and/or maintain profitability, our ability to attract customers
and leverage our brand, and trends and competition in the travel industry in
China and globally. Furthermore, these statements are, by their nature,
subject to a number of risks and uncertainties that could cause our actual
performance and results to differ materially from those discussed in the
forward-looking statements. Factors that could affect our actual results and
cause our actual results to differ materially from those referred in any
forward-looking statement include, but are not limited to, declines or
disruptions in the travel industry, international financial, political or
economic crises, a slowdown in the PRC economy, an outbreak of bird flu or
other disease, eLong's reliance on maintaining good relationships with, and
stable air and hotel inventory from, hotel suppliers and airline ticket
suppliers, and on establishing new relationships with suppliers on similar
terms, our reliance on the TravelSky GDS system for our air business and Baidu
(and its subsidiary Qunar) and Qihu for our search engine marketing, the risk
that eLong will not be able to increase its brand recognition, the possibility
that eLong will be unable to continue timely compliance with the
Sarbanes-Oxley Act or other regulatory requirements, the risk that eLong will
not be successful in competing against new and existing competitors, the risk
that our infrastructure and technology are damaged, fail or become obsolete,
risks associated with Expedia, Inc.'s (Nasdaq: EXPE) majority ownership
interest and Tencent's shareholding in eLong, risks relating to eLong's
investment in other businesses and assets, fluctuations in the value of the
Renminbi, inflation in China, changes in eLong's management team and other
personnel, risks relating to uncertainties in the PRC legal system, including
but not limited to, risks relating to our affiliated Chinese operating
entities and risks relating to the application of preferential tax policies,
and other risks mentioned in eLong's filings with the U.S. Securities and
Exchange Commission, including eLong's Annual Report on Form 20-F.

If one or more of these risks or uncertainties occur, or if our underlying
assumptions prove to be incorrect, actual events or results may vary
significantly from those implied or projected by the forward
looking-statements. Investors should not rely upon forward-looking statements
as predictions of future events. Except as required by law, we undertake no
obligation to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise. All
forward-looking statements contained in this press release are qualified by
reference to this cautionary statement.

Conference Call

eLong will host a conference call to discuss its first quarter 2013 unaudited
financial results on May 14, 2013 at 8:30 am Beijing time (May 13, 2013, 8:30
pm ET). The management team will be on the call to discuss the quarterly
results and to answer questions. The toll-free number for U.S. participants is
+1-866-844-9413. The dial-in number for Hong Kong participants is
+852-3001-3802. The toll-free numbers for China Mainland participants are
10800-712-1470 (China Unicom) and 10800-120-1470 (China Telecom) and the toll
number for China Mainland participants is 86-400-810-4731. International
participants can dial +1-210-795-0512. Pass code: eLong.

Additionally, an archived web cast  of this call will be available on the
Investor Relations section of the eLong web site at
http://www.elong.net/AboutUs/conference.html.

About eLong, Inc.

eLong, Inc. (Nasdaq: LONG - News) is a leader in online hotel reservations in
China offering consumers a leading hotel network of more than 205,000 bookable
domestic and international properties in 200 countries worldwide. eLong uses
innovative technology to enable travelers to make informed hotel and air
ticket booking decisions through its convenient website and mobile (iPhone,
iPad, Android, and Windows Phone) applications and easy to use tools such as
destination guides, photos, virtual tours, maps and user reviews. eLong
provides 24-hour customer support and the ability to fulfill domestic and
international air ticket reservations across China. eLong's largest
shareholders are Expedia, Inc. (Nasdaq: EXPE) and Tencent Holdings Ltd. (HKSE:
0700). eLong operates websites including www.elong.com and www.elong.net.

For further information, please contact:

eLong, Inc.
Investor Relations
ir@corp.elong.com
+86-10-6436-7570



eLong, Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(IN THOUSANDS EXCEPT PER SHARE AND PER ADS AMOUNTS)
                          Three Months Ended
                          Mar. 31,      Dec. 31,     Mar. 31,     Mar. 31,
                          2012          2012         2013         2013
                          RMB           RMB          RMB          USD^(1)
                          (Unaudited)   (Unaudited)  (Unaudited)  (Unaudited)
Revenues:
Hotel reservations     122,895       174,983      180,152      29,006
Air ticketing          27,158        31,454       31,687       5,102
Other                  13,837        17,987       19,204       3,092
Total revenues            163,890       224,424      231,043      37,200
Business tax, VAT and  (10,737)      (15,630)     (13,648)     (2,197)
surcharges
Net revenues              153,153       208,794      217,395      35,003
Cost of services      (41,274)      (58,386)     (54,818)     (8,826)
Gross profit              111,879       150,408      162,577      26,177
Operating expenses:
Service development    (27,236)      (36,358)     (36,495)     (5,876)
Sales and marketing   (66,949)      (110,144)    (112,615)    (18,133)
General and            (14,774)      (17,409)     (21,584)     (3,475)
administrative
Amortization of        (251)         (247)        (913)        (147)
intangible assets
Charges related to     -             (1,860)      (177)        (28)
intangible assets
Total operating expenses  (109,210)     (166,018)    (171,784)    (27,659)
Income/(loss) from        2,669         (15,610)     (9,207)      (1,482)
operations
Other income:
Interest income        11,606        14,691       14,629       2,355
Foreign exchange       (617)         (1,237)      (539)        (87)
losses
Other                  1,424         340          521          84
Total other income        12,413        13,794       14,611       2,352
Income/(loss) before
income tax                15,082        (1,816)      5,404        870

