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 reputation.
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
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.