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QIN JIA YUAN MEDIA SERVICES COMPANY LIMITED
Acquires 5-year exclusive rights of advertising agency
for two Chinese publications

Hong Kong, January 19, 2006 - Qin Jia Yuan Media Services Company Limited (HKEx: 2366) announces that it has acquired 5-year exclusive rights of advertising agency for two Chinese publications: Chinese Red Cross Weekly and Caritas Monthly, with a priority to renew for another 5 years. The group estimates that it will invest no more than 20-million RMB to acquire these rights and generate more advertising sponsorships, as well as organizing public relations (PR) activities to enhance the readership and advertisement sales for the two publications. Chinese Red Cross Weekly and Caritas Monthly are the only publications that the Red Cross Society of China runs. By virtue of the Chinese Red Cross Society's special status, those publications definitely exert an influence upon health and medical services, and obviously, in publishing their health and promotional articles, they always focus on what effects they might have on their readers. The weekly and monthly publications are distributed all over China and the circulation has been very stable over a long period of time.

Dr Anita Maria Leung Fung Yee, CEO of Qin Jia Yuan said, "Those publications are of such high standard that the acquisition of the exclusive advertising rights is a risk free investment with good business development potential. The Group has begun discussing a long-term cooperation agreement with Rentokil Initial PLC, one of the largest business service companies in the world focusing on hygiene and cleaning support services. The revenues from advertisement placements and sponsorships which Rentokil Initial PLC has pledged will be a considerable amount." Leung Fung Yee also pointed out that Rentokil Initial PLC is a British listed company, with a market value of 3 billion pounds and a workforce of up to 90-thousand employees, conducting business all over the world. As the company focuses on developing the mainland China market, it will conduct long-term market promotion plans on high-effective and high-specific media such as Chinese Red Cross Weekly and Caritas Monthly.

Leung Fung Yee said that, according to survey results from a marketing research company, advertising expenses on domestic health foods, personal health products, medicine and medical instruments amounted to RMB 45,109, 786, 078.00 in 2005. It is predicted that they will maintain considerable growth in 2006. Base on such a market phenomenon, the Group is quite certain that this acquisition is commercially sound.

Leung Fung Yee added that, in recent years, of the advertising expenses of Chinese media, 75% have been invested in TV, with the remaining 25% in newspapers, magazines, radios, outdoor advertisement space, websites and so on. The Group has been focusing on the investment, production and distribution of TV dramas, as well as the planning of advertisements during the air time of TV dramas. At the same time, the Group takes the business of non-television media as their subsidiary. In addition to the latest acquisition, the group has also acquired 10-year exclusive advertising rights to ten children's and teenagers' magazine titles in China recently; subsequently speeding up the Group's strategic action of becoming a "supermarket of multi-media service".

Issued by :
Qin Jia Yuan Media Services Company Limited

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