China MediaExpress Enters a New Province and Adds 986Inter-City Buses to Its Network
09:25 EDT Wednesday, September 29, 2010
FUJIAN, China (Business Wire) -- China MediaExpress Holdings, Inc. (NASDAQGS: CCME) (“CME” or “Company”), China's largest television advertising operatoron inter-city and airport express buses, today announced that it has enteredinto an agreement with a media company to purchase the exclusive right tooperate television screens and to supply entertainment programming along withpaid advertising on 986 inter-city buses originating from the city of Luoyang inthe Henan province. Under the terms of the contract, which goes into effect onOctober 1, 2010, CME will pay the media company a one-time fee for theacquisition of the operating rights, in addition to a fixed monthly concessionfee over the five-year term of the contract, with an annual increment of 15%.
Mr. Zheng Cheng, CME's Chairman and Chief Executive Officer, noted, “Withthis new contract we have expanded our network into a new province. With over100 million residents, Henan is the largest province in terms of population inChina. Since the early 1990s, Henan's economy has rapidly grown to become one ofthe top five major economic regions in China, ranked by GDP. In addition to itsindustrial development in the sectors of light textiles, food, metallurgy,petroleum, building materials, chemicals, machinery and electronics, Henan is amajor agricultural center and is the third largest grain producing province inthe country. Henan also attracts a large number of visitors each year as thehome to well-respected historical relics while the city of Luoyang is one of thefour great ancient capitals of China and is known as one of the cradles of theChinese civilization.”
CME, through contractual arrangements with Fujian Fenzhong, an entitymajority owned by CME's former majority shareholder, operates the largesttelevision advertising network on inter-city and airport express buses in China.While CME has no direct equity ownership in Fujian Fenzhong, through thecontractual agreements CME receives the economic benefits of Fujian Fenzhong'soperations. Fujian Fenzhong generates revenue by selling advertisements on itsnetwork of television displays installed on over 24,400 express busesoriginating in eighteen of China's most prosperous regions, including the fourmunicipalities of Beijing, Shanghai, Tianjin and Chongqing and fourteeneconomically prosperous regions, namely Guangdong, Jiangsu, Jiangxi, Fujian,Sichuan, Hebei, Anhui, Hubei, Shandong, Shanxi, Inner Mongolia, Zhejiang, Hunanand Henan.
CME is included in the Russell Global Index. For more information visit:www.ccme.tv.