| Wed 29 Nov 2006, 12:07 | | Primedia - Primedia announces another ground break |
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PMA PMAP PMN
PMA
Primedia - Primedia announces another ground breaking innovation
Primedia Limited
(Incorporated in the Republic of South Africa)
Registration number 1993/003355/06
Share code: PMA & ISIN: ZAE000035119
Share code: PMN & ISIN: ZAE000035127
Share code: PMAP & ISIN: ZAE000080529
("Primedia" or "the Company")
Primedia announces another ground breaking innovation
Primedia Limited (Primedia) today announced that it has significantly stepped up
its investment in out of home digital media, which is expected to be very
positive for shareholders in the medium to long term. Through newly established
Prime 360 Media, Primedia will shortly have one of the foremost national
satellite/GPRS enabled digital media networks in South Africa capable of
tactically reaching all LSM consumer groupings at key convergent points such as
airports, liquor and music stores, retailers and cinemas, where exclusive
advertising rights have already been secured.
Prime 360 Media was initially launched in July 2006 with a R40 million
commitment (over 3 years) to a 150 unit rollout plan and which was then
supported by R90 million of advertising commitments (subject to roll out). The
initial rollout will be completed in January 2007. Given the very strong
advertising demand coupled with the increased footprint through additional
exclusive rights secured since launch, the Primedia Board has recently approved
a further R100 million investment to increase the footprint to 650 units
nationally. The additional capital expenditure will be funded either from the
group"s unutilised banking facilities or structured asset based finance.
Prime 360 Media currently uses two types of digital display and plasma units, to
which exclusive rights for sub-Saharan Africa have been secured, namely:
The 360 Display Unit (360) provides advertisers with a genuine colour multi-
media display integrating video, audio, computer graphics and posters, has
numerous static branding opportunities and is also the perfect showcase for
innovative product placement.
The 3D Media Unit (3D) immediately grabs the attention of the viewer, creating
an immediate "WOW" effect for all audiences providing a rich, lifelike,
informative and entertaining experience to multiple users.
The displays will run on a 20 to 30 minute cycle, which will also include live
content from iafrica.com covering sports, news, weather and exchange rates and
entertainment from M-Net. Content will also be able to be changed in real time,
thereby enabling enormous flexibility for advertisers.
Primedia CEO William Kirsh said: "The innovation and ongoing development at
Prime 360 Media is the culmination of a home-grown business opportunity that
demonstrates the successful entrepreneurial ethos that permeates the Primedia
Group. Over the years we have innovated on numerous fronts but this is certainly
the biggest and stands to create much value for shareholders. It further
endorses our strategic decision, taken some time ago, to focus on new high
growth sectors of the media industry."
Kuben Pillay, CEO of Primedia"s Advertising Division commented: "Prime 360 Media
was devised to attract advertisers across a broad spectrum of out of home media
spaces. The launch of Prime 360 Media will add further depth and breadth to the
Group"s leading South African out of home presence. The Group will also make a
concerted effort to cross sell this non traditional advertising channel to all
of its clients."
Elmarie Pretorius, Managing Director of Prime 360 Media said: "The inspiration
behind Prime 360 Media was driven by the desire to offer advertisers, who are
faced with increased audience fragmentation, a very innovative advertising
channel, operating at point of purchase within the digital advertising
environment."
In July 2006, Primedia announced the acquisition of a 50% stake in Merchint from
Barrows Design and Manufacture (Pty) Ltd. Due to the nature of the business
conducted by both Merchint and Prime 360 Media, both Merchint"s shareholders
deemed the ongoing rollout of Prime 360 Media as a potential area of conflict
and mutually agreed to reverse the transaction. The R25 million paid by Primedia
will consequently be refunded.
Sandton
29 November 2006
Sponsor
Investec Bank Limited
Enquiries:
Primedia 011 506 3153
Prime 360 Media 011 506 3009
Brunswick 011 268 5750
Gareth Sharp 083 287 3180
Date: 29/11/2006 12:07:10 PM Produced by the JSE SENS Department
