BEIJING, May 1, 2012 /PRNewswire-Asia-FirstCall/ --
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 it has entered into an agreement
with Asiaray Advertising Media Ltd. and Guangxi Civil Aviation
Development Co., Ltd. to form a joint venture that exclusively
operates various media resources in four airports in China's Guangxi province. These four airports are
Nanning Wuxu International Airport, Guilin Liangjiang International
Airport, Liuzhou Bailian Airport and Beihai Fucheng Airport.
Guangxi Civil Aviation Development Co., Ltd. is a wholly-owned
subsidiary of Guangxi Airport Group, which owns and operates these
four airports.
Under the joint venture agreement, the joint venture will have
an exclusive right to develop, reform, and operate the media
resources in these four airports. According to the agreement, the
joint venture's exclusive operating right has an initial term of
eight years, from July 1, 2012 to
June 30, 2020, and will be extended
for another eight years unless there is material breach of the
agreement.
"Our expertise in airport media development and operations will
help these airports to maximize their media value potential.
AirMedia's strong sales and marketing resources are expected to
help to significantly raise the advertising revenues of these four
airports' media assets. We believe that the joint venture sets a
positive example for other airports interested in exploring their
full media value potential," commented Herman Guo, chairman and chief executive officer
of AirMedia.
Other than the joint venture with Guangxi Airport Group,
AirMedia also has a similar joint venture with China Eastern
Airlines. In addition, AirMedia has an exclusive right to operate
all the media resources in Wenzhou Yongqiang Airport until
December 31, 2013; that airport's
media value and advertising revenues have been substantially
increased after AirMedia took over the operations of their media
resources since 2008.
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 36 major airports, including most of the 30 largest
airports in China. In addition,
AirMedia sells advertisements on the routes operated by nine
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 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
applicable law.
Investor Contact:
Raymond Huang
Senior Director of Investor Relations
AirMedia Group Inc.
Tel: +86-10-8460-8678
Email: ir@airmedia.net.cn
SOURCE AirMedia Group Inc.