CMM China Mass Media Corp American Depositary Shares (Each Representing 300 Ordinary Shares)

China Mass Media International Advertising Corp. (�China Mass Media� or the �Company�) (NYSE Arca: CMM), a leading independent television advertising company in China, today reported its unaudited financial results for the fourth quarter and year ended December 31, 2008.

Fourth Quarter 2008 Highlights1

• Total net revenues were RMB 77.5 million (US$ 11.4 million), an increase of 1.8% from the fourth quarter of 2007 and an increase of 6.1% from the third quarter of 2008.
• Operating income was RMB 14.1 million (US$ 2.1 million), a decrease of 78.2% from the fourth quarter of 2007 and a decrease of 24.2% from the third quarter of 2008.
• Net income was RMB 17.1 million (US$ 2.5 million), a decrease of 73.6% from the fourth quarter of 2007 and a decrease of 2.0% from the third quarter of 2008.
• Cash flow from operating activities was RMB 81.7 million (US$12.0 million), a decrease of 48.1% from the fourth quarter of 2007 and a decrease of 4.9% from the third quarter of 2008.
• The Company packaged its advertising resources on five television channels on CCTV, China�s largest national television network, based on each customer�s specific need to enhance the effectiveness of its advertising campaign.
• The Company had renewed its contract with CCTV as its exclusive advertising agent for promoting and selling substantially all of the advertising time slots for the annual Chinese New Year Gala program, which is one of the most watched television shows in China each year, as well as for additional advertising time slots for prime time TV drama programs from 8:00 p.m. � 10:00 p.m. during the 16-day Chinese New Year holiday.

Fiscal Year 2008 Financial Highlights

• Total net revenues were RMB 353.0 million (US$ 51.7 million) in 2008, an increase of 38.1% from fiscal year 2007.
• Operating income was RMB 116.9 million (US$ 17.1 million) in 2008, a decrease of 44.7% from fiscal year 2007.
• Net income was RMB 110.4 million (US$ 16.2 million) in 2008, a decrease of 47.0% from fiscal year 2007.
• Basic and diluted earnings per ADS were RMB 5.63 (US$0.83) in 2008, a decrease of 55.0% from RMB 12.50 in fiscal year 2007.

Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media, commented, �The fourth quarter of 2008 was a difficult quarter, with the world�s financial crisis starting to show its effect on the Chinese economy.

"According to the China�s State Statistics Bureau, China�s fourth quarter GDP grew at 6.8% as compared with the prior year corresponding period. By comparison, the third quarter GDP grew at 9.0% from the third quarter of 2007. With the uncertainty created by the world�s economic situation and China�s slower GDP growth, more advertisers became hesitant and tightened their budgets towards new advertising campaigns.�

Mr. Eric Cheung, the Company�s Chief Financial Officer, added, �Total net revenues increased about 2% in the fourth quarter and 38% for the year 2008, so the slowing in the economy and industry is apparent.

"Our total cash flow for the year was strong. Our cash flow from operations remained about even for the year, down just one half percent. We curtailed cash used in investing activities a bit, which was down about 5.7%, while cash from financing activities, of course, was dramatically positive due primarily to our successful initial public offering of common stock in the U.S. during August 2008. Given that good cash flow performance, our cash, cash equivalents, and short-term investments totaled US$ 156.4 million at year end 2008.

"Our core strategy in 2009 is to maintain our market leading position in our current business fields while staying very cautious in business expansions, including mergers, acquisitions, and business diversifications.

"Based on our strong balance sheet and good operating cash flow, and consistent with our stated dividend policy, we still expect to recommend to our Board of Directors that they declare our first cash dividend after the release of our second quarter 2009 financial results. We believe that cash dividends in hand are the best way to reward our shareholders, especially in this year�s difficult stock market conditions.�

Fourth Quarter 2008 Financial Results

Revenues

Revenues from advertising agency services were RMB 66.8 million (US$ 9.8 million) in the fourth quarter of 2008, an increase of 93.6% from RMB 34.5 million in the same period of 2007, and a sequential decrease of 5.5% from RMB 70.7 million (US$10.4 million) in the third quarter of 2008. The fourth quarter to fourth quarter increase resulted from the Company securing and selling advertising time slots on the popular morning news show �First Time� on CCTV Channel 2 (CCTV-2) and on five news-related programs on CCTV Channel 4 (CCTV-4) that were new to the Company in 2008.

