1.Overview of the PRC wholesale and Retail Industry

Table: China - Page 11

Wholesale and Retail Industry in China
	2005	2006	2007	2008	2009
Indicators	USD	USD	USD	USD	USD
Number of Legal Entities	47698	51788	55737	100935	95468
People working in this industry (in million)	5.2	5.4	6.0	7.4	7.5
Merchandise Purchase volume (in billion)	1367.7	1611.5	2014.3	2875.6	2800.0
Import volume (in billion)	110.3	116.4	138.6	226.1	207.9
Merchandise Sales volume (in billion)	1455.5	1719.6	2074.1	3253.6	3143.2
Export volume (in billion)	132.7	149.5	174.3	216.2	174.6
Merchandise inventory level (in billion)	110.3	119.2	143.6	240.1	250.4

Reference:

*exchange rate: USD 1 : RMB 6.4

Link: http://www.stats.gov.cn/tjsj/ndsj/2010/html/Q1701e.htm

2.Table: Hebei Province (Column 1 & Column 3) - Page 11&page12

2009 Breakdown of the Wholesale and Retail Industry in Hebei Province and China
	2009	2009
	Wholesale	Wholesale
	Hebei	China
Indicators	USD	USD
Number of Legal Entities	805	52853
People working in this industry (in million)	0.08	3.1
Merchandise Purchase volume (in billion)	35.59	2234.5
Import volume (in billion)	0.55	198.4
Merchandise Sales volume (in billion)	42.67	2466.2
Export volume (in billion)	0.82	174.3
Merchandise inventory level (in billion)	2.36	185.1

Reference:

 

*exchange rate: USD 1 : RMB 6.4

Link: http://www.stats.gov.cn/tjsj/ndsj/2010/html/Q1704e.htm

2.2Table: Hebei Province (Column 2 & Column 4) - Page 11&page12

2009 Breakdown of the Wholesale and Retail Industry in Hebei Province and China
	2009	2009
	Retail	Retail
	Hebei	China
Indicators	USD	USD
Number of Legal Entities	1010	42615
People working in this industry (in million)	0.14	4.4
Merchandise Purchase volume (in billion)	12.52	565.5
Import volume (in billion)	0.04	9.5
Merchandise Sales volume (in billion)	14.69	677.1
Export volume (in billion)	0.00	0.3
Merchandise inventory level (in billion)	1.38	65.2

Reference:

*exchange rate: USD 1 : RMB 6.4

Link: http://www.stats.gov.cn/tjsj/ndsj/2010/html/Q1711e.htm

2.3 Table: Hebei Province (Column 5) - Page 11&page12

2009 Breakdown of the Wholesale and Retail Industry in Hebei Province and China
	2009
	Total
	China
Indicators	USD
Number of Legal Entities	95468
People working in this industry (in million)	7.5
Merchandise Purchase volume (in billion)	2800.0
Import volume (in billion)	207.9
Merchandise Sales volume (in billion)	3143.2
Export volume (in billion)	174.6
Merchandise inventory level (in billion)	250.4

Reference:

 

*exchange rate: USD 1 : RMB 6.4

Link: http://www.stats.gov.cn/tjsj/ndsj/2010/html/Q1701e.htm

3. Target Market and Target Audiences Page 12

China

According to the National Bureau Statistics of China, there were 712.8 million people (53.4% of total population) living in rural areas in China and the population increased at a natural birth rate of 5.05% per year. The Government recently released a series of policies regarding the renovation of the rural market and the improvement of living standards for the rural population. We believe that the growth in China will be driven by the rural market in the future.

Reference a:

 

 

 

Link: http://www.stats.gov.cn/tjsj/ndsj/2010/html/D0301e.htm

Reference b:

 

Link: http://www.stats.gov.cn/tjsj/ndsj/2010/html/D0302e.htm

4. Page 12

Hebei Province

In the first stage, CAMGwill focus on developing our business in the Hebei Network. Hebei province is an agriculturally dominant provinceand an ideal location for developing the Chinese rural market. The following lists some key attributes ofHebei province:

l40.09 million rural population; total population of 70.34 million; ranked 6^th in China.

lNatural birth rate is 6.5%.

Reference:

 

Link: http://www.stats.gov.cn/tjsj/ndsj/2010/html/D0304e.htm

Page 12

lGross GDP of RMB 1,338.7 billion; ranked 6th in China

Revised:

lGross GDP of RMB 1,723.5 billion; ranked 6th in China

Reference:

 

Link: http://www.stats.gov.cn/tjsj/ndsj/2010/html/C0214e.htm

Page 12

lGDP per capita of RMB 19,363; ranked 11th in China.

Page 12

lGross production of grains in Hebei reached 29.012 billion kg which is 5.5% of the nation; ranked 7th in China

Reference:

Link: http://www.stats.gov.cn/tjsj/ndsj/2010/html/M1315e.htm

Page 12

lOne of the 13 grain production provinces in China; Hebei uses area of 9.237 million mu(approx. 1.5 million acres) as farmland for grains.

Revised: 6,317 million

lOne of the 13 grain production provinces in China; Hebei uses area of 6.317 million hectares as farmland for grains.

