CHINA MASS MEDIA (NYSE:CMM)

BEIJING, May 4, 2012 /PRNewswire-Asia-FirstCall/ -- China Mass Media Corp. ("China Mass Media" or the "Company") (OTC-PINK: CMMCY) today announced that its Board of Directors has received a non-binding proposal letter from Mr. Shengcheng Wang, the controlling shareholder of the Company, pursuant to which Mr. Shengcheng Wang proposes to acquire (i) ADSs of the Company held by the public investors for cash at not more than US$5.0 per ADS; and (ii) options issued under the 2008 Equity Incentive Scheme of the Company for cash at not more than US$0.0167 per option, (the "Proposal").

The Company has formed a Special Committee of the Board of Directors (the "Special Committee") to consider the Proposal and any potential alternative transactions involving the Company. The Special Committee has retained Shearman & Sterling LLP as its legal counsel and is in the process of engaging a financial advisor to assist it in consideration of such matters. Dr. Liping He, Mr. Jianmin Qu, Dr. Xingzhao Liu and Mr. Yong Chen were designated as the members of the Special Committee. The Board cautions the Company's shareholders and others considering trading in its securities that no decision has been made by the Special Committee with respect to the Company's response to the Proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.

Fourth Quarter 2011 Results

• Total net revenues were RMB52.2 million (US$8.3 million), a decrease of 31.1% from the fourth quarter 2010, and a decrease of 9.3% from the third quarter 2011.
• Operating income was RMB1.9 million (US$0.3 million), a decrease of 93.2% from the fourth quarter 2010 and a decrease of 88.6 % from the third quarter 2011.
• Net loss was RMB18.5 million (US$2.9 million), compared with net income of RMB19.0 million in the fourth quarter 2010, and net income of RMB14.0 million in the third quarter 2011. The net loss was mainly attributable to a withholding tax expense of RMB19.1 million (US$3.0 million) incurred in conjunction with the special dividend of RMB364.0 million (US$57.9 million) million declared in the fourth quarter 2011.
• Net cash outflows from operating activities were RMB53.5 million (US$8.5 million), compared with RMB25.9 million net cash inflows in the fourth quarter 2010 and RMB158.3 million net cash outflows in the third quarter 2011.
• Basic and diluted loss per ADS were both RMB7.41 (US$1.18) in the fourth quarter 2011, compared with basic and diluted earnings of RMB7.27 and RMB7.23, respectively, in the fourth quarter 2010

"In the fourth quarter of 2011, we saw a number of new developments in our new film and TV production business. The Company has completed the on-site filming stage of a TV drama, and enters into the off-site post-production stage. Currently we are in active discussions with a few major TV stations for the drama's distribution and aims for airing in the second half of 2012. We plan to invest in the production of an additional 1 or 2 TV dramas this year. Our production costs expensed in the fourth quarter of 2011 for this business were RMB6.6 million (US$1.1 million).

"On October 28, 2011, the Company declared a special cash dividend of US$0.07667 per ordinary share. Due to this special cash dividend distribution, the Company's reinvestment plan for the unremitted earnings was changed from 70% to zero and the Company recognized a withholding tax of RMB19.1 million (US$3.0 million), which resulted in a net loss of RMB18.5 million (US$2.9 million) in the fourth quarter. Excluding the effects of the withholding tax, we would have recorded net income of RMB0.6 million (US$0.1 million).

"In light of fierce competition from other CCTV agents in 2011, we offered more discounts to clients compared with previous years. Although the annual sales rate of media resources increased significantly from the previous year, we saw a decline in both revenues and profit. Our film and TV production business, which was still in its initial stages of development during the quarter, did not contribute to our revenues during the year.