benefit/(expense)
Income tax             (2,648)       12,450       (3,276)      (528)
benefit/(expense)
Impairment on equity   -             (4,812)      -            -
method investment
Share of net
income/(loss) in          (551)         (107)        644          104
non-consolidated
affiliates
Net income                11,883        5,715        2,772        446
Other comprehensive    -             -            -            -
income
Total comprehensive       11,883        5,715        2,772        446
income
Basic net income per      0.17          0.08         0.04         0.006
share
Diluted net income per    0.17          0.08         0.04         0.006
share
Basic net income per      0.34          0.16         0.08         0.012
ADS^(2)(3)
Diluted net income per    0.34          0.16         0.08         0.012
ADS^(2)(3)
Shares used in computing
net income per share:
Basic                  68,587        69,196       69,004       69,004
Diluted                69,342        69,862       69,733       69,733
Share-based compensation  6,948         7,853        10,439       1,680
charges included in:
Cost of services      465           412          617          99
Service development    2,772         2,807        3,480        560
Sales and marketing   1,285         952          1,356        218
General and            2,426         3,682        4,986        803
administrative
Note 1: The conversion of Renminbi (RMB) into United States dollars (USD) is
based on the noon buying rate ofUSD1.00=RMB6.2108 on March 31, 2013 in the
City of New York for cable transfers of Renminbi as certified for customs
purposes by the Federal Reserve. No representation is made that the RMB
amounts could have been, or could be, converted or settled into USD at the
rates stated herein on the reporting dates, at any other rates or at all.
Note 2: 1 ADS = 2 shares.
Note 3: Non-GAAP financial measures



eLong, Inc.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
                                   Dec.31,2012  Mar.31,2013  Mar.31,2013
                                   RMB            RMB            USD
                                   (Audited)      (Unaudited)    (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents          311,140        363,201        58,479
Short-term investments             1,581,502      1,507,801      242,771
Restricted cash                    61,400         61,400         9,886
Accounts receivable, net           127,973        167,539        26,975
Amounts due from related parties   23,639         45,445         7,317
Prepaid expenses                   21,240         24,570         3,956
Deferred tax assets, current       15,342         15,733         2,533
Other current assets               53,324         58,272         9,383
Total current assets               2,195,560      2,243,961      361,300
Property and equipment, net        72,362         78,052         12,567
Investment in non-consolidated     42,031         42,675         6,871
affiliates
Goodwill                           77,782         78,152         12,583
Intangible assets, net             14,712         13,252         2,134
Deferred tax assets, non-current   31,037         43,090         6,938
Other non-current assets           37,149         37,111         5,975
Total non-current assets           275,073        292,332        47,068
Total assets                       2,470,633      2,536,293      408,368
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable                   119,200        164,787        26,532
Income taxes payable               14,671         30,391         4,893
Amounts due to related parties     89,634         76,666         12,344
Deferred revenue                   10,197         36,219         5,832
Accrued expenses and other         198,970        176,035        28,344
current liabilities
Total current liabilities          432,672        484,098        77,945
Other liabilities                  1,086          86             13
Total non-current liabilities      1,086          86             13
Total liabilities                  433,758        484,184        77,958
Shareholders' equity
Ordinary shares                    2,864          2,864          461
High-vote ordinary shares          2,691          2,691          433
Treasury stock                     (70,105)       (65,002)       (10,466)
Additional paid-in capital         2,238,577      2,248,840      362,085
Statutory reserves                 15,409         15,409         2,482
Accumulated deficit                (152,561)      (152,693)      (24,585)
Total shareholders' equity         2,036,875      2,052,109      330,410
Total liabilities and              2,470,633      2,536,293      408,368
shareholders' equity



