Jason Jiang has personally acquired several vertical online media
companies recently, including GouFang, 18.com.cn, Tiantian Fund,
Pcpop, 39.net, 116.com.cn, Autohome and more than ten ad. agency
companies.

I observed that GouFang and 18.com.cn and Tiantian Fund have poured
millions of money into Focus Media to do advertising. Jason used these
related companies to bolster FMCN's profits for years. After share
increases due to profit rise, Jason sold out his personal holdings in
FMCN and cashed out tens of millions of US dollars to do further
acquisitions in China. This is his ideal funding chain and has been
executed for years without disclosure.

Currently one short investor sued FMCN for related party transaction,
and I believe it is just a beginning. I believe related party
transacton accounts for more than 8% of FMCN's total revenue from 06
to 07. I also hope SEC will send out the legal letter and require FMCN
to change accountant from Deloitte to PWC to re-audit all its books
from pre-IPO up todate. I think some VCs including IDG which had
invested into FMCN have also involved into FMCN's 'financial cooking
tactics'.

You sounds like the short seller who sent the letter.

xco...@gmail.com 写道：

Agreed. I noticed that both GouFang and East Money(www.18.com.cn) has
been doing advertising on FMCN LCD screens all the day. If Mr. Jiang
has acquired those two companies, he should disclose to the public cos
they're obviously related party transactions. Did any analysts from
GS, MS, Citibank or Deutsche Bank know about it?

Fmcnwatchdog：

I am a Chinese correspondent of 21st Century Business Herald. My name
is Liu Zhengzheng. 21st Century Business Herald is a national economic
newspaper, similar to the The Wall Street Journal.
Recently I read some your articles about Focus Media Holding Limited
on the Internet. I know you are a correspondent too, and you've
investigated the scandal about FMCN in the past two months. I also
always are paying attention to the company, because it announces delay
in Filing 2006 Annual Report, so there must be some problems.
I felt responsible for reporting facts to the public, so I wish your
help.

1. You said: The reason why FMCN is delaying FY06 financial reports is
that Charles Chao, the Company's auditing committee,keeps rejecting to
sign on its FY06 audited reports and he is still hesitating.
How did you learn of the news? Could you tell me your news source?
What evidence?

2. In your article, you said: My China colleagues are working on
special reports on the Issue and they may disclose concrete evidence
soon after several months of investigation.
Would you like provide your friend's contacts for me? I wish
communicate with them directly and get abundant evidence to reveal the
truth in my report at last.

3.  You said: Jason Jiang has personally acquired over 11 big ad.
agencies in the past 3 months excluding those received investment from
WPP, Omnicom or other foreign companies. We have the list.
Will you provide the list for me? I wish investigation.

4.  You said: I also checked its unaudited financial statements for
1Q07。
Could you provide the unaudited financial statements for 1Q07 for me？

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