Network CN Inc. Updates Shareholders
HONG KONG, September 17, 2007 (PR Newswire) — Network CN Inc. (the “Company”) (OTC Bulletin Board: NWCN), a Chinese media and travel network company headquartered in Hong Kong, today provided details of its strategic plan for the balance of 2007 and into 2008, in a letter to shareholders by the Company’s Chief Executive Officer, Mr. Godfrey Hui.
According to Mr. Hui, fiscal year 2007 was a very productive year, with many milestones yet to come. “China’s hosting of the 2008 Olympics is a landmark event in the history of our nation,” Hui commented. “This single event is not only creating a high level of excitement about China as the world becomes more familiar with our land, our institutions, our history, and our people, but it is opening and strengthening many business opportunities for companies like Network CN.”
As part of the strategic update, Mr. Hui recounted the Company’s January 2007 acquisition of Quo Advertising in Shanghai, for a combination of cash and NWCN common stock. “We were blessed to have a world-class team of multi-media advertising professionals join us,” stated Hui. “After months of working with the Quo team, our sense of good fortune and foresight in having allied with Quo has only been strengthened. It is clear to us that, in Quo, we chose the right agency for the ambitious plans we have outlined and undertaken.”
Since January, Network CN has issued a series of announcements related to its building an out-of-home advertising network in China’s major cities. “The first chapter of this story,” said Mr. Hui, “was our February agreement with Zhong Ying Communication Engineering Company of Shanghai, to construct, manage, and operate up to 200 LED advertising panels in Shanghai’s upscale Huangpu District.”
After the February announcement, Network CN has regularly announced that additional agreements have been reached, averaging one or two per month. “We now have aggregated rights and authorizations to operate up to 653 roadside LED advertising panels, five mega-size digital video billboards, and 24 rolling light boxes, with additional agreements in the works,” stated Mr. Hui. “Our network now includes Shanghai’s most vibrant and attractive commercial district, Lujiazui, as well as Nanjing and Wuhan. Altogether, the metropolitan markets in which we are already established total more than 32 million in population. Of course, we will secure a number of advertising rights in Beijing, the capital city of China.
“The advertising network we are building,” Mr. Hui said, “will generate millions, if not billions of advertising impressions for our advertising clients each week. Non-Asian advertisers, such as those initially drawn to China by the Olympics and those seeking to sell products to an increasingly prosperous population, will be able to address a target audience previously inaccessible. Asian advertisers will be able to win the lifetime loyalty of consumers for whom choosing brands and spending their growing disposable incomes is a relatively new experience.”
Network CN executives view obtaining billboard permits as only a necessary first step. “We have been working diligently to complete our display installations,” Mr. Hui stated. “We must also configure and test software and outline specific advertising programs for each of our display locations. The activities aimed at preparing to ’go live‘ with our network have intensified.”
During 2007, Network CN’s focus has been on “building the network.” That has involved an often complex process of obtaining permits in several different locales and government jurisdictions, simultaneously, as well as beginning to install and program the displays. “We are nearing the ‘champagne moment’,” Mr. Hui declared, “when our media network will begin operations and we begin to record substantial revenues as we serve the needs of, and add value to, our advertiser clients. While the beginning of regular commercial operations will conclude the initial network-building phase, it only marks the beginning of our longer-term growth plans.
“We believe that the future is dynamic, but filled with enormous potential,” Mr. Hui continued. “There are rewarding times just ahead for our company. Our dedicated employees’ hard work and our shareholders’ investments will be rewarded. Stay tuned for more and continuing news from Network CN.”
Please refer to the Company’s website (www.ncnmedia.com) for more details.
About Network CN Inc.
Headquartered in Hong Kong, Network CN Inc.’s vision is to build a nationwide network in China that serves the needs of a variety of customers. The Company operates a Media Network, a Hotel Network and an e-Network. On the media side, Network CN is establishing a multi-media, multi-application advertising network in the key cities of China, focusing on outdoor advertising media. As of June 30, 2007, the Company had obtained rights to install and operate 653 roadside digital video panels, 4 mega-size digital video billboards and 24 rolling light boxes in the PRC. On the hospitality and hotel management side, Network CN is building a travel service platform to link up under one network, all the hotel properties under our management, whether owned by the Company or operated under lease or joint venture agreements. In addition, the Company is actively pursuing the development of an e-Network via the Internet.
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-QSB filed with the Securities and Exchange Commission on August 14, 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.
For more information, please contact:
Stanley Chu, General Manager
Network CN Inc.
Sean Collins, Senior Partner