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TM Entertainment and Media, Inc. Announces First Quarter 2009 Financial Results for Hong Kong Mandefu Holding Limited d/b/a China MediaExpress "CME"

2009 JUL 7 - (VerticalNews.com) -- TM Entertainment and Media, Inc. (NYSE Amex: TMI; TMI/U; TMI/WS) ("TM") and privately-held Hong Kong Mandefu Holding Limited (d/b/a China MediaExpress) ("CME" or the "Company") announced first quarter financial results for the three months ended March 31, 2009 for CME. Financial Highlights - First Quarter 2009 vs. First Quarter 2008 Net revenues increased 24% to $18.8 million compared to $15.1 million;

Gross margin was 62% of net revenues;

Operating income increased 23% to $10.5 million compared to $8.5 million;

Net income increased 16% to $7.5 million compared to $6.4 million; and,

As of March 31, 2009, the Company had $20.4 million in cash and cash equivalents with no debt.

Zheng Cheng, CME's Founder and CEO, commented, "During the first quarter of 2009, we continued to grow our revenue, net income and improve our gross margin, reinforcing our position as China's largest television advertising operator on inter-city express buses. The 24% increase in net revenue was partially due to a more than 10% increase in average advertising rates compared to the prior year's first quarter. In addition, during the quarter, we were able to increase the number of bus operating partners to 40 from 38 at the end of 2008. We now have installed television displays in more than 16,000 express buses, compared to 15,000 at the end of 2008. These express buses originate in eleven of China's most prosperous regions, including the four municipalities of Beijing, Shanghai, Tianjin and Chongqing and seven economically prosperous provinces, namely Guangdong, Jiangsu, Fujian, Sichuan, Hebei, Anhui and Hubei, which generate nearly half of China's GDP. The advertisers recognize the power of our platform. They can effectively deliver their messages through LCD TVs installed inside inter-city express buses within our network. We have also entered into new advertising contracts with our clients directly, where we enjoy better profit margins."

He noted, "Additionally, our five-year cooperation agreement with the Chinese Ministry of Transport, has been another growth driver for us, and at the same time it has been a significant barrier to entry for potential competitors. As per the agreement, which we entered into in October 2007, CME has become the strategic alliance partner in the establishment of a nationwide in-vehicle television system that displays programs on buses traveling on highways in China. As of March 31, 2009, our network covered six out of the seven transportation hubs designated by the Ministry of Transport."

Mr. Cheng continued, "We are very proud of our impressive and growing list of more than 400 customers that advertise throughout our network, which include well-known domestic and international companies, such as Hitachi, China Telecom, Siemens, China Pacific Life Insurance, Coca-Cola, Pepsi, China Mobile and Bank of China. Several of these customers have been advertising with us for over three years."

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