QJY Acquires Exclusive Advertising Agency Rights of the Yunnan Culture Digital Channel

QJY Acquires Exclusive Advertising Agency Rights of the Yunnan Culture Digital Channel

Alliance with Korean 'GS' Build TV shopping business

Bring an increase on advertising value of RMB 75 Million

HONG KONG, May 26 /PRNewswire-Asia/ -- Qin Jia Yuan Media Services Company Limited (HKEx: 2366, hereinafter referred to as the "Group" or "QJY") announced the acquisition of the exclusive advertising agency rights of the Yunnan Culture Digital Channel.

The Yunnan Culture Digital Channel is a new channel in Yunnan Province. Its signals are transmitted in both digital and analogue modes through the cable TV network under the provincial broadcasting and TV system. This channel covers more than 1.7 million TV households in 92 cities/counties across 15 districts of Yunnan Province. As soon as the full service of the digital network is in place, the number of TV households covered by this channel will increase to 2.5 million. The channel broadcasts 24 hours a day, providing main TV content such as TV dramas, movies and culture documentaries. QJY will commence TV shopping business by launching a TV shopping column on this channel for the first time.

Dr Anita Leung Fung Yee ("Dr. Leung"), CEO of QJY, said, "This acquisition will bring an increase in advertising rate-card value of RMB 35 million for the Group each year. With abundant TV drama resources from the Group and culture documentaries provided by the channel, QJY will not need to further invest in TV program production. This business model will achieve high cost-effectiveness and secure a good return on the investment for the Group."

The first-time "TV shopping column" to be launched in the channel not only provides shopping convenience for the audience, but also creates an extra platform for profit and revenue for the Group. Mr. David Liu, the Chairman of the Group's Strategy Committee, mentioned, "The TV shopping market in mainland China is still at its early stage and lags far behind the US and Korean markets. With the surging GDP growth in China, there is ample room for growth. QJY has decided to enter China's TV shopping market after careful deliberation. In 2007, the TV shopping industry in China reached RMB 10.5 billion. The relatively mature TV shopping channels and companies in China have achieved good results. For example, the monthly sales of the Oriental Shopping Channel, which was launched in 2004, had reached sales in the value of RMB 210 million in early 2009 (quoted from China Business News on 2 February). QJY has confidence in achieving good results in this sector."

By developing the shopping advertising business in a TV supermarket concept without having to spend monetary resources on inventory or the distribution & logistics areas, it is expected the business will have a positive impact in enhancing the Group's cash flow.

QJY has signed a cooperation agreement with the No. 1 home shopping brand in Korea - GS Home Shopping ("GS"). It is one of the foremost and largest TV shopping enterprise in Korea, with total sales amounted to 1,824 billion Korean won in 2007. The shopping column on the Yunnan Culture Digital Channel is the first project jointly run by QJY and GS, with airtime of 14 hours a day. GS will be responsible for advertisement production, product supplies, and logistics, while QJY will be in charge of TV platform resources and media promotion. It is believed that this strong collaboration between GS and QJY is a win-win scenario with a target annual sales of RMB 40 million.

For media enquiries, please contact:

Katherine Chan
Account Executive
Tel: +852-3101-4683 or +852-6075-3738

Source: Qin Jia Yuan Media Services Company Limited

CONTACT: Trimaran Corporate Communications, Katherine Chan, +852-3101-
4683 or +852-6075-3738 for Qin Jia Yuan Media Services Company Limited

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