BEIJING, China - July 27, 2006 - eLong, Inc. (NASDAQ: LONG), a leading online travel service provider in China, today reported unaudited financial results for the second quarter ended June 30, 2006.

• Travel revenues increased 57% year-over-year and 26% sequentially to RMB65.0 million (US$8.1 million), and total revenues improved 55% year-over-year and 26% sequentially to RMB71.3 million (US$8.9 million);
• Hotel commissions increased 49% year-over-year and 28% sequentially to RMB53.8 million (US$6.7 million);
• Air ticketing commissions increased 93% year-over-year and 20% sequentially to RMB9.6 million (US$1.2 million); air ticketing represented 15% of total travel revenues in the second quarter as compared to 12% in the same period one year ago,
• Operating loss of RMB509,000 (US$62,000), which included non cash related stock-based compensation expense and amortization of RMB2.8 million (US$348,000), decreased 95% year-over-year and 97% sequentially to RMB509,000 (US$62,000);
• The Company recorded a net income of RMB10.2 million (US$1.3 million) for the second quarter of 2006, compared to a net loss of RMB3.3 million (US$396,000) in the corresponding period a year ago, and a net loss of RMB12.2 million (US$1.5 million) in the first quarter of 2006;
• The Company recorded an adjusted income (a non-GAAP measure) of RMB13.1 million (US$1.6 million) as compared to an adjusted income of RMB398,000 (US$49,000) in the same period a year ago and an adjusted loss of RMB3.1 million (US$388,000) sequentially; and
• As of June 30, 2006, the Company's cash and cash equivalents balance was US$136.1 million.

"We are extremely pleased to report that eLong has achieved record results in the second quarter with strong growth across all of our booking services, as we execute our business strategy more effectively and continue to operate in a rapidly growing industry. Going forward, we will continue to invest in the business to strengthen the brand, expand on our core competencies in products, services and technology, and further enhance our customers' experience to make eLong a world-class full service supplier of travel services in the dynamic Chinese market, " said Tom SooHoo, Chief Executive Officer of eLong.

Separately eLong also announced today the election of Barney Harford as chairman of the board of directors and the appointment of Tony Shen as interim Chief Financial Officer.

Total revenues for the second quarter of 2006 were RMB71.3 million (US$8.9 million), an increase of 55% from RMB46.1 million (US$5.6 million) reported in the same period in 2005, and an increase of 26% from RMB56.6 million (US$7.1 million) reported in the first quarter of 2006.

Revenue from hotel commissions for the second quarter of 2006 totaled RMB53.8 million (US$6.7 million), an increase of 49% from RMB36.0 million (US$4.4 million) year-over-year, and an increase of 28% from RMB42.1 million (US$5.3 million) sequentially.

The increases in hotel commissions were primarily due to higher room volumes accompanied by higher hotel commission per room night. Hotel room nights booked through eLong increased 35% to 832,000 in the second quarter from 615,000 in the corresponding period a year ago, and were up 25 % sequentially from 666,000 in the first quarter.

Hotel commissions per room night were RMB65 in the second quarter of 2006, up 10% from RMB59 in the corresponding period a year ago, and up 3% from RMB63 in the first quarter. The year-over-year and sequential increases were mainly due to higher commissions associated with increased volume.

"Our strong hotel revenue growth reflects our increasing leverage with suppliers as we drive more business to them. At the same time, we tap into structural hotel capacity growth as China leads Asia's hotel boom, accounting for nearly half of new hotel projects in the region. As of June 30, 2006, we offered our customers a choice of hotel rooms at discounted rates in 3,505 hotels in 282 cities across Greater China as compared to almost 2,800 hotels in 230 cities at the end of the second quarter of 2005," said Frank Zheng, Vice President of Travel Services.

