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AirMedia Announces Unaudited Fourth Quarter and Fiscal Year 2012 Financial Results

  AirMedia Announces Unaudited Fourth Quarter and Fiscal Year 2012 Financial
                                   Results

PR Newswire

BEIJING, March 14, 2013

BEIJING, March 14, 2013 /PRNewswire/ -- AirMedia Group Inc. ("AirMedia" or the
"Company") (Nasdaq: AMCN), a leading operator of out-of-home advertising
platforms in China targeting mid-to-high-end consumers, today announced its
unaudited financial results for the fourth quarter and the full year ended
December 31, 2012.

Fourth Quarter 2012 Financial and Business Highlights

  oTotal revenues decreased by 4.2% year-over-year and increased by 15.2%
    quarter-over-quarter to US$84.2 million. The year-over-year decrease was
    partially due to China's replacement of regular business tax with Value
    Added Tax ("VAT") in Beijing, one of AirMedia's key regions of operations.
  oNet revenues decreased by 2.8% year-over-year and increased by 15.8%
    quarter-over-quarter to US$82.6 million.
  oNet income attributable to AirMedia's shareholders was US$3.4 million.
    Basic and diluted net income attributable to AirMedia's shareholders per
    American Depositary Share ("ADS") were both US$0.05.
  oAdjusted net income attributable to AirMedia's shareholders (non-GAAP),
    which is net income attributable to AirMedia's shareholders excluding
    share-based compensation expenses, amortization of acquired intangible
    assets, impairment of goodwill, and impairment of intangible assets, was
    US$4.4 million. Adjusted basic net income attributable to AirMedia's
    shareholders per ADS (non-GAAP), which is adjusted net income attributable
    to AirMedia's shareholders (non-GAAP) divided by the number of ADSs
    outstanding, was US$0.07. Adjusted diluted net income attributable to
    AirMedia's shareholders per ADS (non-GAAP), which is adjusted net income
    attributable to AirMedia's shareholders (non-GAAP) divided by the number
    of ADSs outstanding as adjusted for dilution after taking into account
    option grants under the Company's current Share Incentive Plan, was
    US$0.07.

Fiscal Year 2012  Financial Highlights

  oTotal revenues increased by 5.5% year-over-year to US$293.0 million.
  oNet revenues increased by 6.0% year-over-year to US286.7 million.
  oNet loss attributable to AirMedia's shareholders was US$32.7 million,
    which included an impairment of goodwill and an impairment of intangible
    assets of total US$30.2 million. Basic and diluted net loss attributable
    to AirMedia's shareholders per ADS were both US$0.53.
  oAdjusted net income attributable to AirMedia's shareholders (non-GAAP) was
    US$3.6 million. Adjusted basic net income attributable to AirMedia's
    shareholders per ADS (non-GAAP) was US$0.06. Adjusted diluted net income
    attributable to AirMedia's shareholders per ADS (non-GAAP) was US$0.06.

"Thanks to the strong growth in advertising from automobile manufacturers and
sequential growth from most of our top ten advertising industries, we were
able to raise our net revenue guidance of the fourth quarter of 2012 in
January 2013 and meet our guidance at the high end. We achieved income from
operations of US$6.5 million in the fourth quarter of 2012, a record high
quarterly number for us in the past four years," commented Mr. Herman Guo,
chairman and chief executive officer of AirMedia.

"Our mega-size LED screens have become the biggest growth driver for our
company in 2012, even though many of the mega-size LED screens currently in
operation commenced operations in the second half of 2012. We currently
operate mega-size LED screens in seven airports and are in the process of
installing mega-size LED screens in another four airports. With the operations
of our mega-size LED screens in more airports in 2013, we expect that revenues
from this product line will continue to grow fast and that it will become an
important product line for our company," added Mr. Herman Guo. "We have
realized that the key to make our company profitable again is not only about
top-line growth, but also about how we can turn around our unprofitable
product lines, which will help us improve our margins. We have identified some
possible solutions and directions for our loss-making product lines such as
our gas station media network, and are in the process of implementing such
solutions."

"We made improvements on cost control in fiscal year 2012. Net revenues of
fiscal year 2012 grew by 6.0% year-over-year while cost of revenues only
increased by 2.5% year-over-year. Non-GAAP adjusted net income for fiscal year
2012 increased by 669.9% year-over-year, which reflected the operating
leverage of our business model. We will continue to focus on increasing our
revenues and eliminating the losses from our unprofitable product lines in
2013," Mr. Henry Ho, AirMedia's chief financial officer, commented.

Fourth Quarter 2012 Financial Results

Revenues

Total revenues by product line (numbers in US$ 000's except for percentages):

             QuarterEnded % of      Quarter Ended % of      QuarterEnded % of      Y/Y     Q/Q
             December31,  Total     September30, Total     December31,  Total     Growth  Growth
             2012          Revenues  2012          Revenues  2011          Revenues  rate    rate
Air Travel
Media        76,931        91.3%     66,233        90.6%     79,434        90.4%     -3.2%   16.2%
Network
 Digital
frames in    40,770        48.4%     34,993        47.9%     38,287        43.6%     6.5%    16.5%
airports
 Digital
TV screens   5,408         6.4%      2,740         3.7%      9,370         10.7%     -42.3%  97.4%
in airports
 Digital
TV screens   7,874         9.4%      6,578         9.0%      7,533         8.6%      4.5%    19.7%
on
airplanes

Traditional  20,802        24.7%     20,113        27.5%     22,234        25.3%     -6.4%   3.4%
media in
airports
 Other
revenues in  2,077         2.4%      1,809         2.5%      2,010         2.2%      3.3%    14.8%
air travel
Gas Station
Media        4,760         5.7%      3,889         5.3%      5,948         6.8%      -20.0%  22.4%
Network
Other Media  2,491         3.0%      2,984         4.1%      2,448         2.8%      1.8%    -16.5%
Total        84,182        100.0%    73,106        100.0%    87,830        100.0%    -4.2%   15.2%
revenues
Net          82,647                  71,368                  84,994                  -2.8%   15.8%
revenues

Total revenues for the fourth quarter of 2012 reached US$84.2 million,
representing a year-over-year decrease of 4.2% from US$87.8 million in the
same period one year ago and a quarter-over-quarter increase of 15.2% from
US$73.1 million in the previous quarter. The year-over-year decrease was
primarily due to decreases in revenues from digital TV screens in airports,
traditional media in airports and gas station media network as well as China's
replacement of regular business tax with VAT in Beijing, one of AirMedia's key
regions of operations. Prior to September 1, 2012, revenues were recorded
gross of business tax and subsequent to the change, revenues are recorded net
of VAT thereafter. Revenues from most of the Company's product lines booked in
total revenues and the above breakdown in the fourth quarter of 2012 were
already net revenues after deducting VAT, while revenues in the fourth quarter
of 2011 and most revenues in the previous quarter were booked before deducting
business tax, which was partially the reason for the year-over-year decrease
and partially offset the quarter-over-quarter increase, as such year-over-year
and quarter-over-quarter revenue comparisons cannot be made when revenues are
not booked on the same basis. The quarter-over-quarter increase in total
revenues was primarily due to increases in revenues from most of the Company's
products lines.

