Creates China's largest and most comprehensive mobile television advertising network
BEIJING, Jan. 6 /PRNewswire-Asia/ -- VisionChina Media Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN), one of China's largest out-of-home digital television advertising networks on mass transportation systems, today announced the completion of the Company's previously announced acquisition of Digital Media Group, a leader in China's subway mobile television advertising market. The transaction creates China's largest and most comprehensive mobile television advertising network, furthering VisionChina Media's goal to become the foremost digital television platform reaching daytime audiences in China. The total consideration for the transaction, consisting of US$160 million in cash and shares, is payable by the Company to eligible shareholders of Digital Media Group in three installments over the next two years.
"The acquisition of Digital Media Group is an important step in VisionChina Media's strategic development," said Mr. Limin Li, VisionChina Media's chairman and chief executive officer. "The combination of our two media platforms allows us to broaden VisionChina Media's subway network to match our extensive bus network. This combination of above and below ground media networks provides advertisers with an entirely new offering and has been well received thus far. We now have a greatly enhanced advertising platform that includes 22 of China's most affluent cities, including all four of China's Tier I cities, Beijing, Guangzhou, Shenzhen and Shanghai, as well as Hong Kong's Airport Express line."
"With Digital Media Group and VisionChina Media's complementary business models and common culture of professionalism and operational excellence, we are confident in a smooth integration process," said Mr. Scott Chen, VisionChina Media's chief financial officer. "Looking forward, we expect to realize significant synergies in several areas including enhanced advertising pricing and greater consolidation of media assets. As we continue to integrate our two companies, we anticipate that gross margins will be impacted in the short term, but we are optimistic about the second half of 2010, as synergies are more fully realized."
About VisionChina Media Inc
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising network on mass transportation systems, including buses and subways that reaches over 40 million viewers each day in China, according to CTR Market Research. As of January 6, 2010, VisionChina Media's advertising network included over 110,000 digital television displays on mass transportation systems in 22 of China's economically prosperous cities, including Beijing, Shanghai, Guangzhou and Shenzhen. VisionChina Media has the ability to deliver real-time, location-specific broadcasting, including news, stock quotes, weather and traffic reports and other entertainment programming. For more information, please visit http://www.visionchina.cn .
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in 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. Among other things, the quotations from management in this press release contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Mrs. Helen Plummer
Investor Relations Officer
VisionChina Media Inc.
Tel: +86-139-1167-2124
Tel: +1-347-610-3938
Email: helen.plummer@visionchina.cn
Mr. Derek Mitchell
Ogilvy Financial, Beijing
Tel: +86-10-8520-6284
Email: derek.mitchell@ogilvy.com
In the United States:
Ms. Jessica Barist Cohen
Ogilvy Financial, New York
Tel: +1-646-460-9989
Email: jessica.cohen@ogilvypr.com
