Founded in 2003, Focus Media is China’s largest out-of-home life-style media company. Based on an audience-centric approach, Focus Media provides a broad portfolio of media advertising platforms, including our Commercial Location Network, In-store Network, Poster Frame Network, mobile handset advertising network (through Focus Media Wireless) and Outdoor LED Network. Each of these media platforms covers specific demographics of higher-than-average-income urban consumers at various out-of-home media interaction points, from office lift lobbies to entertainment and social venues, shopping districts, mobile phones and residential complexes.

We have established our commercial location network by installing flat-panel LCD television displays in high-traffic areas, such as elevator bank of commercial office buildings to target business professionals with higher-than-average income. As of December 31, 2006, our commercial location network has grown to six unique advertising channels, including our Premier Office Building Channel A, Premier Office Building Channel B, Elite Channel, Fashion Channel, Travel Channel and Healthcare Channel, with a total installed base of over 85,300 flat-panel displays reaching higher-than-average-income individuals in over 90 cities in China. We have successfully attracted over 3,000 leading domestic and international brands, including Nokia, Toyota, P&G, China Telecom, and Motorola, as customers to advertise on our network.

We established our in-store network in April 2005. Our in-store network targets shoppers at the point-of-purchase through flat-panel displays at prominent locations in hypermarkets, supermarkets and convenience stores, such as on the product shelves at eye-level. As of December 31, 2006, our in-store network has approximately 38,700 flat panel displays installed in over 4,000 hypermarket and store locations in China.