Revenues from digital frames in airports

Revenues from digital frames in airports for the fourth quarter of 2012
increased by 6.5% year-over-year and by 16.5% quarter-over-quarter to US$40.8
million. The year-over-year increase was due to additional revenues from the
rapidly growing product line of mega-size LED screens, which added operations
in additional airports. The quarter-over-quarter increase was primarily due to
advertisers' year-end budget flush, additional revenues from the rapidly
growing product line of mega-size LED screens and a seasonally strong quarter
in the fourth quarter.

Revenues from digital TV screens in airports

Revenues from digital TV screens in airports for the fourth quarter of 2012
decreased by 42.3% year-over-year and increased by 97.4% quarter-over-quarter
to US$5.4 million. The year-over-year decrease was primarily due to a drop in
demand from advertisers as a result of competition from AirMedia's other
product lines and the fact that, with the rapid development of mobile
internet, more people now pay attention to their cell phones instead of
AirMedia's digital TV screens. The quarter-over-quarter increase was primarily
due to advertisers' year-end budget flush and a seasonally strong quarter in
the fourth quarter.

Revenues from digital TV screens on airplanes

Revenues from digital TV screens on airplanes for the fourth quarter of 2012
increased by 4.5% year-over-year and by 19.7% quarter-over-quarter to US$7.9
million. The year-over-year increase was primarily due to the Company's
continued sales efforts. The quarter-over-quarter increase was primarily due
to advertisers' year-end budget flush and a seasonally strong quarter in the
fourth quarter.

Revenues from traditional media in airports

Revenues from traditional media in airports for the fourth quarter of 2012
decreased by 6.4% year-over-year and increased by 3.4% quarter-over-quarter to
US$20.8 million. The year-over-year decrease was primarily due to a reduction
in the number of locations for sale as a result ofa delay in a scheduled
media format upgrade. AirMedia was upgrading 18 light boxes at prime locations
inside the Beijing Capital International Airport to a better advertising
format, but the upgrade is behind schedule. The quarter-over-quarter increase
was primarily due to a seasonally strong quarter in the fourth quarter.

Revenues from the gas station media network

Revenues from the gas station media network for the fourth quarter of 2012
decreased by 20.0% year-over-year and increased by 22.4% quarter-over-quarter
to US$4.8 million. The year-over-year decrease was primarily due to an
exceptionally strong quarter in the fourth quarter of 2011. Advertisers cut
spending on non-core advertising media, such as gas station advertising, in
the first half of 2012 due to limited advertising budgets as a result of
advertisers' concern regarding the state of China's economy. Revenues from the
Company's gas station media network began to rebound in the third quarter and
fourth quarter of 2012, but were not yet back to the level they were in the
fourth quarter of 2011. The quarter-over-quarter increase was primarily due to
advertisers' year-end budget flush and a seasonally strong quarter in the
fourth quarter.

Revenues from other media

Revenues from other media were primarily revenues from unipole signs and other
outdoors media. Revenues from other media for the fourth quarter of 2012
increased by 1.8% year-over-year and decreased by 16.5% quarter-over-quarter
to US$2.5 million. The year-over-year increase was primarily due to the
Company's continued sales efforts. The quarter-over-quarter decrease was
primarily due to expiration of the contracts for some locations in November
and December 2012. AirMedia has renewed some of these contracts and expect to
resume operations of these locations in February 2013.

Business tax and other sales tax

Business tax and other sales tax for the fourth quarter of 2012 were US$1.5
million, compared to US$2.8 million in the same period one year ago and US$1.7
million in the previous quarter. The year-over-year and quarter-over-quarter
decreases were due to China's replacement of regular business tax with the VAT
in Beijing, one of AirMedia's key regions of operations. Prior to September 1,
2012, revenues were recorded gross of business tax and subsequent to the
change, revenues are recorded net of VAT thereafter. Revenues from most of the
Company's product lines booked in total revenues were already net revenues
after deducting VAT in the fourth quarter of 2012. Only some revenues in
"other revenues in air travel" are still subject to business tax. The majority
of the Company's business tax and other sales tax, amounting to US$1.4 million
in the fourth quarter of 2012, were other sales tax.

Net revenues

Net revenues for the fourth quarter of 2012 reached US$82.6 million,
representing a year-over-year decrease of 2.8% from US$85.0 million in the
same period one year ago and a quarter-over-quarter increase of 15.8% from
US$71.4 million in the previous quarter.

Cost of Revenues

Cost of revenues for the fourth quarter of 2012 was US$65.4 million,
representing a year-over-year decrease of 0.6% from 65.8 million in the same
period one year ago and a quarter-over-quarter increase of 4.5% from US$62.6
million in the previous quarter. The year-over-year decrease was primarily due
to lower agency fees for third-party advertising agencies, which were
partially offset by a non-cash loss on the disposal of certain fixed assets of
US$0.8 million and higher concession fees. The year-over-year decrease in
agency fees was primarily due to a lower revenue base and a partial reversal
of certain previously accrued agency fees of US$1.5 million that were waived
by the related agents. The quarter-over-quarter increase in cost of revenues
was primarily due to higher agency fees for third-party advertising agencies,
the disposal of fixed assets and higher concession fees. Cost of revenues as a
percentage of net revenues in the fourth quarter of 2012 was 79.1%, up from
77.4% in the same period one year ago and down from 87.7% in the previous
quarter.

AirMedia incurs concession fees to airports for placing and operating digital
frames, digital TV screens, traditional media and other displays in airports,
to airlines for playing programs on their digital TV screens, to Sinopec for
placing outdoors media in its gas stations and to other media resources owners
for placing unipole signs and other outdoors media.

Concession fees for the fourth quarter of 2012 increased by 9.2%
year-over-year and by 1.4% quarter-over-quarter to US$45.1 million. The
year-over-year and quarter-over-quarter increases were primarily due to newly
signed or renewed concession rights contracts during the period. Concession
fees as a percentage of net revenues in the fourth quarter of 2012 was 54.6%,
increasing from 48.6% in the same period one year ago and decreasing from
62.4% in the previous quarter. The year-over-year increase of concession fees
as a percentage of net revenues was primarily due to the fact that net
revenues decreased while concession fees increased due to newly signed or
renewed concession rights contracts. The quarter-over-quarter decrease of
concession fees as a percentage of net revenues was primarily due to the fact
that net revenues grew at a faster pace than concession fees.

Gross Profit

Gross profit for the fourth quarter of 2012 decreased by 10.3% year-over-year
and increased by 95.7% quarter-over-quarter to US$17.3 million.

Gross profit as a percentage of net revenues for the fourth quarter of 2012
was 20.9%, compared to 22.6% in the same period one year ago and 12.3% in the
previous quarter. The quarter-over-quarter increase in gross profit as a
percentage of net revenues was due to the fact that net revenues grew faster
than cost of revenues.

