SHANGHAI, China, Dec. 10 /Xinhua-PRNewswire/ -- Focus Media Holding
Limited (Nasdaq: FMCN), China's largest digital media group, today
announced that it has entered into a definitive agreement to acquire CGEN
Digital Media Company Limited, a leading operator of an in-store digital
advertising network in China. This transaction would expand Focus Media's
existing coverage of its digital advertising displays in large chain stores
in China.
Under the agreement, Focus Media will acquire 100% of the equity of
CGEN for US$168.4 million in cash, and an additional payment of up to
US$181.6 million, part in cash and part in Focus Media ordinary shares
(valued at US$53.42 per ADS, each of which represents 5 Focus Media
ordinary shares), contingent upon CGEN meeting certain earnings targets
during the twenty four month period from the closing of the transaction.
The transaction values CGEN at 17.5 times its expected 2008 US GAAP
earnings with certain adjustments. All Focus Media shares issued in the
transaction will be newly issued. The transaction is expected to close in
the first quarter of 2008, subject to customary closing conditions. The
transaction is expected to be accretive to Focus Media's earnings per share
excluding potential additional intangible amortization resulting from the
transaction.
ABOUT FOCUS MEDIA HOLDING LIMITED
Focus Media Holding Limited (Nasdaq: FMCN) is China's leading multi-
platform digital media company, operating the largest out-of-home
advertising network in China using audiovisual digital displays, based on
the number of locations and number of flat-panel television displays in our
network, and is also a leading provider of mobile handset advertising and
Internet marketing solutions in China. Through Focus Media's multi-platform
digital advertising network, the company reaches urban consumers at
strategic locations and point- of-interests over a number of media formats,
including audiovisual television displays in buildings and stores,
advertising poster frames and other new and innovative media, such as
outdoor light-emitting diode or LED digital billboard, mobile handset
advertising networks and Internet advertising platforms. As of September
30, 2007, Focus Media's digital out-of-home advertising network had
approximately 95,398 LCD display in its commercial location network,
approximately 43,315 LCD displays in its in-store network and 170,605
advertising in-elevator poster frames, installed in over 90 cities
throughout China, and approximately 200 outdoor LED billboard displays in
Shanghai. For more information about Focus Media, please visit our website
at ir.focusmedia.cn.
SAFE HARBOR: FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. Among other things, the Business Outlook section and quotations
from management in this press release, as well as Focus Media's strategic
and operational plans, contain forward-looking statements. Focus Media may
also make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission on forms 20-F and
6-K., in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical facts,
including statements about Focus Media's beliefs and expectations, are
forward-looking statements. Forward- looking statements involve inherent
risks and uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any forward-looking
statement. 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,
F-3, F-6 and 20-F, in each case as amended, Focus Media's ability to
integrate CGEN's operations into its own; the state of and any change in
Focus Media's and CGEN's relationships with their major customers. Focus
Media does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
For more information, please contact:
Investor and Media contact:
Jie Chen
Tel: +86-21-3212-4661 x6607
Email: ir@focusmedia.cn
SOURCE Focus Media Holding Limited
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