Dr Anita Maria Leung Fung Yee, CEO of Qin Jia Yuan said that the circulation of these magazines is immense, compared to other publications of its kind. They also have massive market potential, for example, China Cartoon, Secondary School Student, China Children's Illustrated Magazine which target readers in different age groups. The readership for these three magazines is over 200 million. As China's achievement in Science is getting recognition today, there is a demand for children's science reading materials by Chinese parents. One of the publications, We Love Science has an estimated potential readership of 300 million.

The group is planning to spend an average of no more than 10-million RMB each year on rights acquisition, including investments on packaging, advertising promotions for the publications as well as organizing national children's and youth activities for PR purposes. Based on the signed advertising contracts which are effective in 2006, the revenues earned next year would exceed costs to be incurred. Earnings from business line will be accounted for in 2006's P&L accounts. Apart from advertisement placements, business opportunities arising from these publications include sponsorships by toy manufacturers with toy-based children's stories and cartoon figures. Upon requests of the sponsors, Qin Jia Yuan can carry out promotion-related PR activities that will not only enhance the sales and the popularity of the publications, but will also provide wholesome social activities for children and teenagers in China. In recent years, Chinese parents are increasingly concerned about their only child's education. Hence, today's children will have better access to PR activities combining education and entertainment. This will in turn increase the group's PR revenue.

Anita Leung said, "Qin Jia Yuan is a China-focused media services company. In addition to our core business of producing TV drama series and TV advertisements aired during prime time, we are also developing advertising and PR businesses of other media in order to become a multimedia services provider. The latest acquisition of advertising and PR rights is the first step in bringing multimedia services to our clients. Nowadays, children and teenagers in China have a higher purchasing power because of parents' concern to improve their standard of living. This will be reflected in the volume of advertisement placements in the media."

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.

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Qin Jia Yuan Media Services Company Limited

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