By MCN Editor editor@moviecitynews.com

Bona Film Group Secures Strategic Investment From News Corporation: Global Media Company to Purchase Minority Stake

BEIJING, May 13, 2012 — Bona Film Group Limited (Nasdaq:BONA), a leading film distributor and vertically integrated film company in China, today announced that the Company has secured a strategic investment from News Corporation.

Under the investment agreement, News Corporation will acquire a 19.9% equity stake in Bona directly from the Company’s Founder, Chairman and CEO, Mr. Dong Yu.

Mr. Yu has entered into separate agreements to acquire 1,000,000 Bona ordinary shares from SIG China Investments One, Ltd., 1,000,000 Bona ordinary shares from Matrix Partners China Funds and 1,500,000 Bona ordinary shares from the Sequoia Funds, at an average price of $11.40 per share, or $5.70 per American Depositary Share.

“We are thrilled to receive this strategic investment from News Corporation,” said Dong Yu, Founder, Chairman and CEO of Bona Film Group Limited. “As one of the leading film distributors in China, we are committed to bringing the best quality Chinese films to broad
audiences around the world. News Corporation’s extensive global reach, investment and distribution will help accelerate our strategy to expand our global footprint.

“Since our IPO in 2010, we have developed our business significantly and we believe now is the time to diversify our ownership structure by introducing select strategic investors. This is an exciting period of growth for China’s film industry, and we look forward to exploring the international commercial opportunities for Chinese films with our new partner,” Mr. Yu concluded.

“One of Bona’s unique advantages is its vertically-integrated business model, which differentiates the Company from other film distributors in China,” said Dr. Jack Gao, SVP, News Corporation & CEO, News Corporation China Investments. “China’s film market is growing at a rapid pace, positioning the country to be the second largest film market following the United States, and Bona’s market leadership, compelling value proposition and tremendous growth potential make this an attractive opportunity for News Corporation.”

Following the close of these transactions, Mr. Yu’s ownership will be reduced to 8,210,803 ordinary shares (not including options to purchase 545,615 ordinary shares), representing approximately 27.0% of the Company’s ordinary shares outstanding. These transactions are expected to close in the next 15 days and are subject to customary closing conditions.

About Bona Film Group Limited

Bona Film Group Limited (Nasdaq:BONA) is a leading film distributor in China, with an integrated business model encompassing film distribution, film production, film exhibition and talent representation. Bona distributes films to Greater China, Korea, Southeast Asia, the United States and Europe, invests and produces movies in a variety of genres, owns and operates 13 movie theaters and manages a range of talented and popular Chinese artists.

For more information about Bona, please visit http://www.bonafilm.cn.

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“I run a movie for myself the first time, and if I can forget I had anything to do with the picture, and I’m halfway through the movie and I’m just the audience, then that is my litmus test for a film working. It doesn’t mean it’s going to work for anybody outside of myself, but when I lose the aesthetic distance between the screen and where I’m sitting, the first time I run a picture that I’ve directed for myself, if I’m aware to the very end that I’m the director, and all I can do is find things to fault, then I know I have my work cut out for me. And I have to roll up my sleeves and fix everything. But when I can watch a movie and I can forget that I made the movie, that’s the first sign that I’m going to be pretty happy with it, that I’m going to be able to live with it.”
~ Steven Spielberg On When He Thinks A Movie Is Working

“I was brought up on newspapers. I love newspapers. I love old-fashioned newspapers, but today I read them on the Internet because of time. And in New York, I read the morning papers, then I read the London papers on my iPad. But entertainment is very important. With broadband coming, everything is changing. People now spend four or five hours on their iPhones, their smartphones, which is changing the world totally. I found it with my young children. They are on their iPhones while they are watching television, doing two things at once. The fact that now we have 2.5 billion people with smartphones, with access to knowledge all over the world, with access to each other, government is going to change, the world is going to change. And it’s going to change very fast. We’ve only had smartphones for eight years, and now we have 2.5 billion of them. In another eight years, we will have 5 billion. The whole world will be on them… If newspapers have opinions, if they are really well-written, if they’re very reliable, people will pay for them. Then they are viable. We found [that] with the Wall Street Journal. You have newspapers on the Internet which are so good people will pay for them. There are people who steal things, rewrite them and put them out, like Google, but they are not reliable at all.”
~ Rupert Murdoch