Founded in 2003, Focus Media operates the largest out-of-home audiovisual advertising network in China . We establish our network by installing super-thin flat-panel displays in high-traffic areas, such as elevator bank of commercial office buildings and in the aisles at large retail chain stores. Our network locations typically have a high concentration of consumers with higher-than-average disposable incomes or consumers who are likely to be interested in particular types of products and services, which allows our advertisers to target specific consumer segments by placing advertisements over our networks.

We have established two major advertising networks: our commercial location network and our in-store network. Our commercial location network is the largest office building audiovisual advertising network in China , which targets white-collar business professionals with higher-than-average income. By the end of September, 2005, our commercial location network has installed approximately 35,000 LCDs reaching millions of high-income individuals in 54 major cities. Meanwhile, we have successfully attracted over 900 leading domestic and international brands, including Toyota , P&G, China Telecom, and Motorola to advertise on our network.

In April 2005, we commenced operation of our in-store network, which targets shoppers at point-of-purchase in hyper markets, supermarkets and convenience stores. By the end of September 2005, our in-store network has installed included over 20,000 LCDs and PDPs in 2,702 hypermarket and store locations throughout China.