China MediaExpress Holdings, Inc. announces extension of existing network

China MediaExpress Holdings, Inc. (NYSE Amex: CCME) (“CME” or “Company”) today announced that it has signed a new framework agreement to purchase exclusive rights to operate television screens on all the express buses originating from the Beijing Capital International Airport.

CME’s contract is for a period of five years commencing February 1, 2010 and grants the Company the right to provide television programming and advertisements on all Beijing Capital International Airport express buses, representing 229 buses managed by two bus operators. According to the framework agreement, CME will pay a monthly concession fee over the term of the contract in addition to a one-time fee of RMB 100,000 (approximately $15,000) per bus for the acquisition of the operating rights.

The Beijing Capital International Airport is the largest and busiest airport in China and has rapidly ascended in rankings to one of the world's busiest airports in the past decade. In 2001, the airport served 24 million passengers. By 2008, passenger volume had more than doubled to 56 million, reaching 60 million in 2009, making Beijing Capital International Airport the eighth busiest airport in the world.

To accommodate the growing traffic volume, Beijing Capital International Airport added Terminal 2 in 1999 and the enormous Terminal 3 in 2008 (which is the second largest airport terminal in the world after Dubai International Airport's Terminal 3 and the third largest building in the world by area). Today, Beijing Capital International Airport has airport passenger capacity of 82 million annually. Several newly built expressways link the Beijing Capital International Airport to the city of Beijing, making it easy and convenient for passengers to use the express bus service.

Zheng Cheng, CME’s Founder and CEO, noted, “We are very happy to have signed this new agreement which enforces our position as a market leader in the city of Beijing, the largest city in China. We believe that as the number of passengers traveling to and from the airport continues to increase, it will benefit us and also our customers, leading advertising agencies and corporations, who will want to continue to take advantage of our very competitive advertising rates.”

(c) Centre for Asia Pacific Aviation. Date posted: 09-Feb-10