Cityneon’s order book for 2009 and beyond remains firm despite recession

• Order book at start of new year totals S$52 million
• Projects include construction at Resorts World Sentosa and Oman Tourism Authority road show
• Plans to expand staff strength

Singapore, 19 January 2009 – Cityneon Holdings Ltd., a leading provider of event and exhibition services in Asia, today reported a firm order book for 2009 and beyond despite the economic downturn in Singapore and the region.

Cityneon said its order book for 2009 to 2012 stands at S$52 million to-date. The contracts included a $35 million deal to build three attractions at the Universal Studio being built by Genting’s Resorts World on Sentosa island, as well as exhibition booths and other on-site installations to support a three-year international roadshow by the Oman Tourism Authority.

Revealing the latest order book numbers at a cocktail reception today, Ko Chee Wah, group managing director of Cityneon, said: “We’re heartened that in such difficult market conditions, we’ve managed to secure $52 million worth of contracts at the start of a new year. We hope to sign up more deals in the coming weeks and months.”

In addition to the Resorts World and Oman Tourism contracts, Cityneon will also be into the second of a five-year $6.2 million contract to supply ground and furniture fit-out for Singapore’s F1 race in September. Last year, it provided the furniture for the F1 hospitality suites, media centre and public areas.

As well, it will also be constructing booths for exhibitors at the CommunicAsia & Broadcast Asia show in September, and the grandstand at this year’s Chingay Parade.

Mr Ko added: “We are glad that we have taken steps in recent years to diversify into new markets and new services. This has helped us to sustain momentum in a year when economies around the world are seeing a massive contraction in demand from consumers and businesses.”

Cityneon stepped up its diversification into the Middle East in recent years after setting up an office in Bahrain in 1994. The region now contributes just over a third of group revenue, which totaled $24.4 million in the first six months of 2008 and $41 million in 2007.Cityneon is due to report its full-year results in February.

In addition to geographical diversification, Cityneon has also been focusing on expanding its business capabilities. While building booths, backdrops and other installations at exhibitions and large-scale events is its traditional mainstay, it has also branched out into related services including interior architecture and thematic design and fabrication. This year’s order book underscores its diversification strategy - thematic design and construction accounts for 51% of the total contract value while exhibition and event management contributes the balance of 49%.

Mr Ko said the Resorts World contract is a good example of the company positioning and preparing itself to take on new and different projects. “Way before the IR contract was awarded, we started to explore strategic partnerships with people in the US experienced in the design and construction of theme parks. The investment paid off when we were awarded the contract, and it helps us to broaden our revenue streams.”

Under the contract, Cityneon will be involved in the building of three attractions on Resorts World – the Grand Mountain at the entrance of the theme park, and two other sections based on the Egypt and Lost World theme as well as New York and Sci-Fi City.

In line with its bigger order book, Cityneon will be hiring more staff this year after having recruited 27 designers, event managers, marketing and account servicing executives last year. It plans to expand its current staff strength of 140 in Singapore.

Mr Ko was hosting a reception to thank Stanley Cheong who stepped down as nonexecutive chairman and to welcome Datin Ngiam Pick Ngoh and Mr Ong Kuee Hwa, the two incoming non-executive directors representing Malaysia’s Star Publications Bhd.

Star, Malaysia’s leading newspaper group, is now the 63% shareholder of Cityneon following a takeover which was completed at the end of last year. Mr Ko said being part of the Star group “is a very positive development for our company.”

Listed on the main board of Bursa Malaysia, Star has a market capitalisation of about S$1 billion and is a multi-platform media company which publishes and distributes The Star, Malaysia’s most widely-read English language daily, a range of magazines, three radio stations and a news portal – Star Online.

“Cityneon will no doubt stand to benefit significantly from the strong financial clout, diversified media platform and impeccable connections of its new controlling shareholder,” Mr Ko said.

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