eLong, Inc.
TRENDED OPERATIONAL METRICS
(IN THOUSANDS)
The metrics below are intended as a supplement to the financial statements
found in this press release and in our filings with the SEC. In the event
of discrepancies between amounts in these tables and our historical
financial statements, readers should rely on our filings with the SEC and
financial statements in our most recent press release.
We intend to periodically review and refine the definition, methodology and
appropriateness of each of our supplemental metrics. As a result, metrics
are subject to removal and/or change, and such changes could be material.
                         2012 (Unaudited)                         2013
                                                                  (Unaudited)
                         Q1     Q2      Q3      Q4      2012     Q1
Hotel Reservations
Room Nights              2,843   3,666   4,601   5,014   16,124   4,877
Room Night Y/Y           67%     65%     70%     94%     75%      71%
Average Daily Rate Y/Y   (12%)   (11%)   (9%)    (15%)   (12%)    (4%)
Commission/Room Night    (19%)   (11%)   (27%)   (29%)   (22%)    (15%)
Y/Y
Hotel Commissions Y/Y    36%     47%     24%     38%     36%      47%
Air Ticketing
Air Segments             554     525     662     637     2,378    672
Air Segments Y/Y         (6%)    (8%)    12%     11%     3%       21%
Average Ticket Price Y/Y 1%      5%      0%      (4%)    1%       (1%)
Commission/Segment Y/Y   (5%)    1%      (7%)    (3%)    (4%)     (4%)
Air Commissions Y/Y      (10%)   (7%)    5%      8%      (1%)     17%

Non-GAAP Financial Measures

To supplement the financial measures calculated in accordance with generally
accepted accounting principles in the United States, or GAAP, this press
release includes certain non-GAAP financial measures including basic net
income per ADS, diluted net income per ADS, Adjusted Earnings Before
Interests, Taxes, Depreciation and Amortization ("Adjusted EBITDA"), Adjusted
Net Income ("ANI") and Adjusted Net Income Per Share. We believe these
non-GAAP financial measures may help investors understand eLong's current
financial performance and compare business trends among different reporting
periods. These non-GAAP financial measures should be considered in addition to
financial measures presented in accordance with GAAP, but should not be
considered as a substitute for, or superior to, financial measures presented
in accordance with GAAP. We seek to compensate for the limitations of the
non-GAAP measures presented by also providing the comparable GAAP measures,
GAAP financial statements, and descriptions of the reconciling items and
adjustments, to derive the non-GAAP measures.

Adjusted EBITDA is defined as net income plus (1) interest expense (income);
(2) income tax expense (benefit); (3) depreciation; (4) amortization of
intangible assets; (5) share-based compensation charges; (6) foreign exchange
losses (gains); (7) acquisition-related impacts, including (i) goodwill and
intangible asset impairment, and (ii) losses (gains) recognized on
non-controlling investment basis adjustments when we acquire controlling
interests; and (8) certain other items, including restructuring charges,
impairment loss on equity method investment and equity in net loss (income) of
affiliates. We believe Adjusted EBITDA is a useful financial metric to assess
our operating and financial performance before the impact of investing and
financing transactions, if any, and income tax expense (benefit). Since
share-based compensation charges are non-cash expenses, we believe excluding
them from our calculation of Adjusted EBITDA allows us to provide investors
with a more useful tool for assessing our operating and financial performance.
In addition, we believe that Adjusted EBITDA is used by other companies and
may be used by investors as a measure of our financial performance. The
presentation of Adjusted EBITDA should not be construed as an indication that
eLong's future results will be unaffected by other charges and gains we
consider to be outside the ordinary course of our business. The use of
Adjusted EBITDA has certain limitations. Amortization and depreciation
expenses for various non-current assets, share-based compensation charges,
other income/(expenses), and income tax expense (benefit) have been and will
be incurred and are not reflected in the presentation of Adjusted EBITDA. Each
of these items should also be considered in the overall evaluation of our
results. Additionally, Adjusted EBITDA does not consider capital expenditures
and other investing activities and should not be considered as a measure of
eLong's liquidity. We seek to compensate for these limitations by providing
the relevant disclosure of our amortization and depreciation expenses, and
share-based compensation charges in the reconciliations to the GAAP financial
measure. The term Adjusted EBITDA is not defined under GAAP, and Adjusted
EBITDA is not measure of net income, income from operations, operating
performance or liquidity presented in accordance with GAAP. In addition,
eLong's Adjusted EBITDA may not be comparable to Adjusted EBITDA or similarly
titled measures utilized by other companies since such other companies may not
calculate Adjusted EBITDA in the same manner as we do.

