China Mass Media (NYSE:CMM)

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Friday, November 25, 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."

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Monday, November 7, 2011

BEIJING, November 7, 2011 /PRNewswire-Asia-FirstCall/ -- China Mass Media Corp. ("China Mass Media" or the "Company") (NYSE: CMM) announced today that, on October 13, 2011, the New York Stock Exchange ("NYSE") notified the Company that it has fallen below the NYSE's continued listing standard relating to the minimum price requirement of its American depositary shares (the "ADSs"). As of October 12, 2011, the 30 trading day average closing price of the Company's ADSs was US$0.98 per ADS, which was below the minimum requirement of US$1.00 for continued listing on the NYSE under Section 802.01C of the NYSE Listed Company Manual. As required by the NYSE, the Company notified the NYSE of its intention to cure the price deficiency.

Shortly after and without any Company specific action, the 'price of the Company's ADSs was above the NYSE's minimum price requirement of $1.00 based on a 30 trading day average, as well as the absolute price on October 31, 2011. Since NYSE rules permit demonstration of an accelerated cure based on a $1.00 ADS price on both the last trading day of any calendar month within the six-month cure period and the average ADS price over the 30 trading days preceding the end of that month, China Mass Media then regained compliance with the minimum price requirement. Since October 13, 2011, the ADSs of the Company have been traded in the range of US$1.00 to US$2.47 per ADS. As of November 4, 2011, or the last trading day immediately prior to this announcement, the Company's ADS was traded above the minimum share price standard.

With the aim to continue its listing on the NYSE, China Mass Media have decided to change the ratio of its ordinary shares to ADSs from 30:1 to 300:1, expected to be effective on November 28, 2011. For the Company's ADS holders, this ratio change will have the same effect as a one-for-ten ADS consolidation. Cash will be paid to ADS holders in lieu of any fractional ADSs entitlements resulting from the ratio change. There will be no change to China Mass Media's underlying ordinary shares.

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