"The three-year contract between our company and CCTV for the 'Daytime Advertising Package' and 'Television Guide Package' expired on December 31, 2011. We were unsuccessful in the bidding for the 'Daytime Advertising Package' at the 2012 Non-Prime Time Advertising Resources Auction on November 22, 2011. In addition, CCTV decided to cancel the 'Television Guide Package' product in 2012. The public service announcement 'Guang Er Gao Zhi' program was also cancelled due to a program adjustment in July 2011. Losses of the above-mentioned contracts will bring new challenge for us in 2012. In 2012, we focus on the sales of the 'Periodic China News Package,' and the 'All Day Classic Package' on CCTV-8 and continue to find other sources of revenue through media purchases and other client services.

"We received a notice from the staff of NYSE Regulation, Inc. ("NYSE Regulation") confirming that NYSE Regulation has determined to commence proceedings to delist the Company's American Depository Shares (the "ADSs") from the New York Stock Exchange (the "NYSE") on the grounds that the Company has fallen below the NYSE's continued listing standard set forth in Section 802.01B of the NYSE Listed Company Manual, which requires the Company to maintain an average global market capitalization of not less than $15 million over a consecutive 30-trading day period.

The NYSE made public announcement of this decision on March 12, 2012. Trading in the Company's ADSs on the NYSE will be suspended prior to the market opening on Monday, March 19, 2012. The Company intends to facilitate the quotation of its ADSs on the over-the-counter bulletin board (OTCBB) market."

Business Outlook

The Company currently expects to generate total net revenues of between RMB32 million (US $5.1 million) and RMB37 million (US$5.9 million) for the first quarter 2012. The expected range of net revenues represents a potential decrease of 27.3% to 37.1% compared with the first quarter 2011 due to fewer media resources secured by the Company and the continued pricing competition. This forecast reflects the Company's current and preliminary estimate, which is subject to change.

BEIJING, December 14, 2011 /PRNewswire-Asia-FirstCall/ -- China Mass Media Corp. ("China Mass Media" or the "Company") (NYSE: CMM), a television advertising company in China, today announced that the New York Stock Exchange (the "NYSE") has tentatively established December 27, 2011 as the ex-dividend date for the special cash dividend declared by the Company on October 28, 2011. The Company has obtained all relevant approvals from PRC regulatory authorities for the special cash dividend distribution. The dividend of US$0.07667 per ordinary share, or US$23.00 per ADS, net of a handling fee of US$0.02 per ADS charged by the depositary bank, will be paid on December 23, 2011 to all shareholders or ADS holders of record as of December 9, 2011 (the "record date"). No U.S. withholding tax will be held by the Company. The full amount of the distribution will be taxable for U.S. federal income tax purposes. Each of the Company's ADSs represents 300 ordinary shares of the Company.

In addition, the NYSE will apply its due bill procedures. Under the rules of the NYSE, when a dividend is declared in a per share amount that exceeds 25% of a company's stock price, the date on which that company's shares will begin to trade without the dividend, or ex-dividend, is the first business day following the dividend payment date. The Company understands that, because the US$23.00 per ADS special cash dividend exceeds 25% of the Company's current ADS price, the above-mentioned rules will apply and the ex-dividend date was tentatively set by the NYSE as December 27, 2011, the first business day following the payment date for the special cash dividend. The Company further understands that pursuant to the due bill procedures, trades of its ADSs entered into before December 27, 2011 and settled after the record date (the "due bill period") will have a due bill attached for the special cash dividend payable on December 23, 2011. This means that holders who purchase these securities during the due bill period (even if the trades are to be settled after that due bill period) are entitled to receive the special cash dividend, and sellers who sell the securities during the due bill period (even if the trades are to be settled after the due bill period) are not entitled to the special cash dividend. Investors who enter into trades to purchase ADSs on or after December 27, 2011 will not be entitled to the special cash dividend payable on December 23, 2011.

