Home Shopping Agreement

RNS Number:3437G
Cosmedia Group Holdings Limited
25 October 2007


Cosmedia Group Holdings Limited

Cosmedia - the AIM Listed Chinese Media Group - Announces

Agreement for launch of a Home Shopping Business on a new, digital,
24 Hour Channel



Cosmedia Group Holdings Limited ("Cosmedia" or the "Group"), the AIM listed
Chinese advertising and media group, announces that the Group and its business
affiliates have entered into a series of agreements to launch a home shopping
business on a 24 hour home shopping channel in China.



The agreement with China Great Wall Art and Culture Centre ("Great Wall"), a
subsidiary of China's State Administration of Radio, Film and Television ("SARFT
"), grants the Group and its business affiliates the exclusive rights to carry
on the home shopping business via a new nationwide 24 hour digital television
shopping channel (the "New Channel") operated by Great Wall in China.



The term of the agreement is for an initial period of 15 years and is
automatically renewable for a further 15 years provided that there is no breach
by the Group or its business affiliates as specified in the relevant agreements.
  Great Wall is expected to launch the 24 hour home shopping channel during
first half 2008, subject to approval of the application of the New Channel from
SARFT.



Stanley Pong, Group Chairman of the Company, remarked:



"While immensely successful in many parts of the world, TV home shopping is a
relatively new concept in China.  In mature markets like the United States and
Japan, it accounts for 5% of the total retail market.  In China, where the
retail market is estimated to reach an annual value of US$1.25 trillion by year
2010, TV home shopping currently accounts for just 0.1% of the total retail
market.  Consequently, the potential for growth is enormous, underpinned by the
more liberal trade policies adopted since China joined the World Trade
Organisation.  And in China, TV home shopping answers a real market need for the
growing affluent consumers."



"Given the huge potential of TV home shopping in China, it has been a stated
part of Cosmedia's strategy for some time and this announcement is the
culmination of months of preparation and negotiation."



Antony Chan, Group President of the Company, commented:



"The 24 hour home shopping opportunity is a big step for us, and we are ready.
In anticipation, we have already hired a team with a successful home shopping
track record, and trialled our systems by broadcasting cumulatively 3 hours of
home shopping each day on another existing nationwide channel operated by Great
Wall (the "Channel") where we are appointed the exclusive advertising agent. We
will continue with the 3 hours of home shopping on the Channel, as well as
selling advertising on it, concurrently with operating the home shopping
business on the new 24 hour channel, thus adding substantially to our revenue."





For further information, please contact:


Cosmedia Group Holdings Limited
Stanley Pong/Antony Chan                                          [phone]


Collins Stewart Europe Limited
Adrian Hadden                                               [phone]


Catullus Consulting
Alex Mackey                                                 [phone]



Notes to Editors:



Cosmedia's business



*  Foreign ownership of television and broadcasting channels
in China is not permitted and all such Chinese channels are state-owned and
operated under the supervision of the Chinese government. Cosmedia has
established a long-term relationship with China Great Wall Art and Culture
Center ("Great Wall") a subsidiary of the Chinese State Administration of Radio,
Film and Television ("SARFT"), to act as exclusive advertising sales agent to a
Chinese television channel with nationwide broadcasting potential ("the 
Channel").



*  Cosmedia generates revenue by selling the Channel's
advertising airtime and providing integrated solutions to advertisers such as
programme title sponsorship, product placement and product messages embedded in
programmes. In the future, Cosmedia will look to generate home shopping revenue
as well as new media advertising income through, for example, co-operation with
the Channel's dedicated website, the Internet, wireless operators and service
providers.



Market overview



*  Television is currently the largest media sector in China,
both in terms of its reach and influence. With the benefit of new technologies,
the Chinese television industry has grown and diversified, developing into a
complex network of satellite, cable, video-on demand and Internet-based service
providers.



*  According to ZenithOptimedia, China's television market is
the largest market in Asia Pacific, with 355 million television households
representing a penetration rate of 95 per cent as of 2004. Of these, 128 million
are cable households. In 2005, ZenithOptimedia forecast that by the end of 2007
total television households and cable households would increase to 385 million
and 164 million respectively.



The Company has listed on AIM in order to raise the Company's profile as a
quoted company and to provide access to the capital markets for future
expansion.


ENDS



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