FAB Universal Signs New Kiosk Advertising Agreement
PITTSBURGH--(BUSINESS WIRE)-- FAB Universal (NYSE MKT:FU), a worldwide distributor of digital media and entertainment, today announced that it has entered into a five year advertising agreement with China Xiangyu Cultural Development Co., Ltd. to provide advertising on the top screen of the FAB Intelligent Media Kiosk Network. The advertising revenue from this non-exclusive agreement is expected to be at least $2.5 million annually.
China Xiangyu Cultural Development Co., Ltd. is a marketing and entertainment company focused on organizing cultural performances, providing advertising services, and operational as well as marketing activities for online games, animation and 3G.
"This agreement will significantly increase our 5C Kiosk advertising revenue, contributing to the revenue generated from our rapidly growing 5C Intelligent Media Kiosk Network," said Chris Spencer, Chief Executive Officer of FAB Universal. "In addition to expanding our kiosk network, driving advertising revenue is an important component of our growth strategy. As we continue to expand our network, the opportunity to advertise on our kiosks will become more attractive."
FAB generates revenue from its Intelligent Media Kiosk Business through the sale of licenses, ongoing media content downloads, media membership cards and kiosk-based advertising. Consumers can purchase and download copyrighted music, video games and movies directly to their cell phones or other mobile devices. FAB Media Kiosks can also run video ads on their high-tech LCD screens and accept payments for utility bills, metro cards, credit card bills, and other services.
About FAB Universal Corp.
FAB Universal Corp. is a global leader in digital media entertainment sales and distribution. FAB delivers media to its customers worldwide through Intelligent Kiosks, Retail Stores and Franchises, and online through Apple iTunes and Google Android. We distribute billions of movie, music, podcast, TV show and other digital files to consumers in 240 countries through three business units: Digital Media Services, Retail Media Sales and Wholesale Media Distribution. Sales of digital media are generated through the kiosks networks, subscription sales for mobile devices, smartphone Apps and Netflix-like subscription models. In 2011, we distributed billions of downloads of copyrighted music, video games, ringtones, ebooks, movies and podcasts to over 50 million people worldwide through iPods, iPhones, iPads, iTunes, Blackberrys, Windows Phones, Androids and many other devices and destinations. We are a publicly held, Pittsburgh based company with thousands of shareholders and a world-class team. Visit us on the web at www.fabuniversal.com, email us at firstname.lastname@example.org.
Legal Notice Regarding Forward-Looking Statements: "Forward-looking Statements" as defined in the Private Securities litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions, actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services or changes in our business strategies.
Stephanie Prince/Jody Burfening
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