K’s Media (the “Company”) (OTC Bulletin Board: KVME), a company engaged in specialized media and advertising activities in China, announced today that as of October 6, 2008, the Company’s contractual party, Beijing K’s Media Advertising Ltd.Co., has closed deals with 384 KTV owners who have agreed to play advertisements on their screens.
The total number of screens signed increased by 2,788 from 13,000 in August to 15,788 in October. Their primary allocations by city are 2,885 in Beijing, 2,985 in Shanghai, 2,787 in Guangzhou and 2,257 in Shenzhen. The rest are spread out throughout the second tier cities across the country. “I’m very pleased with these additional contracts. They increase our confidence in the metropolitan cities where most of the KTV lounges are located. We expect to increase the number of contracts rapidly in the near future and expand our coverage in this sector,” stated Zhuang Yan, CEO of the Company.
The Company targets premium brand advertisers by placing their commercials in KTV lounges in China. Attempts to reach high-end consumers through traditional advertising channels with powerful and visually appealing presentations may be costly and inefficient. The Company believes that placing ads in KTV lounges is both innovative and unique and could prove to be a highly effective method of advertising. KTV lounges are popular in Asia, providing private rooms with karaoke systems, which are used for group entertainment or business purposes. The Company believes that advertising on KTV screens offers an impressive and influential way to target high-end consumers.
On January 18, 2008, the Company completed a Share Exchange Agreement with Orient Come Holdings Ltd and Beijing K’s Media Advertising Ltd. Co., which transferred the Company from mineral exploration to the media and advertising market.