China MediaExpress Holdings, Inc. Signs Exclusive Agreement to Provide Television Programming and Advertisements for the Qingdao Airport Express Buses

FUJIAN, China--(BUSINESS WIRE)--China MediaExpress Holdings, Inc. (NYSE Amex: CCME) (“CME” or “Company”), China’s largest television advertising operator on inter-city express buses, today announced that it has signed a 3-year exclusive agreement to provide television programming and advertisements on all 32 express buses originating from the Qingdao Liuting International Airport (“Qingdao Airport”). CME’s agreement, which commenced on March 1, 2010, is with the operator of the Qingdao Airport express buses.

The Qingdao Airport was expanded in 2006 to handle up to 5.2 million passengers annually and it is surrounded by several major expressways.

The city of Qingdao is a major industrial center with a population in excess of 8 million people. The port of Qingdao is one of the five largest ports in China and the only one with an annual handling capacity of over 100 million tons of coal, ore, petroleum, containers and bulk cargo. Qingdao’s economy has rapidly grown to become the largest industrial city of the Shandong Province. Several local companies, such as Haier, Hisense, Tsingtao Brewery and Aucma, are widely recognized. Furthermore, over the past several years, many international companies and organizations have established their presence in Qingdao.

The city is also known as a summer resort with a rich historical background and natural beauty. There are many tourist attractions in Qingdao, including Mount Laoshan, bathing beaches and buildings with European and Japanese style. Many events, such as the Qingdao Foreign Economy and Trade Fair, the Qingdao International Beer Festival, the Love of Sea Festival, the Cherry-blossom Festival and Summer of Qingdao (Arts Festival) are held annually, entertaining thousands of domestic and foreign visitors.

Zheng Cheng, CME’s Founder and CEO, noted, “We were impressed by the city of Qingdao based on its high average of GDP per capita which over the past several years has grown at an average pace of 16% annually. As we keep on growing our network and further expand our geographic coverage, we continue to provide our advertising customers with a great platform to promote their products and services at 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 21,000 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.