HONG KONG, Jan. 8, 2013 /PRNewswire/ -- Network CN Inc. (OTCBB.NWCN) announced today that the Company's wholly owned subsidiary, Yi Gao Shanghai Advertising Limited, has entered into an agreement to co-operate with "Shanghai Changfeng International Sourcing & Investment Co., Ltd." to operate the advertising area of the "Shanghai International Sourcing Center Base" ("the Base") in Shanghai.
Under the agreement signed, Shanghai Changfeng International Sourcing & Investment Co., Ltd. is the owner of the Base and NWCN will be responsible for the media planning and will be the operator for the whole advertising media of the Base. This agreement initially covers the planning period from November 9, 2012 to June 30, 2013, with an operating agreement to be signed subsequently.
The Base is located in the core area of Changfeng Ecological Business District, Suzhou River North, Putuo District, Shanghai. The Base comprises an international convention and exhibition center and two office buildings which covers a total construction area of 145,000 square meters and will be put into use as early as mid-2013. It acts as a multi-purpose complex for conferences, exhibitions, offices and catering. With the completion of the Base, the Annual Shanghai International Sourcing Fair ("ISF") will be held in the Base. ISF was upgraded as "National Fair" by the Ministry of Commerce and organized by Shanghai Municipal People's Government.
"This is a very exciting project and a breakthrough in our business expansion process. Under this agreement, we negotiated directly with the property owner and NWCN will be the media planner and share the advertising profits with the property owner without paying huge rights fee. It is a very profitable project with very low risk. We anticipate this project to start generate revenue as early as mid-2013. This project is expected to generate significant revenue of US$6 million for NWCN in 2013, with the growth rate ranging from 10% to 20% annually," commented by Earnest Leung, NWCN's Chief Executive Officer. "We are pleased to further strengthen our advertising network and our corporate growth prospects by entering into this agreement."
Please refer to Network CN Inc.'s website (http://www.ncnmedia.com) for additional details.
About Network CN Inc.
Headquartered in Hong Kong, Network CN Inc. is building a multi-media, multi-application out-of-home advertising network in the key cities of China.
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This press release includes statements that may constitute "forward-looking" statements, usually containing the word "believe", "estimate", "project", "expect", "plan", "anticipate" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, risks related to financing, risks attending the build-out of the Company's media network, acceptance of the Company's products and services in the marketplace, competitive factors and changes in regulatory environments. These and other risks relating to Network CN Inc. business are set forth in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 16, 2012, and other reports filed from time to time with the Securities and Exchange Commission. By making these forward- looking statements, Network CN Inc. disclaims any obligation to update these statements for revisions or changes after the date of this release.
Network CN Inc.
SOURCE Network CN Inc.