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Regulatory Filings • Feb 6, 2008

News Details

Ad-hoc | 6 February 2008 08:13

Business Media China and Skyflying Media establish a joint venture

Business Media China AG / Joint Venture

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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Ad-hoc Media Release

Business Media China and Skyflying Media establish a joint venture to
create the leading Outdoor Advertising Company in China

Beijing/Guangzhou, February 6, 2008 - BMC Advertising Co. Ltd., a 100%
subsidiary of Business Media China AG, Stuttgart (WKN: 525040) and
Skyflying International Media Co. Ltd., Guangzhou (Skyflying Media) have
signed an agreement to create China’s largest outdoor media advertising
company with a large portfolio of airport, railway and subway media
formats. BMC will hold 51% of the joint venture company.

The joint venture will become operational as of April 1, 2008. The combined
arketing of the various media formats from both companies will begin step y
step, starting with railway followed by airport, metro and other outdoor
dvertising media.

With combined expected 2008 outdoor advertising sales of EUR 140 - 150
million, Business Media China AG and Skyflying Group are jointly the clear
leader in the Chinese outdoor advertising market.

Business Media China will provide a detailed presentation of the joint
venture including a revised outlook and guidance at a media and analyst
conference mid of April in Frankfurt.

• End of ad-hoc -

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Information and Explaination of the Issuer to this News:

Skyflying Media www.skyflyinggroup.com, in China known under Guangzhou
Baiyun Tianjun International Media Co., Ltd., is the leading Outdoor
Advertising Company in the South of China and has the advertising rights
for the media sites at the airports of Guangzhou and Shenzhen and the
exclusive media rights for the railway stations and the subway stations of
Guangzhou (capital of the Guangdong province) and Shenzhen (China’s most
industrialised city with the highest per-capita income after Hong Kong).
Guangzhou Baiyun International Airport is China’s third largest airport
after Beijing and Shanghai Pudong. Shenzhen Baoan International Airport is
the number five airport after Beijing, the two Shanghai airports and
Guangzhou.

Like BMC Flying Dragon, Skyflying Media was a successful bidder in the
application process for Beijing’s new Terminal 3 and gained an important
group of advertising sites. Skyflying Media has already been operating a
large number of sites in Terminal 2 of the airport for a long time.
Furthermore Skyflying Media provides street billboards, neon lights,
digital displays, giant banners and other Outdoor Media Formats in the
cities of Guangzhou and Shenzhen. Its annual revenues in 2007 were well
over CNY 500 million (EUR 50 million). This will shoot united BMC and
Skyflying Media into the leading position in China’s outdoor advertising
media market.

Klaus Michael Hilligardt, CEO Business Media China explained: 'Skyflying
Media is our ideal partner for the railway media roll-out and development
of the prime media formats. Both companies - BMC with its power in the
Beijing region and Skyflying Media with its strong position in Guangzhou
and Shenzhen - can now go for the hubs in Shanghai and Chengdu/Chongqing
and together we can enter into new license agreements that fit to our
all-China strategy. The united sales force will have the possibility to
access the existing client contacts of both companies and to address
combined offers for all relevant kinds of outdoor media to clients and
prospects. We expect an impressive rise of the turnover from this joint
venture.' Zhang Xiao Tian, CEO of Skyflying Media added: 'BMC has brought a
lot of innovation and international professionalism to the outdoor
advertising market in China. To jointly profit from the economies of scale
and the abilities to further develop our fast growing market are unique
opportunities for us'.

The media portfolios of both companies complement one another perfectly. In
railway media both companies form Chinas largest railway network by far. In
airport media the companies cover 12 airports and finally the subway media
and other outdoor media are ideal additions.

Business Media China AG with its Chinese subsidiary companies BMC
Advertising and BMC Flying Dragon is already one of the leading and most
respected Chinese outdoor media companies today. BMC Advertising with long
term license agreements for the Central and West railway stations of
Beijing and the stations in Tianjin and Shijiazhuang has changed the market
for railway media by renewing the media formats, introducing qualified
media research studies and inventing completely new media spaces. Recent
awards like the 'Most important contribution to new media formats in 2006'
by China Advertising and a First Place Mobius Award for the Mengniu Roof
Campaign in Beijing show the importance that BMC Advertising has gained in
the Chinese media business. In the field of airport media BMC Flying Dragon
is able to provide media sites at nearly all of China's leading airports.
The winning of two advertising sectors in Terminal 3 of the Beijing Capital
International Airport and its successful sales of media formats to clients
like Ferrari, Samsung and other top brands show BMC’s ability of strong
domestic license purchase and powerful international sales.

The process of concentration which had already taken place in many
international outdoor markets now also occurs in China. With this joint
venture in which Business Media China holds the majority, BMC is again
leading and advancing an important development in the Chinese outdoor
market.

For more information:
Business Media China AG
Rotebühlstrasse 87
DE-70178 Stuttgart
invest@businessmediachina.com
Edwin van der Geest
+41 43 268 32 30

06.02.2008 Financial News transmitted by DGAP

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 10
E-mail: invest@businessmediachina.com
Internet: www.businessmediachina.com
ISIN: DE0005250401
WKN: 525040
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, Stuttgart, München, Hamburg,
Düsseldorf

End of News DGAP News-Service

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