Hong Kong, November 23, 2006 - Qin Jia Yuan Media Services Company Limited (HKEx: 2366, hereinafter referred to as ‘QJY' or the "Group") announces a record turnover of HK$125.1 million for the 2006 fiscal year, up 18% from last year's HK$106.3 million. Profit attributable to shareholders stood at HK$83.6 million, an increase of 26% over the previous fiscal year's HK$66.2 million, with earnings per share of 17.21 HK cents for the year. The Group declares a final dividend for the full fiscal year ending Sept 30, 2006 in scrip form equivalent to 1.8 HK cents per share. Shareholders are given an option to receive cash in lieu of the script dividend. The total dividend for the year is 3.6 HK cents per share.

Dr. Anita Leung Fung Yee, CEO of Qin Jia Yuan said that in the three years after QJY listed as a public company in 2004, the Group has recorded annual net profit growth of over 26%. This resilient growth rate has been driven by the Group's efforts to operate in line with China's media and advertising policies, and its market savvy. These are necessary and favorable conditions for enterprises to thrive in China's media market.

Dr. Leung continued to say that the Chinese government has recently adopted new policies that are extremely beneficial to Hong Kong companies engaging in TV program investment, production, buying and selling, and distribution in the Mainland. Under these policies, TV dramas jointly produced by Chinese and Hong Kong companies will be considered domestically produced dramas and will be entitled to license broadcasting rights for any broadcasting period— including prime time (subject to government approval). This enables Hong Kong companies to engage in TV program investments and productions in China more easily than they could before. The Group has made the necessary preparations in order to operate effectively under the new policies. Since its listing, the Group has expanded its collaboration base from one major Mainland TV station to eight, now including TV stations/media in Beijing, Dalian, Fujian, Guangdong, Harbin, Hubei, Jiangsu and Shanghai, having formed a powerful nationwide network of investment, production, buying and selling, and distribution for TV programs.

Increase market share from the current 2% to 15-20% by 2010

Anita Leung explained that Mainland China remained QJY's principal market, with the secondary being the Chinese communities overseas excluding Hong Kong. She further indicated that the demand for prime-time TV drama series is now up to 5,000 episodes/hours per year. The network of TV drama production that QJY has successfully established will be operating in full swing at the end of 2006. The Group will take up a "3-year production enhancement plan", with a goal to increase its market share of annual TV programming from around 2 percent to 15-20 percent by 2010. It is projected that the Group will become a leading TV drama supplier in China, with an annual supply of 800 to 1,000 episodes/hours of quality TV dramas.

According to statistics, advertising expenditure on China's media has seen an annual average growth rate of 20.7% over the last three years and has recorded a growth rate of over 25.5 % for the first half of 2006. Out of the total advertising expenditure of three major media, over 75% goes to TV media. TV dramas have been the most profitable sector, taking in 43% of TV advertising expenditures. The Group believes that, with its powerful network of collaboration with the 8 major mainland TV stations, it will experience rapid growth in the blossoming Chinese media market, further expanding its operations of TV production, distribution, advertising planning and selling, promotion and public relations.

First foray into China's advertising placement business

The Group expects that the planned sino-foreign joint advertising venture, which has been applied for, will begin operation shortly. This will allow the Group to promote cooperation with mainland TV stations and further expand its advertising business in various forms of media, apart from TV syndication programs and the advertising operations of some national non-TV media including three national newspapers, eleven national magazines and China Central Radio, which the Group have signed agreements with in 2006. The Group has prepared a plan to develop a unique advertising platform in 2007 in order to meet the huge demand of the Chinese advertisers and sponsors.

Currently in China, there is a huge demand for modern TV dramas. The Group has secured exclusive adaptation rights to the science fiction novels by Wisely and the novel series about finance and economics by Dr. Anita Leung. These TV dramas are expected to air next year, thereby rendering an increase in turnover to the Group. It is predicted that these exclusive TV drama series will begin to create a trend of "Brand Enterprises sponsor Brand Works".