Pheonix New Media Announces Increasement in Advertising Caps for Lilita Contract

Phoenix New Media Limited ("Phoenix New Media", "ifeng" or the "Company")

, a leading new media company in China, today announced that its affiliated consolidated entity Beijing Tianying Jiuzhou Network Technology Co., Ltd. ("Tianying Jiuzhou") has entered into a Supplemental Agreement ("Supplemental Agreement") to revise the annual revenue caps (as described below) set forth in the Advertisement Cooperation Framework Agreement ("Framework Agreement") with Beijing Phoenix Lilita Information Technology Co., Ltd. ("Lilita"). As announced by the Company on December 4, 2015, Tianying Jiuzhou entered into the Framework Agreement with Lilita, pursuant to which, among other things, Tianying Jiuzhou agreed to provide advertising services to Lilita for an aggregate transaction amount of not exceeding HK$38 million and HK$57 million for the calendar years ending December 31, 2016 and 2017, respectively, which are referred to as the annual revenue caps. Lilita recently advised Tianying Jiuzhou that its business growth exceeded its expectations in 2016 and the existing annual revenue caps will no longer meet its business needs. The Supplemental Agreement was entered into for the sole purpose of increasing the annual revenue caps for the calendar years ending December 31, 2016 and 2017 to RMB49 million and RMB80 million, respectively. As previously disclosed by the Company, Lilita may be deemed as a related party of the Company because a major shareholder of Lilita is the son-in-law of Mr. Changle Liu, the chairman of Phoenix Satellite Television Holdings Limited ("Phoenix TV"), which is the parent company of the Company. Phoenix TV has issued an announcement regarding the Supplemental Agreement as it may constitute continuing connected transactions under the listing rules of the Stock Exchange of Hong Kong Limited where Phoenix TV is listed.