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Business Media China and Skyflying Media establish a joint venture to create the leading Outdoor Advertising Company in China

Feb 06, 2008

Beijing/Guangzhou, February 6, 2008 – BMC Advertising Co. Ltd., a 100% subsidiary of Business Media China AG, Stuttgart (WKN: 525040) and Skyflying International Media Co. Ltd., Guangzhou (Skyflying Media) have signed an agreement to create China’s largest outdoor media advertising company with a large portfolio of airport, railway and subway media formats. BMC will hold 51% of the joint venture company.

The joint venture will become operational as of April 1, 2008. The combined marketing of the various media formats from both companies will begin step by step, starting with railway followed by airport, metro and other outdoor advertising media.
With combined expected 2008 outdoor advertising sales of EUR 140 – 150 million, Business Media China AG and Skyflying Group are jointly the clear leader in the Chinese outdoor advertising market.
Business Media China will provide a detailed presentation of the joint venture including a revised outlook and guidance at a media and analyst conference mid of April in Frankfurt.

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Skyflying Media www.skyflyinggroup.com, in China known under Guangzhou Baiyun Tianjun International Media Co., Ltd., is the leading Outdoor Advertising Company in the South of China and has the advertising rights for the media sites at the airports of Guangzhou and Shenzhen and the exclusive media rights for the railway stations and the subway stations of Guangzhou (capital of the Guangdong province) and Shenzhen (China’s most industrialised city with the highest per-capita income after Hong Kong). Guangzhou Baiyun International Airport is China’s third largest airport after Beijing and Shanghai Pudong. Shenzhen Baoan International Airport is the number five airport after Beijing, the two Shanghai airports and Guangzhou.
Like BMC Flying Dragon, Skyflying Media was a successful bidder in the application process for Beijing’s new Terminal 3 and gained an important group of advertising sites. Skyflying Media has already been operating a large number of sites in Terminal 2 of the airport for a long time. Furthermore Skyflying Media provides street billboards, neon lights, digital displays, giant banners and other Outdoor Media Formats in the cities of Guangzhou and Shenzhen. Its annual revenues in 2007 were well over CNY 500 million (EUR 50 million). This will shoot united BMC and Skyflying Media into the leading position in China’s outdoor advertising media market.
Klaus Michael Hilligardt, CEO Business Media China explained: “Skyflying Media is our ideal partner for the railway media roll-out and development of the prime media formats. Both companies – BMC with its power in the Beijing region and Skyflying Media with its strong position in Guangzhou and Shenzhen – can now go for the hubs in Shanghai and Chengdu/Chongqing and together we can enter into new license agreements that fit to our all-China strategy. The united sales force will have the possibility to access the existing client contacts of both companies and to address combined offers for all relevant kinds of outdoor media to clients and prospects. We expect an impressive rise of the turnover from this joint venture.” Zhang Xiao Tian, CEO of Skyflying Media added: “BMC has brought a lot of innovation and international professionalism to the outdoor advertising market in China. To jointly profit from the economies of scale and the abilities to further develop our fast growing market are unique opportunities for us”.
The media portfolios of both companies complement one another perfectly. In railway media both companies form Chinas largest railway network by far. In airport media the companies cover 12 airports and finally the subway media and other outdoor media are ideal additions.
Business Media China AG with its Chinese subsidiary companies BMC Advertising and BMC Flying Dragon is already one of the leading and most respected Chinese outdoor media companies today. BMC Advertising with long term license agreements for the Central and West railway stations of Beijing and the stations in Tianjin and Shijiazhuang has changed the market for railway media by renewing the media formats, introducing qualified media research studies and inventing completely new media spaces. Recent awards like the “Most important contribution to new media formats in 2006” by China Advertising and a First Place Mobius Award for the Mengniu Roof Campaign in Beijing show the importance that BMC Advertising has gained in the Chinese media business. In the field of airport media BMC Flying Dragon is able to provide media sites at nearly all of China’s leading airports. The winning of two advertising sectors in Terminal 3 of the Beijing Capital International Airport and its successful sales of media formats to clients like Ferrari, Samsung and other top brands show BMC’s ability of strong domestic license purchase and powerful international sales.
The process of concentration which had already taken place in many international outdoor markets now also occurs in China. With this joint venture in which Business Media China holds the majority, BMC is again leading and advancing an important development in the Chinese outdoor market.

For more information:
Business Media China AG
Rotebühlstrasse 87
DE-70178 Stuttgart
invest@businessmediachina.com
Edwin van der Geest
+41 43 268 32 30

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