REFERING to the MOUs it has signed for possible acquisition of 44% interest in Zhejiang Daily Join-Home Media Holding Group Limited and 100% interest in Dimension Digital Marketing Limited, China Outdoor Media Group (00254.HK) said that the vendors and it have commenced negotiations and reached mutual agreements in key terms. China Outdoor Media Group expects that a formal sale and purchase agreement will be signed within the exclusivity period.

China Outdoor Media Group also announced that it has in full force started its new media business cooperation with Zhejiang Daily Join-Home Media in the Greater China including Hong Kong and Macau. Through strengthening its all-around business cooperation with Zhejiang Daily Join-Home Media, China Outdoor Media Group expects that it can expand and develop its new media business, including but not limited to those new media businesses integrating with the newest technology, such as 3 net integration and i-Cloud.

Zhejiang Daily Join-Home Media is currently engaging and operating the following businesses both in China and Hong Kong: "Tao" + "Taobao Tianxia" Magazine and its online shopping platform; Iconhere interactive entertainment and information platform; LED total solution and consultancy business; and out-of-home media business, including large-scale outdoor LED screens and indoor LCD screens.

Dimension Digital owns a detection software system for mobile phone, namely i-Marker, and is operating its businesses, including online shopping business, on a global basis. i-Marker operates in iPhone 4 or Android mobile phone platform.