Sequentially, fourth quarter 2008 revenues from advertising agency services declined 5.5% from the third quarter of 2008. Although the Company reported an increase of more than 55% from the sales of time slots associated with television guide programming breaks by two new advertising agency partners, and from higher sales of time slots on �First Time� and the Daytime Advertising Package in the fourth quarter compared with the third quarter, those increases were more than offset by a decrease in the advertising time slots sold for the Company�s CCTV-4 news related programs in the fourth quarter 2008 compared with the third quarter 2008.

Revenues from production and sponsorship services were RMB 13.9 million (US$ 2.0 million) in the fourth quarter of 2008, a decrease of 71.4% from RMB 48.7 million in the fourth quarter of 2007, and an increase of 169.2% from RMB 5.2 million (US$ 0.8 million) in the third quarter of 2008. The fourth quarter to fourth quarter decrease was mainly attributable to the decrease in sponsorship revenue from ad hoc public service announcements.

Sequentially, the Company reported an increase of RMB 8.8 million (US$1.3 million) in commercial advertisement production revenues in the fourth quarter compared with the third quarter 2008. In addition, sponsorship revenue from PSA�s broadcasted on the program �Guang Er Gao Zhi� was relatively stable between the third quarter and the fourth quarter of 2008.

Operating costs and expenses

Cost of revenues was RMB 50.4�million (US$ 7.4 million) in the fourth quarter of 2008, an increase of 599.8% from RMB 7.2�million in the fourth quarter of 2007 and an increase of 5.7% from RMB 47.7�million (US$ 7.0 million) in the third quarter of 2008. The fourth quarter to fourth quarter increase was primarily due to the inclusion of guaranteed media fees in the cost of revenues in the third quarter of 2008 as a result of using the gross method of reporting revenues generated from the newly secured CCTV Channel 4 programs, as well as the guaranteed media fees for CCTV-E (the Spanish-language channel) and CCTV-F (the French-language channel). In addition, the Company increased employees in production and design as it expanded to meet demand, which also increased operating costs and expenses. The sequential increase between the third quarter and the fourth quarter 2008 was primarily due to higher production costs for PSAs and year-end employee bonuses for performance.

Sales and marketing expenses were RMB 3.4 million (US$ 0.5 million) in the fourth quarter of 2008, an increase of 52.8% from RMB 2.2 million in the fourth quarter of 2007 and an increase of 69.2% from RMB 2.0 million (US$ 0.3 million) in the third quarter of 2008. The fourth quarter over fourth quarter increase was primarily due to increased headcount in sales and marketing functions and higher commissions paid for newly secured advertising time slots on CCTV-2 and CCTV-4. The sequential increase between the third and fourth quarter 2008 was primarily due to higher marketing and entertainment expenses associated with the Company�s media promotion campaign, which the Company stages in the fourth quarter of each year.

General and administrative expenses were RMB 9.6 million (US$ 1.4 million) in the fourth quarter of 2008, an increase of 346.7% from RMB 2.2 million in the fourth quarter of 2007 and an increase of 102.8% from RMB 4.7 million (US$0.7 million) in the third quarter of 2008. The sequential and fourth quarter to fourth quarter increase was due to an increase in administrative headcounts, the share-based compensation expense, and additional expenses related to being a public company in the United States.

Operating income, as a result of the foregoing factors, was RMB 14.1�million (US$ 2.1 million) in the fourth quarter of 2008, a decrease of 78.2% from RMB 64.6�million in the fourth quarter of 2007 and a decrease of 24.2% from RMB 18.6�million (US$2.7 million) in the third quarter of 2008. The operating margin was 18.2%, 25.5% and 84.8% for the three months ended December 31, 2008, September 30, 2008 and December 31, 2007, respectively.

