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Message from the Chairman

SinoMedia Holding Limited ("SinoMedia" or "the Group") is a leading privately-owned media advertising operator in China providing nationwide TV advertising coverage for customers on China Central Television Station ("CCTV") and other media advertising resources.

On the back of China's booming economy, the country's media and advertisement industry has witnessed robust growth. In this environment, SinoMedia has been able to take a leading position in the TV advertisement industry, obtaining absolute advantages and benefits from this exploding, consumer-driven market. SinoMedia not only continues to strengthen our core advertising resources on CCTV, but also has continuously developed new business sectors. For example, the Group has completed various investments and acquisitions and established new partnerships lately, enabling SinoMedia to provide advertising services on the nationwide public service advertising broadcast network and be the master advertising agent for the MediaCorp's TV channels in China. Together, these maneuvers not only strengthen the Group's core advertising business but also enrich SinoMedia's media resources portfolio.

The Group has also tapped into the fast-growing Internet advertising market by establishing a joint venture with Beijing Lotour Internet Technology Co., Ltd. to exclusively operate the country's largest Internet portal for the travel industry, www.lotour.com.

The Group's strong recent business developments have continued to lay a firm foundation for the Group financially. Looking ahead, SinoMedia will practice new strategies to fully capture growth opportunities. The Group will acquire more resources, improve utilization rates of the existing media resources and enhance cooperation with CCTV, while allocating resources to expand into the Internet and mobile TV markets, all to seize the high yielding prospects of the rapidly developing digital advertisement market.

Riding on the Group's vast advertising customer base, extensive market experience and strong brand recognition, SinoMedia is confident about continuing to create great returns for shareholders.

Chen Xin
Chairman