Editorial Summary

Focus Media Ltd., China's largest out of home advertising company, plans to ask for a hearing with Nasdaq Listing Qualifications Panel regarding a letter dated July 10 from Nasdaq Staff Determination stating that Focus Media is not in compliance with the filing requirements for continued Nasdaq listing after failing to submit its Form 20-F (annual report) earlier this month.

From Focus Media's press release:

As previously announced on July 2, 2007, in response to two letters received in June 2007 from the U.S. counsel to an unidentified investor holding a short position in our shares, our Audit Committee has initiated an internal inquiry. The letters raised questions on certain related party transactions of Focus Media, in particular, an advertising agency when placing advertisements with Focus Media received payments from a related party of Focus Media, namely, Everease, without providing any goods or services to Everease. As the letters were received not long before the deadline of filing our annual report on Form 20-F for the year ended December 31, 2006, and our Audit Committee needs more time to complete its inquiry, we were unable to file our annual report on Form 20-F prior to the required filing deadline. The Audit Committee has retained outside counsel and outside forensic accountants to assist the inquiry and the Company continues to work diligently to complete and file its required filings with the Securities and Exchange Commission as soon as practicable and, if necessary, to incorporate the results of the inquiry in our annual report.