2001 A - TOM Group

A Leading Nationwide Outdoor Media Network• Consolidated 12 leading regional outdoor media companies• Established a presence in 22 citiesChina3

5 New Acquisitions Boost Revenue and Profit by ~50%HK$'million2001 AExisting7 Companies5 NewAcquisitionsTOTALRevenue 241 129 370EBITDA 103 47 150Profit before tax 86 44 130Note 1: Existing 7 Companies include Fench Media, Maya Cultural, Perfect Team, Chunyu, Qilu,Tianming, YanhuangNote 2: 5 New Acquisitions include New Star, Sano, Southwest International, Bomei, and Seeout(Source: Management Accounts)4

TOM is the Dominant Company for Billboards & UnipolesWhy Focus on Billboards & Unipoles?• Account for ~50% of outdoor ad expenditure in China ()• Lower CAPEX• Longer contract terms – more stableWhy Diversified Assets?• TOM acquires the most effective and the best-selling assets in each city• One-stop outdoor advertising solutionTOM’s Outdoor Media MixTransport2%Billboards44%StreetFurniture23%Unipoles31%Total area: 170,000 m 25

Why Billboards & Unipoles?• In the US, billboards command the highest operating margins and dominate outdooradvertising salesOperating Margin RangeMix of Advertising Expenditure (2000)150 - 55%45 - 50%Others6%020 - 45%Transport17%0Billboards60%0Billboard -BulletinBillboard -30 SheetPosterTransit &StreetFurnitureStreetFurniture17%Source: Morgan Stanley report (January 2002)6

Immediate Expansion PlanTotal Area of TOM Outdoor Media Assets (m 2 )m 2250,000200,000150,00040,000Total area:210,000 m 224% growth100,000170,000 170,00050,0000ExistingImmediateExpansion Plan7

II.New Acquisitions

Expansion Strategy: Planned and Systematic ExecutionPROVINCE /MUNICIPALITYCITYCOMPANYFIRST BATCHBeijingShanghaiGuangdongHenanGuangzhouZhengzhouPerfect Team/YanhuangMaya CulturalPerfect TeamTianmingChina’s 3 most important economicregions and the top 3 cities in outdooradvertising expenditureChina’s most populous provinceYunnanSichuanKunmingChengduFench MediaSouthwest InternationalSouthwest: Leverage market shareleadership to gain pricing advantageSECOND BATCHLiaoningShandongShenyangDalianJinanQingdaoSanoNew StarQiluChunyuNortheast: Acquire the most profitablecompanies with quality assets andefficient cost structures as the base toexpand market shareFujianFuzhouXiamenSeeoutBomeiProvince of twin cities: Achieveleadership in Fujian Province bydominating the twin cities9

A Thorough, Systematic Acquisition Evaluation ProcessConductedresearch on 164outdoor mediacompanies in 23citiesShort listed61 companiesfor furtheranalysisOn-siteevaluationof 24companiesin 14 citiesCompletedover 30evaluationreports7 transactionscompletedand 5 in MOUstageQ4 Q2 Q3 Q4 Q12000 2001 2001 2001 200210

Prevailing Terms for Outdoor Media Acquisitions• Acquisitions are typically financed with less than 50% in cash and the rest in TOM sharesissued at HK$5.51• PE ratio is typically 9.5x for outdoor business and 4.75x for agency business• The consideration will be adjusted proportionate to any shortfall of guaranteed profit in thefirst year:AdjustedConsiderationYear 1 Actual Profit= xYear 1 Guaranteed ProfitOriginalConsideration• Profit Guarantee:• Minimum CAGR of 15%• Any shortfall of guaranteed profits in the next 2-4 years will be compensated by dividendentitlements or cash• Additional guarantees• If receivables are not recovered within a certain periodfrom the execution of definitive agreements, theconsideration will be adjusted downward accordinglyCost of acquiring 12 companiesCash: HK$ 194MTOM Shares: HK$ 741M11

New Star: The Largest & Most Profitable Operator in Dalian• The largest outdoor media company in Dalian, Liaoning Province• Dalian is the second busiest port city in China and the richest city in thenortheast region• Client base includes domestic and international advertisers:China Telecom, Jitong Telecom, Shanghai Pudong Development Bank,China National Petroleum Corp, Honghe Tobacco, Tsingdao Beer,Mitsubishi …Assets Units Area (sq. m.)Financial Highlights (RMB'M) 2000 2001Unipoles 29 6,979Giant Billboards 4 990Lightboxes 21 127Total 54 8,096Revenue 14.6 15.9EBITDA 8.5 10.4EBITDA Margin 58% 65%Profit After Tax 7.8 8.0Net Profit Margin 53% 50%Averageoccupancy rate:90%Source: Management Accounts12

