The Company recorded a net loss of RMB 1.8 million for the second quarter, compared with a net income of RMB10.2 million for the second quarter of 2006. Net income decreased RMB 12.0 million primarily due to prior year other income of RMB 8.5 million related to interest income and unrealized exchange loss and a gain on the sale of discontinued operations of RMB 2.6 million. Excluding these items, net loss for the second quarter 2006 would have been RMB 0.9 million.

Hotel commission revenue increased 12% year-over-year primarily due to higher room volume. Room nights booked through eLong increased 11% to 922,000, while commission per room night remained largely unchanged at RMB65.

eLong has grown its hotel offering over 28% since second quarter 2006, and now features discounted rates at nearly 4,500 hotels in over 300 cities across China.

'While eLong's top-line results were in line with our expectations, we are not nearly satisfied with our performance. We have begun a comprehensive turnaround program to improve the Company's execution,'' said Henrik Kjellberg, Chairman and interim Chief Executive Officer of eLong, Inc. ''Management is committed to making structural improvements in our hotel and air products, our customer service and our overall management talent. It will take time to regain momentum, but we are confident that eLong can successfully improve its performance and better leverage the growing Chinese travel market.''

''We are focused on striking an optimum balance between the need for fiscal discipline and reigniting our growth momentum,'' said Chris Chan, eLong's Chief Financial Officer. ''We remain confident in the long-term opportunity of China's online travel market, and over time we seek to drive financial gains from our structural improvements to the Company's bottom-line.''

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