Tuesday, April 13, 2010 – After Market Close

Introductory Coverage

New Green Baron “Stock Alert”

In association with:

China New Media Corp.

 (BB: CMDI - $2.99 per share)

Common Shares Outstanding / 27.5 million

Estimated Float / 1.1 million

Insider Ownership / 61.1%

Current Market Cap / $82.225 million

52-Week High / $3.99 per share

Year Low / $1.15 per share

Average Price / $2.34 (50-day) $2.35 (200-day)

Average Volume / 16,000 (50-day) 17,100 (200-day)

 

Consistently Profitable, High-Growth Outdoor Advertising Company Expands Through Installation of Mega-LED Screens Shenyang and Beijing 

RedChip Companies Analyst Initiates Coverage with BUY Rating in 18-page Report dated March 16, 2010

At Forecasted Growth of 35% and Earnings of .23 Per Share Next Year, The Green Baron Sees Huge Upside!

Today, The Green Baron Report is initiating coverage of China New Media Corp. (BB: CMDI) as a new Green Baron “Stock Alert”.  Results compiled from the most recent trade possible prior to dissemination of this report to the subsequent high will be monitored at TheGreenBaron.com and through email updates to members.  Although we have very aggressive price projections for CMDI, we still suggest our members try to accumulate shares as close to our profile price as possible. 

Red Chip relationship: This coverage is conducted in association with RedChip Companies (see description of RedChip at very bottom).  The Green Baron Report plans to provide “Stock Alerts” from time to time on select stocks that are clients of RedChip Companies.  We are impressed by many of the companies that RedChip represents, and generally agree with the outlook by RedChip’s chief analyst.  We intend to bring our members some of the best stocks from RedChip.

On November 30, 2009, we issued a “Stock Alert” on Worldwide Energy and Manufacturing (BB: WEMU) at $4.70 per share and it proceeded to hit $7.17 within 45 days, an incredible move of over 52%.  This was the only other Red Chip covered stock we have focused on to date.  Today’s “Stock Alert”, China New Media Corp. is now our second.  If the previous result is any indication of where CMDI is headed (and we think it will be), Green Baron members are in for some fantastic gains over the near-term.

CMDI provides clients with advertising opportunities through a diverse media platform. The Company operates under multiple business segments including Street Fixture and Display Networks, Mobile Advertisement and Billboard Displays. The Company has developed a diverse and growing base of clients, increasing to over 1,480 (as of December 31, 2009) from 562 in the last two years. Their largest advertising clients include well known international and domestic brands. These include China Mobile, Pin-an Insurance, China Unicom, CITIC Bank, China Merchant Bank, Coca-Cola, Pepsi, and UPS.

China New Media is showing steady progress, revenue growth and earnings growth.  The Green Baron Report agrees with RedChip forecasted earnings of .15 per share fully diluted for 2010 and .23 per share for 2011.  At 35 times earnings (the forecasted growth rate each year for the next two years) and if you calculate using next year’s forecasted earnings per share of .23, CMDI could reasonably trade at $8.05 per share.  We view the target of $4.50 by RedChip to be somewhat conservative and achievable in the near-term representing a nice entry point based on today’s price.

Recent Key Announcements:

March 16, 2010 – RedChip Visibility Initiates Research Coverage on China New Media with Buy Rating - http://finance.yahoo.com/news/RedChip...

March 4, 2010 – China New Media Corp. Signs Agreement for Plans to Install Five Mega-LED Screens in Shenyang City - http://finance.yahoo.com/news/China-New-Media...

March 3, 2010 – China New Media Corp. Signs Cooperation Agreement to Establish the Large Screen LED Project in Beijing and Other Cities - http://finance.yahoo.com/news...

We urge members who wish to discuss China New Media in more detail or have further questions to contact Karl Schilling at RedChip: Cell Phone (321) 947-3220 or the office at (800)733-2447, Ext. 130.  Karl is a very knowledgeable about China New Media and is extremely professional. 

Excepts from Red Chip’s Recent Research Report on China New Media

INVESTMENT HIGHLIGHTS

Strong revenue growth - The Company posted revenue growth of 71% and 57% over the prior two full fiscal years and 70% through the first half of FY10.

New company specific growth drivers - CMDI launched City Navigator in late 2009, which looks attractive and is off to a promising start. Management is also expanding their high-definition LED billboard exposure in multiple cities, an attractive and growing form of high-impact advertising.

Overall advertising growth in China - China has experienced double digit advertising growth over the last decade and is poised to continue to outpace overall global advertising spending.

Outdoor advertising poised to gain market share - As a major outdoor advertising company, CMDI is poised to gain market share due to recent regulatory changes which are likely to shift spending away from television to other media platforms.

Initiating coverage with a Buy Rating and a 12-month price target of $4.50 - We view CMDI as an attractive growth company based on 1) the strength of the overall advertising industry in China 2) the health of the Company’s existing advertising platform 3) the upside from new growth drivers and the unique opportunity to gain market share from television. We are initiating coverage of CMDI with a $4.50 price target, based on a target PEG ratio of 0.65x on 30% long term growth and estimated FY11 earnings of $0.23 a share.

The entire RedChip research report for CMDI is provided for FREE through the link below: 

http://www.redchip.com/files/redchipreports...

China New Media Corp. - COMPANY OVERVIEW

China New Media Corp. (“CMDI” or the “Company”), is a high-growth advertising provider with operations in China. Founded in 2000, the Company has grown to become one of the largest outdoor advertising companies in northern China with operations in Dalian, Shenyang and Tianjin. CMDI owns and operates an outdoor advertising network consisting of outdoor assets which include bus shelters, taxi shelters and information kiosks; mobile advertisement which includes buses, metro-trains and metro-train stations; and a billboard network which includes mega-screen LED displays and traditional static outdoor billboards. In July 2009, the Company launched City Navigator, the first multimedia advertising platform network in Dalian, China. City Navigator is a major component to future growth plans, which are expected to generate 35% annual growth over the next few years.

Contact:

RedChip Companies, Inc.

Investor Relations Contact:

Karl Schilling

1-800-733-2447, Ext. 130

Karl@redchip.com

http://www.redchip.com

About RedChip Companies, Inc.

RedChip Companies is an international, small-cap research and financial public relations firm headquartered in Orlando, Florida; with affiliate offices in Beijing, China; Paris, France; and Seoul, Korea. RedChip delivers concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including: RedChip Research(TM), Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Small-Cap TV™, Shareholder Intelligence, Social Media and Blogging Services, Webcasts, and RedChip Radio™. To learn more about RedChip's products and services visit: www.redchip.com/visibility/productsandservices.asp.