Elec-Tech to Invest RMB640 million in AirMedia's Gas Station Media Network
BEIJING, May 13, 2013
BEIJING, May 13, 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 that
its board of directors has approved an investment agreement between several
entities affiliated with AirMedia, including Beijing GreatView Media
Advertising Co., Ltd. ("GreatView Media"), the primary operating entity of
AirMedia's gas station media network, and its current shareholders, and
Elec-Tech International Co., Ltd. ("Elec-Tech") (Shenzhen Stock Exchange code:
002005). Pursuant to the investment agreement, Elec-Tech will invest RMB640
million (US$104 million) to purchase ordinary shares representing
approximately 21.27% of the equity interest of GreatView Media. After the
completion of the transaction, AirMedia will indirectly control 61.41% of the
equity interest of GreatView Media.
AirMedia intends to install LED screens in its gas stations to further develop
its existing gas station media network. For these installations, GreatView
Media's current shareholders undertook to use the full amount of Elec-Tech's
investment to purchase LED screens from Elec-Tech or its subsidiaries.
"We are excited about our partnership with Elec-Tech, which enables us to
explore the great potential and brilliant prospects of LED screen advertising
in our gas station media network. We believe putting LED screens in our gas
station media network is the right step to not only turn around this product
line, but also to maximize the tremendous value of this network. We expect the
introduction of our new partner, Elec-Tech, to bring not only affirmation of
the value that we believe the new LED format will add to our gas station media
network, but also additional technical expertise in electronic display,"
commented Mr. Herman Guo, chairman and chief executive officer of AirMedia.
"We believe AirMedia's gas station media network is a very unique nationwide
network to reach car drivers and car owners, one of the most affluent groups
in China. With the enhancement provided by our LED screens, this influential
network will have more capacity to fulfill advertisers' demand and create more
economic value. We believe our partnership with AirMedia is prudent and will
bring great returns for our shareholders," commented Mr. Donglei Wang,
chairman of Elec-Tech.
The investment is subject to the approval of Elec-Tech's shareholders.
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.
About Elec-Tech International Co., Ltd.
Elec-Tech International Co., Ltd. ("Elec-Tech"), founded in Zhuhai in May
1996, was listed on the Shenzhen Stock Exchange in June 2004 with the stock
code 002005. Its main products include small appliances and LED series
products, and its main brand logo is ETi. Its ACA brand has become a
rapidly-growing small appliance brand with significant international
Elec-tech has been in the LED industry since 2009. Elec-tech has been devoting
itself to developing the core technologies of LED and making strategic
arrangements with established partners in the LED industry. By building
competitive edges with technological innovation, large scale and competitive
cost, Elec-tech has gradually established a global presence; on top of its
home market base in mainland China, it now has branches in Hong Kong, the
United States, Japan and Germany.
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 five largest airports and three 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
Senior Director of Investor Relations
AirMedia Group Inc.
SOURCE AirMedia Group Inc.
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