Network CN Inc. Expands Network Media Business into Shanghai Lujiazui Finance & Trade Zone
New York, April 23, 2007 (PR NEWSWIRE) – Network CN Inc. (OTC Bulletin Board: NWCN), a Chinese media and travel network company headquartered in Hong Kong, today that it has entered into a business cooperation agreement with Shanghai Qianming Advertising Company Ltd. Under terms of the agreement, Network CN becomes the authorized, exclusive agent to 85 roadside LED digital video panels in Shanghai’s Lujiazui Finance & Trade Zone. The agreement will be effective from September 1, 2007 to August 31, 2013. The contract was signed between Shanghai Qianming Advertising and Network CN’s subsidiary, Shanghai Quo Advertising Company Ltd.
Lujiazui Financial and Trade Zone is in the center of the Lujiazui Functional Area, including about 43.4 square kilometers in Pudong, Shanghai. Hosting fully 31% of the foreign financial institutions in China, Lujiazui is becoming a leading financial and business center, similar to Manhattan in New York, the City in London, Shinjuku in Tokyo, and Central in Hong Kong.
Godfrey Hui, Chief Executive Officer of Network CN, commented, “We are proud of the progress we are making in our strategic network media business. Lujiazui is at the heart of the economic dynamics leading China onto the world business and finance stage. It is a hub for capital and information circulation in this region. These exclusive agency rights to out-of-home roadside LED digital video panels in Lujiazui strengthen our competitive position as an emerging media leader in China.”
“We provide premium visibility to advertisers with world-class brands,” Mr. Hui added. “We’re now another step closer to completing the coverage of our media network in China particularly in Shanghai. Including this contract, we have obtained rights to install and operate more than 400 roadside LED digital video panels in Shanghai. Our target is to reach 500 panels in Shanghai by the end of 2007. Through cooperation with local businesses and government agencies, our media business is growing rapidly in the Shanghai region. We will build on this success in Shanghai, but we are similarly expanding our media operations to include other major cities in China.”
Additional terms to this transaction include the following:
·Network CN anticipates that it will complete the installation of all 85 LED panels by the end of 2007, and that it will begin to generate revenues from installed panels during the second half of 2007.
·Qianming is responsible for installing the foundations and certain below ground electrical equipment necessary to operate the panels on or before June 30, 2007 and for daily maintenance of the panels, including the cleaning of the visible external parts and the repair of any damage to the external shells containing the units.
·Qianming is responsible for obtaining and maintaining the necessary governmental approvals for the installation of the panels and for the publication of content and advertisements on the panels.
Please refer to the Company’s website (www.ncnmedia.com) or its 8-k filing reported on April 20, 2007 with the U.S. Securities and Exchange Commission for more details.
About Network CN Inc.
Headquartered in Hong Kong, Network CN Inc.’s vision is to build a nationwide network in China to service the needs of its customers. To achieve its vision, the Company has set out to build and run a Media Network, a Hotel Network and an e-Network. A Hotel Network has already been established. As of December 31, 2006, the Company had five 2-4 star hotels in the PRC and roughly 730 hotel rooms under management. In addition, the Company is actively pursuing the development of an e-Network via the Internet and mobile communications.
This press release includes statements that may constitute “forward-looking” statements, usually containing the word “believe,” “estimate,” “project,” “expect,” “plan,” “anticipate” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors and changes in regulatory environments. These and other risks relating to Network CN Inc. business are set forth in the Company’s Annual Report on Form 10-KSB filed with the Securities and Exchange Commission on April 2, 2007, and other reports filed from time to time with the Securities and Exchange Commission. By making these forward-looking statements, Network CN Inc. disclaims any obligation to update these statements for revisions or changes after the date of this release.
CONTACT
Network CN Inc. Investor Relations: 203-682-820