CHINA MEDIA GROUP CORPORATION
Entry into a Material Definitive Agreement
On December 22, 2010, the Company's subsidiary company, China Integrated Media Corporation Limited, a public company incorporated in Australia ("CIMC"), entered into an arrangement to lease 400 advertising sign boards in Kuala Lumpur, Malaysia for a lease term of 6 years from World Class Media Sdn. Bhd. ("World Class") for a total consideration of AUD515,000, which shall be settled by the issuance of i) a AUD15,000 promissory note payable in 30 days, and ii) 2,500,000 shares in CIMC.
World Class, a Malaysia incorporated company, is engaged in the outdoor media business in Malaysia and has a 10,000 sign board concession in various schools granted by the Ministry of Education in Malaysia.
After this transaction, the Company's effective shareholding interests in CIMC shall decrease from 66.60% to 61.29%
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