Tianjin QJY Advertising is a licenced advertising agency in the PRC and an exclusive partner of the Group in the business of syndication programmes (mainly TV drama series). The Group does not hold equity interests in Tianjin QJY Advertising but has authorized it to use the name "QJY" to reflect its close alliance with the Group, and that the parties share the same management philosophy that success comes from "diligence plus opportunity" as the name "Qin Jia Yuan" in Chinese means.

Pursuant to the letter of intent, Joyrex will contribute a cash consideration of no less than HK$38 million as capital to the joint venture for the purpose of acquiring certain rights to place advertisement during the airtime of a television platform in PRC known as "Qin Jia Yuan Drama Time". Tianjin QJY Advertising will contribute rights of certain advertising contracts related to "Qin Jia Yuan Drama Time". The terms and conditions of the investment have yet to be finalized.

Dr Leung Anita Fung Yee Maria, CEO of Qin Jia Yuan, said: "The investment in the joint venture will give us inroads in China's market for advertising distribution and agency services, which is highly synergistic with our existing TV programming and marketing related services operations. The joint venture will hold the rights to and focus on the business of placement of advertisement during the "Qin Jia Yuan Drama Time" which represents prime airtime of major TV stations in the PRC. This allows the Group to provide a much wider television platform to response to the needs of the market and the clients. The joint venture will therefore be directly engaged in media buying and planning in PRC which requires an advertising licence. The new platform can be found in the prime time of the television channels in major cities, providing the clients with much needed advertising services which are more flexible than syndication programmes （貼片廣告）."

"If the joint venture can be set up successfully, the Group can extend its business from the coordination of syndication programmes to the direct operation of prime time advertising slots of major television channels in PRC, providing the clients with the services of placing advertisement on TV which is more flexible than syndication programmes. As prime advertising airtime is in high demand, the rates continue to rise year after year. The establishment of the advertising joint verture should be a big leap for the Group." added Dr. Leung.

The investment is expected to be completed on or before Dec 31, 2005.

About Qin Jia Yuan
Qin Jia Yuan Media Services Company Limited (HKEx: 2366) is a China-focused one-stop shop for TV media services, providing integrated programme, distribution, advertising and marketing and public relations services to production houses, advertising agencies and advertisers. The Group was listed on the main board of the Stock Exchange of Hong Kong on June 30, 2004 following a successful initial public offering. Its strategic shareholders include Aegis Group plc, a public company listed on the London Stock Exchange and one of the world’s five largest media groups.

Issued by :
Qin Jia Yuan Media Services Company Limited

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