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VisionChina Media Announces Contract Renewal with Beijing Subway for Line 13 and Batong Line

2009-01-05 16:50 1419

BEIJING, Jan. 5 /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 renewal of an exclusive contract with Beijing Subway to continue operation of the Company's mobile digital television advertising network on Line 13 and the Batong Line in the city of Beijing. In conjunction with the contract renewal, VisionChina Media also announced that it has finalized a definitive agreement with Beijing Subway to commence operations on Line 5, the Olympic Line (part of Line 8) and Line 10, effective January 1, 2009.

Beginning January 1, 2009, the one-year contract renews VisionChina Media's exclusive right to operate on Line 13 and the Batong Line. The two lines together feature 1,920 screens inside train cars. VisionChina Media has been operating on Line 13 and the Batong line since 2007.

With the contract renewal and newly established agreements, VisionChina Media now operates a subway network encompassing five out of Beijing's eight operational subway lines. The Company's Beijing subway network now features 6,505 screens, which reach an average daily audience of 1.78 million commuters.

"We are thrilled to continue our valuable working relationship with Beijing Subway," said Mr. Limin Li, VisionChina Media's chairman and chief executive officer. "Our ability to deliver reliable service and appealing content has given us the opportunity to both expand and extend our operations in the capital city as we continue to solidify our position as the leader in Beijing's mobile TV market."

Mr. Li continued, "Beijing is in the process of an ambitious subway expansion and much of China's recently announced economic stimulus package is earmarked for developing transportation infrastructure and mass transportation networks in urban centers nationwide. We are aggressively pursing expansion in all of our most lucrative markets and looking toward these future opportunities for growth. I am confident that our current market leadership will ensure that we are well positioned to benefit as cities across the country build out their own mass transportation networks. Furthermore, our unique access to mass transit passengers gives our network the viewership of China's rising middle class, the target audience of fast-moving consumer goods advertisers. These are the companies that commit advertising dollars even during economic downturn."

In addition to the eight lines in operation, Beijing authorities are at work on seven lines currently under construction and ground breaking on another three lines is scheduled to begin in 2009. By 2015, Beijing is expected to boast one of the world's largest subway systems with approximately 349 miles of rail lines and a capacity of over 9 million passengers daily.

In 2007, Beijing's population exceeded 16 million people. The city's nominal GDP was approximately RMB900 billion with an urban disposable income per capita of approximately RMB22,000, a real increase of 11.2% from the previous year. According to CTR Market Research, approximately 84% of the population in Beijing uses mass transportation on a daily basis.

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 reach over 26 million viewers each day in China, according to CTR Market Research. As of September 30, 2008, VisionChina's advertising network included over 62,250 digital television displays on mass transportation systems in 17 of China's economically prosperous cities, including Beijing, Guangzhou, Shanghai 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 .

For investor inquiries, please contact:

In China:

Investor Relations Department, VisionChina Media, Inc.

Tel: +86-10-8418-6339

Email: ir@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

For media inquiries, please contact:

Ms. Ceren Wende

Ogilvy Financial, Beijing

Tel: +86-10-8520-6514

Email: ceren.wende@ogilvy.com

Source: VisionChina Media, Inc.
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