SINOMEDIA HDS LTD : 2011-7-4-SinoMedia acquires minority stake in the parent company of F Tuan – a PRC group purchase website

[For Immediate Release]

SinoMedia acquires minority stake in the parent company of F Tuan– a PRC group purchase website

Captures burgeoning opportunities in the online group purchase market

Develops tourism related group purchase business

HONG KONG, 4 July 2011 – SinoMedia Holding Limited (“SinoMedia” or the “Group”; stock code: 623), a leading privately-owned media advertising operator in China providing nationwide TV advertising service, today announced that the Group has reached an agreement to acquire a minority equity stake in Life Media Limited (“Life Media”) and to commence business cooperation with the counterparty.

Founded in 2007, Life Media is the parent holding company of China’s leading group purchase website, F Tuan (www.ftuan.com). F Tuan has been engaged in the group purchase business since 2010, with equity investors including Mitsui Ventures, Mizuho Capital and TCH Emerald Limited (“Tencent”). F Tuan has achieved strong growth in revenue ever since it started working closely with Tencent this year and became one of the leading brands in the competitive group purchase market in China. Currently, the company has more than 500 staff and 35 overseas service centres. It plans to increase its network coverage to

100 cities in China during the year. With the support of its investors Tencent and SinoMedia on business cooperation and advertising aspects respectively, F Tuan is expected to maintain and further enhance its leading market position.

Amid growing inflationary pressure, group purchase websites that offer a broad range of discounted merchandizes and services have proved to be hugely popular with value-conscious consumers. According to CNNIC, there were 18.75 million group purchase customers in China as at the end of 2010, which was equivalent to 12% of all shoppers online (161 million). The research also reported that over 80% of the online shoppers that have never participated in group purchase before indicated that they intend to use the service in the future. To suppliers, group purchase can be used as a sales and marketing tool to promote their brands and services. Group purchase websites not only can share revenue with and receive commission from suppliers, but also earn online advertising revenues.

Mr. Chen Xin, Chairman of SinoMedia said “We are pleased to be an investor of F Tuan. This allows us to capture the growth opportunities in the group purchase market in China. Through working together with F Tuan in tourism, leisure and hotel services, SinoMedia will be able to further strengthen the subscription base of F Tuan by making available our quality tourism resources and industry networks. With our extensive advertising experience, we are confident that SinoMedia will be able to help boost the popularity of F Tuan and its operation ability for advertisement going forward.”

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For further information, please contact Hill and Knowlton Asia Ltd.:-

Linda Pui	Tel: [phone] 0178	[e-mail]
Ho Kang	Tel: [phone] 6433	[e-mail]

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