BEIJING, Jan. 6 /PRNewswire-Asia/ -- VisionChina Media Inc. ("VisionChina
Media" or the "Company") (Nasdaq: VISN), one of China's largest out-of-home
digital television advertising networks on mass transportation systems, today
announced the completion of the Company's previously announced acquisition of
Digital Media Group, a leader in China's subway mobile television advertising
market. The transaction creates China's largest and most comprehensive mobile
television advertising network, furthering VisionChina Media's goal to become
the foremost digital television platform reaching daytime audiences in China.
The total consideration for the transaction, consisting of US$160 million in
cash and shares, is payable by the Company to eligible shareholders of Digital
Media Group in three installments over the next two years.
"The acquisition of Digital Media Group is an important step in
VisionChina Media's strategic development," said Mr. Limin Li, VisionChina
Media's chairman and chief executive officer. "The combination of our two
media platforms allows us to broaden VisionChina Media's subway network to
match our extensive bus network. This combination of above and below ground
media networks provides advertisers with an entirely new offering and has been
well received thus far. We now have a greatly enhanced advertising platform
that includes 22 of China's most affluent cities, including all four of
China's Tier I cities, Beijing, Guangzhou, Shenzhen and Shanghai, as well as
Hong Kong's Airport Express line."
"With Digital Media Group and VisionChina Media's complementary business
models and common culture of professionalism and operational excellence, we
are confident in a smooth integration process," said Mr. Scott Chen,
VisionChina Media's chief financial officer. "Looking forward, we expect to
realize significant synergies in several areas including enhanced advertising
pricing and greater consolidation of media assets. As we continue to integrate
our two companies, we anticipate that gross margins will be impacted in the
short term, but we are optimistic about the second half of 2010, as synergies
are more fully realized."
About VisionChina Media Inc
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising
network on mass transportation systems, including buses and subways that
reaches over 40 million viewers each day in China, according to CTR Market
Research. As of January 6, 2010, VisionChina Media's advertising network
included over 110,000 digital television displays on mass transportation
systems in 22 of China's economically prosperous cities, including Beijing,
Shanghai, Guangzhou and Shenzhen. VisionChina Media has the ability to deliver
real-time, location-specific broadcasting, including news, stock quotes,
weather and traffic reports and other entertainment programming. For more
information, please visit http://www.visionchina.cn .
Safe Harbor Statement
This press release contains forward-looking statements. These statements
constitute "forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in 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 quotations from management in this press release
contain forward-looking statements. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially from those
in the forward-looking statements. Further information regarding these and
other risks is included in the Company's filings with the U.S. Securities and
Exchange Commission, including its annual report on Form 20-F. The Company
does not undertake any obligation to update any forward-looking statement as a
result of new information, future events or otherwise, except as required
under applicable law.
For investor and media inquiries, please contact:
Mrs. Helen Plummer
Investor Relations Officer
VisionChina Media Inc.
Mr. Derek Mitchell
Ogilvy Financial, Beijing
In the United States:
Ms. Jessica Barist Cohen
Ogilvy Financial, New York
SOURCE VisionChina Media Inc.