BEIJING, November 25, 2011 /PRNewswire-Asia-FirstCall/ -- China Mass Media Corp. ("China Mass Media" or the "Company") (NYSE: CMM) announced today that its three-year advertising agency contracts with China Central Television ("CCTV") for the "Daytime Advertising Package" and "Television Guides" program shall not be renewed at their expiration on December 31, 2011. Consistent with CCTV's current practice, 2012 advertising rights for the "Daytime Advertising Package" were offered for bidding at the non-prime time advertising auction event held by CCTV on November 22, 2011, and the Company did not secure the winning bid. CCTV has also decided to cancel the "Television Guides" program at the end of 2011. For the years ended December 31, 2009 and 2010 and the nine months ended September 30, 2011, revenues generated from these two programs amounted to RMB158.8 million, RMB109.0 million, and RMB68.9 million, representing 37.1%, 42.5%, and 40.5% of the Company revenues in those periods, respectively. The loss of revenues from the Daytime Advertising Package and Television Guides program is expected to have a significant impact on the Company's results of operations in 2012.

Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media, commented, "We will continue to seek additional quality advertising time slots to improve our portfolio of media resources. We recently acquired the advertising right to the "All Day Classic Package" program on CCTV-8 for 2012. CCTV-8 is the only national TV drama series channel in China and is ranked third among all television channels in China in terms of audience share in 2009, according to the 2010 China TV & Radio Yearbook. We also aim to diversify our revenue sources and strengthen our advertisement and TV series production services."

Third Quarter 2011 Results

• Total net revenues were RMB57.5 million (US$9.0 million), an increase of 5.1% from the third quarter of 2010 and an increase of 11.3% from the second quarter of 2011.
• Operating income was RMB16.9 million (US$2.6 million), an increase of 35.1% from RMB12.5 million in the third quarter of 2010 and an increase of 17.7% from the second quarter of 2011.
• Net income was RMB14.0 million (US$2.2 million), an increase of 117.8% from RMB6.43 million in the third quarter of 2010 and an increase of 24.8% from the second quarter of 2011.
• Basic and diluted earnings per ADS for the third quarter of 2011 were RMB0.56 (US$0.09), compared with basic and diluted earnings per ADS of RMB0.24 (US$0.04)for the third quarter of 2010

Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media, commented, "Our third quarter revenue and net profit increased from both the second quarter of 2011 and the third quarter of 2010, primarily due to receiving RMB14.7 million (US$2.3 million) as service fee from China Central Television ('CCTV') for the Company's services in advertising and promotional activities in connection with the Beijing Olympic Games in 2008. Because of CCTV's slow internal examination and approval procedures, this service fee was paid to us in the third quarter of 2011.

Business Outlook

The Company currently expects to generate total net revenues of between RMB48 million and RMB53 million for the fourth quarter of 2011. The expected range of net revenues represents a potential decrease of 36.7% to 30.1% compared with the fourth quarter of 2010 due to continuous price competition.

Second Quarter 2011 Results

• Total net revenues were RMB51.7 million (US$8.0 million), a decrease of 9.1% from the second quarter of 2010 and an increase of 1.6% from the first quarter of 2011.
• Basic and diluted earnings per ADS for the second quarter of 2011 were RMB0.44 (US$0.07), compared with basic and diluted earnings per ADS of RMB0.17 (US$0.02) for the second quarter of 2010 and RMB0.32 for the first quarter of 2011.

Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media, commented, "Our performance largely came within our expectations. Due to the second quarter being a seasonally weak period for the advertising market, there was no significant growth in our business. The weak season had a large influence on the sales and revenues of time slots for our "Daytime Advertising Package" and "Television Guide Package" when compared with previous quarters. At the same time, we did see growth in sales revenues from our "Periodic China News Package" on China Central Television ("CCTV")-4 when compared with the previous quarter, as we acquired new customers. As a result of the foregoing factors, our second quarter revenues from advertising agency services increased marginally from the first quarter."