Net income was RMB 17.1�million (US$ 2.5 million) in the fourth quarter of 2008, a decrease of 73.6% from RMB 64.6�million in the same period of 2007 and a sequential decrease of 2.0% from RMB 17.4�million (US$2.6 million) million in the third quarter of 2008. Net margin was 22.0%, 23.8% and 84.8% for the three months ended December 31, 2008, September 30, 2008 and December 31, 2007, respectively.

Basic and diluted earnings per ADS for the fourth quarter of 2008 decreased to RMB 0.71 (US$ 0.10), compared to basic and diluted earnings per ADS of RMB 3.88 for the fourth quarter of 2007 and RMB 0.81 (US$0.12) for the third quarter of 2008. Each ADS represents 30 ordinary shares.

Cash and Cash Equivalents

As of December 31, 2008, the Company had cash and cash equivalents of RMB 566.9 million (US$ 83.1 million) compared to RMB 591.9 million at September 30, 2008. The decrease in cash and cash equivalents was due mainly to cash used to purchase short-term investments in investment funds backed by state treasury bonds, central bank bonds and other bonds issued by the major state-owned banks.

Fixed Assets

As of December 31, 2008, the Company had fixed assets of RMB 57.3 million (US$ 8.4 million) compared to RMB 2.1 million at the end of the third quarter of 2008. The increase in fixed assets was due to purchasing of all the existing office premises from related parties.

Fiscal Year 2008 Financial Results

Total Net Revenues

Total net revenues were RMB 353.0 million (US$ 51.7 million) in fiscal year 2008, an increase of 38.1%, or RMB 97.4 million from RMB 255.5 million in the year 2007. The year-over-year increase was primarily due to the Company securing and selling advertising time slots on the popular morning news show �First Time� on CCTV Channel 2 (CCTV-2) and five news-related programs on CCTV Channel 4 (CCTV-4) secured by the Company in 2008. These increases were partially offset by the decrease in sponsorship revenue from ad hoc public service announcements as discussed above.

Operating Costs and Expenses

Operating costs and expenses were RMB 236.1 million (US$ 34.6 million) in fiscal year 2008, an increase of 433.5%, or RMB 191.8 million, from RMB 44.3 million in fiscal year 2007. The year-over-year increase in operating costs and expenses was mainly due to the media costs of CCTV-4, increased sales and marketing expenses because of the increased size of the Company�s customer portfolio and additional operating expenses in relation of being a public company in the US.

Operating Income and Margin

As a result of the foregoing factors, operating income was RMB 116.9 million (US$ 17.1 million) in fiscal year 2008, a decrease of 44.7%, or RMB 94.4 million, from RMB 211.3 million in fiscal year 2007. Operating margin was 33.1% in 2008 compared to 82.7 % in 2007.

Net Income

Net income was RMB 110.4 million (US$ 16.2 million) in fiscal year 2008, a decrease of 47.0%, or RMB 97.9 million, from RMB 208.3 million in fiscal year 2007. Basic and diluted earnings per ADS were RMB 5.63 (US$ 0.83) in fiscal year 2008, as compared to the basic and diluted earnings per ADS of RMB 12.50 (US$1.78) in fiscal year 2007.

Cash and Cash Equivalents

As of December 31, 2008, the Company had RMB 566.9 (US$ 83.1 million) in cash and cash equivalents, a significant increase from RMB 138.3 million as of December 31, 2007. The year-over-year increase was mainly due to the net cash provided from the operating activities and additional funds raised through the Company�s initial public offering in August 2008.

Business Outlook

The Company currently expects to generate total revenues of an amount ranging from RMB 110 million (US$ 16.1 million) to RMB 120 million (US$ 17.6 million) for the first quarter of 2009, representing a decrease of 10.7% to 18.1% from the corresponding period in 2008. This forecast reflects the Company�s current and preliminary view, which is subject to change.