Operating Expenses

Operating expenses (numbers in US$ 000's except for percentages):

                                        QuarterEnded % of Net  Quarter Ended % of Net  QuarterEnded % of Net  Y/Y    Q/Q
                                        December31,  Revenues  September30, Revenues  December31,  Revenues  Growth Growth
                                        2012                    2012                    2011                    rate   rate
Selling and marketing expenses          5,289         6.4%      4,461         6.3%      4,984         5.9%      6.1%   18.6%
General and administrative expenses     5,430         6.6%      5,228         7.3%      7,245         8.5%      -25.1% 3.9%
Impairment of goodwill                  -             0.0%      20,611        28.9%     1,003         1.2%      N/A    N/A
Impairment of intangible asset          -             0.0%      9,583         13.4%     -             0.0%      N/A    N/A
Totaloperating                         10,719        13.0%     39,883        55.9%     13,232        15.6%     -19.0% -73.1%
expenses
Adjusted operating expenses (non-GAAP)  9,721         11.8%     8,256         11.6%     10,695        12.6%     -9.1%  17.7%

Total operating expenses for the fourth quarter of 2012 were US$10.7 million,
representing a year-over-year decrease of 19.0% from US$13.2 million in the
same period one year ago and a quarter-over-quarter decrease of 73.1% from
US$39.9 million in the previous quarter. The year-over-year decrease was
primarily due to fewer amortization of acquired intangible assets and the fact
that there was an impairment of goodwill of US$1.0 million in the same period
one year ago. The quarter-over-quarter decrease was primarily due to the fact
that there were an impairment of goodwill of US$20.6 million and an impairment
of intangible assets of US$9.6 million in the previous quarter.

Share-based compensation expenses included in the total operating expenses for
the fourth quarter of 2012 were US$804,000, compared to share-based
compensation expenses of US$582,000 in the same period one year ago and
share-based compensation expenses of US$713,000 in the previous quarter. The
year-over-year and quarter-over-quarter increases in share-based compensation
expenses were primarily due to the fact that the Company granted certain stock
options on September 1, 2012 and the fact that the deadline for certain stock
option holders to exercise their vested stock options were extended to
November 29, 2015.

Adjusted operating expenses (non-GAAP), which excluded share-based
compensation expenses, amortization of acquired intangible assets, impairment
of goodwill, and impairment of intangible assets, were US$9.7 million for the
fourth quarter of 2012, representing a year-over-year decrease of 9.1% from
US$10.7 million in the same period one year ago and a quarter-over-quarter
increase of 17.7% from US$8.3 million in the previous quarter. Adjusted
operating expenses as a percentage of net revenues (non-GAAP), which is
calculated by dividing adjusted operating expenses (non-GAAP) by net revenues,
was 11.8% in the fourth quarter of 2012, compared to 12.6% in the same period
one year ago and 11.6% in the previous quarter.

Please refer to the attached table captioned "Reconciliation of GAAP Operating
Expenses to Non-GAAP Adjusted Operating Expenses" for a reconciliation of
operating expenses under U.S. GAAP to adjusted operating expenses (non-GAAP).

Selling and marketing expenses for the fourth quarter of 2012 were US$5.3
million, including share-based compensation expenses of US$91,000. This
represented a year-over-year increase of 6.1% from US$5.0 million and a
quarter-over-quarter increase of 18.6% from US$4.5 million. The year-over-year
increase was primarily due to higher marketing expenses and higher public
relations and entertainment expenses. The quarter-over-quarter increase was
primarily due to higher sales commissions for the Company's direct sales
force.

General and administrative expenses for the fourth quarter of 2012 were US$5.4
million, including share-based compensation expenses of US$713,000. This
represented a year-over-year decrease of 25.1% from US$7.2 million in the same
period one year ago and a quarter-over-quarter increase of 3.9% from US$5.2
million in the previous quarter. The year-over-year decrease was primarily due
to lower bad-debt provision and lower amortization of acquired intangible
assets, which were partially offset by higher salary expenses, higher public
relations and entertainment expenses and higher share-based compensation
expenses. The quarter-over-quarter increase was primarily due to higher salary
expenses, higher professional fees, and higher public relations and
entertainment expenses, which were partially offset by lower amortization of
acquired intangible assets.

Income/Loss from Operations

Income from operations for the fourth quarter of 2012 was US$6.5 million,
compared to income from operations of US$6.0 million in the same period one
year ago and loss from operations of US$31.1 million in the previous quarter.
Income from operations as a percentage of net revenues for the fourth quarter
of 2012 was 7.9%, compared to 7.1% in the same period one year ago and
negative 43.5% in the previous quarter.

Adjusted income from operations (non-GAAP), which excluded share-based
compensation expenses, amortization of acquired intangible assets, impairment
of goodwill and impairment of intangible assets, was US$7.5 million for the
fourth quarter of 2012, compared to adjusted income from operations (non-GAAP)
of US$8.5 million in the same period one year ago and adjusted income from
operations (non-GAAP) of US$557,000 in the previous quarter. Adjusted
operating margin (non-GAAP), which excluded the effect of share-based
compensation expenses, amortization of acquired intangible assets, impairment
of goodwill, and impairment of intangible assets, was 9.1% for the fourth
quarter of 2012, compared to 10.0% in the same period one year ago and 0.8% in
the previous quarter.

Please refer to the attached table captioned "Reconciliation of GAAP Income
(Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations" for
a reconciliation of income (loss) from operations under U.S. GAAP to adjusted
income (loss) from operations (non-GAAP).

Income Tax Expenses/Benefits

Income tax expenses for the fourth quarter of 2012 were US$4.2 million,
compared to income tax expenses of US$2.4 million in the same period one year
ago and income tax benefits of US$3.0 million in the previous quarter.

Net Income/Loss Attributable to AirMedia's Shareholders

Net income attributable to AirMedia's shareholders for the fourth quarter of
2012 was US$3.4 million, compared to net income attributable to AirMedia's
shareholders of US$4.6 million in the same period one year ago and net loss
attributable to AirMedia's shareholders of US$27.3 million in the previous
quarter. The basic net income attributable to AirMedia's shareholders per ADS
for the fourth quarter of 2012 was US$0.05, compared to basic net income
attributable to AirMedia's shareholders per ADS of US$0.07 in the same period
one year ago and basic net loss attributable to AirMedia's shareholders per
ADS of US$0.44 in the previous quarter. The diluted net income attributable to
AirMedia's shareholders per ADS for the fourth quarter of 2012 was US$0.05,
compared to diluted net income attributable to AirMedia's shareholders per ADS
of US$0.07 in the same period one year ago and diluted net loss attributable
to AirMedia's shareholders per ADS of US$0.44 in the previous quarter.

Adjusted net income attributable to AirMedia's shareholders (non-GAAP) was
US$4.4 million for the fourth quarter of 2012, compared to adjusted net income
attributable to AirMedia's shareholders (non-GAAP) of US$7.2 million in the
same period one year ago and adjusted net income attributable to AirMedia's
shareholders (non-GAAP) of US$4.3 million in the previous quarter. Adjusted
basic net income attributable to AirMedia's shareholders per ADS (non-GAAP)
was US$0.07 for the fourth quarter of 2012, compared to adjusted basic net
income attributable to AirMedia's shareholders per ADS (non-GAAP) of US$0.11
in the same period one year ago and adjusted basic net income attributable to
AirMedia's shareholders per ADS (non-GAAP) of US$0.07 in the previous quarter.
Adjusted diluted net income attributable to AirMedia's shareholders per ADS
(non-GAAP) was US$0.07 for the fourth quarter of 2012, compared to adjusted
diluted net income attributable to AirMedia's shareholders per ADS (non-GAAP)
of US$0.11 in the same period one year ago and adjusted diluted net income
attributable to AirMedia's shareholders per ADS (non-GAAP) of US$0.07 in the
previous quarter.

