PopTV Marketing Opportunity

RNS Number:0822C
Cosmedia Group Holdings Limited
15 August 2007


                       Cosmedia Group Holdings Limited

     Cosmedia - the AIM Listed Chinese Media Group - Announces New Marketing 
                             Opportunity for PopTV


Cosmedia Group Holdings Limited ("Cosmedia" or the "Company"), the holding
company of an advertising and media group with a focus on television advertising
in China announces a significant opportunity to raise the profile of PopTV in
Hong Kong.



The Company, through its wholly owned Hong Kong subsidiary Cosmedia Limited ("
Cosmedia HK"), has today signed two 3 year operating agreements ("Agreements")
with leisure and entertainment companies, Sowell Resources Limited ("Sowell")
and Bingo City Limited ("Bingo City"), which both own tenancy rights to the
Events Sites (defined below).  As a result of these Agreements, Cosmedia HK will
manage the exclusive advertising, events and promotions for the aggregate
600,000 square feet developments situated on the Hong Kong sea front ("Events
Sites").



Hong Kong continues to be a major entertainment centre for Greater China and it
is the Company's intention to establish the brand name of 'PopTV' in Hong Kong
as the channel launches its new programming in the fourth quarter.  Under the
Agreements, Cosmedia HK will have exclusive rights to stage exhibitions,
concerts and entertainment events at the Events Sites ("Events"), together with
major branding and signage rights for PopTV.



Under the terms of the Agreements, Cosmedia HK is entitled to retain all income
arising from the Events.  In consideration, Cosmedia HK will pay each of Bingo
City and Sowell, annual naming rights fees of HK$1.6 million each and 2.5% each
of the net profit from the Events (subject to a minimum guarantee of HK$2.9
million and HK$2.4 million payable to Bingo and Sowell respectively).



The licensing agreement with Sowell constitutes a related party transaction for
the purposes of the AIM Rules due to the interest of Mr. John McLellan.  The
directors of the Company (with the exception of Mr. McLellan who has not been
involved in the consideration of the transaction by the Company through Cosmedia
HK), having consulted with the Company's nominated adviser, consider that the
terms of the transaction are fair and reasonable insofar as the shareholders of
the Company are concerned.



Stanley Pong, Group Chairman of the Company, commented:



"We firmly believe that this is a significant opportunity to raise the Group's
profile not only in Hong Kong, but also internationally.



These Agreements, together with the recent announcement that we have
significantly strengthened our senior management team, leaves the Company
extremely well positioned to build and grow our businesses towards the 2008
Beijing Olympics and beyond."



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 may 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




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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