Adjusted EBITDA should be considered in addition to results prepared in
accordance with GAAP, but should not be considered a substitute for, or
superior to, GAAP measures. We present a reconciliation of this non-GAAP
financial measure to GAAP below.

eLong, Inc.
TABULAR RECONCILIATION FOR NON-GAAP MEASURE
Adjusted EBITDA
(IN THOUSANDS)
                      2012 (Unaudited)                             2013
                                                                   (Unaudited)
                      Q1       Q2       Q3       Q4       2012     Q1
                      RMB      RMB      RMB      RMB      RMB      RMB
Net income/(loss)     11,883   16,013   (33,140) 5,715    471      2,772
Interest income       (11,607) (14,006) (14,955) (14,691) (55,259) (14,629)
Income tax expense    2,649    963      (7,178)  (12,450) (16,016) 3,276
(benefit)
Depreciation          5,985    6,435    7,096    7,420    26,936   7,759
Amortization of       251      279      279      247      1,056    913
intangible assets
Share-based           6,948    8,168    6,979    7,853    29,948   10,439
compensation charges
Foreign exchange      618      29       83       1,237    1,967    539
losses
Impairment loss on
equity method         -        -        -        4,812    4,812    -
investment
Other                 (873)    -        (641)    1,627    113      (988)
Adjusted EBITDA       15,854   17,881   (41,477) 1,770    (5,972)  10,081

Adjusted Net Income generally captures all items on the statements of
operations that occur in normal course operations and have been, or ultimately
will be, settled in cash and is defined as net income plus net of tax: (1)
share-based compensation charges; (2) acquisition-related impacts, including
(i) amortization of intangible assets, including as part of equity-method
investments, and goodwill and intangible asset impairment, (ii) losses (gains)
recognized on changes in the value of contingent consideration arrangements,
and (iii) losses (gains) recognized on non-controlling investment basis
adjustments when we acquire controlling interests; (3) foreign exchange
losses; (4) certain other items, including restructuring charges; and (5)
discontinued operations. We believe Adjusted Net Income is useful to investors
because it represents eLong's results, taking into account depreciation, which
management believes is an ongoing cost of doing business, but excluding the
impact of other non-cash expenses, infrequently occurring items and items not
directly tied to the core operations of our businesses.

Adjusted Net Income Per Share is defined as Adjusted Net Income divided by
adjusted weighted average shares outstanding, which include dilution from
options and warrants per the treasury stock method and include all shares
relating to Performance Units in shares outstanding for Adjusted Net Income
Per Share. This differs from the GAAP method for including Performance Units,
which treats them on a treasury stock method basis. Shares outstanding for
Adjusted Net Income Per Share purposes are therefore higher than shares
outstanding for GAAP Net Income Per Share purposes. We believe Adjusted Net
Income Per Share is useful to investors because it represents, on a per share
basis, eLong's consolidated results, taking into account depreciation, which
we believe is an ongoing cost of doing business, as well as other items which
are not allocated to the operating businesses such as interest income and
income tax expense (benefit), but excluding the effects of non-cash expenses
not directly tied to the core operations of our businesses. Adjusted Net
Income and Adjusted Net Income Per Share have similar limitations as Adjusted
EBITDA. In addition, Adjusted Net Income does not include all items that
affect our net income and net income per share for the period. Therefore, we
think it is important to evaluate these measures along with our consolidated
statements of operations.

Adjusted Net Income and Adjusted Net Income Per Share should be considered in
addition to results prepared in accordance with GAAP, but should not be
considered a substitute for, or superior to, GAAP measures. We present a
reconciliation of these non-GAAP financial measures to GAAP below.

eLong, Inc.
TABULAR RECONCILIATION FOR NON-GAAP MEASURE
Adjusted Net Income and Adjusted Net Income Per Share
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
                             2012                                 2013
                             (Unaudited)
                                                                  (Unaudited)
                             Q1     Q2     Q3       Q4     2012   Q1
                             RMB    RMB    RMB      RMB    RMB    RMB
Net income/(loss)            11,883 16,013 (33,140) 5,715  471    2,772
Share-based compensation     6,948  8,168  6,979    7,853  29,948 10,439
charges
Amortization of intangible   251    279    279      247    1,056  913
assets
Foreign exchange losses      618    29     83       1,237  1,967  539
Other                        (40)   (73)   317      1,711  1,915  (79)
Adjusted net income/(loss)   19,660 24,416 (25,482) 16,763 35,357 14,584
Shares used in computing adjusted net income per
share:
GAAP diluted weighted        69,342 69,225 69,404   69,862 69,443 69,733
average shares outstanding
Additional performance units 390    796    747      904    724    1,640
Adjusted weighted average    69,732 70,021 70,151   70,766 70,167 71,373
shares outstanding
Adjusted net income/(loss)   0.28   0.35   (0.36)   0.24   0.50   0.20
per share

SOURCE eLong, Inc.

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