[For Immediate Release] SinoMedia Holding Limited Acquisition of Internet Video Website and Office Premises As a Solid Foundation for the Group's Long-term Development

(12 December 2012 - Hong Kong) - SinoMedia Holding Limited ("SinoMedia", together with its subsidiaries, known as the "Group"; stock code: 623), a leading media corporation in China, announced today the acquisition of Hang Zhou 3G Media Company Limited ("3G Media") - a video website operator. Pursuant to the acquisition agreements, SinoMedia will acquire equity interest of 3G Media from the original shareholders and inject capital in 3G Media. The total consideration of the transaction was RMB49.89 million. Upon the completion of the transaction, the Group will own 75.26% equity interest in 3G Media.
3G Media was established in 2006. Its principal business is the operation of an internet video website, www.boosj.com. According to iResearch data in September 2012, the website ranked 12th place among the integrated internet video websites in China. The website's operation team possesses mature technology in both internet and the related internet video content production. Apart from the general video sharing business, the website also has its own online production, such as online drama series, digital movies and online programs, and the interactive online community.
The acquisition is the last step of the Group to complete its "three screens" strategic layout. Subsequent
to acquisitions of shares in the digital pay TV channel - Super Channel, and the mobile TV platform -
100TV, the acquisition of the third screen - the internet video platform, is of utmost importance for the Group to implement its strategic layout of "TV+ internet + mobile" and develop into a media corporation with video media management as its core business. Moreover, the acquisition is consistent with its
5-year strategic plan to develop the upstream media business and harness the synergistic effect of "channel + content". The Group will consolidate its comprehensive media marketing services including multi-channel content production and channel promotion, strengthening the Group's competitiveness in mass communication, content, and creative planning, so as to meet the market demand for diversified communications.