New Star Transaction HighlightsAcquisition• Consideration will be adjusted proportionate to any shortfall of guaranteed profit in 2001RMB'MInterest to beacquiredConsideration Cash %TOM sharesissued at HK$5.51%New Star 60% 67.7 19.2 28% 48.5 72%Profit Guarantee• Any shortfall of guaranteed profits in 2002-2005 will be compensated by dividend entitlementsor cashProfit After Tax GuaranteeRMB’M1412108Minimum15% CAGRguaranteed64207.8 8.0 8.02000A9.210.612.22001 2002 2003 2004 2005ActualGuaranteeSource: Actual figures based on Management Accounts13

Sano: The Largest Outdoor Media Company in Shenyang• The largest bus shelter network in Shenyang, Liaoning Province• Shenyang recorded the highest outdoor advertising expenditure(RMB512 million) in China after Beijing, Shanghai and Guangzhou• Client base includes domestic and international advertisers:Sanjiu Enterprises Group, Legend, China Merchants Bank, Intel,Siemens, Motorola, Rado, Marlboro, Carlsberg …Assets Units Area (sq. m.)Financial Highlights (RMB'M) 2001Bus Shelters 412 2,890Billboards 17 4,186Unipoles 28 738Total 457 7,814Revenue 18.6EBITDA 8.4EBITDA Margin 45%Profit After Tax 6.8Net Profit Margin 37%Averageoccupancy rate:70%Source: Management Accounts14

Sano Transaction HighlightsAcquisition• Consideration will be adjusted proportionate to any shortfall of guaranteed profit in 2002RMB'MInterest to beacquiredConsideration Cash %TOM sharesissued at HK$5.51%Sano 60% 36.1 15.0 42% 21.1 58%Profit Guarantee• Any shortfall of guaranteed profits in 2003-2005 will be compensated by dividend entitlementsor cashProfit After Tax GuaranteeRMB’M12108Minimum15% CAGRguaranteed64206.8 6.87.89.010.3ActualGuarantee2001 2002 2003 2004 2005Source: Actual figures based on Management Accounts15

Southwest International: The Largest Operator in SichuanProvince• The largest outdoor media company in Sichuan Province• Based in Chengdu which is ranked among China’s top 10 cities in termsof outdoor advertising expenditure (RMB263 million)• Highest number of billboards along Chengdu-Chongqing highway• Client base includes domestic and international advertisers:China Mobile, PICC, Jia Ling Motorcycle, Wu Liang Ye, Luzhou Laojiao …Assets Units Area (sq. m.)Financial Highlights (RMB'M) 2000 2001Unipoles 30 10,530Billboards 103 15,498Lightboxes 157 3,343Total 290 29,371Revenue 14.5 28.6EBITDA 6.3 12.3EBITDA Margin 43% 43%Profit After Tax 5.3 9.6Net Profit Margin 37% 34%Averageoccupancy rate:80%Source: Management Accounts16

Southwest International Transaction HighlightsAcquisition• Consideration will be adjusted proportionate to any shortfall of guaranteed profit in the 12 monthsafter the execution of a definitive agreementRMB'MInterest to beacquiredConsideration Cash %TOM sharesissued at HK$5.51%Southwest International 70% 46.4 19.5 42% 26.9 58%Profit Guarantee• Non-management shareholder (government body) will exit – transaction priced cheaper at 7x PEwith 1 year profit guarantee.Profit After Tax GuaranteeRMB’M109876549.6 9.63215.3ActualGuarantee02000 A 2001 2002-03*Source: Actual figures based on Management Accounts* 12 months after execution of a definitive agreement17

Bomei: The Largest Operator in Xiamen• The largest outdoor media company in Xiamen, Fujian Province• Xiamen is a Special Economic Zone that is expected to be the keybeneficiary of increasing trade between Mainland China and Taiwan• Client base includes domestic and international advertisers:Coca-Cola, Ericsson, Nokia, Huiquan Beer, Honghe Tobacco, BritishAmerican Tobacco, Davidoff …Assets Units Area (sq. m.)Financial Highlights (RMB'M) 2000 2001Giant Billboards 21 5,529Unipoles 9 1,956Lightboxes 60 354Total 90 7,839Revenue 21.0 19.8EBITDA 5.7 6.2EBITDA Margin 27% 31%Profit After Tax 4.6 5.0Net Profit Margin 22% 25%Averageoccupancy rate:71%Source: Management Accounts18