Mr. Shengcheng Wang concluded, �The year 2008 was an exceptional year for China Mass Media. Despite of the extremely difficult capital market condition, we have become a member of the largest capital markets in the world. We had also partnered with CCTV to promote CCTV Channel 1 and 2 media resources during the Olympics. Just before the end of 2008, we had successfully renewed our annual contract with CCTV to be its exclusive advertising agent for promoting the Chinese New Year Gala program. 2009 will be the sixth consecutive year that the Company is reappointed.

"Undoubtedly, 2009 will be a difficult year for everyone and our industry will be significantly affected as everyone is cutting their budgets and promotions. While the Chinese government has continued to roll out a series of industry reforms involving the automotive, iron and steel, telecommunications, and seven other major industries as part of the country�s RMB 40 billion economic stimulus plan, the reforms and actions will need time to be fully effective. Our core strategy in 2009 will focus on increasing our sales and marketing as well as customer service capabilities, optimizing the utilization of our current media resources to provide more value-added services to our customers.

"There is no question that all of us on this planet, this year, will be living in interesting times.�

Conference Call

China Mass Media will host a conference call and live webcast at 8:00 a.m. Eastern Time (EST) (9:00 p.m., Beijing time) on February 24, 2009.

The dial-in details for the live conference call are as follows:

- � U.S. Toll Free Number: � +1 866 761 0748 - International dial-in number: +1 617 614 2706 - China Toll Free Number: +10 800 130 0399 - Hong Kong Toll Free Number: + 800 96 3844 Passcode: CMM

A live webcast of the conference call will be available on the investor relations section of the Company�s website at: http://www.chinaThe Company.com. A replay of the webcast will be available for three months.

A telephone replay of the call will be available for twenty-four hours after the conclusion of the conference call. The dial-in details for the replay are as follows:

- � U.S. Toll Free Number: � +1 888 286 8010 - International dial-in number: +1 617 801 6888 Passcode: 21500418

Safe Harbor Statement:

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements involve a number of risks and uncertainties.

A number of factors could cause the Company�s actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Securities and Exchange Commission filings of the Company. China Mass Media does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

About China Mass Media International Advertising Corp.

As a leading television advertising company in China, the Company provides a full range of advertising services, including advertising agency services, creative production services, public service announcement sponsorship services, and other value added services. The Company currently offers more than 500 minutes of advertising time slots on CCTV Channels 1, 2, 4, E and F. CCTV is the largest television network in China. The Company has also been the exclusive advertising agent of the most popular and highest rating television program, Chinese New Year Gala, since its incorporation. Since 2003, the Company has produced over 200 advertisements and has won a number of prestigious awards in China.

http://www.chinammia.com

CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP.

UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS

� � THREE MONTHS ENDED,

December 31,

2007

�

September 30,

2008

�

December 31,

2008

�

December 31,

2008

RMB RMB RMB US$ � Revenues: Advertising agency services 34,476,001 70,661,244 66,758,679 9,785,076 Special events services - - -

-

Advertisement production and sponsorship services

48,670,373

�

5,179,717

� 13,945,730 � 2,044,079 � Total revenues 83,146,374 75,840,961 80,704,409 11,829,155 Less: Business tax (6,987,001 ) (2,763,372 ) (3,198,067 ) (468,753 ) �

