1. 2002 Annual Results Presentation Clear Media

2. Agenda HighlightsHighlights Review of FinancialsReview of Financials Review of Strategy & ExecutionReview of Strategy & Execution

3. 5 th Year of Growth 2002 HK$’000% Change Revenue426,917+20% EBITDA180,222+17% Net Profit71,106+21% EPS14.2cents+21% 2002 EBITDA Margin42% Net Profit Margin17%

4. Five Consecutive Years of Growth ‘000 Sustainable Margin EBITDA42% Net Profit17%

5. Revenue403,774+18% EBITDA194,021+22% Net Profit90,420+33% Bus Shelters Revenue16,220+382% EBITDA4,419+517% Net Profit1,936+367% Point-of-Sale 2002 HK$’000% Change Profit from Core Products

6. “ Revenue ” Focus on Growth Driver: “ Revenue ” 2002 YOY% Guangzhou+37% Shenzhen+29% Chengdu+53% Xian+46% Hangzhou+27% Shenyang+84% Cheungchun+24% Total+20%

7. “ Occupancy ” Focus on Growth Driver: “ Occupancy ” 20012002 Beijing69%86% Shenzhen77%87% Chengdu71%85% Hangzhou 80% 84% Nanjing 64%71% Chongqing 68%79%

8. “ Pricing Power ” Focus on Growth Driver: “ Pricing Power ” Market Share % of Panels% of AD$ Beijing41%60% Premium pricing VS local competitors

9. Network expansion 29 cities30 cities 12,00017,000 panels Strengthen sales force Add 83 professionals 6 new sales centres Broaden point-of-sale network Invest for the Future

10. 2003 Growth Drivers External: WTO … Olympic … Shanghai EXPO … Brand(s)Consumers(s)Internal: Innovative “packages”Advertisers’ needs Broaden product portfolio Improve asset yields

11. Review of Financials

12. Performance by All Activities Bus Shelter POS Billboard HQ Total HK$’000 Revenue 403,77416,2206,922426,916 EBITDA 194,0214,419(2,275)(15,943)180,222 Net Profit 89,6431,936(4,530)(15,943)71,106

13. Performance by Activity 20012002 Total % Change Revenue342,181403,774+18% EBITDA159,588194,021+22% Net Profit68,15289,643+33% Bus Shelters Growth Albeit Lowering Receivables EBITDA Margin47%48% Net Profit Margin20%22%

14. Revenue By Location 20012002 Beijing 20% Guangzhou 13% Shanghai 19% Shenzhen 6% Others 42% Beijing 19% Guangzhou 15% Shanghai 14% Shenzhen 7% Others 45%

15. Market Share in Top Ten Cities 20012002 Shanghai97%98% Guangzhou54%96% Beijing51%41% Shenzhen43% Chengdu45%68% Nanjing76%90% Xian97%100% Hangzhou94%95% Wuhan44%59% Kunming85%78% Based on the number of panels Market Shares Increased in Key Cities

16. Turnover By Industry 20012002 Telecom20%24% Beverages10%18% Consumer Products16%14% Tobacco13%7% OTC Pharmaceutical10%6% Leisure3%6% Finance4%3% Food3% IT6%3% Home Appliances7%2%

17. Cost Breakdown % of Revenue 20012002 Direct operating costs - Rent - Maintenance - Electricity - Sales and culture taxes Total 18% 7% 5% 8% 38% 19% 7% 6% 4% 36% Amortization of concession rights & point-of-sale 18%21% Selling, general & administrative expenses Depreciation of fixed assets 19% 1% 22% 1% Total Expenses76%80%

18. Accounts Receivable Back on Track 20011H20022002 3 rd Party Receivables (HK$’000) 85,493102,236113,612 Turnover Day147193143 Due from WHA (HK$’000) 52,58198,92049,804 % of sales from WHA 25%16%

19. Cash Flow Data 2001 HK$’000 2002 HK$’000 Cash flows from Operating Activities - Cash generated from operations247,894100,575 - Interest paid(21,757)(8,625) - Income taxes paid(1,631)(7,624) 224,50684,326 Cash flows from Investing Activities - Purchase of fixed assets(19,896)(17,280) - Additions to concession rights(226,199)(353,819) - Interest received5,16511,807 (240,930)(359,292) Cash flows from Financing Activities758,433(267,287) Net (decrease)/increase in cash & cash equivalents742,009(543,638) Net cash & cash equivalents at beginning of year67,402809,411 Net cash & cash equivalents at end of year809,411267,158

20. Balance Sheet Highlights 2001 HK$’000 2002 HK$’000 Cash and cash equivalents 809,411267,158 Total assets1,846,5931,525,052 Total debt 1 255,94710,794 Total shareholders’ equity 1,129,7981,209,750 1 Net of pledged time deposits

21. Review of Strategy & Execution

22. Investing for Future Growth Total number of panels increased to 17,210 Total number of panels added in 2002 Tier 1 cities+1,666+36% Mid Tier cities+3,846+55% Total+5,512 Continue to increase 2,000 panels in 2003 20012002% Change Capex (HK$’000)271,300309,227+14% Bus Shelters

23. New Sales Initiatives.. 1.5 new sales centers to further penetrate market 2.New sales organization to strengthen sales force, & improve efficiency 3.New interactive pricing system to offer flexibility to advertisers 4.Innovative sales packages to satisfy advertisers’ needs Proactive Initiatives …

24. Sales Centre Regional Centre Shenyang Beijing Xian Chengdu WuhanShanghai Guangzhou Shenzhen New Sales Centers to Enhance Customer Supports Qingdao

25. Continue to negotiate with authorities to reduce costs Replace with cost-effective quality panel materials Further improve cash collection Benchmark SG & A expenses Continue to Improve Operating Efficiency

26. Complementary to bus shelter advertising Increased 48% advertising space to 4,200M Built:400 panels in Lian Hua supermarket stores 175 panels in Jie Qiang supermarket stores In negotiation with supermarket chains for additional space 20012002 Capex (HK$’000)22,4388,336 2 Investing for Future Growth Point-of-Sale

27. 2003 Going Forward …

28. Thank you! Clear Media