Revenue from air ticketing commissions during the second quarter of 2006 totaled RMB9.6 million (US$1.2 million), an increase of 93% from RMB5.0 million (US$604,000) year-over-year, and an increase of 20% from RMB8.0 million (US$999,000) sequentially. Volume in air segment sales continued to grow with 247,000 air segments sold in the second quarter of 2006, an increase of 83% from 135,000 in the corresponding period a year ago and 13% higher than the 218,000 sold in the first quarter. Revenue per air ticket was RMB39 in the second quarter of 2006 as compared to RMB37 in both the corresponding period a year ago and in the first quarter. The sequential increase was primarily due to an increase in the air commission rate.

"Year-over-year growth in air ticketing revenues was primarily driven by the acquisition of new air customers, increased sales of air tickets to eLong's existing hotel customer base and better product offerings. We will continue to focus on building a scalable and efficient air infrastructure in the medium term, which is a critical component in eLong's business strategy. Our investment in this area also reflects our expectations regarding the long term potential of online air travel bookings in China," explained Andy Clayton, Vice President of Air.

Other travel revenue in the second quarter of 2006 was RMB1.6 million (US$204,000), an increase of 209% from RMB527,000 (US$64,000) year-over-year, and an increase of 12% from RMB1.5 million (US$182,000) sequentially. The growth was attributable to both increased vacation package sales and other travel related services. Due to the May 2006 disposal of Ray Time, an operator of hotel loyalty programs, other travel revenue excludes revenue from Ray Time, which commencing in the second quarter of 2006 was accounted for as discontinued operations.

Gross margins in the second quarter of 2006 were 78%, unchanged from the corresponding period a year ago and up from 76% in the first quarter. The sequential increase in gross margins was due to higher volume in the second quarter as compared to the first quarter, which is a seasonally slow quarter due to the Chinese New Year holiday.

Service development, sales and marketing and general and administrative expenses for the second quarter of 2006 totaled RMB51.8 million (US$6.5 million), an increase of 19% from RMB43.4 million (US$5.2 million) year-over-year, and a decrease of 6% from RMB55.3 million (US$6.9 million) sequentially.

Service development expenses were RMB11.0 million (US$1.4 million) in the second quarter of 2006, an increase of 26% from RMB8.7 million (US$1.1 million) year-over-year, and a decrease of 1% from RMB11.1 million (US$1.4 million) sequentially. The year-over-year increase reflects increased investments to support the eLong.com website and the Company's air, hotel and vacation package businesses.

Sales and marketing expenses were RMB27.5 million (US$3.4 million) in the second quarter of 2006, an increase of 22% from RMB22.5 million (US$2.7 million) year-over-year, and an increase of 14% from RMB24.0 million (US$3.0 million) in the first quarter. The year-over-year and sequential increases were due to increases in business volume and customer acquisition. Sales and marketing expenses in the second quarter of 2006 were 38% of revenues as compared to 49% in the corresponding period a year ago and 42% in the first quarter.

General and administrative expenses were RMB13.4 million (US$1.7 million) in the second quarter of 2006, an increase of 10% from RMB12.1 million (US$1.5 million) year-over-year, and a decrease of 34% from RMB20.2 million (US$2.5 million) sequentially. The year-over-year increase was primarily due to additional professional fees, headcount expenses, and other expenditures associated with the expansion of our business. The sequential decrease was due to lower professional fees in the second quarter as compared to the first quarter.

Operating loss in the second quarter of 2006 was RMB509,000 (US$62,000), as compared to an operating loss of RMB10.0 million (US$1.2 million) in the corresponding period of 2005 and RMB15.6 million (US$1.9 million) in the first quarter. The second quarter operating loss included non-cash related stock-based compensation expense and amortization of RMB2.8 million (US$348,000) and the comparable non-cash related stock-based compensation expense and amortization amount for the corresponding period of 2005 was RMB3.7 million (US$445,000) and the first quarter of 2006 was RMB3.3 million (US$414,000).

