China Media1 Corp.
OTC Bulletin Board : CMDA

China Media1 Corp.

November 08, 2005 08:00 ET

China Media1 Corp. Announces Institutional Financing

IRVINE, CALIFORNIA--(CCNMatthews - Nov. 8, 2005) - 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 that it has raised gross proceeds of $874,500 from certain institutional investors through the issuance of convertible promissory notes. The conversion price on the notes is set at $0.35 per share with a coupon interest rate of Wall Street Journal Prime plus 4.0. These notes mature in May 2007.

The institutional purchasers of the fixed price convertible notes have also been granted 3 year warrants to purchase approximately 1.25 million shares of China Media1 common stock at a price of $0.55 and approximately 1.25 million shares at $0.70 totaling approximately 2.5 million shares. In connection with the private placement, China Media1 has agreed to register the shares of common stock issuable upon conversion of the notes and upon exercise of the warrants for resale under the Securities Act of 1933. China Media1 also retains the option to redeem and repurchase the notes at 120% of the principal amount of the notes plus all accrued interest, at which point the institutional investors then have a 20 day window to elect to either accept the redemption or convert the notes into common shares. Further details regarding the terms of the financing can be found on the company' s current report on Form 8-K filed with the Securities & Exchange Commission.

Mr. Hanxiong (Adrian) Cai, President and Chief Executive Officer of China Media1, commented, "Securing this institutional financing marks an extremely significant point in the history of China Media1. As our operations grow in China, we welcome more American institutions as stockholders in our company."

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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