SCCC Sun 3C Media

RNS Number:5949W
Sun 3C Media PLC
15 May 2007


Sun 3C Media Plc acquires Leading Mobile Top-Up Company


London, Beijing, 15 May 2007: Sun3C Media (AIM: SCCC), the rapidly growing
Chinese Media company, today announces that it has entered into a conditional
agreement to acquire the assets and business of CEC-Unet ltd ("Unet"), a Chinese
provider of electronic payment and top up services for mobile phones, for a
total consideration of approximately #9.4m in cash and shares.

This acquisition positions Sun3C Media as a market leader in one of the most
populous parts of China, giving the company control of 18000 retailers in 
China's Henan province and access to over 5 million active customers. This deal,
in addition to providing an extensive electronic payment network, gives Sun3C
Media a further outlet to distribute its large library of mobile content and
services and extend its platform to other parts of China which is already the
largest market for mobile phones and services in the world (440 million mobile
users).

The Company also announces today a placing of 22,555,932 shares at 11.8p per
share to raise #2,661,600, the proceeds of which will be used to finance the
integration and expansion of the CEC-Unet business.

Sun 3C media was publicly listed on London's AIM market on July 6, 2006, and
currently controls a number of China's leading media brands, including the China
Business Post, one of the country's leading weekly business newspapers, and
various brands associated with Yang Lan, one of China's best known female
television personalities, as well as Upstart Games, a leading global publisher
of mobile games and multimedia applications.

Unet offers electronic top-up services and sim card sales for pre-pay China
Mobile customers in the Henan Province through a network of more than 18,000
retail partners and sales agents. Since its launch in April 2006, the company
has developed a customer base of more than 5 million active users.

Sun 3C is purchasing the assets and Business of Unet, including the rights
associated with all contracts, technology, IP and employment contracts.

This will give Sun 3C a payment and distribution channel for its mobile media
services that directly reaches mobile consumers. The company plans to expand the
Business outside of Henan Province into other key provinces and to use Unet's
sales channels for the sale of Sun 3C's library of mobile content and services.
Additionally, the company is exploring options for the introduction of other
payment services leveraging Unet's established network.

According to the terms of the conditional Asset Purchase Agreement, Sun 3C will
acquire the assets and the Business of Unet in exchange for the allotment by the
Company of 77,355,945 ordinary shares of Euro0.01 each ("ordinary shares") and the
payment by the Company of RMB 500,000 (#33,000) on execution of the agreement
and a further RMB 3 million (#230,000) which is payable on Completion. The
shares will be issued in three tranches with one-third of the shares released
from escrow 30 days after Completion, a second tranche of shares equivalent to
one-third of the consideration shares will be released from escrow on December
31, 2007, with the remaining consideration shares to be released from escrow on
December 31, 2008. The number of shares to be released on each occasion is
subject to adjustment if the Business does not meet its performance targets. The
agreement is conditional on regulatory approval, successful completion of due
diligence, and transfer of key contracts.

China Electronic Appliances Corporation ("CEAC") and Unet, the vendors of Unet
have provided the Company with a post-tax profit guarantee of RMB 15 million
(#990,000) for the calendar year ending December 31, 2007 and a post-tax profit
guarantee of RMB 20 million (#1.3 million) for the year ending December 31,
2008. The profit guarantee only covers the existing top-up and sim-card sales
business in Henan province. Any profits resulting from geographic or product
expansion post-acquisition do not count towards the profit guarantee.


Speaking today, Mr. Chen Zhao Bin, Chairman and CEO of Sun 3C Media, formerly
Vice-Chairman and President of China Mobile (Hong Kong), and one of the leading
figures in the industry commented:

"This is a momentous acquisition for Sun 3C. With the Unet business we are
extending our mobile content and services value proposition directly to
consumers through an established and reliable distribution and payment channel.
This acquisition lays the foundation for our aim to be one of China's leading
mobile media companies by giving us a reliable source of cash flow, a rapidly
expanding distribution channel, and a network of point of sale marketing and
promotional venues that reach more than 5 million consumers in Central China.

We are looking forward to working with the Unet management team to continue the
growth of the business across China and to exploit the synergies between our
branded content services and Unet's network of retail distribution points. The
placing insures that we have the necessary working capital to grow the business
and further solidifies our position in the China market."


Mr. Li Gang, CEO of China Electronic Appliances Corporation, commented:

"We are very excited to announce today's agreement. The combination of Sun 3C's
extensive mobile media resources with CEC-Unet's distribution and payment
infrastructure will give us a very strong position in China's booming mobile
services industry."


Enquiries:

Brunswick Group LLP                        020 7404 5959
James Hogan
Carole Cable

Blue Oar Securities
William Vandyk                             020 7448 4400


About Sun 3C Media:


Sun 3C Media Plc ("Sun 3C", SIM SCCC) is positioned to take advantage of two of
the media industry's most important historical trends: the emergence of China as
one of the worlds key media markets and the explosive global growth of the
mobile content industry.

Based out of Beijing, China, the Company controls a growing portfolio of
well-known Chinese brands and content, robust mobile application development and
deployment expertise. The acquisition of CEC-Unet would provide an offline
retail distribution and payment network that reaches over 5 million mobile
customers through 18,000 outlets in Central China. Sun 3C is one of the only
companies in China to blend mobile content, services, and offline distribution
and payment channels into a single, integrated business model.

For more information visit: www.sun3cmedia.com


About CEAC:

China Electronic Appliances Corporation ("CEAC") is the operator of the largest
licensed Mobile Virtual Network Operator ("MVNO") in China and a subsidiary of
China Electronics Corporation, the largest electronics conglomerate in China
with revenues of RMB 80 billion in 2005. This relationship will combine CEAC's
unique position in China's nascent MVNO sector with Sun 3C's media assets, brand
and integrated marketing expertise.

For more information visit: www.ceac.com.cn




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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