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KAPLAN FOX SEEKS TO RECOVER
LOSSES FOR INVESTORS WHO PURCHASED
NETEASE.COM, INC. ADSS

NEW YORK - October 24, 2001- Kaplan Fox (KaplanFox.com) has filed a class action against NetEase.com, Inc., certain of the Company’s officers and directors and the underwriters and international managers of Netease.com’s initial public offering, Merrill Lynch & Co., Inc. and Deutsche Bank Securities, Inc. The suit was filed in the United States District Court for the Southern District of New York. The suit is brought on behalf of all persons or entities who purchased the American Depositary Shares (ADSs) of NetEase.com, Inc. (“NetEase.com”) (NASDAQ: NTESE) between July 3, 2000 and August 31, 2001, inclusive (the “Class Period”).

The complaint charges that NetEase.com and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued a series of false and misleading statements concerning the Company’s revenue and financial results. Specifically, on May 8, 2001, Netease.com disclosed that it had discovered that $1 million in contracts had been improperly reported as revenue and as a result, it would delay announcing its financial results for the first quarter of 2001. Subsequently, on June 11, 2001, the Company announced that the revenue overstatement appeared to affect its full year 2000 financial statements and the amount of the overstatement would be approximately $3 million. Then, on August 31, 2001, NetEase.com finally revealed the full extent of the overstatement. The Company announced that it would be restating all of its year 2000 financial statements because $4.3 million in revenue had been overstated. The complaint further alleges that the prospectus and registration statement issued in connection with the initial public offering of NetEase.com ADSs (the ``IPO'') were materially false and misleading because they contained artificially inflated financial results for the first quarter of 2000. Following the IPO, defendants issued press releases announcing the Company's quarterly 2000 and full year 2000 financial results which were materially false and misleading because they overstated NetEase.com's financial performance.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Chicago and New Jersey has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com

If you are a member of the Class, you may move the court no later than December 21, 2001 to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements.

If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@KaplanFox.com or contact:

Frederic S. Fox, Esq.
Kaplan Fox & Kilsheimer LLP
805 Third Avenue - 22nd Floor
New York, NY 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail address: mail@KaplanFox.com

Laurence D. King, Esq.
Kaplan Fox & Kilsheimer LLP
100 Pine Street, 26th Floor
San Francisco, CA 94111
(415) 336-1238
Fax: (415) 677-1233
E-mail address: mail@KaplanFox.com

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