Readcrest Capital AG

Earnings Release • May 19, 2007

News Details

Ireland | 19 May 2007 10:02

Business Media China AG starts right on track and lays foundations for strong growth

Business Media China AG / Release of an announcement according to article 37 WpHG [German Securities Trading Act]

Interim report according to article 37 WpHG, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---

• Significant increase in advertising space for exterior advertising at
airports and railway stations in China
• Strong trade fair portfolio compiled for H2
• Bigger management team - advertising agency acquired
• Leading position for advertising budget spending for 2008 Beijing
Olympics

Stuttgart, May 19, 2007: The new fiscal year 2007 has started right on
track for Business Media China (ISIN DE0005250401, WKN 525 040), a
specialist for media and marketing in China. During the first quarter,
Business Media China AG (BMC AG) recorded consolidated revenues totaling
around EUR 2.5 million - up 170% compared to the first quarter of the
previous year (Q1 2006: EUR 0.9 million). At the same time, earnings in the
first quarter were slightly negative, as forecast. This is mostly due to
the fact that the first quarter is traditionally somewhat weaker as a
result of the Chinese New Year celebrations. In addition, the BMC AG's
trade fairs also start in the second quarter of the year, after China's
main holiday season has come to a close.

Leading market position for airport advertising space

BMC AG recently acquired advertising space at nine of China's twelve most
important airports, and is thus one of China's leading providers of airport
advertising space. Most recently, in May of this year, BMC AG's subsidiary
BMC Flying Dragon, secured key advertising space at Xi'An airport through
to 2015. Now, BMC Flying Dragon exclusively markets the top quality,
back-lit light boxes and presentation areas for automobiles at the largest
airport in North-West China. Xi'An is one of China's most frequented
airports with around ten million passengers each year - including as a
result of the world famous tourist attraction, the Terracotta Army, which
is located nearby. In addition, the company was able to win two additional
key accounts in this area in April 2007. The automotive manufacturers Honda
and MG Cars will together invest CNY 5.16 million (around EUR 500,000) in
long-term advertising engagements at Peking and Qingdao airports, the
central airports for the 2008 Olympic Games. Both advertising customers are
planning to expand this engagement significantly in future.

Major order for railway station advertising acquired

In January of this year, BMC AG succeeded in securing a major order for
railway station advertising from Beijing Mobile. This company is a
subsidiary of the world's largest mobile phone company China Mobile, and
awarded a EUR 1 million advertising budget to BMC AG. In future, the mobile
phone company will use BMC AG's state-of-the art illuminated advertising
boards and columns at the two key Chinese stations Beijing Central Railway
Station and Beijing West Railway Station for its advertising campaigns. BMC
AG already holds advertising rights at the four high traffic Chinese
railway stations Beijing West, Beijing Central, Tianjin and Shijiazhuang.
This means that BMC AG is already one of the leading providers for railway
station advertising - which is a new form of advertising for the Chinese
market. BMC is the first and only international company to acquire railway
station advertising rights. The advertising offering at railway stations is
being constantly expanded throughout China.

Trade fairs: 'CHINA BEAUTY EXPO' successfully held - key trade fairs in H2

'CHINA BEAUTY EXPO' was held last weekend in Shanghai - one of the first of
a current total of ten well-known international trade fairs hosted by BMC
AG. It is regarded as being one of the world's top beauty and cosmetics
trade fairs. 2007's event was yet again substantially larger than in
previous years. 1,105 Chinese and international companies exhibited their
products and services for everything to do with beauty at 2,500 stands on
more than 57,500 m². This fair met with very high national and
international feedback with a total of 193,000 visitors. In March 2007, BMC
AG was already able to host a key event for the Chinese electronics sector
with the 'China SMT Forum', in cooperation with the Fraunhofer Institute
IZM. The BMC Group's key trade fairs traditionally start in the second
quarter, and thus only bring notable revenues for the trade fair business
during the second half of the year. During the second half of 2007, BMC AG
will hold China's first international uranium conference and exhibition,
going by the name of 'CHINA URANIUM'. In addition, the company hosts Asia's
leading mining and commodities event with 'CHINA MINING'. This means that
BMC AG holds a majority interest in a company which, with the support of
the Chinese government, exclusively occupies two of the key topics in
Chinese industry: mining and uranium mining and imports to China. In
addition, the world's largest optoelectronics fair, China 'International
Optoelectronics Exposition', to be held in Shenzhen in September 2007, is
being awaited with bated breath. Business Media China's management is
anticipating high national and international demand for high-tech events in
future.

Bigger management team - advertising agency acquired

During the first few months of the current fiscal year, Business Media
China has been able to significantly reinforce its management team by
adding tried and trusted professionals from the Chinese advertising market.
In addition to hiring 40 top Chinese and European employees from the
international advertising sector, Li Yang Yang, a graduate of China's elite
UIBE University, has replaced John Maxwell Hare in the company's Managing
Board since the first quarter of the year. Li Yang Yang has held various
management positions with trade fair and media companies during the past
seven years. This means that the company's operating business is now mostly
run by Chinese managers in China and the administrative unit in Stuttgart.
The acquisition of a 70% interest in TC Gruppe GmbH Target Communications,
with its registered office in Ludwigsburg as of March 1, 2007, means that
Business Media China AG is primarily pursuing two key strategic objectives:
Supplementing its internal expertise and operating resources for the design
and implementation of international communications projects. And also
direct access to German advertising customers, in order to be able to
initiate customer communication for market entry and brand maintenance for
these customers at an early stage. The TC Group has recently been honored
with awards including the PR Report Award 2007 for its image campaign for
the 2006 Soccer World Cup 'Baden-Württemberg. Deutschlands schönste
Fankurve' ('Baden-Württemberg. Supporters' Paradise.').

Outlook

Business Media China believes that it is a suitable advertising partner for
international groups for exterior advertising for premium products using
advertising space at China's airports and railway stations, in particular
in view of the increasing travel by Chinese and international visitors as
part of the 2008 Olympic games. As a result of the activities described
above that the BMC has implemented during the past few months it can now
provide its advertising customers with access to their target groups in
China nationwide, at the majority of all key airports, and in future in
China's highest traffic railway stations. Now that the company's start-up
phase has been concluded, Business Media China AG's Managing Board is
continuing to forecast group-wide revenues of between EUR 25 - 30 million
for the current fiscal year 2007, with positive earnings. Developments in
the first quarter of 2007 are thus in line with forecasts, and management
believes that they confirm this opinion.

Stuttgart, May 19, 2007

The Managing Board

Investor relations contact
Henryk Deter
cometis AG
Unter den Eichen 7
65195 Wiesbaden
Tel.: +49 (0) 611 / 20 58 55 13
Fax: +49 (0) 611 / 20 58 55 66
E-Mail: deter@cometis.de

DGAP 19.05.2007

Language: English
Issuer: Business Media China AG
Rotebühlstrasse 87
70178 Stuttgart Deutschland
www: www.businessmediachina.com

End of News DGAP News-Service

---