Media Convergence Asia-Pacific is happy to send you this CONFIDENTIAL newsletter about recent developments in the region. This regular newsletter will be sent to media companies' CEO's and senior executives.

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Didier Guérin
President

Inside this issue:

Overall growth of 2.9% in Asia-Pacific (excluding Japan) Fractional growth in the US (+.5%) and small decrease in Europe (-1.6%) China to expand by 5% Indonesia and Vietnam are booming (+10.2% and +7.5%) While Europe and the US are expected to see the end of three years of negative growth in magazine advertising spending, the Asia-Pacific region will continue to expand in 2011 compared with 2010. Although Japan remains the largest market in magazine advertising in the region, it will continue to decline (-8.6% % in 2011 compared to an anticipated -20.7% in 2010), GroupM predicts China and India will expand by +5% and by +7.1% in 2011, a smaller growth for China compared to 2010 (+9.1%) but a significant improvement for India which was flat in 2010. In its advertising forecasts "This Year, Next Year" (Summer 2010), published in July 2010, GroupM expects magazine advertising will grow modestly in the US (+.5% compared with an anticipated -6% in 2010) but will continue to decline slightly in Europe (-1.6% compared with an anticipated -2.6% in 2010). Europe's largest markets are expected to see their magazine advertising market erode a little further in Germany (-1.5%), in France (-1.3%), in the UK (-3.9%) and flat in Italy (0%). At the same time, ZenithOptimedia came with its "Advertising Expenditure Forecasts (July 2010)" and foresees a slightly bleaker picture for the US market (expected to experience in 2011 a negative growth of 3.5% in magazine advertising spending), while Europe drops by 1.4%. However, both GroupM and ZenithOptimedia foresee a significant increase in magazine advertising spending in the two small markets of Indonesia (+10.2% and +13.5%) and Vietnam (+7.5% and +12.8%). GroupM is the parent company to WPP media agencies including MAXUS, MediaCom, Mediaedge:cia and Mindshare. GroupM operates more than 2,000 offices in 106 countries. ZenithOptimedia is a part of Publicis Groupe and extends its global media services in 218 offices in 72 countries.

Click on the flags below to be transferred directly to the country of your choice. Japan -8.6% China 5% Australia 0.8% Hong Kong 2.0% South Korea -4.5% India 6.9% New Zealand 1.3% Indonesia 10.0% Taiwan 5.6% Thailand 11.6% Singapore -0.3% Vietnam 7.5% Malaysia 2.0%

As we celebrate our company's tenth anniversary, we are re-publishing the list of famous quotes from industry leaders with their respective titles that we published in our various eNewsletters, at the date the quotes were made.

"Joint-ventures are like tea bags ... You never know how strong they are until you put them in hot water" Chris Llewellyn Director EMAP International Rio de Janeiro, April 2001

"Magazines have not yet reached a mature stage: they have a great future ahead of them if they want to provide the key to the growing complexities of our modern societies to our readers." Gérald de Roquemaurel Chairman and CEO Hachette Filipacchi Medias London, November 2001

"I believe in the power of magazines and I believe in the future of magazines in Asia." Richard Smith Chairman and editor-in-chief Newsweek Seoul, April 2002

"Magazine launches add more value for shareholders than acquisitions." Ann Moore Chairman & CEO Time Inc. New York, July 29 2002

"The fear rather than the fact of war does more harm to consumer and corporate confidence, and thus advertising." Adam Smith Head of Knowledge Management Zenith Optimedia Group London, Q4 2002

"A magazine focused on spiritual and emotional themes can connect with the reader in very profound ways." Cathleen P. Black President Hearst Magazines Paris, May 28 2003

"The publishing business in China has barely scratched the surface of its potential. If you are willing to be patient and make the effort, you will prosper and be rewarded for it." George Green President Hearst International Beijing, May 20, 2004

"Magazines are the most personal form of mass-communication." Christie Hefner Chairman, Chief Executive Officer Playboy Enterprises International Inc. Phoenix, Arizona, October 23, 2006

"You cannot really win the media race of the 21st century unless you find your way in Asia. Winners without Asia will be half losers." Roberto Briglia General Manager, Magazine Division Arnoldo Mondadori Editore S.p.A Segrate – Italy, November 15, 2007

"Challenging times create new opportunities to take risks. Expanding outside one's domestic market is a good risk. Expanding to Asia is a must. " Francis Morel CEO Le Figaro Paris, December 2008

" Dazzle your readers, inform them, inspire them and grip their imagination. Connect to their hearts and their minds. Do it with conviction and with emotion. Convey the same values with a website, with a weekend, with an event or an experience which engages them. Love your readers (and your advertisers) and they will love you back. " Jonathan Newhouse Chairman, Condé Nast International London, May 6, 2009