Business Outlook

The Company currently expects to generate total net revenues of between RMB52 million (US$8.1 million) and RMB57 million (US$8.8 million) for the third quarter of 2011, including RMB14 million in revenues from CCTV in relation to special events services provided to CCTV for the 2008 Beijing Olympic Games. The expected range of net revenues represents a potential decrease of up to 5.0% or increase of 4.1% compared with the third quarter

Historically we have financed our operations primarily through cash flows from operations and have not relied on any other sources to finance our operations. After our successful initial public offering in August 2008, we intend to continue to explore ways to finance our operations in the future, including short-term or long-term credit facilities and offerings of debt or equity securities.

First Quarter Results:

• Total net revenues were RMB50.9 million (US$7.8 million), a decrease of 9.1% from the first quarter of 2010 and a decrease of 32.8% from the fourth quarter of 2010.
• Operating income was RMB13.1 million (US$2.0 million), a decrease of 5.7% from the first quarter of 2010 and a decrease of 53.7% from the fourth quarter of 2010.
• Net income was RMB8.3 million (US$1.3 million), a decrease of 17.9% from the first quarter of 2010 and a decrease of 56.3% from the fourth quarter of 2010.
• Basic and diluted earnings per ADS for the first quarter of 2011 were RMB0.32 (US$0.05), compared with basic earnings per ADS of RMB0.38 for the first quarter of 2010 and RMB0.72 for the fourth quarter of 2010.

Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media, commented, "The first quarter of 2011 was a challenging time as we entered the seasonally weak period of the year.  In our advertising agency service business, in order to secure long-term commitments from our clients in the face of intense price competition in the advertising market, we initiated a presale promotional campaign last November to attract longer-term contracts by offering sizable discounts. These contracts, which are with both advertising agencies and direct advertisers and range in term from three to six months, will serve as a solid foundation of our revenues in 2011. Due to these promotional activities, there was a significant decrease in the sales price of certain products in the first quarter 2011 compared with the first and fourth quarters of 2010. As a result, revenues from advertising agency services declined despite the increase in our utilization rate. The sequential decline was also primarily because the fourth quarter is traditionally the peak season in our business."

The Company currently expects to generate total net revenues of between RMB48 million ($7.3 million) to RMB53 million ($8.1 million) for the second quarter of 2011, which represents a potential decrease of 7.0% to 15.8% compared with the second quarter of 2010 due to continued pricing competition in the market. This forecast reflects the Company's current and preliminary estimate, which is subject to change.

 

　

Fourth Quarter 2010 Highlights:

• Total net revenues were RMB75.8 million (US$11.5 million), a decrease of 35.3% from the fourth quarter of 2009 and an increase of 38.4% from the third quarter of 2010.

• Operating income was RMB28.4 million (US$4.3 million), a decrease of 22.5% from the fourth quarter of 2009 and an increase of 127.5% from the third quarter of 2010.

• Net income was RMB19.0 million (US$2.9 million), a decrease of 40.6% from the fourth quarter of 2009 and an increase of 195.4% from the third quarter of 2010.

• Basic and diluted earnings per ADS for the fourth quarter of 2010 were RMB0.73 (US$0.11), and RMB0.72 (US$0.11) respectively compared with basic earnings per ADS of RMB1.22 (US $0.18) for the fourth quarter of 2009 and RMB0.24 for the third quarter of 2010. Each ADS represents 30 ordinary shares.

• Net cash inflows from operating activities were RMB15.9 million (US$2.4 million), compared to with net cash outflows from operating activities of RMB171.9 million in the fourth quarter of 2009 and net cash inflows from operating activities of RMB54.5 million in the third quarter of 2010.

Fiscal Year 2010 Financial Highlights

• Total net revenues were RMB243.4 million (US$36.9 million) in 2010, a decrease of 40.9% from 2009.

• Operating income was RMB62.9 million (US$9.5 million) in 2010, a decrease of 30.7% from 2009.

• Net income was RMB39.9 million (US$6.0 million) in 2010, a decrease of 53.9% from 2009.

