SOURCE: CineMaya Media Group, Inc.

June 05, 2007 08:00 ET

CineMaya Media Group Takes Flight in India

NEW YORK, NY--(Marketwire - June 5, 2007) - CinéMaya Media Group, Inc. (PINKSHEETS: CNMY), through expansion of its media, entertainment and communications divisions, penetrates the Indian market, home of one of the most vibrant and fastest growing economies in the world.

Recent reports from McKinsey & Company, and PriceWaterhouseCoopers - FICCI reaffirm the company's belief on potential for growth in India. "During the first millennium AD, merchants referred to India as the 'Bird of Gold' due to the glittering dynamism of its market. Over the next two decades, that bird may take flight again." (1)

India aims to have a compounded annual growth rate (CAGR) of 7.3% from 2005 - 2025.(1)

The size of the Entertainment & Media sector in India is currently estimated to grow at a compounded annual growth rate of 19 percent over the next five years.(2)

--  The Indian economy continues to perform strongly and one of the key
    sectors that benefits from this fast economic growth is the E & M industry.
    This is because the E & M industry is a cyclical industry that grows faster
    when the economy is expanding.(2)
--  Consumption spending is increasing due to rising disposable incomes on
    account of sustained growth in income levels, building a case for strong
    bullish growth in the sector.(2)
--  Experts predict India will become the 5th largest consumer market in
    the world. Currently it is already ranked a respectable 12th.(1)
--  Rising incomes will lift 291 million people out of poverty and create
    a middle-class of 583 million (more than the combined population of America
    and Canada).(1)
--  Aggregate consumption will grow in real terms from 17 trillion Indian
    Rupees today to 34 trillion by 2015, and 70 trillion by 2025 -- a fourfold
    increase. This soaring consumption will vault India into the premier league
    in the world's consumer markets.(1)
--  Increased investment from Private Equity Funds - Entertainment and
    Media industry has been dominated by strategic buyers. But now private
    equity is playing a major role in helping reshape many of the segments of
    the industry. The past two years have seen a flurry of funds entering the E
    & M space in India, like 3i, Matrix Partners, Warburg Pincus, De Shaw, T.
    Rowe Price International, UTI Ventures, Sequoia Capital, and West Bridge
    Capital amongst others.(2)
    
CinéMaya Media Group's Chairman, Sunil Hali, said this during his current trip to India, "The recent reports from McKinsey and Company, and PriceWaterhouseCoopers - FICCI report validate the need for our company to enter the Indian market. CinéMaya Media Group (CNMY) has been the leader in its space in North America. Now, we are focusing on India with plans to expand business, scale, market-share and profitability. The company has a track record of creating long-term partnerships, Joint Ventures, and franchise expansion in North America, and we are planning our entry into India with the same proven strategy. Our team is committed to make the company 'future ready' by serving a larger, global base of audiences and clients."

CinéMaya Media Group's President, Nayan Padrai, will be spearheading the company's India operations from the new Mumbai head office, which is currently under construction. "I am excited about the move to India this summer to tap opportunities and momentum of the Indian market. We're off to a great beginning having identified key personnel appointments for our Indian operations, and already establishing a valuable partnership with the STARCOM MediaVest Group, the world's largest advertising agency. We intend to finalize and announce more ventures in the coming months."

Source:

(1) McKinsey & Company's May 2007 Report Titled: The Bird of Gold: The Rise of India's Consumer Market;

(2) PriceWaterhouseCooper - FICCI (Federation of Indian Chamber and Commerce Industry) Report March 2007. To download these reports visit: http://www.cinemayamedia.com/recommended.htm

About CineMaya Media Group:

CinéMaya Media Group (PINKSHEETS: CNMY) is a leading provider of high quality international South Asian media, entertainment, and marketing services. Established in 2000 as a vertically integrated company, CinéMaya Media Group has since grown into a mini-conglomerate in the ethnic media landscape through its robust businesses within the following areas: Publication, Broadcast Television, Radio, Film & Television Production, Events, and Advertising.

To obtain more information about CinéMaya Media Group, visit www.cinemayamedia.com.

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