SOURCE: Fresh Ideas Media, Inc.

November 20, 2008 08:30 ET

Fresh Ideas Media (Soon to Be Renamed China Auto Logistics Inc.) Successfully Launches National Expansion of Domestic Auto Website

97.5% of 4S Auto Dealers in Beijing Sign On as Subscribers

TIANJIN CITY, CHINA--(Marketwire - November 20, 2008) - China Auto Logistics Inc. (Fresh Ideas Media, Inc. until a soon to be enacted name change), (OTCBB: FIDM) one of China's leading auto importers, a top provider of one-stop auto related logistics and dealer financing, and the owner and operator of two leading auto websites, today announced a major step forward in the planned national expansion of its website for domestically manufactured cars, www.1365car.com, with the launching of a second site in Beijing.

To date, the Company has operated its website for domestically manufactured autos solely in China's leading auto import port city, Tianjin, where together with www.at188.com, the Company's industry leading internet portal for imported autos, it has achieved great success in attracting dealer and consumer participation.

Mr. Tong Shiping, CEO and President of China Auto Logistics Inc, stated, "The launch of the new site in Beijing is a very exciting step for the Company, putting it squarely on the road toward initiating next year what we believe will be the leading national auto website portal in China."

He added, "Our industry leading imported auto website has helped our Company become one of the top luxury auto importers and sellers in China. With www.1365.car, we will create a new, strong presence with purchasers and dealers in the much larger domestic manufactured autos sector. We expect to build on the success we have achieved in Tianjin, where the popularity of our domestic auto website is reflected in such key statistics as the fact that it is generating more than 1.5 million hits per day, gets over 300 daily quotes from on-line dealers, has 9000+ visitors browsing at any one time and we have as subscribers more than 100 out of 120 local dealers. As a next step, we saw Beijing as a logical, significant keystone in the building of an integrated national site."

Mr. Shiping described China's domestically manufactured auto market as one that is "huge and still growing reflecting that, despite China's rapid climb to become the #2 auto market in the world, in fact, only 20 out of every 1000 consumers currently owns an auto, compared with 400 out of 1000 in the world's other developed countries."

A Vast New Market

The Company said that Beijing opens up a vast new buying audience with a population of about 17.43 million and auto sales volume of 400,000 cars annually. With respect to auto dealers, Beijing has 405 4S shops (China's main car dealers) and adds 40 new 4S shops each year, making it the biggest in this category as compared to other major cities such as Shanghai and Guangzhou. Mirroring the success it has achieved in Tianjin, the Company said that, after laying the groundwork for the start-up of the Beijing site with six months of door to door market research, it has managed with initial discounts to sign up 375, or 97.5%, of the city's 4S shops as subscribers, creating long term strategic partnerships with them.

In Beijing, what the new website gives each auto dealer is an outstanding opportunity to provide potential consumers with price quotes, promotion information, profiles of their business and online ordering. In coming months, the sites are expected to generate considerably greater interest and excitement with the introduction of a series of traditional value-added services, such as online insurance. In addition, the Company plans to add special features and services such as the Company's unique online car exhibition and assistance to dealers with promotional events such as the Auto-Baby Show, and the Top Auto Model.

The Business Strategy

Start up costs for the site, including fixed assets, were relatively low as a result of the Company's experience in developing its two leading sites in Tianjin. The Company is expecting that returns on its investment will be very positive, initially primarily from subscription fees, but over time (as in Tianjin) from advertising (40%) and value-added services (60%). Further, it expects profit margins on these revenues will be strong, and should increasingly contribute to the Company's bottom line beginning in the first quarter next year.

"Our plan is to eventually add 35 cities to our network," said Mr. Shiping, "with a national website scheduled to come on stream some time in 2009, after we have expanded to 12 cities. This will clearly establish China Auto Logistics as a leader in the vast Chinese auto market and pave the way for the Company's continuing growth."

Company Description

Founded in 1995, with profitable sales in 2007 of approximately $152 million, China Auto Logistics Inc. has grown to become one of the top importers and sellers of luxury vehicles in the PRC. Imported luxury autos, accounting for more than 10% of all Chinese auto sales revenues, are the fastest growing segment of the still young Chinese auto industry, now the second largest in the world. The Company has grown sales and profits by becoming one of the PRC's top logistical servicing and financing companies for auto importers. Additionally, it is a leader in providing accurate pricing and other auto-related information with its two web portals, www.at188.com, aimed at the import market, and www.1365car.tj.cn, which it is expanding throughout the PRC to reach the much larger market of domestically manufactured auto purchasers and dealers. Following completion of a successful reverse merger on November 10, 2008, the Company is trading as a fully reporting company in the U.S. as Fresh Ideas Media, Inc. with the stock symbol FIDM.OB. It shortly expects to officially change its name to China Auto Logistics Inc.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.

Contact Information

  • Contacts:

    US Investors

    Focus Asia Partners
    Robert Agriogianis
    Tel: 973-845-6642
    Fax: 973-845-6649

    China Auto Logistics
    Liya Wu
    Tel: 646-573-7654

    Press

    Ken Donenfeld
    donfgroup@aol.com
    Tel: 212-425-5700
    Fax: 212-425-6951