The Carlyle Group Announces US$15 Million Investment in Leading China Media Services Company

Hong Kong – Global private equity firm The Carlyle Group today announced the successful closing of a US$15 million investment in Target Media, a leading media services company in China. Target Media provides innovative, integrated solutions to support an array of international and local advertisers in reaching out to the rapidly expanding consumer population in China. Carlyle invested in Target Media through Carlyle Asia Venture Partners II, the Asia venture capital fund.

Target Media, founded in 2002 with offices in Shanghai, Beijing and Guangzhou, focuses on delivering advertisements through traditional and non-traditional media. In particular, Target Media is a specialist in outdoor advertising. By placing LCD and PDP screens in strategic locations, Target Media is currently a leader in the in-building interactive advertising sector in China. With an extensive coverage of thousands of buildings across more than 30 cities in China, Target Media enables its advertisers to reach out to as many as 25 million highly targeted audiences on a daily basis.

The Target Media team represents the next-generation media communication professionals in China. Its energetic, highly educated and highly-skilled workforce has acquired solid industry experience and management skills through servicing international advertising companies. Target Media is well-positioned to follow a strong growth path and to serve an expanding client base with renowned brands including General Electric, Bank of China, Volkswagen, Baosteel International, and Industrial and Commercial Bank of China.

“We are very excited about our investment in Target Media,” said Wayne Tsou, managing director and head of the Carlyle Asia venture group. “We are impressed by Target Media’s visionary management team and truly nationwide network, which is very rare within the fragmented advertising industry in China. This comprehensive reach provides a strong foothold for Target Media to become a leading influential force in the world’s largest consumer market.”

“We also favor Target Media’s creative and unique approach of blending traditional media placement with innovative technologies and non-traditional medium,” said Mr. Tsou. “For example, they recently provided up-to-date information on the 2004 Athens Olympics in major commercial buildings in Shanghai, bringing a unique and eye-opening experience to consumers in China. Target Media represents a terrific case study to illustrate the dynamic entrepreneurial spirit with the determination to develop into world-class operation that is brewing in China.”

“Carlyle’s investment is a strong affirmation of our expansion strategies, management capabilities and overall business proposition,” said David Yu, chief executive officer of Target Media. “This latest round of funding from Carlyle will help fuel our further development, as we expand beyond tier one and tier two cities to the emerging market opportunities in the rest of China.”

“Carlyle’s global network, seasoned industry experience and expertise, and in-depth understanding of the local market provide valuable added resources to us as we continue to exploit the fast-changing media landscape in China and solidify our leading market position,” explained Mr. Yu.

Carlyle’s investment in Target Media reinforces the private equity firm’s commitment to China, following the opening of Carlyle’s Shanghai office, its first in China, in April 2004.

# # #