• Basic and diluted earnings per ADS were RMB1.52 (US$0.23) in 2010, a decrease of 53.8% from RMB3.29 in 2009.

Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media, commented, "We are pleased to report solid results for the fourth quarter of 2010.  Demand in the advertising market experienced a traditional seasonal increase during the quarter.  In addition, the intense price competition in the advertising market during the first three quarters of 2010 steadied and prices leveled off. In the fourth quarter, we secured a number of direct corporate customers and worked to take advantage of new market opportunities, which helped drive the significant increase in our top and bottom line performance during the period."

"The decline in our revenues from the same period last year was largely due to an unusual increase in market demand in the fourth quarter of 2009 following market expectation that CCTV planned to raise advertising prices in 2010.  In 2010, we also adopted a more selective media strategy. We reduced our investments in media resources on CCTV-4 from six programs to one program.  For the one remaining program, the 'Periodic China News Package,' which we felt offered a particularly promising opportunity, we strengthened our marketing efforts and it became an important source of revenue and profitability for us in 2010.  Sales of our 'Daytime Advertising Package' and 'Television Guide Package' were both subject to severe price competition for clients' limited budgets, and compared to last year, revenues from these segments declined sharply from 2009. We tried a variety of marketing strategies and methods to respond to this intense price competition, and we will continue our efforts to improve our sales rates in 2011."

Business Outlook

The Company currently expects to generate total net revenues of between RMB48.0 million ($7.27 million) and RMB 53.0 million ($8.03 million) for the first quarter of 2011, which represents a potential decrease of 14.3% to 5.4% compared with the first quarter of 2010 due to continuous price competition in the market.  

This forecast reflects the Company's current and preliminary estimate, which is subject to change.

BEIJING, Jan. 4, 2011 /PRNewswire-Asia-FirstCall/ -- China Mass Media Corp.  today announced that Mr. Eric Wang Lam Cheung resigned as chief financial officer of the Company, effective December 31, 2010, in order to pursue other interests. Ms. Julie Zhili Sun, Vice President of Corporate Development, takes over as chief financial officer.

CMM financial highlights for the 2010 3rd quarter:

• Total net revenues were RMB54.8 million (US$8.2 million), a decrease of 32.2% from the third quarter of 2009 and a decrease of 3.8% from the second quarter of 2010.
• Operating income was RMB12.5 million (US$1.9 million), an increase of 241.5% from RMB3.7 million in the third quarter of 2009 and an increase of 54.5% from RMB8.1 million in the second quarter of 2010.
• Net income was RMB6.4 million (US$1.0 million), an increase of 59.3% from the third quarter of 2009 and an increase of 48.2% from the second quarter of 2010.
• Net cash inflows from operating activities were RMB54.5 million (US$8.2 million), compared to net cash outflows from operating activities of RMB397.0 million in the third quarter of 2009 and net cash inflows from operating activities of RMB41.2 million in the second quarter of 2010.

Business Outlook

For the fourth quarter of 2010, the Company currently expects to generate total net revenues of between RMB70.0 million (US$10.5 million) and RMB76.0 million (US$11.4 million), which represents a potential decrease of 35.1% to 40.3% from the fourth quarter of 2009.

Other Comments made:

Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media, commented, "In comparison with the previous quarter, total net revenues for the third quarter of 2010 decreased slightly as price competition remained intense while demand in the advertising market recovered ahead of the traditional peak season starting from this September. The decrease in total net revenues on a year-over-year basis was the result of our reduction of investment in a number of CCTV-2 and CCTV-4 programs in 2010.  As a result of our prudent media selection strategy, we successfully minimized the impact of the unfavorable conditions related to CCTV-4 and were able to substantially improve our profitability on both the operating and net level compared to the prior quarter and the same period last year."

