| [February 08, 2010] |
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China MediaExpress Holdings, Inc. Announces an Extension of Its Existing Network to the Beijing Capital International Airport
FUJIAN, China --(Business Wire)--
China MediaExpress Holdings, Inc. (NYSE Amex: CCME) ("CME" or "Company") today announced that it has signed a new framework agreement to purchase exclusive rights to operate television screens on all the express buses originating from the Beijing Capital International Airport. CME's contract is for a period of five years commencing February 1, 2010 and grants the Company the right to provide television programming and advertisements on all Beijing Capital International Airport express buses, representing 229 buses managed by two bus operators. According to the framework agreement, CME will pay a monthly concession fee over the term of the contract in addition to a one-time fee of RMB 100,000 (approximately $15,000) per bus for the acquisition of the operating rights.
The Beijing Capital International Airport is the largest and busiest airport in China and has rapidly ascended in rankings to one of the world's busiest airports in the past decade. In 2001, the airport served 24 million passengers. By 2008, passenger volume had more than doubled to 56 million, reaching 60 million in 2009, making Beijing Capital International Airport the eighth busiest airport in the world. To accommodate the growing traffic volume, Beijing Capital International Airport added Terminal 2 in 1999 and the enormous Terminal 3 in 2008 (which is the second largest airport terminal in the world after Dubai International Airport's Terminal 3 and the third largest building in the world by area). Today, Beijing Capital International Airport has airport passenger capacity of 82 million annually. Several newly built expressways link the Beijing Capital International Airport to the city of Beijing, making it easy and convenient for passengers to use the express bus service.
Zheng Cheng, CME's Founder and CEO, noted, "We are very happy to have signed this new agreement which enforces our position as a market leader in the city of Beijing, the largest city in China. We believe that as the number of passengers traveling to and from the airport continues to increase, it will benefit us and also our customers, leading advertising agencies and corporations, who will want to continue to take advantage of our very competitive advertising rates."
About CME
CME, through contractual arrangements with Fujian Fenzhong, an entity majority owned by CME'S former majority shareholder, operates the largest television advertising network on inter-city express buses in China. While CME has no direct equity ownership in Fujian Fenzhong, through the contractual agreements CME receives the economic benefits of Fujian Fenzhong's operations. Fujian Fenzhong generates revenue by selling advertisements on its network of television displays installed on over 20,000 express buses originating in fourteen of China's most prosperous regions, including the five municipalities of Beijing, Shanghai, Guangzhou, Tianjin and Chongqing and nine economically prosperous provinces, namely Guangdong, Jiangsu, Fujian, Sichuan, Hebei, Anhui, Hubei, Shandong and Shanxi which generate more than half of China's GDP.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act"), as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements include, but are not limited to statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this report may include, for example, statements about:
The Company's goals and strategies;
The Company's future prospects and market acceptance of its advertising network;
The Company's future business development, financial condition and results of operations;
Projected changes in revenues, costs, expense items, profits, earnings, and other estimated financial information;
The Company's ability to manage the growth of its existing advertising network on inter-city express buses and expansion to prospective advertising network on high speed railways;
Trends and competition in the out-of-home advertising media market in China;
Changes in general economic and business conditions in China; and
Chinese laws, regulation and policies, including those applicable to the advertising industry.
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