Please refer to the attached table captioned "Reconciliation of GAAP Net
Income (Loss) and EPS to Non-GAAP Adjusted Net Income and EPS" for a
reconciliation of net income (loss) attributable to AirMedia's shareholders
and basic and diluted net income (loss) attributable to AirMedia's
shareholders per ADS under U.S. GAAP to adjusted net income attributable to
AirMedia's shareholders (non-GAAP) and adjusted basic and diluted net income
attributable to AirMedia's shareholders per ADS (non-GAAP).

Fiscal Year 2012 Financial Results

Revenues

Total revenues by product line (numbers in US$ 000's except for percentages):

                        Year ended   % of Total  Year ended   % of      Y/Y
                        December31, Revenues    December31, Total     Growth
                        2012                     2011         Revenues  rate
Air Travel Media        268,509      91.6%       255,161      91.9%     5.2%
Network
 Digital frames in     137,342      46.9%       126,539      45.5%     8.5%
airports
 Digital TV screens    13,731       4.7%        21,937       7.9%      -37.4%
in airports
 Digital TV screens    26,612       9.1%        26,734       9.6%      -0.5%
on airplanes
 Traditional media in  83,478       28.5%       73,535       26.5%     13.5%
airports
 Other revenues in     7,346        2.4%        6,416        2.4%      14.5%
air travel
Gas Station Media       14,217       4.9%        12,873       4.6%      10.4%
Network
Other Media             10,239       3.5%        9,787        3.5%      4.6%
Total revenues          292,965      100.0%      277,821      100.0%    5.5%
Net revenues            286,742                  270,624                6.0%

Total revenues for the fiscal year 2012 were US$293.0 million, representing a
year-over-year increase of 5.5% from US$277.8 million in fiscal year 2011. The
year-over-year increase was primarily due to the increases in revenues from
digital frames in airports, traditional media in airports, and gas station
media network.

Revenues from digital frames in airports

Revenues from digital frames in airports for fiscal year 2012 increased by
8.5% year-over-year to US$137.3 million from US$126.5 million in fiscal year
2011 primarily due to the additional revenues from the rapidly growing product
line of mega-size LED screens and Company's continued sales efforts.

Revenues from digital TV screens in airports

Revenues from digital TV screens in airports for fiscal year 2012 decreased by
37.4% year-over-year to US$13.7 million due to a drop in demand from
advertisers resulted from competition from AirMedia's other product lines and
the fact that, with the rapid development of mobile internet, more people now
pay attention to their cell phones instead of AirMedia's digital TV screens.

Revenues from digital TV screens on airplanes

Revenues from digital TV screens on airplanes for fiscal year 2012 decreased
by 0.5% year-over-year to US$26.6 million.

Revenues from traditional media in airports

Revenues from traditional media in airports for fiscal year 2012 increased by
13.5% year-over-year to US$83.5 million. The year-over-year increase was
primarily due to the Company's continued sales efforts and an increase in
listing prices of many locations in 2012.

Revenues from the gas station media network

Revenues from the gas station media network for fiscal year 2012 increased by
10.4% year-over-year to US$14.2 million due to the Company's continued sales
efforts and advertisers' continually growing acceptance of AirMedia's gas
station media network.

Revenues from other media

Revenues from other media were primarily revenues from Beijing AirMedia City
Outdoor Advertising Co., Ltd., a company AirMedia acquired in January 2010,
which operates unipole signs and other outdoor media across Beijing. Revenues
from other media for fiscal year 2012 increased by 4.6% year-over-year to
US$10.2 million due to the Company's continued sales efforts.

Business tax and other sales tax

Business tax and other sales tax for fiscal year 2012 was US$6.2 million,
representing a year-over-year decrease of 13.5% from US$7.2 million in fiscal
year 2011 due to China's replacement of regular business tax with VAT in
Beijing, one of AirMedia's key regions of operations. Prior to September 1,
2012, revenues were recorded gross of business tax and subsequent to the
change, revenues are recorded net of VAT thereafter.

Net revenues for fiscal year 2012 were US$286.7 million, representing a
year-over-year increase of 6.0% from US$270.6 million in fiscal year 2011.

Cost of Revenues

Cost of revenues for fiscal year 2012 was US$250.6 million, representing a
year-over-year increase of 2.5% from US$244.5 million in fiscal year 2011,
primarily due to an increase in concession fees, which were partially offset
by lower agency fees for third-party advertising agencies. The year-over-year
decrease in agency fees was primarily due to a partial reversal of certain
previously accrued agency fees of US$6.4 million that were waived by the
related agents. Cost of revenues as a percentage of net revenues in fiscal
year 2012 decreased to 87.4% from 90.3% in fiscal year 2011.

Concession fees for fiscal year 2012 were US$178.0 million, representing a
year-over-year increase of 11.1% from US$160.2 million in fiscal year 2011,
primarily due to new signed and renewed concession contracts entered into in
2012. Concession fees as a percentage of net revenues in fiscal year 2011
increased to 62.1% from 59.2% in fiscal year 2011 primarily due to the fact
that concession fees grew faster than net revenues.

Gross Profit

Gross profit for fiscal year 2012 was US$36.1 million, representing a
year-over-year increase of 38.2% from US$26.2 million in fiscal year 2011.

Gross profit as a percentage of net revenues for fiscal year 2012 was 12.6%,
up from 9.7% in fiscal year 2011. The increase in gross profit as a percentage
of net revenues was primarily due to the fact that net revenues grew faster
than cost of revenues.

Operating Expenses

Operating expenses (numbers in US$ 000's except for percentages):

                                                      Year ended   % of Net  Year ended   % of Net  Y/Y
                                                      December31, Revenues  December31, Revenues  Growth
                                                      2012                   2011                   rate
Selling and marketing expenses                        17,995       6.3%      18,238       6.7%      -1.3%
General and administrative expenses                   21,842       7.6%      22,004       8.1%      -0.7%
Impairment of goodwill                                20,611       7.2%      1,003        0.4%      1954.9%
Impairment of intangible asset                        9,583        3.3%      656          0.2%      1360.8%
Totaloperatingexpenses 70,031       24.4%     41,901       15.4%     67.1%
Adjusted operating expenses (non-GAAP)                33,700       11.8%     31,837       11.8%     5.9%

Total operating expenses for fiscal year 2012 were US$70.0 million,
representing a year-over-year increase of 67.1% from US$41.9 million in fiscal
year 2011 primarily due to an impairment of goodwill of US$20.6 million and an
impairment of intangible asset of US$9.6 million in the third quarter of 2012.

Total operating expenses for fiscal year 2012 included share-based
compensation expenses of US$3.5 million, compared to US$4.6 million in fiscal
year 2011. Adjusted operating expenses (non-GAAP) for fiscal year 2012 were
US$33.7 million, representing a year-over-year increase of 5.9% from US$31.8
million in fiscal year 2011. Adjusted operating expenses as a percentage of
net revenues (non-GAAP) in fiscal year 2012 was 11.8%, unchanged from fiscal
year 2011.

Selling and marketing expenses for fiscal year 2012 were US$18.0 million,
including US$859,000 of share-based compensation expenses, relatively
unchanged from fiscal year 2011.

General and administrative expenses for fiscal year 2012 were US$21.8 million,
including $2.6 million of share-based compensation expenses, relatively
unchanged from fiscal year 2011.

Income/Loss from Operations

Loss from operations for fiscal year 2012 was US$33.9 million, compared to
loss from operations of US$15.7 million in fiscal year 2011. Loss from
operations as a percentage of net revenues for fiscal year 2012 was negative
11.8%, compared to negative 5.8% in fiscal year 2011.

