At RoadShow Holdings' Annual General Meeting held today (Friday, 10 May 2002), RoadShow Holdings' Chairman, Mr John C C Chan, reported the financial results for 2001. Profit attributable to shareholders was HK$ 175.1 million. The directors of the Company recommended the payment of a final dividend of HK 3.8 cents per share with scrip option for the year ended 31 December 2001.

Mr John C C Chan said, "I am pleased to report that despite a difficult economic environment during 2001, our Group's financial performance was strong, the growth of the business was remarkable and the divestiture from The Kowloon Motor Bus Holdings Limited and the listing of RoadShow on the Main Board of The Stock Exchange of Hong Kong went exceedingly well."

For the 12 months ended 31 December 2001, the Group reported total operating revenue of HK$301.3 million and profit attributable to shareholders of HK$175.1 million. The Group's revenue was derived principally from its media sales services, media sales management and administrative services and merchandising businesses. Each business accounted for about 87%, 7% and 3%, respectively, of the Group's total operating revenue.

At the beginning of 2001, the Group had 200 public transit vehicles with the Multi-media On-board ("MMOB") system. By year-end this had grown to 2,400 KMB and Citybus buses and about 200 public light buses, a 12 fold increase in total. With a daily viewership of some two million passengers, MMOB has become a significant advertising medium with a definite competitive advantage over traditional media channels. In addition, the number of advertising spaces in passenger shelters also increased significantly in 2001.

The initial public offering in Hong Kong and the international placing in June 2001, together with the over-allotment option exercised by the underwriters in July 2001, raised about HK$588.8 million, before issuing expenses, for the RoadShow Group. This provided a diversified funding source to finance existing operations and future expansion.

"MMOB is an innovative concept that has proven to be a profitable undertaking after only one year of operation. We knew that others would follow our lead if we were successful and this has become the case. We welcome the competition as RoadShow has built up a very strong position in its targeted markets," said Mr John C C Chan.

"Going forward, our greatest priority is in the area of systems development, particularly the development of real time news and traffic information when we eventually use bus tracking technology via a Global Positioning System. This will add even greater value to RoadShow services by providing real time information, traffic, weather and news. The system will also enable the bus operators whom we serve to expand their own systems and develop new applications."

"RoadShow's advertising revenue is highly sensitive to the profitability of our corporate clients. Whilst it is unclear when the economy will improve, we know that it in times of economic uncertainty people turn to public transit vehicles because of cost. Thus, we expect our viewing audience to increase despite any economic weakness. Concurrently, RoadShow will continue to expand the MMOB system, which will ultimately grow to more than 4,000 transit vehicles reaching an audience of four million passengers a day."

"MMOB provides added value to both our advertisers and the passengers of the transit vehicles that we serve. Those passengers benefit from the transit information and public service, educational and entertaining programming. Our advertisers gain cost effective access to an ever-growing audience of people who are using public transit vehicles to either earn money or spend it."

"We may not be the first in the world to bring audio-video programming to buses, but turning this concept into an out of home advertising channel on such a large scale must be one of the world's firsts."

"While various surveys indicate that most passengers appreciate the MMOB service there is a minority who, for one reason or another, have voiced dissatisfaction. We have maintained a dialogue with these passengers and made some adjustments in the operation, such as lowering volumes. Most people were satisfied with our responsiveness and we continue to listen to those who have ideas for further adjustments."

"Our strategy is to build on our position in the Hong Kong market and then explore opportunities in Greater China, particularly the mainland."

The Group is in discussions with potential mainland partners and has signed memoranda of understanding with various transit operators to bring MMOB to major Chinese cities. In addition, the Group is seeking to acquire or invest in businesses that will complement RoadShow's current or future business.

In Hong Kong, the Group is in partnership with Citybus and aims to form exclusive joint ventures with other major transit vehicle operators to install and manage MMOB systems on their vehicles. The Group also seeks strategic partnerships with other modes of transportation and will explore additional delivery channels to expand MMOB.

Mr John C C Chan added, "Our vision is to become the leading out-of-home media sales company in the Greater China region by providing value-added service to passengers and an effective advertising medium for advertisers at competitive prices."