Lingo Media Inc.
OTC Bulletin Board : LNGMF
TSX VENTURE : LMD

Lingo Media Inc.

June 09, 2005 13:35 ET

Lingo Media Signs Joint Venture Agreement

TORONTO, ONTARIO--(CCNMatthews - June 9, 2005) -

Educational Newspaper - First Acquisition under China Expansion Plan

Lingo Media Inc. (TSX VENTURE:LMD)(OTC BB:LNGMF) (the "Company" or "Lingo Media"), a leading educational publisher in China, announces the signing of the definitive Joint Venture Agreement ("JV Agreement") with Sanlong Cultural Enterprises ("Sanlong"). The joint venture company will be known as Jintu Cultural Media Company ("Jintu" or the "Joint Venture"). Jintu will continue Sanlong's recently launched direct-to-consumer business of distributing educational newspapers located in Shijiazhuang, Hebei Province, China.

Jintu's first newspaper, Family EDU, was launched earlier this year and has 30,000 subscribers. An annual subscription is CDN $7.00 (52 RMB Yuan or 1 RMB Yuan per issue). Family EDU, a weekly supplemental educational resource, is targeted to parents in Hebei Province where approximately 15 million families with children under the age of 14 reside. "We are excited about our first acquisition in the print media distribution sector in China. Our immediate goal will be to build the subscriber base and to leverage this direct-to-consumer channel by featuring our English language learning publications inside the newspapers. The attractiveness of the Joint Venture's business model is to establish our network of retail kiosks to market Jintu's educational newspapers and Lingo Media's publications", said Michael Kraft, President & CEO of Lingo Media.

Under the JV Agreement, Lingo Media will invest approximately CDN $385,000 (2,550,000 RMB Yuan) for its 51% share of Jintu. The Joint Venture will use the proceeds for Hebei Province, to increase the size of its sales force to 100 marketing reps and to launch a Fall 2005 marketing campaign. "We plan to combine Lingo Media's publishing expertise and products with our sales and marketing know-how to expand the Joint Venture's direct-to-consumer channel through Family EDU", said Zhang Yanhui, President of Sanlong.

The closing is subject to regulatory approval, including government approval in China.

About Sanlong

Sanlong is a distributor of educational newspapers, including Family EDU, High School Exam Edition, and College Exam Edition in Hebei Province, China.

About Lingo Media

Lingo Media is a leading publisher of English language learning programs in China, incorporating print, audio/video cassette and CD-based products for students and teachers from pre-school through university. Founded in 1996, Lingo Media has an established presence in the Chinese educational market of more than 200 million English language students. To date, over 90 million units from Lingo Media's library of more than 250 program titles have been published and sold in China.

Portions of this press release include "forward-looking statements", which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this press release are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this press release. Certain factors that can affect the Company's ability to achieve projected results are described in the Company's Annual Report 20-F and other reports filed with the Securities and Exchange Commission.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.

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