"The sales of our 'Daytime Advertising Package' and 'Television Guide Package' during the quarter were still subject to severe price competition which led to low pricing and low utilization in July and August.  However, we saw positive signs this September through the addition of a number of new accounts.  We are optimistic that sales in the fourth quarter of 2010 will rebound in the traditional peak season."

"The sales performance of our 'Periodic China News Package' on CCTV-4 continued to improve on the positive momentum generated last quarter. The time slots of the 'Periodic China News Package' were fully sold out in September. In addition, we have recently been approved by CCTV to begin extending the length of our advertisements from September to December 2010 with no additional cost.  This will give us the ability to source more clients seeking to maximize their advertising spending on CCTV-4, and generate higher revenues and profit during the traditional peak season in the fourth quarter."

"In our production and sponsorship services business, we continued to improve our service capabilities and integrated our sales, production and public service sponsorship teams. As a result, we captured a variety of opportunities related to advertisement production and sponsorship for various public service announcements. During the third quarter of 2010, we completed the production of a number of new commercial advertisements and secured several new clients for the sponsorship of public service announcements. This led to a significant increase in revenues from production and sponsorship services compared to the third quarter of 2009, and helped drive the Company's overall margins higher.  We are also pleased the commercial we created for CCTV called 'Liquid Ink' has won another prestigious prize at the 'Great Wall Awards' of the 17^th China Advertising Festival."

"On November 8, 2010, CCTV hosted its annual Prime Time Advertising Resource Auction Event for 2011, where a total of RMB12.7 billion was committed for advertising time slots on CCTV, representing a 15.5% increase from RMB11.0 billion in 2010.  We believe this has favorable implications for our business as it indicates the continued strength in demand within China's advertising market. It is also a key indicator of specific high-growth sectors and regions seeking CCTV exposure, upon which we will focus our premarketing sales activities in the coming months.

"As a means to diversify our revenue streams and solidify our market position, we have taken our first steps into outdoor advertising.  In October we entered into an agency agreement with Goto Media, which owns advertising space in all major high-speed railway stations in China.  Currently there are 13 high-speed railway stations in operation, featuring nearly 100 grand LED screens and 1,000 advertising light boxes. We have already formed a dedicated sales team to focus on the sales and marketing of our new outdoor products.  We expect this new line of business will be an additional source of revenues and profits in the coming year."

Mr. Eric Cheung, the Company's Chief Financial Officer, added, "With RMB400 million of cash and cash equivalents on hand, another RMB290 million in safe short-term investments and no debt, our balance sheet remains healthy and gives us the flexibility to invest in opportunities as they arise while leaving ample room to issue a dividend at some point in the future."

China Mass Media Corp.  today announced that its board of directors has approved a share repurchase program.

Under the terms of the approved program, China Mass Media may repurchase up to US$6.0 million worth of its issued and outstanding American Depositary Shares ("ADSs").  

 Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media, commented, "We are pleased that our Board approved this new share repurchase program as it reflects confidence in the future growth of our business and our ongoing commitment to increase shareholder value. The company's healthy balance sheet and strong operating cash flows will allow it to both implement this program, and to invest in other projects in order to achieve future growth and maximize value for our shareholders."

"Conditions in the Chinese advertising market began to improve towards the end of 2009. We saw our clients start to become much more active in allocating their advertising budgets to both new and old projects during the fourth quarter. We took advantage of our strong media resources to meet their increased demand and higher advertising budgets."

"We are confident that the economy and the advertising industry will remain strong throughout 2010. We closely reviewed our stock of media resources last quarter and decided to intentionally give up certain high risk and low profitability products. We intend to focus our efforts on the sales and marketing of our primary resources to maximize our profit margin."

"The Company currently expects to generate total net revenues of between RMB58 million to RMB 64 million for the first quarter of 2010, which represents a potential decrease of 57.3% to 61.3 % compared to the first quarter of 2009. The expected decrease will be mainly because the Company no longer owns the advertising rights to CCTV's Chinese New Year Gala show, and because the Company now has fewer media resources available for sale on CCTV-4 due to efforts to improve profit margins. The guidance also reflects a potential decrease of 45.4% to 50.5% compared to the fourth quarter of 2009, primarily due to seasonality factors."