Adjusted income from operations (non-GAAP) for fiscal year 2012 was US$2.4
million, compared to adjusted loss from operations (non-GAAP) of US$5.7
million in fiscal year 2011. Adjusted operating margin (non-GAAP) for fiscal
year 2012 was 0.8%, compared to negative 2.1% in fiscal year 2011.

Please refer to the attached table for a reconciliation of loss from
operations under U.S. GAAP to adjusted income (loss) from operations
(non-GAAP).

Income Tax Expenses

Income tax expenses for fiscal year 2012 were US$2.5 million, compared to
income tax expenses of US$266,000 in fiscal year 2011.

Net Income/Loss Attributable to AirMedia's Shareholders

Net loss attributable to AirMedia's shareholders for fiscal year 2012 was
US$32.7 million, compared to net loss attributable to AirMedia's shareholders
of US$9.6 million in fiscal year 2011. Basic net loss attributable to
AirMedia's shareholders per ADS for fiscal year 2012 was US$0.53, compared to
basic net loss attributable to AirMedia's shareholders per ADS of US$0.15 in
fiscal year 2011. Diluted net loss attributable to AirMedia's shareholders per
ADS for fiscal year 2012 was US$0.53, compared to diluted net loss
attributable to AirMedia's shareholders per ADS of US$0.15 in fiscal year
2011.

Adjusted net income attributable to AirMedia's shareholders (non-GAAP) for
fiscal year 2012 was US$3.6 million, compared to adjusted net income
attributable to AirMedia's shareholders (non-GAAP) of US$468,000 in fiscal
year 2011. Basic and diluted adjusted net income attributable to AirMedia's
shareholders per ADS (non-GAAP) for fiscal year 2012 were both US$0.06,
compared to basic and diluted adjusted net income attributable to AirMedia's
shareholders per ADS (non-GAAP) of US$0.01 in fiscal year 2011.

Please refer to the attached table for a reconciliation of (a) net loss
attributable to AirMedia's shareholders and basic and diluted net loss
attributable to AirMedia's shareholders per ADS under U.S. GAAP to (b)
adjusted net income attributable to AirMedia's shareholders and basic and
diluted adjusted net income attributable to AirMedia's shareholders per ADS
(non-GAAP), respectively.

Cash, Restricted Cash and Short-term Investments

Cash, restricted cash and short-term investments totaled US$126.3 million as
of December 31, 2012, compared to US$119.1 million as of December 31, 2011.
The increase in cash, restricted cash and short-term investments from December
31, 2011 was primarily due to positive cash flow from operations.

ADS Repurchases and Expansion of Share Repurchase Program

On March 21, 2011, AirMedia's board of directors authorized AirMedia to
repurchase up to US$20 million of its own outstanding ADSs within two years
from March 21, 2011. On September 24, 2012, AirMedia's board of directors
approved to increase the size of the share repurchase program to US$40 million
from US$20 million and to extend the termination date of the share repurchase
program to March 20, 2014 from March 20, 2013. As of March 10, 2013, AirMedia
had repurchased an aggregate of 5,253,343ADSs on the open market for a total
consideration of US$15.1million.

Director Announcement

On March 13, 2013, AirMedia expanded the size of its Board of Directors from
seven to eight members and appointed Mr. Conor Chiahung Yang as an independent
director to the Board and a member of its audit committee.

Other Recent Developments

On February 22, 2013, AirMedia obtained a concession rights contract to
install and operate a mega-size LED screen above the security check area at
the domestic departure hall in Hohhot Baita International Airport in Inner
Mongolia province for three years.

On January 1, 2013, AirMedia renewed its concession rights contract with
Shenzhen Bao'an International Airport to continue to operate its digital TV
screens at Terminals A and B of the airport from January 1, 2013 to December
31, 2013.

Due to disagreements over renewal fees, AirMedia decided not to renew its
concession rights contract for the digital TV screens on Air China's planes,
and instead became a selling agent for Air China's digital TV screens starting
from January 1, 2013. AirMedia believes it has the capability to convince most
of the original advertisers on Air China to reallocate their advertising
budgets to AirMedia's other product lines, especially AirMedia's digital
frames in airports. AirMedia expects that the loss in revenues due to the loss
of its concession rights contract with Air China would be smaller than the
concession fees it would need to pay to Air China under a renewed concession
rights contract. AirMedia believes that choosing not to renew the Air China
concession rights contract for the time being will be beneficial to the
Company, which will help AirMedia control increase of concession fee in the
long term.

In late December 2012, as a selling agent, AirMedia started to sell
advertisements on mega-size LED screens at Terminal 3 of Hangzhou Xiaoshan
International Airport in Zhejiang province, and in Jinan Yaoqiang
International Airport in Shandong province. AirMedia currently operates
mega-size LED screens in seven airports and is in the process of installing
mega-size LED screens in another four airports.

In December, 2012, AirMedia commenced operations of 58 stand-alone digital
frames and 54 set of digital TV screens at Terminal 2 of Chengdu Shuangliu
International Airport in Sichuan province.

Business Outlook

AirMedia currently expects its net revenues for the first quarter of 2013 to
range from US$61.0 million to US$63.0 million, representing a year-over-year
decrease of 7.8% to 4.8% from the same period in 2012 and a
quarter-over-quarter decrease of 26.2% to 23.8% from the previous quarter.

AirMedia currently expects its concession fees to be approximately US$46.1
million in the first quarter of 2013. The quarter-over-quarter increase from
the third quarter of 2012 will be primarily due to the concession fee
commitments under concession rights contracts that were newly signed or
renewed or are expected to be signed or renewed.

The above forecast reflects AirMedia's current and preliminary view and is
therefore subject to change. Please refer to the Safe Harbor Statement below
for the factors that could cause actual results to differ materially from
those contained in any forward-looking statement.

Summary of Selected Operating Data

                                                                      QuarterEnded  Quarter Ended  QuarterEnded  Y/Y     Q/Q     Year Ended    Year Ended    Y/Y
                                                                      December31,   September30,  December31,   Growth  Growth  December31,  December31,  Growth
                                                                      2012           2012           2011           Rate    Rate    2012          2011          Rate
Digitalframesinairports
 Number of airports in operation                                     34             34             34             0.0%    0.0%    34            34            0.0%
 Number of time slots available for sale (2)                         33,018         32,033         35,423         -6.8%   3.1%    131,060       139,252       -5.9%
 Number of time slots sold (3)                                       14,756         12,819         14,189         4.0%    15.1%   49,558        46,399        6.8%
 Utilization rate (4)                                                44.7%          40.0%          40.1%          4.6%    4.7%    37.8%         33.3%         4.5%
 Average advertising revenue per time slot sold (5)                  US$2,763       US$2,730       US$2,698       2.4%    1.2%    US$2,771      US$2,727      1.6%
Digital TV screens in airports
 Number of airports in operation                                     34             34             36             -5.6%   0.0%    34            36            -5.6%
 Number of time slots available for sale (1)                         16,560         16,560         18,138         -8.7%   0.0%    67,592        74,028        -8.7%
 Number of time slots sold (3)                                       9,088          6,460          6,133          48.2%   40.7%   23,385        14,439        62.0%
 Utilization rate (4)                                                54.9%          39.0%          33.8%          21.1%   15.9%   34.6%         19.5%         15.1%
 Average advertising revenue per time slot sold (5)                  US$595         US$424         US$1,528       -61.1%  40.3%   US$587        US$1,519      -61.4%
Digital TV screens on airplanes
 Number of airlines in operation                                     9              9              9              0.0%    0.0%    9             9             0.0%
 Number of time slots available for sale (1)                         444            444            414            7.2%    0.0%    1,776         1,656         7.2%
 Number of time slots sold (3)                                       234            168            218            7.3%    39.3%   781           896           -12.8%
 Utilization rate (4)                                                52.7%          37.8%          52.7%          0.0%    14.9%   44.0%         54.1%         -10.1%
 Average advertising revenue per time slot sold (5)                  US$33,650      US$39,155      US$34,555      -2.6%   -14.1%  US$34,074     US$29,837     14.2%
Traditional Media in airports
Numbers of locations available for sale (6)                           979            928            950            3.1%    5.5%    3,751         3,621         3.6%
Numbers of locations sold (7)                                         573            621            707            -19.0%  -7.7%   2,461         2,559         -3.8%
Utilization rate (8)                                                  58.5%          66.9%          74.4%          -15.9%  -8.4%   65.6%         70.7%         -5.1%
Average advertising revenue per location sold (9)                     US$36,304      US$32,388      US$31,448      15.4%   12.1%   US$33,920     US$28,736     18.0%