Bomei Transaction HighlightsAcquisition• Consideration will be adjusted proportionate to any shortfall of guaranteed profit in 2001RMB'MInterest to beacquiredConsideration Cash %TOM sharesissued at HK$5.51%Bomei 60% 25.7 10.8 42% 14.9 58%Profit Guarantee• Any shortfall of guaranteed profits in 2002-2004 will be compensated by dividend entitlementsor cashProfit After Tax GuaranteeRMB’M8765Minimum15% CAGRguaranteed4324.6 5.0 5.8 6.67.6Actual10Guarantee2000 A 2001 2002 2003 2004Source: Actual figures based on Management Accounts19

Seeout: The Largest Operator in Fujian Province• The largest outdoor media company in Fujian Province, the seventhhighest GDP per capita in China• Based in Fuzhou, the capital city of Fujian Province• Client base includes domestic and international advertisers:Huiquan Beer, China Mobile, China Unicom, China Minsheng Bank,China Construction Bank, pharmaceutical companies …Assets Units Area (sq. m.)Financial Highlights (RMB'M) 2000 2001Unipoles:Expressway 21 5,292City 36 1,720Billboards 15 5,160Lightboxes 48 691Total 120 12,863Revenue 42.5 54.0EBITDA 9.2 13.2EBITDA Margin 22% 24%Profit After Tax 7.7 11.1Net Profit Margin 18% 21%Averageoccupancy rate:83%Source: Management Accounts20

Seeout Transaction HighlightsAcquisition• Consideration will be adjusted proportionate to any shortfall of guaranteed profit in 2001RMB'MInterest to beacquiredConsideration Cash %TOM sharesissued at HK$5.51%Seeout 60% 54.3 22.6 42% 31.8 59%Profit Guarantee• Any shortfall of guaranteed profits in 2002-2004 will be compensated by dividend entitlementsor cashProfit After Tax GuaranteeRMB’M18161412Minimum15% CAGRguaranteed108647.911.112.814.716.9Actual20Guarantee2000 A 2001 2002 2003 2004Source: Actual figures based on Management Accounts21

III.TOM Outdoor Media Group

TOM Outdoor Media GroupCentralised ManagementTOMOutdoorMedia GroupUnified OperationsConsistent Brand100% 50% 65% 50% 60% 50%FENCHMEDIAMAYACULTURALPERFECT TEAMCHUNYUQILUTIANMING60% 60% 70% 60% 60%50%NEW STARSANOSOUTHWESTINTERNATIONALBOMEISEEOUTYANHUANGAcquisition at MOU stage23

Integrating Outdoor Companies• Unified logos in line with TOM corporate identity• Adopt system-wide financial and operating standards• Compare monthly operating results of individual outdoor business units andbenchmark key performance indicators against international best practices• Best performing sales teams conduct training sessions across business units• Developing a coordinated pricing structure• Developing a proprietary Web-based outdoor media asset management systemto standardise client management and optimize the utilization of outdoor mediainventory24

A Centralised Asset Management SystemTOM Outdoor Media Asset Management SystemINTERNAL• Media Asset Management• Media Planning & Scheduling• Grading of Outdoor Media• Sales• Proposal & BookingManagement• Campaign Monitoring• Process• Standardisation &Streamlining• Authorisation Control• Management• Management ReportingEXTERNAL• Instant Online Outdoor MediaSearch• Location• Medium type• Performance• Online Proposal & BookingRequest• Online Monitoring of IndividualCampaigns• Media Asset Evaluation• Market Intelligence Sharing25

Strengths of TOM Outdoor Media Group• The largest outdoor media network in China – 170,000 m 2 of advertising spacecovering 6 provinces & 22 cities• Diversified outdoor media base dominating unipoles and billboards• Business units are leading local operators with quality assets• Quality client base• High occupancy rates, High profit margins• Strong management team• Unique, supportive relationship with government authorities26

Offer Full Range Professional Services To ClientsOutdoor Campaign ManagementContract ManagementTOTAL OUTDOOR SOLUTIONOutdoor Media Planning & BuyingOutdoor Media ConsultancyCross-Media Central BuyingVisual ProductionOutdoor Site Monitoring27

Aiming to be the Most Profitable Outdoor Media Companyin ChinaHK$'million2001TOMOUTDOORCLEARMEDIAMEDIANATIONMPIRevenue 370.0 355.0 473.9 281.0Mainland China 370.0 355.0 311.5 192.9Hong Kong - - 162.4 88.1EBITDA 150.0 153.6 86.9 78.2Profit before tax 130.0 70.8 14.0 39.4EBITDA margin 40% + 43% 18% 28%The 4 top playerscombined have