Asia Media Group Corporation Announces Exclusive Television Advertising Time Deal in China.

TORONTO--(BUSINESS WIRE)--June 7, 1996--ASIA MEDIA GROUP (CANADIAN DEALING NETWORK: ASIA) Asia Media Group Corporation (Asia Media) announced that its wholly-owned Barbados subsidiary, AMG Limited (AMG), has entered into a formal agreement whereby AMG has acquired the exclusive right to purchase and re-sell prime time advertising space on China Central Television (CCTV) Channel Eight, a variety and entertainment channel distributed by satellite and cable with a potential audience of 160 million viewers in 40 million homes in China.

The agreement, approved in principle by the Board of Directors of Asia Media on April 3, 1996, and entered into with Media Groupings (Far East) Pte Ltd. (MGS), gives AMG the exclusive right to sell, for the period from May 1, 1996 to April 30, 2000, 18 minutes of advertising time each day during the prime viewing hours of 7:30 p.m. to 10:00 p.m. on CCTV Channel Eight (the MGS Agreement). Through its sales offices in Beijing and Shanghai and representatives throughout the Far East, Asia Media will target Chinese and foreign advertisers interested in doing business in the People's Republic of China.

Asia Media owns approximately 22 percent of the outstanding shares of MGS, a diversified Singapore media production and distribution company. Mr. Poh Kay Ping of Singapore, a director of Asia Media, and his family own approximately 78 percent of the outstanding shares of MGS and approximately 31 percent of the outstanding shares of Asia Media.

MGS previously entered into an agreement with the applicable Chinese authorities in July, 1995 (the CCTV Agreement), which was subsequently amended in November, 1995 and January, 1996, whereby MGS acquired the exclusive prime time advertising rights on CCTV Channel Eight, together with a right of first refusal for a further period of one year, which rights have now been acquired by AMG under the MGS Agreement. Under the CCTV Agreement, MGS is required to pay certain minimum advertising fees and is also required to invest additional sums in programming such as promotional announcements for CCTV Channel Eight. MGS also acquired preferential rights for the acquisition of other time slots on the same channel.

AMG has now entered into the MGS Agreement, pursuant to which AMG assumes the benefits and obligations of MGS under the CCTV Agreement. MGS will sell all of its advertising time to AMG and AMG will pay to MGS, for further payment to the Chinese authorities, all of the amounts due for payment by MGS to the Chinese authorities. There is no benefit to MGS from the transaction with AMG, and all potential profit from re-sale of the advertising time accrues to AMG, as do all the liabilities and obligations under the CCTV Agreement.

Asia Media will guarantee the due performance by AMG of its obligations under the MGS Agreement and under its terms, AMG will be required to commit approximately CDN. $17.8 million over the next four years for minimum advertising fees and program investment. Asia Media is currently in the process of raising additional capital through an offering proposed to be made in the United Kingdom and Europe, in order to satisfy the current funding obligations under the MGS Agreement.

The MGS Agreement also provides that the following conditions must be satisfied for AMG's benefit:

(i) approval by Asia Media shareholders, an independent valuation (unless an exemption from such valuation is available under governing securities laws and policies) and any other consents or approvals under Canadian law;

(ii) the raising of U.S. $4,500,000 through the place of shares of Asia Media to fund AMG's obligations under the MGS Agreement; and

(iii) AMG being satisfied that it can meet any licensing requirements to re-sell the advertising time.

The MGS Agreement also provides that if MGS is granted other rights by the Chinese authorities, either to acquire further air time or to sell further advertisements, it is to notify AMG and to provide AMG with a right of first refusal to exercise such rights within 30 days on the same terms offered to MGS.

"Both Chinese and international companies are increasingly looking to tap the enormous potential of the Chinese consumer market," said Robert Kennedy, President and Chief Executive Officer of Asia Media. "Today's announcement is a significant step toward the expansion of our activities in mainland China, and together with MGS we are well positioned to capitalize on the expected growth in China's advertising market."

According to reported Chinese government estimates, the number of households in China with cable television will rise to approximately 80 million by the turn of the century.

Asia Media is a public company whose shares are traded on the Canadian Dealing Network under the ticker symbol ASIA. MGS, which has a joint venture agreement with China International Television (a wholly-owned subsidiary of CCTV) for the production, marketing, and distribution of television programs throughout China, will begin its operations this month with the launch of a weekly special feature film series on CCTV Channel Two, CCTV Channel Eight and other channels.

CONTACT: Environics Communications Inc.

Sean Stokes, 416/920-9000, ext.263

or

Asia Media Group Corporation

Manoj Pundit, 416/977-5545, ext.228