BEIJING, Oct. 10, 2006 (PRIMEZONE) -- Navstar Media Holdings (OTCBB:NVMH) announces that it has taken the first step in launching a nation-wide TV shopping program in China. Through its exclusive agent, the Company has entered into a cooperation agreement with CCTV Television Shopping Company to sell 2008 Olympic exclusive products on the planned TV Shopping program. This will serve as a jumping-off point for launching a nation-wide TV Shopping program in China. Initially, the program will be aired in time slots of 30 minutes to 3 hours each time with an option to make it an around the clock programming. Despite the strong economic growth, significant growth in consumer spending, high TV ownership and penetration, China is just beginning to enter into the TV shopping age with significant potentials for strategically placed companies.
According to the State Statistics Bureau of China, TV shopping in China constitutes less than approximately 0.1% of the national retail sale, which reached US$850 billion in 2005. Retail sales have been growing at approximately 10% per year for the last four years with accelerating growth. The total retail sales for 2006 are expected to reach US$960 billion. It is expected that the total retail sales for 2007 may reach US$1.07 trillion, US$1.39 trillion for 2008 and US$1.57 trillion for 2009.
In more developed countries, TV shopping constitutes approximately 8% of total retail sales. Navstar is targeting a slice of the approximately US$100 billion market in TV shopping in China, assuming a 1% share in retail for the TV shopping industry in China. The market potential for such growth is significant. The Company intends to roll out a nation-wide TV shopping program comprised of national and local stations to capture this opportunity. It intends to start with 2008 Olympics exclusive products to provide value to the consumers and the Olympic Games so that authentic products can be shipped on a timely basis to the consumers, helping to resolve the lack of licensed retail outlets across the country and to serve as the launching pad for the nation-wide TV shopping network. Eventually, a full line of products will be sold through the network. CCTV is the state-owned monopoly with the only nation-wide TV network in China and is the Company's ideal partner in this effort. Navstar's subsidiary, Beijing Media is already producing TV shopping programming on a contract basis and will soon be managing its own TV shopping operations.
Mr. Yang Wenquan, Director and General Manager for China Operations of Navstar said, "We are very excited about this breakthrough. We have worked on it for a long time and are confident that we will be making rapid progress in implementing the TV shopping operations. Our TV shopping program will be nation-wide and be based on a universal technology platform to enable multimedia operations. The market potentials for TV shopping in China are just like in other major economies in the world and we are in the right place at the right time for this growth. Our team is well prepared to implement this." Ranny Liang, Chairman of Navstar stated, "We will continue to work for shareholders value and deliver the value."
About Navstar Media Holdings
Navstar Media Holdings, Inc. (OTCBB:NVMH) is a China-based media company that produces and distributes TV, movie and other media products. The company intends to grow through internal expansion and strategic acquisitions in the largest emerging media market in the world.
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