China MediaExpress Holdings (NYSE AMEX:CCME)

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Saturday, October 17, 2009

We are once again updating our financial target table. Our last update assumed that the fully diluted share count for TMI was 45 million. However, to get the business combination done, TMI bought back 9.5 million shares of common stock from certain shareholders. At some point it may be safe to assume that the new entity will issue shares to recoup the money it shelled out to buy back the 9.5 million shares.

China Media Express shareholders may earn up to an additional 15.0 million shares of the Company’s common stock, subject to the achievement of the following net income targets:

	2008 Reported	% Change	2009 Target	% Change	2010 Target	% Change	2011 Target
Net Income RMB	183.5 M	56.4%	287 M	98.6%	570 M	56.0%	889 M
Net Income U.S $ ^a	$26.4 M	59.1%	$42 M	98.8%	$83.5 M	55.9%	$130.2 M
Available Incentive Shares	n/a	n/a	1.0 M	600%	7.0 M	0.0%	7.0 M
Implied/Proforma EPS ^b	$0.73	58.9%	$1.16	94.8%	$2.26	31.0%	$2.96
Diluted Shares Used in EPS Calculation	36.0 M	0.0%	36.0M	2.8%	37.0 M	18.9%	44.0M
P/E ratio ^c	10.8	n/a	6.8	n/a	3.5	n/a	2.7

Source: SEC Filing (For the quarterly period ended March 31, 2009, page 12).

^a2009, 2010, 2011 Based on exchange rate of 6.83 RMB/USD. 2008 Based on average exchange rate of 6.95 RMB/USD.

^b The GeoTeam calculated implied EPS figures using 36.0 million diluted shares for 2009 as the initial base amount and (adding incentive shares plus in the money warrants in subsequent years) assuming net income targets are met. We did this only as a frame of reference as the figures do not take into account the possibility of any future dilutive events.

^c Based on closing price of $7.88 on October 16, 2009.

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