(26 May 2013 – Hong Kong) Fosun International Limited (together with its subsidiaries, “Fosun” or the “Group”, HKEx stock code: 00656) announced today that the Group surrendered 14,545,455 American Depositary Shares of Focus Media, each representing 5 shares of Focus Media (the “ADS”) in exchange for 174,084 new shares of Giovanna Group Holdings Limited, or 17.41% of the enlarged capital, upon the completion of Focus Media’s privatization. Based on the privatization offer at US$27.5 per ADS, this 17.41% interest is valued at approximately US$400 million. Pursuant to the agreement, Fosun remains a substantial shareholder of Focus Media with board seat upon the completion of privatization.  Fosun expressed that it remains optimistic about and supportive to the core management team led by Mr. Jason Nanchun Jiang. In addition, during the transaction 7,670,189 ADS beneficially owned by Fosun were surrendered and cancelled in exchange for cash consideration of approximately US$211 million.

As one of the largest outdoor advertising companies in China, Focus Media has long been receiving benefits from the rapid growth in the consumption market in China and the advertising sector in the country. It has a strong 2,000-member sales team and a market share in excess of 90%. In 2008, Focus Media’s business nosedived into the trough after having hit by the financial crisis, leaving its shares severely undervalued. Between November 2008 and March 2009, Fosun timed the market appropriately and invested US$305 million in aggregate (inclusive of transaction commissions) in Focus Media. Within the two years of 2010 and 2011, Fosun sold down 16,040,120 ADS of Focus Media in two moves and cashed in approximately US$400 million at US$24.93 each on a weighted average basis. In November 2011, in reaction to wholesale naked short-selling by Muddy Water, Fosun, as a major shareholder, bought approximately US$10.37 million (inclusive of transaction commissions) worth of ADS in Focus Media to showcase its support as a major shareholder. As at the date of entering into a rollover agreement, Fosun was interested in 22,215,644 ADS of Focus Media, valued at approximately US$611 million in aggregate based on the privatization offer at US$27.5 per ADS.

Since Fosun’s investment, net income of Focus Media increased from US$397 million in 2009 to US$928 million in 2012, representing a CAGR of as much as 33% in three years. Focus Media turned around from a loss of US$213 million in 2009 to a net profit of US$238 million in 2012, well exceeded the record US$144 million hit prior to the financial crisis, and recorded a continuous increase in its share price since then. Over the past few years, Fosun proactively integrated resources of its own and its investees and supported Focus Media’s expansion in its advertising business. The stable shareholder structure of Focus Media earned a high recognition in the market.