Editorial Summary

Mass transit digital advertiser VisionChina Media Inc. (Nasdaq: VISN) recorded total revenue of $13.6 million, up 13.5 percent quarter-on-quarter and 304.5 percent year-on-year, for the first quarter of 2008. Net income was $5.4 million, down 5.42 percent from the previous quarter and up from a $360,000 loss in the year-ago period. Average advertising service revenue per broadcast hour grew 4.1 percent from the last quarter to $493. The company attributed the increase, also up from $184 in the year-ago period, to a rate card increase made in November, 2007. VisionChina sold an average of 6.24 advertising minutes per broadcast hour, compared to 8.69 minutes in the fourth quarter and 3.81 minutes in the first quarter of 2007. Network capacity rose sequentially from 23,908 hours to 25,980 broadcast hours in the period.

VisionChina will implement a rate card hike in eight of its fifteen network cities effective May 1. VisionChina is projecting second quarter 2008 revenue between $19.2 million and $20.2 million, with net income, excluding share-based compensation expenses, between $6.2 million and $7.0 million. For the full year, VisionChina is raising estimates to total revenue between $98 million and $102 million and net income between $40 million and $42 million. Compared to 41,410 digital displays from the fourth quarter, VisionChina had installed 48,719 displays on buses and subway trains and platforms by the end of the quarter.