RHM.L Regulatory News (RHM)

08 June 2011

RedHot Media International Limited

('RedHot' or the 'Company')

Directorate Change

On 09 December 2010 RedHot announced that (Raymond) Hor Chee Hong had resigned as an Executive Director of the Company and been appointed as a Non-Executive Director of the Company for a period of 6-months, to allow Raymond to pursue other business interests. As this six month period has now ended, the board of RedHot announces that Raymond has stepped down as a Non Executive Director of the Company with immediate effect.

Cheong Chia Chieh, the Company's CEO, commented: "I would like to thank Raymond for his contribution to RedHot during his time as a director. All of the board wish Raymond well in his future endeavours."

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Notes to editors:

RedHot Media International Limited (AIM: RHM), is a Cayman Islands incorporated holding company. Its primary activity is that of a media broking group, including an innovative barter sales trading activity, in Malaysia and the major cities of the People's Republic of China ("PRC"), namely Shanghai, Beijing and Guangzhou.

A media broker conventionally purchases advertising space on behalf of its clients and earns commissions from the media providers based on the amount of advertising purchased. The AxChange business model adopts a pull marketing approach by aggregating demand from advertisers and consumers/merchants to generate additional sales for both the media owners and advertisers respectively.

RedHot also acts, to a lesser extent, as a non-stockholding distributor for certain clients (for whom it also acts as a media broker) with the intention of generating higher margins for the Group than would be obtained in conventional media buying.

Using this distribution based business model (AxChange), which the Directors aim to grow, RedHot enters into a contract to draw down various lines of inventory and then, as the inventory is sold through RedHot's distribution network, the proceeds from the sales are used to purchase media space for the same client.

The AxChange business model has been designed to free up working capital; allowing RedHot's customers to pay for advertising and assist new entrants into Malaysia & China (where capital controls are still in place) in selling their products using RedHot's established distribution network. RedHot also believes the model provides benefits to its distributors; providing them with lower unit prices and access to credit facilities to which they otherwise would not have access.

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