Qihoo 360 Announces Exercise of Put Option with Respect to JV with Coolpad

Qihoo 360 Technology Co. Ltd. 

today announced that it has issued a notice to Coolpad Group Limited ("Coolpad") (HKSE: 2369) to exercise its put option to require Coolpad to purchase the Company's entire 49.5% stake in Coolpad E-Commerce Inc., a joint venture between the Company and Coolpad set up in December 2014 to focus on mobile terminal products that are distributed through Internet as the primary channel, in accordance with the shareholders agreement relating to the joint venture. Under the shareholders agreement, the Company has a put option to sell its entire stake in the joint venture to Coolpad at a total price equal to twice its fair market value, exercisable if Coolpad breaches its non-compete obligations under the shareholders agreement.  The Company issued the notice to Coolpad to exercise this put option based on a series of breaches by Coolpad of its relevant non-compete obligations.   In the notice, the Company has proposed a fair market value of US$742.5 million for the 49.5% stake, based on a US$1.5 billion valuation of the entire share capital of the joint venture.  Accordingly, the purchase price payable by