Re Contract

RNS Number:0402P
Cosmedia Group Holdings Limited
29 February 2008

                        Cosmedia Group Holdings Limited

Announces Supply Contract for its Home Shopping Business with one of Asia's 
Largest Jewellery Retailers in China and Hong Kong

Cosmedia Group Holdings Limited ("Cosmedia") - the AIM listed Chinese
advertising, multi-media, and home shopping Group - announces on 29 February
2008 it has entered into a jewellery supply contract through one of its wholly
owned Chinese subsidiaries with a wholly owned subsidiary of Chow Tai Fook
Jewellery Company Limited ("Chow Tai Fook Jewellery") operating in China.
Cosmedia entered into the contract as part of its preparations to expand into
the TV home shopping business in China through the existing multi-media
platforms now available to Cosmedia.  Other products planned to be sold are
household goods, electronics, clothing, and cosmetics.  Cosmedia already has in
place delivery and collection agreements with multiple logistics partners.

The principal terms of the supply contract are that it is for a period of one
year renewable upon mutual agreement, and Chow Tai Fook Jewellery guarantees the
quality of their branded products and a specific gross profit margin for
Cosmedia without Cosmedia being bound to selling any specific quantity of such
products.

TV home shopping will enable Cosmedia to access the huge China retail market.
That retail market is estimated to be nearly US$1 trillion and still growing,
while TV home shopping current only accounts for 0.1% of that market compared to
approximately 5% in mature markets such as the USA.  The TV home shopping
business will leverage off Cosmedia's existing infrastructure and entertainment
content, and will supplement its current advertising business as a major
contributor to Cosmedia's revenue.

Chow Tai Fook Jewellery, a substantial private enterprise established and owned
by Dr Cheng Yu Tung and his family through the Chow Tai Fook Group, ranks number
one in annual sales amongst all the diamond merchants in Hong Kong and China.
Licensed as one of the sightholders of Diamond Trading Company, the world's
largest diamond supplier, Chow Tai Fook Jewellery has obtained a direct supply
of rough stones, underscoring its unbeatable leadership in the industry.  With
75 years experience, Chow Tai Fook Jewellery is renowned for its high quality
fine jewellery.  Currently, it has 61 retail outlets in Hong Kong and Macau.  In
China, it currently has approximately 700 retail outlets in over 60 cities, and
has near term plans to expand its outlets to over 1,000.

For further information, please contact:


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

Collins Stewart Europe Limited - 
Nominated Adviser to Cosmedia
Adrian Hadden                                               [phone]

Catullus Consulting
Alex Mackey                                                 [phone]
                                                            [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 over cable
networks ("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, and from television home shopping. In the future, Cosmedia will look
to generate new media advertising income and home shopping revenue through, for
example, co-operation with the Channel's dedicated website, 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 the Asia-Pacific region, 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 listed on AIM in order to raise the Company's profile as a quoted
company and to provide access to 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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