Notes:

(1) A time slot is defined as a 30-second equivalent advertising time unit for
digital TV screens in airports and digital TV screens on airplanes, which is
shown during each advertising cycle on a weekly basis in a given airport or on
a monthly basis on the routes of a given airline, respectively. AirMedia's
airport advertising programs are shown repeatedly on a daily basis during a
given week in one-hour cycles and each hour of programming includes 20 minutes
of advertising content, which allows the Company to sell a maximum of 40 time
slots per week. The number of time slots available for sale for the digital TV
screens in airports during the period presented is calculated by multiplying
the time slots available for sale per week per airport by the number of weeks
during the period presented when AirMedia had operations in each airport and
then calculating the sum of all the time slots available for sale for each of
the Company's network airports. The length of AirMedia's in-flight programs
typically ranges from approximately 45 minutes to an hour per flight,
approximately five to 13 minutes of which consist of advertising content. The
number of time slots available for sale for our digital TV screens on
airplanes during the period presented is calculated by multiplying the time
slots per airline per month by the number of months during the period
presented when AirMedia had operations on each airline and then calculating
the sum of all the time slots available for sale for each of its network
airlines.

(2) A time slot is defined as a 12-second equivalent advertising time or
6-second equivalent advertising time units for digital frames in airports,
which is shown during each standard advertising cycle on a weekly basis in a
given airport. AirMedia's standard airport advertising programs are shown
repeatedly on a daily basis during a given week in 10-minute cycles or
5-minute cycles, which allows the Company to sell a maximum of 50 time slots
per week. The length of time slot and advertising program cycle of some
digital frames in several airports are different from the standard ones. The
number of time slots available for sale for the digital frames in airports
during the period presented is calculated by multiplying the time slots per
week per airport by the number of weeks during the period presented when the
Company had operations in each airport and then calculating the sum of all the
time slots available for each of its network airports.

(3) Number of time slots sold refers to the number of 30-second equivalent
advertising time units for digital TV screens in airports and digital TV
screens on airplanes or 12-second equivalent advertising time units or
6-second equivalent advertising time units for digital frames in airports sold
during the period presented.

(4) Utilization rate for digital TV screens in airports, digital TV screens on
airplanes and digital frames in airports refers to total time slots sold as a
percentage of total time slots available for sale during the relevant period.

(5) Average advertising revenue per time slot sold for digital TV screens in
airports, digital TV screens on airplanes and digital frames in airports are
calculated by dividing each of the Company's revenues derived from digital TV
screens in airports, digital TV screens on airplanes and digital frames in
airports by the respective number of time slots sold.

(6) The number of locations available for sale in traditional media is defined
as the sum of (1) the number of light boxes and billboards in Beijing,
Shenzhen, Wenzhou and certain other airports (light boxes and billboards), and
(2) the number of gate bridges in certain airports (gate bridges).

(7) The number of locations sold is defined as the sum of (1) the number of
light boxes and billboards sold and (2) the number of gate bridges sold. To
calculate the number of light boxes and billboards sold in a given airport,
the "utilization rates of light boxes and billboards" in such airport is first
calculated by dividing the "total value of light boxes and billboards sold" in
such airport by the "total value of light boxes and billboards" in such
airport. The "total value of light box and billboard sold" in a given airport
is calculated as the daily listing prices of each light boxes and billboards
sold in such airport multiplied by their respective number of days sold during
the period presented. The "total value of light boxes and billboards" in a
given airport is calculated as the sum of quarterly listing prices of all the
light boxes and billboards in such airport during the period presented. The
number of light boxes and billboards sold in a given airport is then
calculated as the number of light boxes and billboards available for sale in
such airport multiplied by the utilization rates of light boxes and billboards
in such airport. The number of gate bridges sold in a given airport is counted
based on numbers in the relevant contracts.

(8) Utilization rate for traditional media in airports refers to total
locations sold as a percentage of total locations available for sale during
the period presented.

(9) Average advertising revenue per location sold is calculated by dividing
the revenues derived from all the locations sold by the number of locations
sold during the period presented.

Earnings Conference Call Details

AirMedia will hold a conference call to discuss the fourth quarter 2012
earnings at 8:00 PM U.S. Eastern Time on March 14, 2013 (5:00 PM U.S. Pacific
Time on March 14, 2013; 8:00 AM Beijing/Hong Kong time on March 15, 2012).
AirMedia's management team will be on the call to discuss financial results
and operational highlights and answer questions.

Conference Call Dial-in Information

U.S.: +1 866 519 4004
U.K.: 08082346646
Hong Kong: +852 800 930 346
International: +1 718 354 1231
Pass code: AMCN

A replay of the call will be available for 1 week between 11:00 p.m. on March
14, 2013 and 11:59 p.m. on March 21, 2013, Eastern Time.

Replay Dial-in Information

U.S.: +1 855 452 5696
International: +1 646 254 3697
Pass code: 20106545

Additionally, a live and archived webcast of this call will be available on
the Investor Relations section of AirMedia's corporate website at
http://ir.airmedia.net.cn.

Use of Non-GAAP Financial Measures

AirMedia's management uses non-GAAP financial measures to gain an
understanding of AirMedia's comparative operating performance and future
prospects. AirMedia's non-GAAP financial measures exclude the following
non-cash items: (1) share-based compensation expenses, (2) amortization of
acquired intangible assets, (3) impairment of goodwill, and (4) impairment of
intangible assets.

Non-GAAP financial measures are used by AirMedia's management in their
financial and operating decision-making, because management believes they
reflect AirMedia's ongoing business and operating performance in a manner that
allows meaningful period-to-period comparisons. AirMedia's management believes
that these non-GAAP financial measures provide useful information to investors
and others in understanding and evaluating AirMedia's operating performance in
the same manner as management does, if they so choose. Specifically, AirMedia
believes the non-GAAP financial measures provide useful information to both
management and investors by excluding certain charges that the Company
believes are not indicative of its core operating results.

