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VisionChina Media Inc.'s Board of Directors Issues Formal Vote of Confidence in Support of Company Chairman and Chief Executive Officer Limin Li

2011-11-16 22:03 906

BEIJING, November 16, 2011 /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 its Board of Directors (the "Board") has, by way of formal resolution, given a vote of confidence in support of the Company's co-founder, chairman and chief executive officer, Mr. Limin Li.

The Board's resolutions come in response to a letter contained in a press release dated November 15, 2011 issued by two of the Company's shareholders, Oak Investment Partners XII, L.P. ("Oak") and Gobi Partners, Inc. ("Gobi"), both of which received common shares of the Company as part of the Company's acquisition of Digital Media Group Company Limited ("DMG") completed in January 2010, and, both of which are currently engaged in litigation with the Company in the Supreme Court of the State of New York related to that acquisition.

The letter from Oak and Gobi was addressed to the Board of VisionChina Media and alleged that the chairman and chief executive officer of the Company, Mr. Limin Li, has mismanaged the Company and requested that the Board make major changes in the Company's management, including the replacement of Mr. Limin Li.

It was also noted that Oak and Gobi disseminated their letter to the Company's Board through a public press release even before such letter was received by certain directors. The Board believes the contents of the letter and the public nature of its release have negatively affected the reputation of the Company and its management team as well as the Company's daily operations, which could cause irreparable damages to the Company and its shareholders.

The vote of confidence comes after VisionChina Media's third quarter 2011 earnings announcement on November 14, 2011, in which the Company reported record high quarterly total revenues of $50.2 million and sales of a record high average of 10.64 advertising minutes per broadcasting hour in its network. The Company also generated $3.7 million in non-GAAP net income in the third quarter of 2011.

In a special meeting of the Board that convened on November 16, 2011, the following resolutions were passed:

  • It was resolved that the Board firmly believes that the claims alleged by Oak and Gobi in their letter are without merit. The Board reaffirms its confidence in Mr. Limin Li as the chairman and chief executive officer of the Company. Mr. Limin Li shall continue to serve as the chairman and chief executive officer of the Company.
  • It was resolved that the Company shall continue to use all means necessary to defend against the claims raised by the former shareholders of DMG. In addition, the Company shall use all means necessary to pursue its claims against the former shareholders of DMG, including, but not limited to, appealing the November 3, 2011 orders by the Supreme Court of the State of New York, as described in the Company's press release dated November 7, 2011.
  • It was resolved that the Company shall further evaluate the letter sent by Oak and Gobi and pursue any legal action deemed necessary to correct the factual record and vindicate the interests of the Company and its chairman and chief executive officer, Mr. Limin Li.

About VisionChina Media Inc.

VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising network on mass transportation systems, including buses and subways. As of September 30, 2011, VisionChina Media's advertising network included 136,777 digital television displays on mass transportation systems in 20 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 registration statement on Form F-1 and 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:

Mr. Colin Wang
Investor Relations Director
VisionChina Media Inc.
Tel: +86-135-1001-0107
Email: colin.wang@visionchina.cn

Mrs. Helen Plummer
Investor Relations Adviser
VisionChina Media Inc.
Tel: +86-139-1167-2124
Email: helen.plummer@visionchina.cn

In the United States:

Ms. Jessica Barist Cohen
Ogilvy Financial, New York
Tel: +1-646-460-9989
E-mail: jessica.cohen@ogilvy.com

Source: VisionChina Media Inc.
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