AirMedia Group Inc.,an operator of out-of-home advertising platforms in China targeting mid-to-high-end consumers, today announced that Guangzhou Meizheng Advertising Co., Ltd.,one of its consolidated entities in which AirMedia has 54% of the equity interest, has recently won a bidding and entered into a concession agreement (the “Concession Agreement”) with Shanghai Railway Culture and Advertising Development Co., Ltd., pursuant to which Meizheng has been granted the right to exclusively install and operate a Wi-Fi system on high-speed trains including D-prefaced bullet trains (“High Speed Trains”) operated by Shanghai Railway Bureau.
Shanghai Railway Bureau is one of the largest railway bureaus in China. As of the time the Concession Agreement was signed, Shanghai Railway Bureau had 269 groups of High Speed Trains, each group consisting of eight passenger cars. Meizheng has been granted right to install and operate Wi-Fi system on all the High Speed Trains operated by Shanghai Railway Bureau, with limited exception. Before entering into the Concession Agreement, Meizheng has already been granted right to install and operate Wi-Fi system on the High Speed Trains on five major railway lines operated by Guangzhou Railway (Group) Corporation (“GRGC”).
“We are excited that, following GRGC, Shanghai Railway Bureau also chose us to be its partner on Wi-Fi services on High Speed Trains,” commented Mr. Herman Guo, chairman and chief executive officer of AirMedia. “We have submitted the test data of our Wi-Fi solution to State Railways Administration for approval. We believe that our advantage as a one-stop solution provider will help us continue to expand our share in the market of on-train Wi-Fi.”