The non-GAAP financial measures have limitations. They do not include all
items of income and expense that affect AirMedia's income from operations.
Specifically, these non-GAAP financial measures are not prepared in accordance
with GAAP, may not be comparable to non-GAAP financial measures used by other
companies and, with respect to the non-GAAP financial measures that exclude
certain items under GAAP, do not reflect any benefit that such items may
confer to AirMedia. Management compensates for these limitations by also
considering AirMedia's financial results as determined in accordance with
GAAP. The presentation of this additional information is not meant to be
considered superior to, in isolation from or as a substitute for results
prepared in accordance with US GAAP. For more information on these non-GAAP
financial measures, please see the table captioned "Reconciliation of GAAP Net
(Loss) Income and EPS and Non-GAAP Adjusted Net (Loss) Income and EPS",
"Reconciliation of GAAP Operating Expenses to Non-GAAP Adjusted Operating
Expenses" and "Reconciliation of GAAP (Loss) Income from Operations to
Non-GAAP Adjusted (Loss) Income from Operations" set forth at the end of this
release.

About AirMedia Group Inc.

AirMedia Group Inc. (Nasdaq: AMCN) is a leading operator of out-of-home
advertising platforms in China targeting mid-to-high-end consumers. AirMedia
operates the largest digital media network in China dedicated to air travel
advertising. AirMedia operates digital frames in 34 major airports and digital
TV screens in 34 major airports, including most of the 30 largest airports in
China. In addition, AirMedia sells advertisements on the routes operated by
seven airlines, including the four largest airlines in China. In selected
major airports, AirMedia also operates traditional media platforms, such as
billboards and light boxes, and other digital media, such as mega LED screens.

In addition, AirMedia has obtained exclusive contractual concession rights
until the end of 2014 to develop and operate outdoor advertising platforms at
Sinopec's service stations located throughout China.

For more information about AirMedia, please visit http://www.airmedia.net.cn.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expect," "anticipate," "future,"
"intend," "plan," "believe," "estimate," "confident" and similar statements.
Among other things, the Business Outlook section and the quotations from
management in this announcement, as well as AirMedia Group Inc.'s strategic
and operational plans, contain forward-looking statements. AirMedia may also
make written or oral forward-looking statements in its reports to the U.S.
Securities and Exchange Commission, in its annual report to shareholders, in
press releases and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that are not
historical facts, including statements about AirMedia's beliefs and
expectations, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties. A number of important factors could
cause actual results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties include, but are
not limited to: if advertisers or the viewing public do not accept, or lose
interest in, AirMedia's air travel advertising network, AirMedia may be unable
to generate sufficient cash flow from its operating activities and its
prospects and results of operations could be negatively affected; AirMedia
derives most of its revenues from the provision of air travel advertising
services, and any slowdown in the air travel advertising industry in China may
materially and adversely affect its revenues and results of operations;
AirMedia's strategy of expanding its advertising network by building new air
travel media platforms and expanding into traditional media in airports may
not succeed, and its failure to do so could materially reduce the
attractiveness of its network and harm its business, reputation and results of
operations; if AirMedia does not succeed in its expansion into gas station and
other outdoors media advertising, its future results of operations and growth
prospects may be materially and adversely affected; if AirMedia's customers
reduce their advertising spending or are unable to pay AirMedia in full, in
part or at all for a period of time due to an economic downturn in China
and/or elsewhere or for any other reason, AirMedia's revenues and results of
operations may be materially and adversely affected; AirMedia faces risks
related to health epidemics, which could materially and adversely affect air
travel and result in reduced demand for its advertising services or disrupt
its operations; if AirMedia is unable to retain existing concession rights
contracts or obtain new concession rights contracts on commercially
advantageous terms that allow it to operate its advertising platforms,
AirMedia may be unable to maintain or expand its network coverage and its
business and prospects may be harmed; a significant portion of AirMedia's
revenues has been derived from the six largest airports and four largest
airlines in China, and if any of these airports or airlines experiences a
material business disruption, AirMedia's ability to generate revenues and its
results of operations would be materially and adversely affected; AirMedia's
limited operating history makes it difficult to evaluate its future prospects
and results of operations; and other risks outlined in AirMedia's filings with
the U.S. Securities and Exchange Commission. AirMedia does not undertake any
obligation to update any forward-looking statement, except as required under
applicable law.

Investor Contact:

Raymond Huang
Senior Director of Investor Relations
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn

AirMedia Group Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars in thousands)
                                                    December 31, December 31,
                                                    2012         2011
ASSETS:
Current assets:
Cash                                                73,634       112,734
Restricted cash                                     8,026        6,363
Short-term investments                              44,622       -
Accounts receivable, net                            101,222      92,823
Prepaid concession fees                             20,759       22,909
Amount due from related party                       1,310        148
Other current assets                                9,788        6,627
Deferred tax assets - current                       2,064        6,061
Total current assets                                261,425      247,665
Property and equipment, net                         45,930       56,429
Long-term investments                               4,337        2,047
Long-term deposits                                  22,307       15,042
Deferred tax assets - non-current                   8,347        5,763
Acquired intangible assets, net                     1,521        13,788
Goodwill                                            -            20,734
Total assets                                        343,867      361,468
LIABILITIES AND EQUITY:
Current liabilities:
Accounts payable (including accounts payable of
the
 consolidated variable interest entities without
recourse to
 AirMedia Group Inc. $61,697 and $71,045 as of
December 31,
 2011 and December 31, 2012, respectively)         72,895       63,577
Accrued expenses and other current liabilities
 (including accrued expenses and other current
liabilities of
 the consolidated variable interest entities
without recourse
 to AirMedia Group Inc. $9,585 and $8,716 as of
December 31,
 2011 and December 31, 2012, respectively)         10,999       11,276
Deferred revenue (including deferred revenue of
the
 consolidated variable interest entities without
recourse to
 AirMedia Group Inc. $11,516 and $18,596 as of
December 31
 2011 and December 31, 2012, respectively)         18,602       11,522
Income tax payable (including income tax payable
of the
 consolidated variable interest entities without
recourse to
 AirMedia Group Inc. $332 and $169 as of December
31,
 2011 and December 31, 2012, respectively)         1,109        792
Amounts due to related parties (including amounts
due to
 related parties of the consolidated variable
interest entities
 without recourse to AirMedia Group Inc. $443 and
$447 as
 of December 31, 2011 and December 31, 2012,       447          443
respectively)
Total current liabilities                           104,052      87,610
Deferred tax liability - non-current                380          3,800
Total liabilities                                   104,432      91,410
Equity
Ordinary shares                                     128          128
Additional paid-in capital                          278,813      275,150
Treasury stock                                      (7,196)      (3,775)
Statutory reserves                                  10,144       8,049
Accumulated deficits                                (72,961)     (38,138)
Accumulated other comprehensive income              32,948       30,734
Total AirMedia Group Inc.'s shareholders' equity    241,876      272,148
Noncontrolling interests                           (2,441)      (2,090)
Total equity                                        239,435      270,058
Total liabilities and equity                       343,867      361,468







