Company Increases Online Video Advertising Customer Base by 30%, Adding Over 5,100 Paying Members in Hunan Province, Hong Kong, and Taiwan
GUANGZHOU CITY, China, April 6 /PRNewswire-Asia/ -- Subaye, Inc. (Nasdaq: SBAY) ("Subaye" or the "Company"), a leading video advertising and entertainment media provider in China, announced that it has expanded its customer base into Henan Province, Hong Kong and Taiwan. The new initiative increases its paying membership base by 30%, bringing total paying members to over 22,000 for its online video advertising business.
The Company's video advertising platform provides members with production, upload, storage, and publishing onto video-sharing websites. Visitors of Subaye's websites, namely www.subaye.com, view video showcases of Subaye members, primarily small to mid-size enterprises ("SMEs"), and select products or services they wish to purchase. As of February 28, 2010, Subaye had approximately 73,000 total registered members utilizing the video advertising platform in the Guangdong province. Among them, 16,898 are paying members who pay $117 per month.
Subaye recently added 5,121 paying members in Hunan Province (3,021), Hong Kong (1,361) and Taiwan (739), an increase of 30% from its existing paying membership base. Management expects these new members to contribute approximately $1.9 million in revenues for fiscal year 2010 ending September 30, 2010, and approximately $4.7 million for the next 12 months starting May 1, 2010. The Company also expects to add new members from Hubei Province within the next two months, and will begin business development in five additional provinces and regions in May 2010, which include Hainan, Fujian, Shanxi and Shaanxi.
"We are very pleased to expand our video advertising platform into new regions of Greater China," said Mr. Zhiguang Cai, Chief Executive Officer of Subaye, Inc. "We continue to experience robust growth driven by both existing and new customers. With over 20% annual growth projected for the Chinese Internet advertising market through 2010 fueled by a sharp trajectory in franchise and chain store enterprises, we believe Subaye's online video advertising platform is well positioned to capitalize on this large secular growth opportunity and further increase market share in China's rich media advertising business."
About Subaye, Inc.
Subaye, Inc. ("Subaye" or the "Company"), is a leading video advertising and entertainment media provider in China engaged in three business segments: 1) Online Video Advertising and SaaS Business Solutions, 2) Entertainment Media, and 3) Trade Services. Subaye's online video advertising platform provides production, upload, storage, and publishing onto video sharing websites. Subaye also offers SaaS business solutions and is in the process of developing what the Company believes to be the first online shopping mall in the world to utilize 3D imaging throughout the online customer interface. Visitors of Subaye's websites, namely www.subaye.com, view video showcases of Subaye members, primarily small to mid-size enterprises ("SMEs"), and select products or services they wish to purchase. Subaye also utilizes its experience and contacts within the entertainment media industry in Asia to produce and place advertisements on behalf of its customers. Subaye's trade services are offered to customers based in Asia, North America and Europe. These customers order products through Subaye and ship products both domestically within China and internationally. Subaye's trade services provide solutions for both importing and exporting transactions. For further information on Subaye, Inc., please visit http://www.subaye.net .
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about Subaye, Inc.'s industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Subaye, Inc.'s operations are conducted in the People's Republic of China ("PRC") and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Other potential risks and uncertainties include but are not limited to the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.
