OPP.L Regulatory News (OPP)

11 Jan 2007 09:41

Origo Sino-India PLC11 January 2007 For immediate release 11 January 2007 ORIGO SIGNS AGREEMENT TO INVEST IN RONGRUN EXTENDS US$1M BRIDGE LOAN AS FIRST TRANCHE OF US$10M ROUND ORIGO JOINED AIM ON 21 DECEMBER 2006 Origo Sino-India plc ("Origo") (LSE:OSI), the investment and strategic advisorycompany focused on private equity markets in China and India, has entered intoan agreement to invest in Beijing RongRunYingTong Meida Technology Co.,Ltd. ("RongRun"). RongRun operates China's first digital TV and advertising networktargeted at leading banks and financial institutions. On 21 December 2006, Origo shares began trading on AIM after raising £12.8million. This is Origo's first investment since becoming a public company. Under the agreement, Origo and China Equity International Holding Ltd., aleading Chinese venture capital firm ("China Equity"), will each invest US$1million in RongRun in the form of a US$2 million convertible bridge-loan. Thebridge note is secured by one of the existing shareholders of RongRun, with aback-to-back guarantee by China Equity. The parties are in the process ofcompleting definite agreements for a further US$8 million equity investment inconsideration for a minority stake in the company. RongRun aims to sign exclusive contracts with major banks in China to build andoperate a nationwide LCD network advertising network. RongRun's LCD displaynetwork broadcast advertisements and real-time information in 20 minute cycles,nine hours a day. In the opinion of Origo, this represents a highlycost-effective and efficient method of reaching consumers in a fast expandingadvertising environment. Commenting on the agreement, Chris Rynning, Chief Executive Officer of Origo,said: "RongRun is one of the few media companies in China that effectively targetsChinese consumers of financial services. Origo expects advertising spending inChina to expand by 15% CAGR in the next decade and sees RongRun as uniquelypositioned in a fragmented and regionalized market." For further information, please call: Origo Tel: +86 1390 124 6417 Chris Rynning, CEO Buchanan Communications Tim Anderson/Rebecca Skye Dietrich Tel: +44 (0)20 7466 5000 Seymour Pierce John Depasquale Tel: +44 (0)20 7107 8000 *Photos are available from Buchanan Communications NOTES TO EDITORS About Origo Origo pursues two principal lines of business: investment in growth companiesand the provision of consultancy services. The latter comprises fundraisingassistance, M&A consultancy, operational support and a full range of managementservices. Origo's business model is to develop a profitable stream ofconsultancy revenues together with capital gains from private equityinvestments. This information is provided by RNS The company news service from the London Stock Exchange