Other income, which represents interest income, unrealized exchange gains/losses and other non-operating income/expenses, was RMB8.5 million (US$1.1 million) for the second quarter of 2006, compared to other income of RMB7.8 million (US$948,000) in the corresponding period a year ago, and other income of RMB4.3 million (US$532,000) in the first quarter of 2006. The sequential increase in other income was primarily due to a lower unrealized exchange loss on the translation for financial reporting purposes of eLong's US dollar denominated cash deposits into Renminbi. The unrealized exchange loss was RMB2.8 million (US$347,000) in the second quarter as compared to an unrealized exchange loss of RMB6.8 million (US$845,000) in the first quarter.

The Company recorded a net income of RMB10.2 million (US$1.3 million) for the second quarter of 2006, compared to a net loss of RMB3.3 million (US$396,000) in the corresponding period a year ago, and a net loss of RMB12.2 million (US$1.5 million) in the first quarter. The US GAAP diluted income per ADS for the second quarter of 2006 was RMB0.38 (US$0.048), compared to US GAAP diluted loss per ADS of RMB0.14 (US$0.017) in the corresponding period a year ago and US GAAP diluted loss per ADS of RMB0.50 (US$0.062) in the first quarter. Adjusted income for the second quarter of 2006 (a non-GAAP measure) was RMB13.1 million (US$1.6 million), compared to adjusted income of RMB398,000 (US$49,000) in the corresponding period a year ago and adjusted loss of RMB3.1 million (US$388,000) in the first quarter. Diluted adjusted income per ADS for the second quarter (also a non-GAAP measure) was RMB0.48 (US$0.062), compared to diluted adjusted income per ADS of RMB0.02 (US$0.002) in the corresponding period a year ago and diluted adjusted loss per ADS of RMB0.12 (US$0.015) in the first quarter. Please refer to the attached table for a reconciliation of net loss and diluted loss per ADS under US GAAP to adjusted loss and basic and diluted adjusted loss per ADS.

As of June 30, 2006, the Company's cash and cash equivalents balance was US$136.1 million.

"In the second quarter of 2006, eLong achieved very positive business results with strong improvements in both top line and bottom line," said Derek Palaschuk, Chief Financial Officer of eLong. "At this early stage, we believe that our ongoing investment in all of our business lines is the key to building a solid foundation for long-term sustainable profitability."

eLong expects travel revenues for the third quarter of 2006 within the range of RMB69.0 million (US$8.6 million) to RMB71.0 million (US$8.9 million), an increase of 38% to 42% from the third quarter of 2005, and total revenues of RMB72.0 million (US$9.0 million) to RMB74.0 million (US$9.3 million), an increase of 31% to 34% from the third quarter of 2005. We expect the operating loss in the third quarter of 2006 to be similar to the operating loss in the second quarter.

The unaudited financial results for the first quarter of 2006 which were released on May 11, 2006 have been amended as described below.

As a result of the accelerated vesting on January 23, 2006 of 75,000 stock options pursuant to the Company's termination and settlement agreement with Justin Tang, the former Chief Executive Officer, the Company has recorded an additional RMB899,000 (US$112,000) of stock-based compensation expense in the first quarter of 2006 general and administrative expenses. The Company has also recorded an additional RMB884,000 (US$110,000) in the first quarter of 2006 sales and marketing expenses associated with its loyalty point program. After recording the additional stock-based compensation for the accelerated vesting of stock options and the additional sales and marketing expenses in the first quarter of 2006, the net loss for the three months ended March 31, 2006 was RMB12.2 million (US$1.5 million) and the US GAAP diluted loss per ADS was RMB0.50 (US$0.062), as compared to the net loss of RMB10.4 million (US$1.3 million) and the US GAAP diluted loss per ADS of RMB0.42 (US$0.052) previously reported on May 11, 2006.

