Readcrest Capital AG

Earnings Release • Aug 26, 2008

News Details

Ad-hoc | 26 August 2008 09:00

Business Media China AG: Continued growth and a positive quarterly result in Q2/2008

Business Media China AG / Half Year Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Corporate News

Continued growth and a positive quarterly result in Q2/2008

Business Media China AG has achieved a sales volume of EUR 7.5 million in
the second quarter 2008. This corresponds to a growth of 26 % compared with
the corresponding quarter of last year. While the exhibition segment of the
business developed according to plan, the advertising media business
suffered several delays and despite strong growth is below expectations.
The negative exchange rate effect was about 4 %.

Due to extraordinary income, the quarterly pre-tax result ended
nevertheless in a significantly positive amount of EUR 0.5 million. The
gross income of the quarter reached EUR 2.5 million and exceeded last
year's value by about 180 %.

The consolidated half-year figure for the sales volume of the BMC Group
amounts to EUR 10.8 million and thus exceeds last year's value by 35 %. The
cumulated half-year result after taxes amounts to minus EUR 1.7 million.

The order volume in the segments of exhibitions & conferences as well as
advertising media is continuously high and the business prospects are
favourable with the Olympics having only a marginally positive effect for a
short period. While the annual sales figure will be at the lower end of the
target range of EUR 35 to 45 million envisaged at the beginning of the
year, the target of completing the financial year 2008 with a profit about
EUR 1 to 2 million will remain unchanged.

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Business Segments in Detail

Advertising Media

Airport Media

The airport business was characterized by the great interest in the new
Terminal 3 of the Beijing airport. By the end of the second quarter all
media formats were already sold - for the most part under several-year
contracts – and we looked for and developed additional formats with the
airport authorities. As already realized in Terminal 2, BMC Flying Dragon
can now erect a business centre whose advertising spaces (lightboxes,
screen saver etc.) have been booked by China Mobile for extended periods.
Coca Cola, inspired by the success of the interactive Samsung advertising
platform in T 3, has signed at the end of the quarter a contract for a new
innovative media format at the airport. BMC Flying Dragon is constantly
trying to lease further media formats from other licensees to meet the
demand.

This success is also perceived internationally: An exclusive cooperation
agreement was concluded with Portland China in the beginning of May.
Portland is the Chinese representation of the worldwide leading specialist
in out-of-home advertisement media, Kinetic Worldwide. Having its own
advertising media in 12 of the 15 largest airports in China and with
marketing access to various other advertising space on other airports, BMC
Flying Dragon is today the leading full-coverage supplier in China.

Railway Station Media

The new joint venture BMC Skyflying Media became operative after delays in
the course of the 2nd quarter 2008. The sales teams of BMC Advertising and
Skyflying Media were combined, restructured and concentrated in the two
locations in Beijing and Guangzhou. The joint marketing of railway station
media formats of both companies has been started. Towards the end of the
quarter the first innovative 'All China Concepts' have been presented for
potentially new, international advertising customers. The increase of new
domestic customers for long-term advertising projects developed in a
satisfactory way. This includes the consumer electronics supplier Konka and
the clothing group Da Hong Men. In total, the occupancy rates and the price
increases obtained are still below plan.

Creative Services

The TC Group has won in April two significant new orders from Daimler AG in
a bidding process. At the beginning of the quarter a representative office
was opened in Beijing. Both German and Chinese customers can now profit
from professional advice and support directly on-site in China.

Exhibitions & Conferences

This year's 'exhibition season' started for BMC in China with the 2nd
quarter. Total sales of EUR 3.3 million were achieved in the segment
exhibitions & conferences.

The series of events started with PPI China in Guangzhou (May 19 - 21,
2008), a leading exhibition for food and drink processing and packing. Over
250 companies presented their products on 6,000 square metres to 7,500
visitors. This equals last year's display area despite the change in focus
from a broad food exhibition to a food technology exhibition. PPI China
Conference for Innovative Food Technology was organized for the first time
in parallel.

The 13th China Beauty EXPO, one of the flagship exhibitions of the BMC
Group, took place May 20 – 22, 2008. This Shanghai exhibition was able to
increase its exhibition space once more by 13 % to 66,000 square metres
despite its high level of saturation. The number of exhibitors grew by 15 %
to 1,200.

On June 4th and 5th more than 200 mining industry experts met in the newly
built Venetian in Macau for the XX Macau & Asia Miner - The Exploration
Exchange organized for the first time. This conference including a small
trade exhibition is focusing on investment opportunities in the mining
industry, especially in Asia.

The GIMT - Canton Machine Tool Show took place from June 16 through 19 in
Guangzhou. This year, 275 companies presented themselves on about 6.000
square metres of exhibition space in the GIMT, the only exhibition in
Southern China specializing in machine tools. This corresponds to a growth
of over 30 % compared with the previous year. In total 9,800 visitors
attended the event, which for the first time this year was linked with a
special expert conference.

Administration - Business Media China AG

The admittance of the young shares resulting from previous increases of
capital, which to date could not be traded, by the BaFin (Federal Office of
Finances) and the German Stock Exchange in Frankfurt was completed in the
2nd quarter 2008. All shares of the company are combined in the security
identification number 525040 and can now be traded.

Pursuant to this approval, the company applied for the admittance of the
shares in the highest transparency segment of the German Stock Exchange,
the Prime Standard, which was also approved by the end of July.

The legal dispute with Bankhaus Julius Bär Kapitalanlagegesellschaft AG was
settled in the second quarter 2008. Both parties reached an agreement
leading to an extraordinary income in the amount of EUR 1.0 million for BMC
AG.

The number of employees of the BMC Group increased in the second quarter
2008 by 15 % particularly due to the new joint venture with Skyflying Media
and amounts now to 299 employees in Germany and China as of June 30, 2008.

The full quarterly report is available on our website
www.businessmediachina.com

For more information:

Business Media China AG

Rotebühlstrasse 87

DE-70178 Stuttgart

invest@businessmediachina.com

Edwin van der Geest

+41 43 268 32 30
26.08.2008 Financial News transmitted by DGAP

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Language: English
Issuer: Business Media China AG
Rotebühlstrasse 87
70178 Stuttgart
Deutschland
Phone: +49 (0)711 490 890 0
Fax: +49 (0)711 490 890 110
E-mail: invest@businessmediachina.com
Internet: www.businessmediachina.com
ISIN: DE0005250401
WKN: 525040
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf

End of News DGAP News-Service

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