Digital Media Group Closes Series B Round of Funding

Digital Media Group Closes Series B Round of Funding

December 26, 2006

    SHANGHAI, China, Dec. 26 /Xinhua-PRNewswire/ -- Digital
Media Group Company Limited ("DMG"), China's
leading operator of digital media networks inside subway
systems, today announced that it has closed its Series B
round of funding from four investors.  The round was led by
Oak Investment Partners and included Sierra Ventures, NIF
SMBC Ventures and Gobi Partners.  Gobi, NTT DoCoMo and
Dentsu participated in DMG's Series A round in early 2005. 


    "This international syndicate brings together some
of the world's biggest and most experienced venture capital
firms," said James Lim, Chief Executive Officer of
DMG.  "With this new capital injection, we will
continue to upgrade and deliver the best services to the
metro authorities and their passengers." 

    DMG pioneered the application of information
technologies in out-of-home media and developed a patented
PIDS (Passenger Information and Direction System) that can
provide service information and entertainment to enhance
the overall passenger experience within subway systems. 
"We are excited to be working with DMG.  The Company
operates at the intersection of two mega-trends in China:
massive subway construction and rapid growth in
digital-out-of-home (DOOH) advertising," said Ren
Riley, partner of Oak.

    DMG delivers information and advertising through
thousands of on-platform and in-car flat panel displays to
millions of passengers a day in the biggest Chinese cities
including Chongqing, Hong Kong, Nanjing, Shanghai,
Shenzhen, and Tianjin.  "DMG's platform helps
advertisers reach out to China's massive consumer
population in an effective and interactive manner,"
said Ben Yu, partner of Sierra. 

    "DMG is a next generation DOOH media company with
unique competitive advantages," said Wai Kit Lau,
Chairman of DMG and partner of Gobi.  "Its advanced
technology and deep relationships with the metro
authorities create significant barriers to entry."

    About Digital Media Group

    Digital Media Group is China's leading operator of
digital media networks inside subway systems. 
Headquartered in Shanghai, DMG installed China's first
multimedia passenger information display system in the
Shanghai subway in 2003.   The system provides updated
train and emergency information along with information and
advertising to passengers, helping subway authorities to
operate more effectively.  DMG now has offices in Hong
Kong, Shanghai, Beijing, Tianjin, Nanjing, Shenzhen and
Chongqing.  There are over 13,000 flat panel displays in
DMG's network reaching more than 28 million people per
week.  The network is expected to double in two years
expanding to cities all around Asia.  For more information,
please visit http://www.DMGtv.com .

    About Oak Investment Partners

    Oak Investment Partners is a multi-stage venture
capital firm with a total of $8.4 billion in committed
capital.  The primary investment focus is on high growth
opportunities in communications, information technology,
new media, financial services information technology,
healthcare services and consumer retail.  Over a 28-year
history, Oak has achieved a strong track record as a
stage-independent investor funding more than 435 companies
at key points in their lifecycle.  Oak has been involved in
the formation of companies, funded spinouts of operating
divisions and technology assets, and provided growth equity
to mid- and late-stage private businesses and to public
companies through PIPE investments.  For more information,
please visit http://www.OakVC.com .

    About Sierra Ventures

    Sierra Ventures, founded in 1982, is a privately held
venture capital firm focused on investments across all
areas of the Information Technology sector from
semiconductors to enterprise software.  Sierra Ventures has
managed nine venture capital partnerships and currently has
more than $1.5 billion of capital under management.  Some
of the firm's investments include 360Commerce (acquired by
Oracle), Active Software (acquired by WebMethods),
AmeriGroup (AGP), Centex (acquired by WorldCom),
ConvergeNet (acquired by Dell), FatBrain (acquired by
Barnes & Noble), Frontbridge (acquired by Microsoft),
Healtheon (merged with WebMD),  Interact Commerce (acquired
by Sage), Intuit (INTU), Micromuse (acquired by IBM),
OnAssignment (ASGN), OnLink (acquired by Siebel), Quinta
(acquired by Seagate), StrataCom (acquired by Cisco),
Sychip (acquired by Murata Manufacturing) and Teradata
(acquired by NCR).  More information is available at
http://www.sierraventures.com .  

    About NIF SMBC Ventures

    On October 1, 2005, NIF Ventures (Daiwa Securities
Group) and SMBC Capital (Sumitomo Mitsui Financial Group)
merged to form NIF SMBC Ventures. We believe synergy will
be created through the integration of the respective
advantages and business characteristics of the two
companies, which held secure positions in the venture
capital industry.  NIF Ventures was established in 1982 as
a venture capital firm affiliated with Daiwa Securities,
and it has contributed to the creation of a number of
listed companies through the establishment and operation of
funds which fit the market needs and managerial support of
investees.  Similarly, SMBC Capital, with the network and
financial resources of the Sumitomo Mitsui Financial Group,
has shown skill in finding great opportunities and has
invested in various unlisted companies in an investment
framework that includes expertise in corporate transactions
and the ability to undertake business research.  NIF SMBC
Ventures, the newly-created venture capital company, formed
by integrating these two precursors, will not only secure a
comprehensive business network, but also establish an
outstanding service structure that integrates expertise in
the entire business processes of finding investment
targets, listing their stocks, and ultimately carrying out
mergers and acquisitions.  For more information, please
visit http://www.NIFSMBC.co.jp .
  
    About Gobi Partners

    Gobi Partners is a Shanghai-based venture capital firm
focused on early stage investments in China's digital media
sector.  Gobi defines digital media as a new form of
communication emerging from the convergence in
telecommunications, media and technology.  Gobi invests in
companies that are pushing the frontier, integrating gaps
or enabling consolidation within the digital media value
chain.  The Gobi Fund includes IBM, NTT DoCoMo, Sierra
Ventures, McGraw-Hill and Steamboat Ventures (the VC arm of
Disney) as investors.  For more information, please visit
http://www.GobiVC.com .


    For more information, please contact:

     Philip Wong
     Digital Media Group
     Tel:   [phone] x12
     Email: [e-mail]


SOURCE  Digital Media Group Co., Ltd.