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Focus Media Announces Delay in Filing 2006 Annual Report

Focus Media Holding Limited
2007-07-02 19:41 1563


SHANGHAI, China, July 2 /Xinhua-PRNewswire/ -- Focus Media Holding Limited (Nasdaq: FMCN), China's largest out-of-home multi-platform life-style media company, today announced that it is postponing the filing with the U.S Securities and Exchange Commission (“SEC”) of its annual report on Form 20-F for the fiscal year ended December 31, 2006, which is due not later than July 2, 2007.

Our Audit Committee received a letter dated June 1, 2007 from U.S. counsel to an unidentified investor holding a short position in our shares, without indicating the source of the evidence, raising questions primarily on certain related party transactions we reported in 2005. On June 18, 2007, our counsel sent a reply letter to request additional information. On June 22, 2007, we received a second letter from the U.S. counsel to the investor, which reiterated the assertions made in the letter of June 1, 2007, without providing any source of evidence or the identify of the short seller.

To comply with its fiduciary duty to our shareholders, our Audit Committee has initiated an internal inquiry into the matters raised in these letters. As the letters were received not long before the deadline of filing our annual report Form 20-F for the year ended December 31, 2006, and our Audit Committee needs more time to complete its inquiry, we are unable to file our annual report on Form 20-F prior to the required filing deadline.

We expect to file our annual report on Form 20-F as soon as practicable after the inquiry of our Audit Committee is completed and, as and if necessary, to incorporate the results of such inquiry in our annual report. In connection with this announcement, we are filing a notification of late filing on form NT 20-F with the SEC.

About Focus Media Holding Limited

Focus Media Holding Limited (Nasdaq: FMCN) is China's leading out-of-home multi-platform life-style media company, which operates the largest out-of-home advertising network in China using audiovisual flat-panel displays. Based on an audience-centric approach, Focus Media provides targeted advertising channels which cover specific demographics groups and their daily activities, from office buildings to retail chain stores, residential building, shopping malls, golf country clubs, airports, and airport transit buses. As of March 31, 2007, Focus Media had approximately 90,000 display units in our commercial location network, 40,700 display units in our in-store network, 124,500 advertising poster frames installed throughout China and 200 outdoor LED displays in Shanghai. Over 4,000 international and domestic advertisers had placed advertisements through our multi-platform networks as of March 31, 2007. For more information about Focus Media, please visit our website http://ir.focusmedia.cn .

SAFE HARBOR: FORWARD-LOOKING STATEMENTS

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Focus Media may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Focus Media's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in Focus Media's filings with the U.S. Securities and Exchange Commission, including its registration statements on Forms F-1, F-3, F-6 and 20-F, in each case as amended. Focus Media does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Jie Chen

Tel: +86-21-3212-4661 x6607

Email: ir@focusmedia.cn

Source: Focus Media Holding Limited
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