Aristeia Comments on Sina’s Disenfranchisement of Shareholders

-Sees Sina’s Decision to Grant Effective Voting Control to Chairman and CEO Charles Chao as Blatant Corporate Governance Failure Designed to Entrench its Board and Management-

-Aristeia is Actively Reviewing Options to Protect Its Investment-

GREENWICH, Conn.--()--Aristeia Capital, L.L.C. (collectively with Aristeia Master, L.P. and certain other affiliates, “Aristeia” or “we” or “us”), a long-term investor in Sina Corporation (NASDAQ:SINA) (“Sina” or the “Company”), today commented on Sina’s announcement of changes to the Company’s shareholding structure.

Robert H. Lynch, Jr., Partner, Aristeia Capital, L.L.C., said, “We are extremely disappointed by the shocking action of Sina’s Board of Directors (the “Board”) to issue 7,150 newly created Class A Preference Shares with 10,000 votes per share in a related-party transaction to a holding company controlled by Sina’s Chairman and CEO, Charles Chao. The transfer of effective voting control of a company with a market capitalization greater than $7 billion to a 12 percent shareholder and corporate insider for a mere $7,150 is a blatant corporate governance failure designed to further entrench Sina’s Board and management at the expense of all non-insider shareholders of the Company. By disenfranchising all independent Sina shareholders, this Board has again demonstrated exactly the type of decision-making that initially concerned us and led to our recent proxy campaign. We are actively and thoroughly reviewing all options available to address this injustice and to protect our substantial investment in Sina.”

About Aristeia

Aristeia Capital, L.L.C. (“Aristeia”) is a global investment manager with a twenty-year track record of executing fundamentally based strategies across the capital structure. Founded in 1997, Aristeia aims to achieve superior, risk-adjusted returns for an investor base that includes pension plans, endowments, foundations, other institutions and private clients. The firm’s approximately 50 employees are split between its Greenwich, Connecticut headquarters and a New York City office.

Disclaimer

Any views expressed herein represent the opinion of Aristeia, whose analysis is based solely on publicly available information. No representation or warranty is made as to the accuracy or completeness of any information contained therein and Aristeia disclaims all liability based on such information. The information contained herein does not recommend the purchase or sale of any security nor is it an offer to sell or a solicitation of an offer to buy any security. Furthermore, the information contained herein is not intended to be, nor should it be construed or used as, investment, tax or legal advice. Past performance is not indicative of future results. Aristeia has neither sought nor obtained the consent from any third party to use any statements or information contained herein that have been obtained or derived from statements made or published by such third parties. Any such statements or information should not be viewed as indicating the support of such third parties for the views expressed herein.

Contacts

Investor
Okapi Partners LLC
Bruce H. Goldfarb / Pat McHugh
212-297-0720
info@okapipartners.com
or
Media
Sloane & Company
Dan Zacchei / Greg Marose
212-486-9500
Dzacchei@sloanepr.com
GMarose@sloanepr.com

Contacts

Investor
Okapi Partners LLC
Bruce H. Goldfarb / Pat McHugh
212-297-0720
info@okapipartners.com
or
Media
Sloane & Company
Dan Zacchei / Greg Marose
212-486-9500
Dzacchei@sloanepr.com
GMarose@sloanepr.com