A8 Music Signs Exclusive Cooperation Agreement with HIM

A8 Music Signs Exclusive Cooperation Agreement with HIM

Enhances Music Content, Enlarges Share in Mobile Music Market

HONG KONG, April 16 /PRNewswire-Asia/ -- A8 Digital Music Holdings Limited ("A8" or the "Group") (stock code: 00800.HK), a leading integrated digital music company in China, has signed a two-year cooperative agreement with renowned Taiwan record company HIM International Music Inc. ("HIM").

According to the agreement, A8 will have the transferable exclusive right to use all the songs in the HIM music bank in the mobile sector in China within two years. On the other hand, HIM can utilize the interactive UGC platform ( http://www.a8.com/ ) of A8 as a music source and a promotional platform for its budding artists and new songs. Also, HIM will work closely with A8 in talent resources allocation, such as arranging artists to attend A8 events. The cooperation is going to serve as a platform for musicians in China and Taiwan to interact and engage in artistic creation.

Mr. Liu Xiaosong, Chairman of A8, said, "We are very pleased to be working with HIM, which is known for its ability to nurture new artists. Over the years, it has successfully groomed S.H.E. and Fahrenheit whom have loyal followers in the Greater China region. They are so popular that there will be a huge demand for their ringtone and ringback tone products. Furthermore, with 3G mobile communications kicked off in the country, multimedia ringback tone and full track downloads are going to be very easy and thus in great demand. We are looking at a mobile music market with immense potential and expect the music provided by HIM can consolidate our leading position in the digital music market, shaping up A8 to be the number one digital music company in China."

HIM is a famous record company in Taiwan and has an entourage of artists and pop groups including S.H.E., Fahrenheit, Power Station, Jade Liu and Yoga, etc. Active in record, movie and TV production, S.H.E. is very popular in the Greater China region and ranked first on the 2008 Baidu band list. It has sold eight million records accumulatively in China so far, testifying to their popularity among fans and the marketing excellence of HIM. The fact that a traditional music company like HIM is actively developing digital music value-added services is proof of the enormous development potential of the digital music market. The partnership also speaks to the outstanding capability of A8 in marketing and promotion of mobile music, cooperating with various operators and its comprehensive operational system. It will allow HIM to promote its artists in the traditional way as well as on innovative channels to enhance exposure of the artists and at the same time develop the source of digital music revenue.

As a leading digital music company in China, A8 boasts strong and centralized sales and marketing capabilities and channels. It also owns a successful UGC platform and a pool of more than 60,000 original works of music, giving it extraordinary edges in terms of brand image, contents and technologies in the sector. The partnership will allow A8 to enrich its music bank and attract more business from telecom operators with its quality music contents and hence boost income. In addition, with original music talents as well as access to music contents of a traditional music company, the Group will have greater control on music contents to facilitate development of new businesses.

Mr. Liu concluded, "The development of traditional music has reached maturity, whereas that of digital music has much potential to exploit. We believe digital music will become the mainstream and has tremendous room for growth as, according to an IFPI report published in 2008, China only accounted for 1% of the global digital music market in value. The cooperation with HIM plus our advantages in contents, technology and sales, as well as ability to integrate traditional and innovative sales and marketing media tactics, we are confident of enlarging our share in the fast growing digital music market and offering more choices of music for music lovers in China. The Group is well prepared for the advent of 3G and will step up research and development to facilitate tapping of related opportunities."

About A8 Digital Music Holdings Limited

A8 Digital Music is a leading integrated digital music company that sells music content through mobile phones, sourced from its highly successful interactive UGC platform http://www.a8.com/ , as well as from international and domestic record labels, and promote through traditional and new media such as internet and mobile network. Led by a team of experienced top executives with foresight and vision, the Group is able to capitalise on its integrated marketing and sales multi-channel network to acquire insights into consumer preferences in different regions and thus customise its marketing strategies.

About Him International Music Inc.

Founded by music industry veteran Mr. Y.C. Lu in 1999, HIM is renowned for its popular works of music and ability in grooming new artists. Mr. Lu has extensive experience in the music circle and a passion for pop music and knows well that music is the essence of contemporary culture value by the modern man. He set up HIM because he sees strong prospects for the music and entertainment industry and that it is his wish to give fun to the community by presenting it with good music and artists. By marrying music and the personalities of artists, it hopes to reap the biggest returns for the company. Currently, the company's entourage includes S.H.E., Fahrenheit, Power Station and Tank. It is also working with talents shows to groom promising talents, and the budding artists it currently manages include Yoga, Judy Chou, Peter Pan, Stanly Xu and Jade Liu.

For press enquiries:

Strategic Financial Relations (China) Limited
Ms. Esther Lau
Tel: +852-2864-4845
Email: esther.lau@sprg.com.hk

Mr. Marcus Keung
Tel: +852-2114-4967
Email: marcus.keung@sprg.com.hk

Ms. Janice Au
Tel: +852-2864-4874
Email: janice.au@sprg.com.hk

Ms. Annie Choi
Tel: +852-2864-4837
Email: annie.choi@sprg.com.hk

Source: A8 Digital Music Holdings Limited

CONTACT: Ms. Esther Lau, +852-2864-4845, esther.lau@sprg.com.hk ; Mr.
Marcus Keung,+852-2114-4967, marcus.keung@sprg.com.hk ; Ms. Janice Au,
+852-2864-4874, janice.au@sprg.com.hk ; Ms. Annie Choi, +852-2864-4837,
annie.choi@sprg.com.hk , all of Strategic Financial Relations (China) Limited
for A8 Digital Music Holdings Limited

Web site: http://www.a8.com/

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