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China RailsMedia launches FingerAd


April 2, 2012 - Hong Kong

Multi-media marketing service provider China RailsMedia Corporation Limited ("China Railsmedia", and together with its subsidiaries, the "Group")(HKSE:745) is pleased to announce today the launch of its new mobile advertising and marketing platform operated by the Group's newly-acquired wholly owned subsidiary - FingerAd Media Company Limited ("FingerAd").

The Board of Directors announced the proposed Very Substantial Acquisition ('VSA') in relation of the acquisition of FingerAd in November 2011. It was declared that on 27 October 2011 (the "Last Trading Day") after trading hours, the Group has entered into an agreement to acquire 100% of FingerAd at a total consideration of HK$690,000,000 (the "Transaction"). The consideration willbe satisfied as to:

(i) HK$490,000,000 by way of issuing 7,000,000,000 new convertible preference shares by China Railsmedia at the issue price of HK$0.07 per convertible preference share and an initial conversion price of HK$0.07, and
(ii) HK$200,000,000 by way of issue of promissory notes by the Group with two year maturity at an interest rate of 2% per annum.

The conversion price of HK$0.07 per convertible preference share represents a discount of approximately 3.9% over the average of the closing prices of approximately HK$0.0729 per China Railsmedia share for the 30 consecutive trading days immediately prior to the Last Trading Day.

Mr. Hui Chi Yung, Chairman of China Railsmedia, commented: "We are delighted to announce thelaunch of this innovative multi-media marketing platform for Food & Beverage retailers in Hong Kong today. The Group has always been keen to explore non-traditional advertising media with vast potential in the Greater China market. We believe the acquisition of FingerAd matches well with our development objective, and will create a new dimension of opportunities for generating substantial amount of recurrent revenue for the Group, creating value for shareholders in the long run."

FingerAd is a first-mover and an integrated e-marketing service provider of mobile applications and multimedia platforms. Its initial product offering involves the setting up of mobile promotion platforms for retail businesses (starting with F&B) via the development of tailor-made Smartphone applications. In short, FingerAd provides an integrated tool for sales, marketing and customer relationship management ("CRM") to F&B merchants in Hong Kong by developing for them customized interactive dining applications at minimal set-up and maintenance costs.

The revenue sources of FingerAd will include, but will not be limited to, monthly fee from merchants, advertising and marketing income, and other application-specific value-added services. Possiblefeatures of the customized applications include mobile table reservation systems, mobile takeaway ordering systems, special offers and promotion coupons, etc. The applications are compatible with both the Android and iOS platforms.

Mr. Hui concluded: "We believe by offering such comprehensive and advanced marketing solution to retail merchants with relatively lower budget, FingerAd's product is going to be popular in not only the Hong Kong F&B market, but also the wider retail segment inthe Greater China region. We do have longer term plans for such development, and is confident towards the potential of FingerAd in this vast market."

For more details of the VSA, please refer to the CRM announcement dated 21 November 2011 and the formal circular dated 14 March, 2012, both posted on the HKEx website.

About FingerAd Media Company Limited

FingerAd Media Company Limited ("FingerAd") is a wholly-owned subsidiary of China Railsmedia Corporation Limited (HKSE: 745). The businesses of FingerAd include providing a tool integrating sales, marketing and customer relationship management to food and beverage merchants in Hong Kong by developing interactive dining applications (the "dining apps"). The dining apps are to be deployed as the personalised Mobile App for each restaurant and can be downloaded from both Apple's App Store and Android Market. FingerAd also provides value-added services to help merchants and their customers achieve a win-win business situation.For more corporate and services information about FingerAd, please visit our website at: www.fingerad.com.hk.

About China RailsMedia

China RailsMedia Corporation Limited (HKSE: 745) is engaged in a broad spectrum of construction works and the provision of multi-media services group. The Group's businesses include building constructions, renovation and fitting out works for both public and private sectors in Hong Kong, media and management services for the multi-media business in the PRC and outdoor advertising in Hong Kong. The Group's shares have been listed on the Main Board of the Stock Exchange of Hong Kong since 13 October 2004. For more corporate information on the Group, please access our website at http://www.whc.com.hk.

Source: China RailsMedia

Contact:

Strategic Financial Relations Limited
Cindy Lung, +852 2864 4867 / 9282 4640, cindy.lung@sprg.com.hk
Sherman Yu, +852 2114 4956 / 9166 9562, sherman.yu@sprg.com.hk
Tiffany Cheung, +852 2864 4817 / 9288 3940, tiffany.cheung@sprg.com.hk
Fiona Wong, +852 2114 4990 / 6770 0161, fiona.wong@sprg.com.hk





Copyright 2012 ACN Newswire. All rights reserved.

ACN Newswire

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