China MediaExpress Holdings, Inc. to Respond to Misleading and Inaccurate Allegations from Muddy Waters

FUJIAN, China--()--China MediaExpress Holdings, Inc. (NASDAQ GS: CCME) (“CME” or “Company”), China’s largest television advertising operator on inter-city and airport express buses, today denied the misleading and inaccurate allegations made in a recent report published by Muddy Waters. The Company announced that it would, as soon as possible, issue a public statement to refute these defamatory remarks and that it expected to be in a position to provide a thorough and detailed response within the next few days, notwithstanding Muddy Water’s apparently strategic decision to release its “report” at the outset of the Chinese New Year.

In a separate but related note, CME today also announced its December 2010 contract with Eading Group (http://www.eading.com/web/eadingcompany/rongyu/), one of Apple Inc.’s official distributors in China to advertise Apple products, specifically iPads, in CME’s SWITOW magazine, a new B2C shopping platform for its contracted advertisers.

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 and airport 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 27,200 express buses originating in eighteen of China’s most prosperous regions, including the four municipalities of Beijing, Shanghai, Tianjin and Chongqing and fourteen economically prosperous regions, namely Guangdong, Jiangsu, Jiangxi, Fujian, Sichuan, Hebei, Anhui, Hubei, Shandong, Shanxi, Inner Mongolia, Zhejiang, Hunan and Henan.

CME is included in the Russell Global Index. For more information visit: www.ccme.tv.

Contacts

China MediaExpress
Investor Relations Department
ir@ccme.tv
or
The Equity Group Inc.
Lena Cati, 212-836-9611
lcati@equityny.com
or
Linda Latman, 212-836-9609
llatman@equityny.com

Contacts

China MediaExpress
Investor Relations Department
ir@ccme.tv
or
The Equity Group Inc.
Lena Cati, 212-836-9611
lcati@equityny.com
or
Linda Latman, 212-836-9609
llatman@equityny.com