Internet

TOM's Wireless Acquisition Puts Company On TV

TOM Online Inc. announced that it has entered into a definitive agreement to acquire Treasure Base Investments Limited, a wireless entertainment company in China, for a maximum of 550 million CNY. The acquisition will give Tom Online a new distribution and promotion channel through over 60 TV channels with the coverage of approximate 100 million households in China, and will also bring to TOM Online 1.5 million paying subscribers.

Treasure Base cooperates with television networks, and is one of the top ten service providers of China Mobile.

With a particular focus on sports and lifestyle content, Treasure Base has secured exclusive agreements with TV media partners such as CCTV Sports Channel and other leading TV channels in China to provide interactive mobile products and services to the mass TV audience. These products and services are bundled with TV programs and are marketed and promoted throughout the programs.

According to the Management Report of Treasure Base, its unaudited profit after tax for 16 months from September 2002 (month of incorporation) to December 31, 2003 and the six months ended June 30, 2004 were approximately USD4.5 million and USD3.8 million respectively.

China is the top 5 TV market in the world and the second biggest in Asia following Japan according to Nielsen Media Research. According to recent statistics, the number of Chinese TV viewers has exceeded 1 billion, which is very close to the total population of China.

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