Combination Offers Compelling Media Solution for Advertising Clients
SHANGHAI, China, Oct. 16 /Xinhua-PRNewswire/ -- Focus Media Holding
Limited (Nasdaq: FMCN), which owns and operates the largest out-of-home
audiovisual advertising network in China, today announced that it has entered
into a definitive agreement to acquire 100% of Infoachieve Limited, a BVI
incorporated company. Infoachieve's 100% owned subsidiary Shanghai Framedia
Advertising Development Ltd ("Framedia") is the largest community advertising
network in China.
Headquartered in Beijing, Framedia is the pioneer and the leading provider
of community media in China. Framedia installs and deploys frames inside the
elevators and throughout the common areas of high-end residential complexes
and sells frame space to advertising clients. Currently, Framedia owns and
deploys advertisements in approximately 90,000 frames in major cities
including Shanghai, Beijing, Guangzhou, Shenzhen, Wuhan, Nanjing and Dongguan.
Framedia has a cumulative client base of over 300 leading international and
domestic companies, such as Audi, Lenovo, Microsoft, Motorola, Omega, Samsung
Through this acquisition, Focus Media will be able to enhance its ability
to provide integrated media solutions to its advertising clients and to
further strengthen its leading position in China's out-of-home advertising
markets. Upon completion of the acquisition, Framedia will become a new
business unit of Focus Media.
Under the agreement, Focus Media will acquire a 100% of equity stake in
Framedia for US$39.6 million in cash and US$55.4 million in the form of Focus
Media common stock (valued at US$24.56 per ADR, which represents 10 Focus
Media common stocks) and an additional potential future payment of up to
US$88.0 million in Focus Media common stock (valued at US$24.56 per ADR)
contingent upon Framedia meeting certain earning target in 2006, for an
aggregate potential payment of up to US$183.0 million. All of the Focus Media
common stock in discussion will be in the form of new shares. The
acquisition is subject to the usual regulatory requirements and customary
closing conditions and is expected to close by the end of 2005. The
transaction is expected to be accretive to Focus Media's earnings per share in
"Framedia's advertising network is an excellent addition to our
multi-media platform which currently includes our commercial location LCD
network and in-store LCD network," said Jason Jiang, chairman and chief
executive officer of Focus Media. "Both of our companies are leaders in our
markets and have a proven track record of new media innovation. Our products
and services have great synergy in delivering targeted advertisements
effectively for our advertising clients. In addition, the combination of our
resources will facilitate new media innovation."
Tan Zhi, Chairman and CEO of Framedia commented, "We are excited to join
Focus Media. China's new media market has great potential. The integration
of Framedia's effective advertising solution with Focus Media's offerings will
create a powerful combination to compete with traditional media offerings and
to better address the needs of our advertising clients."
INVESTMENT COMMUNITY AND MEDIA EVENT INFORMATION
Focus Media will host a conference call to discuss the acquisition on
October 17, 2005 (11:00 p.m. Eastern Standard Time on October 16, 2005; 8:00
p.m. Pacific Time on October 16, 2005; 11:00 a.m. Beijing/Hong Kong time on
October 17, 2005). The dial-in details for the live conference call are: U.S.
Toll Free Number 1-800-322-5044, Hong Kong dial-in number 852-3002-1672,
international dial-in number 1-617-614-4927; pass code for all callers
A replay of the call will be available till October 18, 2005 (US Eastern
Standard Time). The dial-in details for the replay are: U.S. Toll Free Number
1-888-286-8010; international dial-in number 1-617-801-6888; pass code
This press release includes statements that may constitute forward-looking
statements made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. This information may involve risks
and uncertainties that could cause actual results to differ materially from
the forward-looking statements. Although Focus Media believes that the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, such statements are subject to risks and uncertainties
that could cause actual results to differ materially from those projected.
Potential risks and uncertainties include, but are not limited to, risks
outlined in Focus Media's filings with the U.S. Securities and Exchange
Commission, including its registration statements on Form F-1, as amended.
Focus Media does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
ABOUT FOCUS MEDIA LIMITED
Focus Media operates the largest out-of-home advertising network in China.
As of June 30, 2005, Focus Media had 35,710 display units throughout China in
its commercial location network and in-store network. Flat-panel audiovisual
displays are placed in high traffic areas, such as elevator lobbies of
commercial buildings, retail chain stores, beauty parlors, karaoke parlors and
golf country clubs. Over 900 international and domestic advertisers had
placed advertisements on our networks as of June 30, 2005. For more
information about Focus Media, please visit our website ir.focusmedia.cn.
Established in 1999, Framedia manages the largest community advertising
network in China. Framedia was funded by Hina Capital Partners and IDG
Technology Venture Investment. Framedia operates approximately 90,000 frames
in major cities across China, targeting high-income earners in high-end
residential complexes. Framedia has a cumulative client base of over 300
leading international and domestic brands, such as Audi, Lenovo, Microsoft,
Motorola, Omega, Samsung and Sony.
SOURCE Focus Media
/CONTACT: Investor and Media: Jie Chen, Investor Relations Manager of
Focus Media Holding Ltd., +86-21-3212-4661 ext 6607, email@example.com /
/Web site: http://ir.focusmedia.cn /
CO: Focus Media Limited; Framedia; Infoachieve Limited; BVI;
Shanghai Framedia Advertising Development Ltd
IN: ADV FIN MLM
SU: TNM ASI CCA
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0611 10/16/2005 01:53 EDT http://www.prnewswire.com