Hong Kong, 18 June 2001ˇKRoadShow Holdings Limited (RoadShow) today announced the placing of 216 million shares to professional and institutional investors and 24 million shares for public subscription between 19 and 22 June 2001.

The issue price will range from HK$1.69 to HK$2.25 per share, representing a price-earnings multiple of nine to 12 times prospective earning per share for the year ending 31 December 2001.

Pricing will be decided on 23 June and trading will commence on the main board of the Stock Exchange of Hong Kong on Thursday, 28 June 2001.

RoadShow is a leading out-of-home sales company that primarily markets advertising to captive audiences by providing audio-visual programmes through a Multi-Media On Board (MMOB) system on transit vehicles in Hong Kong.

The MMOB system, which consists of liquid crystal display monitors and stereo audio systems, is an effective advertising medium that has an exclusive access to a potential daily captive audience of four million bus passengers. It transmits to passengers tailor-made programmes, which consist of information, entertainment, educational programmes, community services and advertisements.

RoadShow is currently the only provider of large-scale and territory-wide MMOB services on transit vehicles in Hong Kong. It also manages and markets advertising spaces on the exterior of transit vehicles and advertising displays at transit vehicle shelters, as well as engages in a merchandising business in Hong Kong.

Leveraging on its dominant market leader position with 87 per cent market share of franchised public transit vehicles in Hong Kong, RoadShow plans to capitalise on the huge mainland market and expand its MMOB business operation into the mainland.

RoadShow has successfully secured business cooperation with eight bus operators in the mainland and signed with these operators either memoranda of agreement or understanding to operate MMOB system in major cities including Beijing, Shanghai, Chengdu, Tianjin, Shenyang, Yantai, Dalian and Jilin. These eight transit operators together represent approximately eight per cent of the total public transit vehicles in the mainland and have a potential captive audience of 12 million.

Originally part of the operations of the Kowloon Motor Bus Group with a proven successful business model, the RoadShow Group is a KMB spin-off subsidiary and an independent entity with focused management dedicated to media sales business.

KMB Board Member and Commercial Director Winnie Ng said the purpose of the spin-off was to improve efficiency and simplify the management and corporate structure of KMB while seeking the opportunity to provide access to public equity markets to fund the development and expansion of the proven successful business of RoadShow.