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, and 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," "should" and "will" and similar expressions as they related to the Company are intended to identify such forward-looking statements. 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. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Factors that could affect the Company's actual results and cause actual results to differ materially from those included in any forward-looking statement include, but are not limited to, eLong's historical operating losses, its limited operating history, declines or disruptions in the travel industry, the recurrence of SARS, an outbreak of bird flu, eLong's reliance on having good relationships with hotel suppliers and airline ticket suppliers, our reliance on the Travelsky GDS system for our air business, the possibility that eLong will be unable to timely comply with Section 404 of the Sarbanes-Oxley Act of 2002, the risk that eLong will not be successful in competing against new and existing competitors, risks associated with Expedia, Inc.'s (Nasdaq: EXPE) majority ownership interest in eLong and the integration of eLong's business with that of Expedia's, subsequent revaluations of the Chinese currency, changes in eLong's management team and other key personnel and other risks outlined in eLong's filings with the U.S. Securities and Exchange Commission (or SEC), including eLong's Form 20-F filed with the SEC in connection with the Company's fiscal year 2005 results. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of their dates.

eLong will host a conference call to discuss the second quarter 2006 earnings at 7:00 pm Eastern Time, July 27, 2006 (Beijing/Hong Kong time: July 28, 2006 at 7:00 am). The management team will be on the call to discuss quarterly results and highlights and to answer questions. The toll-free number for U.S. participants is +1 800 365 8460. The dial-in number for Hong Kong participants is +852 2258 4000. The toll number for international participants is +1 210 795 0492. The pass code for all participants is eLong.

A replay of the call will be available for 1 day between 8:15 pm Eastern Time on July 27, 2006 and 8:15 pm Eastern Time on July 28, 2006. The toll-free number for U.S. callers is +1 888 485 2364. The dial-in number for international callers is +1 203 369 4585. The pass code for the replay is 786240.

Additionally, a live and archived web cast of this call will be available on the Investor Relations section of the eLong web site at http://ir.elong.net for three months.

eLong, Inc. (NASDAQ: LONG) is a leading online travel company in China. Headquartered in Beijing, eLong has a national presence across China. eLong uses web-based distribution technologies and a 24-hour call center to provide consumers with access to travel reservation services. Aiming to enrich people's lives through the freedom of independent travel, eLong empowers consumers to make informed choices by providing a one-stop travel solution and consolidated travel tools and information such as maps, virtual tours and user ratings. eLong has the capacity to fulfill air ticket reservations in over 58 major cities across China. In addition to choice of a wide hotel selection in the Greater China region, eLong offers Chinese consumers the ability to make bookings at international hotels in over 140 destinations worldwide. eLong operates the websites http://www.elong.com and http://www.elong.net

Note 1: The conversions of Renminbi (RMB) into United States dollars (USD) as at the reporting dates are based on the noon buying rate of USD1.00 = RMB7.9943 on June 30,2006£¬USD1.00 = RMB8.0167 on March 31, 2006 and USD1.00 = RMB8.2765 on June 30, 2005 in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into U.S.dollars at that rate on the reporting dates.

Use of Non-GAAP Financial Information

To supplement our consolidated financial statements presented herein in accordance with accounting principles generally accepted in the United States ("US GAAP"), the Company also uses non-GAAP measures of adjusted net loss and adjusted diluted loss per ADS, which are adjusted from results based on US GAAP to exclude the impact of (1) amortization of non-cash stock-based compensation expense, (2) amortization of intangible assets, (3) other non-cash compensation, (4) unrealised foreign exchange losses on the conversion of eLong's US$ denominated net monetary assets/liabilities into Renminbi and (5) gain on disposal of discontinued operations. Management believes these non-GAAP financial measures enhance the user's overall understanding of our current financial performance and our prospects for the future and, additionally, uses these non-GAAP financial measures for the general purpose of analyzing and managing the Company's business. Specifically, we believe the non-GAAP financial measures provide useful information to both management and investors by excluding certain charges that we believe are not indicative of our core operating results. The presentation of this additional information is not meant to be considered superior to, in isolation from or as a substitute for results prepared in accordance with US GAAP.