omniture

Xinhua Finance Media Expands Outdoor Advertising Capabilities With New Acquisition

Xinhua Finance Media Limited
2007-07-02 20:59 1074

SHANGHAI, July 2 /Xinhua-PRNewswire-FirstCall/ -- Xinhua Finance Media ("XFMedia"; Nasdaq: XFML) today announced it has acquired a 100% interest in Convey Advertising Company ("Convey"), a major outdoor advertising operator in Hong Kong and across southern China. The acquisition expands XFMedia's outdoor advertising network to seven additional cities and includes significant high traffic and key transit routes linking mainland China with Hong Kong and Macau.

(Logo: http://www.prnasia.com/sa/200704262018.JPG )

Founded in 1986 in Hong Kong, Convey has advertising rights to over 3,000 outdoor media assets, 2,000 of which are exclusive. These outdoor media assets include traditional outdoor billboards, LED and LCD boards and others in Dongguan, Shenzhen, Guangzhou and Foshan in Guangdong province, Hong Kong and Macau in the south and Tianjin in the north. The company's main strengths are in the wealthy southern China cities, particularly along the border-port gateways through which millions of mainland Chinese pass each year on their way to the prime shopping and gambling destinations of Hong Kong and Macau.

In 2006, Guangdong province ranked number one in China in terms of GDP, which amounted to one-eighth of the entire country. Its USD 336 billion of GDP was higher than the combined GDP of Hong Kong (USD 187.1 billion) and Singapore (USD 138.6 billion). According to The Tourism Boards of Hong Kong and Macau, there are 12.5 million and 10 million travelers from Mainland China to Hong Kong and Macau respectively every year, and 83% of them go through gateways at border ports of Guangdong province.

Convey has a 20-year history and has secured the most strategic billboard space in Hong Kong and along the gateways through to mainland China," said XFMedia's CEO, Ms Fredy Bush. "I am delighted we have the opportunity to work with Convey Chairman Mr Mak as he is one of the most experienced professionals in the outdoor industry in Asia."

"The acquisition of Convey will significantly strengthen XFMedia's advertising platform and enhances our ability to reach China's key high net-worth demographic. The Hong Kong and southern China markets are very important, and this acquisition provides us with very high profile access to these areas. We believe the outdoor advertising market has strong potential and good synergies with other elements of the XFMedia platform," Ms Bush added.

Convey is a pioneer in developing innovative and high-technology outdoor advertising solutions, offering the High Power Visual Projection System, which allows large scale visual displays on architectural surfaces, and the Patented Mobile Inflatable Billboard, which creates impressive product and branding effects. To see or download some billboard samples, please visit http://www.xinhuafinancemedia.com/uploadedfiles/advertising/billboards/070202 .

Convey's Chairman Mr S.T. Mak said he was confident that Convey would be able to expand its advertising asset portfolio in key mainland China markets as a result of the new arrangement with XFMedia. "The supply of outdoor advertising space in China is limited, and I believe the price per billboard in China will continue to go up. We expect that the growth potential is even higher with the technological support we can provide to better utilize the advertising space," Mr Mak said.

Mr Mak and other key Convey management executives have signed five-year employment contracts with the company. Convey has a total of 65 employees.

The transaction was closed on July 2nd, 2007. Under the agreement, XFMedia has acquired control of Convey through the purchase of 100% of the shares of its holding company Good Speed Holdings Limited. XFMedia has made an initial cash payment of USD 33 million, and may make further payments in cash and Class A common shares of XFMedia depending on Convey's financial performance in 2007 and 2008. The transaction is expected to be accretive to XFMedia's earnings per share in 2007.

XFMedia's Advertising Group creates and places advertising with integrated campaigns that reach television, radio, newspapers, magazines, and outdoor media in China. In April, the Advertising Group expanded its outdoor media assets in the Beijing area, with an exclusive agreement to sell advertising onto 2,000 new public service billboards in strategic locations throughout the city.

About Xinhua Finance Media Limited

Xinhua Finance Media ("XFMedia"; Nasdaq: XFML) is China's leading diversified financial and entertainment media company targeting high net worth individuals nationwide. The company reaches its target audience via TV, radio, newspapers, magazines and other distribution channels. Through its five synergistic business groups, Advertising, Broadcast, Print, Production and Research, XFMedia offers a total solution empowering clients at every stage of the media process and keeping people connected and entertained.

Headquartered in Beijing, the company has offices and affiliates in major cities of China including Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. For more information, please visit http://www.xinhuafinancemedia.com .

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of 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," ‘‘confident'' and similar statements. Among other things, quotations from management in this announcement contain forward-looking statements. XFMedia may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about XFMedia's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statements. Potential risks and uncertainties are risks include but are not limited to, the risk that the China advertising market including for outdoor display may not grow as expected and other risks, outlined in XFMedia's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. All information provided in this press release is as of the date of this release, and XFMedia undertakes no duty to update such information, except as required under applicable law.

For more information:

Ms. Joy Tsang

Tel: +86-21-6113-5999

Email: joy.tsang@xinhuafinancemedia.com

Source: Xinhua Finance Media Limited
collection