Reference:

         

Link: http://www.stats.gov.cn/tjsj/ndsj/2010/html/M1303e.htm

5. Page 12

The income per capita of rural population increased from RMB 2,253 in 2000 to RMB 5,153.2 in 2009, and it is expected to keep increasing under a series of supportive governmental policies.

Reference:

      

Link:http://www.stats.gov.cn/tjsj/ndsj/2010/html/J1021e.htm

6. Paragraph “Focus Media Holding Limited (‘Focus Media’)” (Page 13)

Reference: http://ir.focusmedia.cn/phoenix.zhtml?c=190067&p=irol-reportsAnnual

NASDAQ: FMCN

Focus Media Holding Limited (“Focus Media”):

lIn 2010, Focus Media generated revenues mainly from 5 different types of advertising networks: LCD display network, poster frame network, in-store network, traditional outdoor billboard network, and movie theater network.

lIn 2010, Focus Media had revenue of $516 million, gross profit of $294 million (57%), operating income of $119 million (23%), and net income from continuing operations of $103 million (20%).

Reference:

l

Source: FMCN 2010 annual report (Page 12)

 

Source: FMCN 2010 annual report (Page 17)

 

    

Source: FMCN 2010 annual report (Page 19)

 

     

Source: FMCN 2010 annual report (Page 44)

lMore than 80% of total revenue is attributed to the LCD display network (57.6%) and poster frame network (23.6%) in 2010.

Reference:

 

Source: FMCN 2010 annual report (Page 100)

lIn October 2005, Focus Media acquired Framedia, which operated the largest in-elevator poster frame advertising network in China and provides brand advertisers and community service providers a direct channel to target urban residential communities. As of March 31, 2011, the poster frame network had 378,000 in-elevator poster and digital picture frames in residential buildings that covered more than 30 cities all over China.

Reference:

 

 

Source: FMCN 2010 annual report (Page 3)

lIn 2010, only the gross margin of LCD displays network was higher than 50%.

nLCD display network (77.3%)

nposter frame network (38.0%)

nin-store network (30.7%)

ntraditional outdoor billboard network (21.6%)

nmovie theater network. (42.1%)

Reference:

 

Source: FMCN 2010 annual report (Page 42)

7. Paragraph “AirMedia Group Inc. (‘AirMedia’)” (Page 13)

Reference: http://ir.airmedia.net.cn/phoenix.zhtml?c=214947&p=irol-reportsOther

NASDAQ: AMCN

lAirMedia Group Inc. operates the largest digital media network in China dedicated to air travel advertising.

lAirMedia operates digital TV screens in 37 major airports, including 25 out of 30 largest airports in China. It also operates digital frames in 32 major airports, including the 15 largest airports in China.

Revised:

lAirMedia operates digital TV screens in 36 major airports, including 25 out of 30 largest airports in China. It also operates digital frames in 34 major airports, including the 15 largest airports in China.

lAirMedia sells advertisements on the routes operated by eight airlines, including the three largest airlines in China.

lIn selected major airports, AirMedia also operates traditional media platforms, such as billboards and light boxes, and other digital media, such as mega LED screens.

 

Source: Fourth Quarter and Fiscal Year 2011 Unaudited Financial Results (page 14)

lIn 2010, AirMedia had a revenue of $254 million, a gross profit of $32.6 million (12.8%), an operating margin of -6.6%, and a net income of -$9.11 million (-3.58%)

Revised:

lIn 2010, AirMedia had a revenue of $236 million, a gross profit of $32.6 million (12.8%), an operating margin of 0.7%, and a net income of -$7.58 million (-3.58%)

l

 

Source: Fourth Quarter and Fiscal Year 2011 Unaudited Financial Results (page 8)

 

Source: Fourth Quarter and Fiscal Year 2011 Unaudited Financial Results (page 10)

 

  

Source: Fourth Quarter and Fiscal Year 2011 Unaudited Financial Results (page 19)

 

Source: Fourth Quarter and Fiscal Year 2011 Unaudited Financial Results (page 21)

8. Paragraph “VisionChina Media, Inc.(‘VisionChina’)” (Page 13)

Reference: http://www.visionchina.cn/phoenix.zhtml?c=215970&p=irol-ReportsAnnual

NASDAQ:VISN

VisionChina Media, Inc.(“VisionChina”):

lVisionChina Media, Inc. using is digital mobile television broadcasts to deliver content and advertising to displays on mass transportation systems such as bus and subway networks.

lAs of December 31, 2010, its network and supplemental subway advertising platform covered 23 cities in China and consisted of approximately 137,395 digital displays.

Revised:

lAs of December 31, 2010, its network and supplemental subway advertising platform covered 23 cities in China and consisted of approximately 14,023 digital displays.

 

Source: VISIONCHINA MEDIA INC. (VISN) 20-F Annual and transition report of foreign private issuers pursuant tosections 13 or 15(d) (Page 3)

lVisionChina sells its advertising time through direct sales force and third party advertising agencies.

lVisionChina’s revenue increased by 14.3%, from $120 million in 2009 to $138 million in 2010. However the cost of revenue increased from $61.1 million in 2009 to $121 million in 2010.

 

Source: VISIONCHINA MEDIA INC. (VISN) 20-F Annual and transition report of foreign private issuers pursuant tosections 13 or 15(d) (Page 2)