China Media1 Corp.
OTC Bulletin Board : CMDA

China Media1 Corp.

February 02, 2006 09:00 ET

China Media1 Announces Airport Contract '10 Years' at Shenzhen Baoan International Airport

IRVINE, CALIFORNIA--(CCNMatthews - Feb. 2, 2006) - China Media1 Corp. (OTCBB:CMDA) -

Company's Advertising Assets in Southern China Grows

China Media1 Corp. (OTCBB:CMDA), the owner and operator of premiere Chinese advertising media assets, including leading edge illuminated multiple scrolling poster displays, is pleased to announce the following:

1. The Company has acquired an advertising contract for the Shenzhen Baoan International Airport from Guangzhou Titan Advertising Co. Ltd. This contract provides for the installation of 12 large size (5.25 ft. x 8.2 ft.) outdoor scrolling 5 poster signs at the departures terminal and 24 regular size (5 ft. x 3.3 ft.) outdoor scrolling 10 poster signs at the arrivals terminal. The contract is for a term of ten years starting March 1, 2006. Shenzhen Baoan International Airport is the fourth busiest airport in China after Beijing, Shanghai (2 airports combined) and Guangzhou. The Company will issue 10 million shares for the acquisition as well as paying for some upfront expenses. Total annual revenue for Shenzhen is expected to be about one-third of Guangzhou (US$ 10 million vs. US$ 30 million) and the airport management fee is substantially less than Guangzhou (approx. 50% less). Together with economies of scale in sales and management, this acquisition will add significant long term boost to both our top and bottom lines. Installation for Shenzhen is expected shortly and the airport has already completed the site preparation and power supply work in anticipation of the installation.

2. We have received final approval from Guangzhou Airport for the outdoor signs after some extensive enhancements to the original design; installation is scheduled for the month of February after the end of the Chinese Lunar New Year holiday period.

3. In consideration of China Media1's growth strategy and recent developments, the following management changes have been implemented: Mr. Edwon Lam has resigned from the board of directors and Mr. Danny Hon has been elected to replace him. Mr. Adrian Hanxiong Cai has relinquished his position as President and will stay as Chairman of the Board. Mr. Ernest Cheung has been appointed President and Mr. Danny Hon Chief Financial Officer. Mr. Hon graduated from the Hong Kong Polytechnic University in accounting and received certification from The Association of Chartered Certified Accountants (U.K.) and Hong Kong Institute of Certified Public Accountants. After his arrival in Canada, he received the Certified General Accountant designation. He then attended Central Michigan University and received a Master of Science degree in Administration with a concentration in Information Resource Management. Mr. Hon brings a wealth of accounting knowledge and experience covering both sides of the Pacific. For the past decade, he has served a number of U.S. listed companies on accounting, financial reporting and regulatory issues. He is fluent in English and Chinese and has an excellent working relationship with public accounting firms, including Ernst & Young, the Company's auditors.

About Shenzhen Baoan International Airport:

Shenzhen Baoan International Airport (SZX) is situated on a coastal plain at the east bank of Pearl River Delta Area. The Airport is 32 kilometers away from city proper at coordinates E113.49' N22.36'. With an extensive airfield area and excellent airspace conditions, the airport is 24 hour operational in accordance with the standard of large international airports and is suitable for the landing and taking off of jumbo aircraft for both passengers and cargo. Shenzhen itself is a city of 10 million and the surrounding area has a population of another 20 million that reside in the service region of the airport.

Shenzhen Baoan International Airport is the first modern international transportation hub that combines air, road and sea transportation in a single airport in China. It enjoys convenient surface transportation facilities that provide excellent transfer capacity. It is close to No. 107 National Highway and Guangzhou-Shenzhen Expressway that link Hong Kong, Zhuhai and Guangzhou. The airport cargo terminal is the most modernized one in China and the dimension of cargo ramp is up to 240,000 square meters. Shenzhen Baoan International Airport is the only international airport in China available operation point for aircraft to and from Hong Kong and other ports of the world for both passengers and cargo operation. Located in the Pearl River Delta, the most developed area in China; SZX is rich in passenger and cargo resources and advanced in both hardware and software.

About China Media1 Corp.:

China Media1 Corp., headquartered in Irvine, California, has obtained rights to premiere Chinese advertising media assets in the city of Guangzhou in Southern China. Its affiliate, Guangzhou Chuangrun Advertising Company, operates the advertising space and advertising contracts with top-tier brand names and multi-national corporations as well as large advertising agencies. China Media1 has focused on providing its clients superior advertising locations based on viewership, exclusivity, and uniqueness through the use of its illuminated scrolling poster signs at the Guangzhou New Baiyun International airport. China Media1's advertising locations include the Guangzhou New Baiyun International Airport and the Guangzhou MTR (12 Subway Stations). China Media1's website is www.chinamedia1corp.com.

Forward-Looking Statements:

Any forward-looking statement in this press release is made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertain-ties including, but not limited to, economic and political factors, technological developments, regulatory matters and increased competition. The Company disclaims any obligation to update any such factors or to publicly announce results of any revisions to the forward-looking statements contained herein to reflect future events or developments.

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