Source: PR Newswire (March 8, 2010)

Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media, commented, "While the broader economy in China, especially the stock and property markets, appeared to rebound fairly well in the second quarter, we remain in the shadow of the global economic recession and our customers did not increase their advertising budgets during the period. Generally speaking, advertising budgets in the current year were set at the end of last year when the global economic crisis started to have its impact on the Chinese economy.

Given the fact that the second quarter is usually the low season for the advertising industry and there were no special events, advertisers chose not to increase their spending and our sales were affected as a result. However, we decided to take advantage of this quiet period to initiate a number of changes to reposition ourselves for future growth. During the quarter, we recruited a number of senior sales staff to further strengthen our sale force, restructured our sales team with an aim to better serve our customers, and implemented a new incentive plan to better align our sales people with our company's growth objectives. We believe such changes will have a positive effect on our sales in the coming months.

3rd Quarter 2009 Guidance Ending September ^a

	3rd Quarter 2009 Guidance	3rd  QUARTER 2008	Period Change
GAAP Revenue	$9.5 to $11.0 million	$10.0 million	-11.1% to  2.5%

Source: PR Newswire (August 31, 2009)

^a Company forecasts reflects the Company's current and preliminary view, which is subject to change.

“Looking forward, we believe that advertising demand may recover considerably in the second half of this year as the economic stimulus package begins to take effect in China, the global economy continues to gradually improve and domestic consumption starts to pick up. We attempt to take advantage of every market opportunity to increase our sales and produce higher returns for our shareholders. In addition to our agency services, we plan to further expand our business in the area of content production. We recently converted a newly purchased property into a production studio to expand our production capacity. Inspired by our successful experience with the Gala program, we believe there are significant opportunities for us to make advertisements in the form of three-minute-long films where the advertising messages are embedded into the program which may help increase the impact of the advertisement on the viewer, thus maximizing the value to our clients. We will continue to broaden our service offerings to meet the evolving needs of our clients.”

 2nd Quarter 2009 Guidance Ending June ^a

	2nd Quarter 2009 Guidance	2nd QUARTER 2008	Period Change
GAAP Revenue	$11.7 to $13.9 million	$10.0 million	17.5% to 39.5%

Source: See Release

^a Company forecasts reflects the Company's current and preliminary view, which is subject to change.

Guidance Report:

Mr. Shengcheng Wang concluded, “The year 2008 was an exceptional year for China Mass Media. Despite of the extremely difficult capital market condition, we have become a member of the largest capital markets in the world. We had also partnered with CCTV to promote CCTV Channel 1 and 2 media resources during the Olympics. Just before the end of 2008, we had successfully renewed our annual contract with CCTV to be its exclusive advertising agent for promoting the Chinese New Year Gala program. 2009 will be the sixth consecutive year that the Company is reappointed.

 "Undoubtedly, 2009 will be a difficult year for everyone and our industry will be significantly affected as everyone is cutting their budgets and promotions. While the Chinese government has continued to roll out a series of industry reforms involving the automotive, iron and steel, telecommunications, and seven other major industries as part of the country’s RMB 40 billion economic stimulus plan, the reforms and actions will need time to be fully effective. Our core strategy in 2009 will focus on increasing our sales and marketing as well as customer service capabilities, optimizing the utilization of our current media resources to provide more value-added services to our customers.

First Quarter Fiscal 2009 Guidance Ending March

	First Quarter 2009 Guidance	First Quarter 2008 Reported	Period Change
GAAP Revenue	$ 16.1 to $ 17.6 million	$14.5 million	-10.7% to -18.1%

Source: Business Wire (February 24, 2009)