Business News

Focus Media Makes Strategic Investment in Yanhuang Health Media Limited

Thursday 10. January 2008 - Focus Media Holding Limited (NASDAQ:FMCN), China's largest digital media group, today announced a strategic investment in Yanhuang Health Media Limited, a leading LCD advertising operator targeting hospitals and healthcare locations in China.

Focus Media will make a cash investment of US$5 million to Yanhuang Health Media Limited (“Yanhuang”), and transfer ownership of our current healthcare channel which covers hospitals and drug chain stores in about 31 cities, with an installed based on approximately 2,461 LCD throughout China, to Yanhuang. Upon the completion of this investment, Focus Media will own a 20% equity interest in Yanhuang. Concurrent with this investment, a group of investors led by SAIF and Orchid Asia has invested US$35 million in Yanhuang.

Yanhuang Health Media Limited is a leading digital display advertising operator covering healthcare locations in China, including hospitals, drug chain stores and other healthcare locations. Currently, it has an installed based of over 10,000 LCDs in 36 cities throughout China.

“There is very significant demand for advertising targeting potential consumers for their healthcare needs. Yanhuang has built a very successful network and operating team to become the leader in the sector,” commented Jason Jiang, CEO of Focus Media. “We believe this partnership will create value for our shareholders while building a leading player in an attractive media, in which we have a significant stake.”