Charm Communications Signs Joint Venture Agreement With Leading Digital TV Operator to Explore New Media Advertising Opportunities

Charm Communications Signs Joint Venture Agreement With Leading Digital TV Operator to Explore New Media Advertising Opportunities

Joint Venture with Wasu Digital Group to Capture Potential Presented by China's Three-Network Convergence

BEIJING, Oct. 18 /PRNewswire-Asia-FirstCall/ -- Charm Communications Inc.
(Nasdaq: CHRM) ("Charm" or the "Company"), a leading advertising agency in
China, today announced that it has signed a cooperation agreement to establish
a joint venture with Wasu Digital Group ("Wasu"). Wasu is China's largest
operator and digital content provider for cable TV, 3G mobile TV and broadband
TV and a supplier of IPTV services. Wasu is also one of three national
operators, alongside China Central Television ("CCTV") and Shanghai Media
Group ("SMG"), to receive licenses to operate across IPTV, 3G mobile TV and
broadband TV networks as part of China's three-network convergence.

The joint venture will be 49% owned by Charm and 51% owned by Wasu and
will have the right to operate all advertising-related businesses across
Wasu's three-network platform for 20 years. The joint venture, with Charm as
its advertising agency, will seek to develop and set the advertising industry
standards on these new media network platforms, including the development of
advertising products, product pricing, sales strategy, promotional materials
as well as the development of advertising sales and agency policies.

"With the implementation of China's three-network convergence plan,
China's digital media revolution including IPTV, 3G mobile TV, and broadband
TV is at an inflection point in terms of technology development, content and
advertising," commented Mr. Qiang Cao, chairman of Wasu Digital Group. "As a
pioneer in the development of new digital media, Wasu has grown into China's
largest operator and digital content provider for cable TV, 3G mobile TV and
broadband TV. As one of only three operators to have been granted the National
Integrated Operation License, Wasu is at the forefront of the integration of
mobile networks, cable networks and broadband networks."

"Charm has 16 years' experience in the TV advertising market and well
established media agency and operations capabilities," Mr. Cao continued.
"Wasu looks forward to leveraging Charm's in-depth understanding of clients,
professional capabilities and expertise to take advantage of the increasing
focus on new TV media that will come with three-network integration."

Mr. He Dang, founder, chairman and CEO of Charm commented, "We are seeing
rapid progress towards three-network integration and we believe that this
significant step forward for the industry will have a profound impact on TV,
internet and mobile media. TV media is undergoing a transition from the
broadcasting era into the on-demand era and our clients are undertaking ever
more extensive TV media marketing campaigns and utilizing a wider variety of
advertising products."

"As China's three-network convergence ramps up, this joint venture will
leverage on Charm's advertising strengths and pioneer many of the industry
standards in this fast-growing new media space," Mr. Dang continued.

About Three-Network Convergence

Three-network convergence is a Chinese State Council initiative to combine
telecom, cable TV and internet networks to provide an integrated
communications platform for voice, sound, data, image, video and other media.
According to national survey statistics and data from the Ministry of Industry
and Information Technology, as of August, 2010, China has 78.8 million
households with digital cable TV, 118.8 million broadband internet enabled
households and 823.1 million mobile phone users. According to an industry
expert the three-network integration related market will reach RMB 688 billion
over the next three years.

Currently the initiative is being trialed in 12 pilot cities and regions
covering 30 million households which have already completed the two way
integration of telecom and cable TV networks. According to China's State
Council, this two-way integration will be carried out from 2010 to 2012
nationwide, with full three-network convergence being completed by 2015.

About Wasu

Wasu Digital Group is one of three operators in China to hold licenses to
deliver content on several media platforms including IPTV, 3G mobile TV and
broadband TV. Wasu is recognized by the industry as the first true
three-network operator with businesses including landline, mobile, WiFi, WiMax,
broadband, cable TV, digital TV and mobile TV, among others. Wasu's IPTV
services currently reach 12 million users in over 120 cities in 23 provinces
in China. It is also China's largest operator and digital content provider for
cable TV, 3G mobile TV and broadband TV. In June 2010, Wasu and Alibaba
Group's Taobao established a joint venture named "Wasu Taobao" to provide
interactive TV shopping on Taobao stores through Wasu's digital cable network.

About Charm

Charm Communications Inc. (NASDAQ: CHRM) is a leading advertising agency
in China. Charm operates its business under three brands: Charm Advertising,
Charm Interactive, and Shangxing Media. Under the Charm Advertising and Charm
Interactive brands, Charm offers integrated advertising agency services from
planning and managing advertising campaigns to creating and placing
advertisements. Under the Shangxing Media brand, Charm has established a
portfolio of television advertising media resources through its exclusive
arrangements with four programs on CCTV, and two satellite television channels,
Shanghai Dragon TV and Tianjin Satellite TV, which includes not only
advertising time but also opportunities for placing branded content. Charm's
clients include well-recognized brand names in China across many industries,
as well as emerging domestic leading brands. In January 2010, Charm formed a
joint venture with international 4A advertising group Aegis Media, its
strategic investor, to operate its brand "Vizeum" in China. For more
information please go to http://ir.charmgroup.cn.

For investor and media inquiries, please contact:

New York

Amanda Sham
Brunswick Group
Phone: +1-212-333-3810
Email: charm@brunswickgroup.com

Beijing

Henry Fraser
Brunswick Group
Phone: +86-10-6566-2256
Email: charm@brunswickgroup.com
SOURCE Charm Communications Inc.

Charm Communications Inc.

CONTACT: New York, Amanda Sham of Brunswick Group, +1-212-333-3810, or charm@brunswickgroup.com; or Beijing, Henry Fraser of Brunswick Group, +86-10-6566-2256, or charm@brunswickgroup.com

Web Site: http://ir.charmgroup.cn/

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