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VisionChina Media's Mobile Internet Affiliate Announces Financing Transaction Led by Baidu

VisionChina Media and Baidu to Collaborate on Urban Public Transit Wi-Fi Network Development
2015-06-04 20:00 1754

BEIJING, June 4, 2015 /PRNewswire/ -- VisionChina Media Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN), China's largest out-of-home digital television advertising network on mass transportation systems and the leading provider of urban mass transit Wi-Fi, today announced the signing of a definitive Equity Subscription Agreement (the "Agreement") for approximately US$11.5 million of Series A equity for Shenzhen Qianhai VisionChina Mobile Interactive Co., Ltd. ("Qianhai Mobile"). Qianhai Mobile is a consolidated affiliate[1] of the Company engaged in the research, development and operation of mass transit Wi-Fi networks and the provision of mobile Internet value-added services in the PRC. The transaction was led by Beijing Baidu Netcom Science Technology Co., Ltd., a consolidated affiliate of Baidu Inc. (Nasdaq: BIDU) and also included Guangdong Zhongke Baiyun New Industry Venture Investment Co., Ltd. and Dongguan Zhongke Zhongguang Venture Investment Co., Ltd., both of which are reputable national private equity investors in the PRC. The transaction is subject to customary closing conditions.

[1] Qianhai Mobile is a subsidiary of VisionChina Media Group Co., Ltd, the Company's consolidated variable interest entity.

As part of the transaction, Qianhai Mobile and Baidu have entered into a Business Cooperation Agreement to jointly develop and monetize mobile app distribution and other mobile passenger services powered by Baidu Map.

Mr. Limin Li, VisionChina Media's Chairman and Chief Executive Officer commented, "This transaction represents another important milestone for our Company, and a significant step in our strategy to develop the largest transit-based Wi-Fi network in China. We are proud to have Baidu and other investors demonstrating confidence in our vision, business model and execution capabilities. We believe that our collaboration with Baidu will yield meaningful technology synergies and future monetization opportunities."

Mr. Peter Fang, Senior Director of Baidu Corporate Development commented, "We are very impressed with VisionChina Media's many years of experience operating the leading public transit-based media platform in China, and the Company's ongoing transition to an Internet-focused business. We are excited about the opportunity to work with VisionChina Media to truly address the needs of urban commuters and realize the significant long-term value of the Company's public transit Wi-Fi network."

As of date of this press release, VisionChina Media, through its Qianhai Mobile affiliate, has secured exclusive concession rights for bus Wi-Fi services in 18 cities across China, including Shanghai, Shenzhen, Guangzhou and Tianjin, covering approximately 35,000 buses. Currently, Qianhai Mobile provides free Wi-Fi Internet services on approximately 15,000 buses under the brand name "VIFI," spanning over 7.5 million commuters and providing over 3 million Wi-Fi service sessions per day. The Company will use the proceeds from this transaction to pursue additional concession rights and further expand its Wi-Fi network infrastructure to solidify its leading position in this market.

About Baidu

Baidu, Inc. is the leading Chinese language Internet search provider. As a technology-based media company, Baidu aims to provide the best and most equitable way for people to find what they're looking for. In addition to serving individual Internet search users, Baidu provides an effective platform for businesses to reach potential customers. Baidu's ADSs trade on the NASDAQ Global Select Market under the symbol "BIDU". Currently, ten ADSs represent one Class A ordinary share.

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 December 31, 2014, VisionChina Media's advertising network included 92,469 digital television displays on mass transportation systems in 19 of China's economically prosperous cities, including Beijing, Guangzhou and Shenzhen, as secured by exclusive agency agreements or joint venture contract. 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:
Ms. Shuning Yi
Investor Relations Department
VisionChina Media Inc.
Tel: +86-134-2090-9426
E-mail: shuning.yi@visionchina.cn

In the United States:
The Piacente Group, Inc.
Mr. Glenn Garmont
Tel: +1-212-481-2050
E-mail: visionchina@tpg-ir.com


To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/visionchina-medias-mobile-internet-affiliate-announces-financing-transaction-led-by-baidu-300094069.html

Source: VisionChina Media Inc.
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