Total net revenues

76,159,373 � 73,077,589 � 77,506,342 � 11,360,402 � � Operating costs and expenses: Cost of revenues (7,206,525 ) (47,733,904 ) (50,430,360 ) (7,391,771 ) Sales and marketing expenses (2,199,315 ) (1,987,275 ) (3,361,620 ) (492,726 ) General and administrative expenses (2,151,275 ) (4,738,804 ) (9,609,843 ) (1,408,552 ) Total operating costs and expenses (11,557,115 ) (54,459,983 ) (63,401,823 ) (9,293,049 ) � Operating income 64,602,258 18,617,606 14,104,519 2,067,353 � Interest and investment income 4,299,617 3,671,955 5,021,924 736,083 Other expense, net (1,102,004 ) (1,799,274 ) 363,420 � 53,268 � � Income before tax 67,799,871 20,490,287 19,489,863 2,856,704 � Income tax expense (3,195,015 ) (3,076,395 ) (2,419,222 ) (354,595 ) � Net income 64,604,856 � 17,413,892 � 17,070,641 � 2,502,109 � � Net income allocated to participating preferred shares (11,318,771 ) (1,160,674 ) - � - � � Net income available to ordinary shareholders 53,286,085 � 16,253,218 � 17,070,641 � 2,502,109 � � Earnings per ordinary share, basic and diluted 0.13 � 0.03 � 0.02 � 0.003 � Earnings per ADS, basic and diluted 3.88 � 0.81 � 0.71 � 0.10 � � Shares used in calculating earnings per ordinary share, basic and diluted 412,400,000 � 600,732,337 � 716,375,000 � 716,375,000 � Shares used in calculating earnings per ADS, basic and diluted 13,746,667 � 20,024,411 � 23,879,167 � 23,879,167 �

CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP.

UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS

� � YEAR ENDED,

December 31,

2006

�

December 31,

2007

�

December 31,

2008

�

December 31,

2008

RMB RMB RMB US$ � Revenues: Advertising agency services 245,199,859 202,637,180 334,052,626 48,963,375 Special events services - 15,990,464 - - Advertisement production and sponsorship services 10,487,440 � 60,018,223 � 34,934,895 � 5,120,542 � Total revenues 255,687,299 278,645,867 368,987,521 54,083,917 Less: Business tax (20,472,011 ) (23,110,351 ) (16,005,683 ) (2,346,015 ) �

Total net revenues

235,215,288 � 255,535,516 � 352,981,838 � 51,737,902 � � Operating costs and expenses: Cost of revenues (26,734,381 ) (30,147,760 ) (203,399,803 ) (29,813,089 ) Sales and marketing expenses (7,038,111 ) (5,599,870 ) (8,204,365 ) (1,202,546 ) General and administrative expenses (5,630,563 ) (8,504,520 ) (24,486,814 ) (3,589,126 ) Total operating costs and expenses (39,403,055 ) (44,252,150 ) (236,090,982 ) (34,604,761 ) � Operating income 195,812,233 211,283,366 116,890,856 17,133,141 � Interest and investment income 3,433,547 10,773,971 15,102,846 2,213,682 Other expense, net (1,559,846 ) (3,128,447 ) (1,441,420 ) (211,274 ) � Income before tax 197,685,934 218,928,890 130,552,282 19,135,549 � Income tax expense (28,270,766 ) (10,618,863 ) (20,138,650 ) (2,951,799 ) � Net income 169,415,168 � 208,310,027 � 110,413,632 � 16,183,750 � � Net income allocated to participating preferred shares (29,681,537 ) (36,495,917 ) (9,751,329 ) (1,429,290 ) � Net income available to ordinary shareholders 139,733,631 � 171,814,110 � 100,662,303 � 14,754,460 � � Earnings per ordinary share, basic and diluted 0.34 � 0.42 � 0.19 � 0.03 � Earnings per ADS, basic and diluted 10.16 � 12.50 � 5.63 � 0.83 � � Shares used in calculating earnings per ordinary share, basic and diluted 412,400,000 � 412,400,000 � 536,149,385 � 536,149,385 � Shares used in calculating earnings per ADS, basic and diluted 13,746,667 � 13,746,667 � 17,871,646 � 17,871,646 �

CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP.