AirMedia Group Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In U.S. dollars in thousands, except share and ADS related data)
                                                                                          Three Months Ended                       Year Ended
                                                                                          December31, September30, December31,  December31, December31,
                                                                                          2012         2012          2011          2012         2011
Revenues                                                                                  84,182       73,106        87,830        292,965      277,821
Business tax and other sales tax                                                          (1,535)      (1,738)       (2,836)       (6,223)      (7,197)
Net revenues                                                                              82,647       71,368        84,994        286,742      270,624
Cost of revenues                                                                          65,397       62,555        65,764        250,606      244,470
Gross profit                                                                              17,250       8,813         19,230        36,136       26,154
Operating expenses:
 Selling and marketing *                                                                 5,289        4,461         4,984         17,995       18,238
 General and administrative *                                                            5,430        5,228         7,245         21,842       22,004
 Impairment of goodwill                                                                  -            20,611        1,003         20,611       1,003
 Impairment of intangible assets                                                         -            9,583         -             9,583        656
Total operating expenses                                                                  10,719       39,883        13,232        70,031       41,901
Income (loss) from operations                                                             6,531        (31,070)      5,998         (33,895)     (15,747)
Interest income                                                                           402          469           247           1,355        1,242
Other income, net                                                                         531          379           716           2,770        1,848
Income (loss) before income taxes                                                        7,464        (30,222)      6,961         (29,770)     (12,657)
Income tax (expenses) benefits                                                            (4,216)      2,972         (2,446)       (2,493)      (266)
Net income (loss) before net income of equity method investments                          3,248        (27,250)      4,515         (32,263)     (12,923)
Net (loss) income of equity method investments                                            (26)         (66)          70            22           243
Net income (loss)                                                                         3,222        (27,316)      4,585         (32,241)     (12,680)
Less: Net (loss) income attributable to noncontrolling interests                          (132)        (31)          (44)          487          (3,084)
Net income (loss) attributable to AirMedia Group Inc.'s shareholders                      3,354        (27,285)      4,629         (32,728)     (9,596)
Net income (loss) attributable to AirMedia Group Inc.'s shareholders per ordinary share
Basic                                                                                     0.03         (0.22)        0.04          (0.26)       (0.07)
Diluted                                                                                   0.03         (0.22)        0.04          (0.26)       (0.07)
Net income (loss) attributable to AirMedia Group Inc.'s shareholders per ADS
Basic                                                                                     0.05         (0.44)        0.07          (0.53)       (0.15)
Diluted                                                                                   0.05         (0.44)        0.07          (0.53)       (0.15)
Weighted average ordinary shares outstanding used in computing net income (loss) per     122,551,330  124,123,148   126,546,835   124,269,245  129,537,955
ordinary share - basic
Weighted average ordinary shares outstanding used in computing net income (loss) per     122,575,370  124,123,148   127,711,965   124,269,245  129,537,955
ordinary share - diluted
* Share-based compensation charges included are asfollow:
Sellingandmarketing  91           174           178           859          1,422
 General and administrative                                                              713          539           404           2,643        3,192







AirMedia Group Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In U.S. dollars in thousands, except share and ADS related data)
                                                      Three Months Ended                       Year Ended
                                                      December31, September30, December31,  December31, December31,
                                                      2012         2012          2011          2012         2011
Net income (loss)                                     3,222        (27,316)      4,585         (32,241)     (12,680)
Other comprehensive income                            2,002        2,548         3,475         2,144        12,327
Comprehensive income (loss)                           5,224        (24,768)      8,060         (30,097)     (353)
Less:comprehensive(loss)incomeattributabletothe (205)        (46)          (71)          417          (3,138)
noncontrolling interest
Comprehensive income (loss) attributable to           5,429        (24,722)      8,131         (30,514)     2,785
AirMedia Group Inc.'s shareholders





AirMedia
Group Inc.
RECONCILIATION OF GAAP NET INCOME (LOSS) AND EPS TO NON-GAAP
ADJUSTED NET INCOME AND EPS
(In U.S. dollars in thousands, except
share and ADS related data)
              Three Months Ended                       Year Ended
              December31, September30, December31,  December31, December31,
              2012         2012          2011          2012         2011
Net income
(loss)
attributable
to AirMedia   3,354        (27,285)      4,629         (32,728)     (9,596)
Group Inc.'s
shareholders
(GAAP)
Amortization
of acquired   194          720           952           2,635        3,791
intangible
assets
Share-based   804          713           582           3,502        4,614
compensation
Impairment    -            20,611        1,003         20,611       1,003
of goodwill
Impairment
of            -            9,583         -             9,583        656
intangible
assets
Adjusted net
income
attributable
to AirMedia   4,352        4,342         7,166         3,603        468
Group Inc.'s
shareholders
(non-GAAP)
Adjusted net
income
attributable
to AirMedia
Group Inc.'s
shareholders
per share
(non-GAAP)
Basic         0.04         0.03          0.06          0.03         0.00
Diluted       0.04         0.03          0.06          0.03         0.00
Adjusted net
income
attributable
to AirMedia
Group Inc.'s
shareholders
per ADS
(non-GAAP)
Basic         0.07         0.07          0.11          0.06         0.01
Diluted       0.07         0.07          0.11          0.06         0.01
Shares used
in computing
adjusted
basic net
income
attributable  122,551,330  124,123,148   126,546,835   124,269,245  129,537,955
to AirMedia
Group Inc.'s
shareholders
per share
(non-GAAP)
Shares used
in computing
adjusted
diluted net
income
attributable  122,575,370  124,123,148   127,711,965   124,275,255  129,829,237
to AirMedia
Group Inc.'s
shareholders
per share
(non-GAAP)
Note: 1) The Non-GAAP adjusted net income per share and per ADS are computed
using Non-GAAP adjusted net income and number of shares and ADSs used in GAAP
basic and diluted EPS calculation, where the number of shares and ADSs is
adjusted for dilution due to the share-based compensation plan.




AirMedia
Group Inc.
RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP ADJUSTED
OPERATING EXPENSES
(In U.S. dollars in
thousands, except for
percentages)
              Three Months Ended                       Year Ended
              December 31, September 30, December 31,  December 31, December 31,
              2012         2012          2011          2012         2011
Operating
expenses      10,719       39,883        13,232        70,031       41,901
(GAAP)
Amortization
of acquired   194          720           952           2,635        3,791
intangible
assets
Share-based   804          713           582           3,502        4,614
compensation
Impairment    -            20,611        1,003         20,611       1,003
of goodwill
Impairment
of            -            9,583         -             9,583        656
intangible
assets
Adjusted
operating     9,721        8,256         10,695        33,700       31,837
expenses
(non-GAAP)
Adjusted
operating
expenses as
a percentage  11.8%        11.6%         12.6%         11.8%        11.8%
of net
revenues
(non-GAAP)


AirMedia
Group Inc.
RECONCILIATION OF GAAP INCOME (LOSS) FROM OPERATIONS TO NON-GAAP ADJUSTED INCOME
(LOSS) FROM OPERATIONS
(In U.S. dollars in
thousands, except for
percentages)
              Three Months Ended                       Year Ended
              December 31, September 30, December 31,  December 31, December 31,
              2012         2012          2011          2012         2011
Income
(loss) from   6,531        (31,070)      5,998         (33,895)     (15,747)
operations
Amortization
of acquired   194          720           952           2,635        3,791
intangible
assets
Share-based   804          713           582           3,502        4,614
compensation
Impairment    -            20,611        1,003         20,611       1,003
of goodwill
Impairment
of            -            9,583         -             9,583        656
intangible
assets
Adjusted
income
(loss) from   7,529        557           8,535         2,436        (5,683)
operations
(non-GAAP)
Adjusted
operating     9.1%         0.8%          10.0%         0.8%         -2.1%
margin
(non-GAAP)



SOURCE AirMedia Group Inc.

Website: http://www.airmedia.net.cn
 
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