China MediaExpress Holdings, Inc.

Lead Plaintiff Deadline: 04/05/11

Date filed: 02/11/11

Class period: November 08, 2010 – February 03, 2011

Court: Southern District of New York

NASDAQ: CCME

On February 04, 2011, a securities class action complaint was filed in the United States District Court for the Southern District of New York against China MediaExpress Holdings, Inc. (“China MediaExpress” or the “Company”) and certain of its executive officers, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, during the alleged class period of November 08, 2010 through February 03, 2011.

China MediaExpress, based in Fuzhou, the People’s Republic of China, is engaged, through its subsidiaries, in the operation of mobile television advertising networks on passenger buses travelling on highways in the People’s Republic of China. On January 31, 2011, Citron Research published a report indicating that China MediaExpress misrepresented the scope of its operations and financial performance, and concluding that the Company “does not exist at the scale that they are reporting to the investing public.” Then, on February 03, 2011, market analyst and research firm Muddy Waters disclosed that the Company “significantly inflated its revenue and earnings in order to pay management earn-outs and inflate the stock price so insiders can sell.”

As alleged in the complaint, defendants failed to disclose material adverse facts about the Company’s true financial condition, business, and prospects throughout the class period, including that: (i) the Company misrepresented the number of buses in its advertising network; (ii) the Company misrepresented the nature and extent of its business relationships; and (iii) as a result, the Company’s financial results were overstated at all relevant times.

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