UNAUDITED CONDENSED COMBINED BALANCE SHEETS

� �

December 31,

2007

�

December 31,

2008

�

December 31,

2008

RMB RMB US$ Assets Current assets: Cash and cash equivalents 138,262,170 566,889,261 83,091,134 Short-term investments 220,000,000 500,000,000 73,286,918 Accounts receivable, net of allowance for doubtful accounts of nil and RMB 4,319,808 as of December 31, 2007 and 2008 5,299,331 14,367,193 2,105,855 Prepaid expenses and other current assets 21,888,980 68,301,523 10,011,216 Deposit paid to a related party - 1,000,000 146,574 Total current assets 385,450,481 1,150,557,977 168,641,697 Non-current assets: Property and equipment, net 2,453,044 57,261,208 8,392,995 Long-term investments 15,638,800 - - Total non-current assets 18,091,844 57,261,208 8,392,995 �

Total Assets

403,542,325 1,207,819,185

177,034,692

� Liabilities and Shareholder�s Equity Current liabilities: Accounts payable 118,546,766 330,085,426 48,381,887 Customer advances 99,885,671 75,422,483 11,054,963 Dividend payable - 96,335,115 14,120,207 Accrued expenses and other current liabilities 4,754,154 13,765,090 2,017,602 Taxes payable 14,434,229 51,958,677 7,615,783 Amount due to related parties 21,562,056 252,209,794 36,967,357 Payable to shareholder 15,644,646 - - Total current liabilities 274,827,522 819,776,585 120,157,800 Total Liabilities 274,827,522 819,776,585 120,157,800 � Commitments and Contingencies � Shareholders� equity: Ordinary shares ($0.001 par value; 900,000,000,000 shares authorized; 412,400,000 shares issued and outstanding as of December 31, 2007; 716,375,000 issued and outstanding as of December 31, 2008) 2,812,149 4,893,500 717,259 Series A convertible preferred shares ($0.001 par value; 100,000,000,000 shares authorized, 87,600,000 shares issued and outstanding as of December 31, 2007; none issued and outstanding as of December 31, 2008) 597,343 - - Additional paid-in capital 46,700,503 330,214,330 48,400,781 Statutory reserves 18,450,237 25,000,000 3,664,346 Retained earnings 60,154,571 27,934,770 4,094,506 Total Shareholders� Equity 128,714,803 388,042,600 56,876,892 - Total Liabilities and Shareholder�s Equity 403,542,325 1,207,819,185 177,034,692

CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP.

UNAUDITED CONDENSED COMBINED STATEMENTS OF CASH FLOWS

� � THREE MONTHS ENDED

December 31,

2007

�

September 30,

2008

�

December 31,

2008

�

December 31,

2008

RMB RMB RMB US$ � Cash flows from operating activities: Net income 64,604,856 17,413,892 17,070,641 2,502,109 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 295,253 245,232 337,967 49,537 Deemed related party contribution 494,375 - - - Investment income (1,759,533 ) (2,018,356 ) (2,341,877 ) (343,258 ) Exchange loss/ (gain)

-

1,796,769 (356,177 ) (52,206 ) Share-based compensation

-

855,239 844,190 123,736 Changes in assets and liabilities: Notes receivable - 5,741,441 - - Accounts receivable (1,321,411 ) (32,023 ) (1,156,339 ) (169,489 ) Prepaid expense and other current assets (12,741,487 ) 129,514 (8,721,551 ) (1,278,351 ) Amount due from a related party 1,500,000 - - - Other non-current assets 471,471 - - - Accounts payable 24,153,942 5,042,095 16,234,690 2,379,581 Customer advances 85,254,609 3,443,327 37,266,895 5,462,352 Accrued expenses and other current liabilities (4,246,406 ) (1,638,245 ) 5,076,807 744,127 Taxes payable 563,688 3,220,834 1,639,875 240,363 Amount due to related parties - � 51,689,579 � 15,789,345 � 2,314,305 � Net cash provided by operating activities 157,269,357 � 85,889,298 � 81,684,466 � 11,972,806 � �

Cash flows from investing activities:

Purchase of short-term investments (140,000,000 ) - (100,000,000 ) (14,657,384 ) Purchase of property and equipment (123,058 ) (125,598 ) (6,337,232 ) (928,872 ) Proceeds from investment income 1,603,639 � 4,205,575 � 1,986,603 � 291,184 � Net cash used in investing activities (138,519,419 ) 4,079,977 � (104,350,629 ) (15,295,072 ) �

Cash flows from financing activities:

Proceeds from/ (payment for) issuance of ordinary shares - 290,431,451 (2,690,942 ) (394,422 ) Movement of shareholder�s cash and investment accounts/payable to shareholder 672,840 - - - Distribution made to shareholder in connection with the reorganization (370,828,921 ) - - - Dividends distributed (83,282,118 ) - � - � - � Net cash used in financing activities (453,438,199 ) 290,431,451 � (2,690,942 ) (394,422 ) �

Effect of foreign currency exchange

(905,626 ) (1,796,769 ) 356,177 � 52,206 � Net increase in cash and cash equivalents (435,593,887 ) 378,603,957 (25,000,928 ) (3,664,482 ) Cash and cash equivalents at beginning of the period 573,856,057 � 213,286,232 � 591,890,189 � 86,755,616 � Cash and cash equivalents at end of the period 138,262,170 � 591,890,189 � 566,889,261 � 83,091,134 �

CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP.

UNAUDITED CONDENSED COMBINED STATEMENTS OF CASH FLOWS

� � YEAR ENDED

December 31,

2006

�

December 31,

2007

�

December 31,

2008

�

December 31,

2008

RMB RMB RMB US$ � Cash flows from operating activities: Net income 169,415,168 208,310,027 110,413,632 16,183,750 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 1,040,500 1,202,418 1,045,357 153,222 Deemed related party contribution 1,977,497 1,977,497 - - Investment income (26,167 ) (2,040,583 ) (9,772,000 ) (1,432,320 ) Exchange loss - - 1,440,592 211,153 Share-based compensation - - 1,699,429 249,092 Changes in assets and liabilities: - Accounts receivable (193,400 ) (5,105,931 ) (9,067,862 ) (1,329,111 ) Prepaid expense and other current assets 6,578,255 (4,093,197 ) (13,963,074 ) (2,046,621 ) Amount due from a related party - - (1,000,000 ) (146,574 ) Other non-current assets 1,926,282 1,930,830 - - Accounts payable 252,006,272 191,910,225 211,538,660 31,006,033 Customer advances (89,638,232 ) 52,467,975 (24,463,189 ) (3,585,663 ) Accrued expenses and other current liabilities 2,145,467 (867,638 ) 9,010,938 1,320,766 Taxes payable 12,001,183 8,415,217 5,693,062 834,454 Amount due to related parties - � - � 169,162,446 � 24,794,789 � Net cash provided by operating activities 357,232,825 � 454,106,840 � 451,737,991 � 66,212,972 � �

Cash flows from investing activities:

Purchase of short-term investments (2,000,000 ) (280,000,000 ) (280,000,000 ) (41,040,674 )

Purchase of long-term investments

(6,023,350 ) - - - Proceed from sale of long-term investment held on behalf of shareholder - - 15,037,390 2,204,088 Purchase of property and equipment (1,110,966 ) (255,257 ) (6,685,021 ) (979,849 ) Proceeds from investment income - � 1,861,139 � 9,153,918 � 1,341,725 � Net cash used in investing activities (9,134,316 ) (278,394,118 ) (262,493,713 ) (38,474,710 ) �

Cash flows from financing activities:

Proceeds from issuance of ordinary shares - - 287,744,058 42,175,751 Proceeds from issuance of preferred shares - - 605 89 Capital injected by shareholder 50,109,995 - - - Movement of shareholder�s cash and investment accounts/payable to shareholder (85,840,594 ) 766,967 (15,043,236 ) (2,204,945 ) Cash distributed and payment for fixed assets transferred in connection with the Reorganization - (370,828,921 ) (2,683,208 ) (393,288 ) Dividends distributed (174,339,524 ) (177,390,728 ) (29,194,814 ) (4,279,196 ) Net cash used in financing activities (210,070,123 ) (547,452,682 ) 240,823,405 � 35,298,411 � �

Effect of foreign currency exchange

(1,157,143 ) (912,908 ) (1,440,592 ) (211,153 ) Net increase in cash and cash equivalents 136,871,243 (372,652,868 ) 428,627,091 62,825,518 Cash and cash equivalents at beginning of the period 374,043,795 � 510,915,038 � 138,262,170 � 20,265,616 � Cash and cash equivalents at end of the period 510,915,038 � 138,262,170 � 566,889,261 � 83,091,134 �

CHINA MASS MEDIA INTERNATIONAL ADVERTISING CORP.

SELECTED OPERATING DATA

� � THREE MONTHS ENDED

December 31,

2007

�

September 30,

2008

�

December 31,

2008

� Number of programs secured during the period 3 40 40 Total advertising time obtained (seconds) 193,200 2,843,520 2,927,880(1) Total advertising time sold (seconds) 128,900 238,917 249,379(2) � (1) Represents the total amount of time during regular television programs secured through our contracts with CCTV, including 543,240 seconds from CCTV-1, CCTV-2 and CCTV-4 and 2,384,640 seconds from CCTV-E and CCTV-F. (2) During the three months period ended December 31, 2008, the company has not engaged any sales of advertisements in CCTV-E and CCTV-F � YEAR ENDED

December 31,

2006

December 31,

2007

December 31,

2008

� Number of programs secured during the period 4 3 40 Total advertising time obtained (seconds)(3) 828,920 783,240 6,818,220 Total advertising time sold (seconds)(4) 774,381 631,620 1,022,861 � (3) Represents the total amount of time during regular television programs secured through our contracts with CCTV, including 2,048,940 seconds from CCTV-1, CCTV-2 and CCTV-4 and 4,769,280 seconds from CCTV-E and CCTV-F. (4) During the year ended December 31, 2008, the company has not engaged any sales of advertisements in CCTV-E and CCTV-F.

RECONCILIATIONS OF UNAUDITED NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (*)

� � Three months ended

December 31, 2007

� Three months ended

December 31, 2008

GAAP Result � Adjustment �

Non-GAAP

Result

GAAP Result � Adjustment �

Non-GAAP

Result

RMB RMB RMB RMB RMB RMB � Operating income 64,602,258 - 64,602,258 14,104,519 844,190 14,948,709 � Net income 64,604,856 - 64,604,856 17,070,640 844,190 17,914,830 � � Year ended

December 31, 2007

Year ended

December 31, 2008

GAAP Result Adjustment

Non-GAAP

Result

GAAP Result Adjustment

Non-GAAP

Result

RMB RMB RMB RMB RMB RMB � Operating income 211,283,366 - 211,283,366 116,890,856 1,699,429 118,590,285 � Net income 208,310,027 - 208,310,027 110,413,631 1,699,429 112,113,060 �

(*) The adjustment is for share-based compensation expenses.

Non-GAAP Disclosure

In addition to the unaudited consolidated financial information presented in accordance with US GAAP, management uses a non-GAAP measure of net income excluding non-cash share-based compensation. Company management believes excluding the share-based compensation expenses from non-GAAP financial measures is useful for the investors� understanding of overall current financial performance. Nevertheless, the limitation of using non-GAAP financial measures excluding share-based compensation expenses is that share-based compensation expenses have been and will continue to be a significant recurring expense in the Company�s business.

The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP. For more information on these non-GAAP financial measures, please see the tables captioned �Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures� set forth above, which shall be read in conjunction with the preceding financial information presented in accordance with US GAAP.

1 The U.S. dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. The conversion of Renminbi (RMB) into US$ in this release is based on the noon buying rate in The City of New York for cable transfers in RMB per US$ as certified for customs purposes by the Federal Reserve Bank of New York on December 31, 2008, which was RMB6.8225 to US$1.00. The percentages stated are calculated based on RMB.