Carlyle Takes Over EMC Management

Taipei, Aug. 3, 2006 (CENS)--Following its NT$47.6 billion acquisition of Eastern Multimedia Corp. (EMC), Carlyle Group, a private global investment firm, formally took over the helm of the company yesterday (Aug. 2) by overhauling its board of directors and supervisor, forcing Gary Wang, founder of the company, out of the management team.

Carlyle will eliminate EMC in two weeks via two mergers within two weeks and rename it Eastern Media.

Paul C.C. Chen, chief executive officer of EMC, confirmed that the provisional shareholders' meeting and provisional meeting of board of directors of EMC yesterday elected Wu Shiu-ing, Tang Tze-min, and Yang Hsiang-tung, as the three new board directors and Chen Li-ru, as the supervisor, with Wu Shiu-ing serving as the chairman. Paul C.C. Chen will continue to serve as the CEO.

In the name of PX Capital Partners B.V. of Holland, Carlyle Group successfully acquired 60% stake in EMC and 40% in Eastern Broadcasting Corp. (EBC) in July, after having obtained approval from National Communications Commission (NCC). The takeover was carried out via six layers of investments, in order to comply with the legal regulations.

Gary Wang, president of Eastern Group, failed to secure a seat on the board of directors of EMC, a slap on his face due to his pledge to retain the management of the company following Carlyle buying into EMC. Despite the setback, he retains the title of honorary chairman of EMC, as well as the channel agency and the right for collective procurement.

In addition, Gary Wang is a shareholder of the entity set up by Carlyle to take over EMC and a major shareholder of EBC, in which Carlyle has 40% stake. In addition to Eastern TV channels, EBC also owns other media such as newspaper and network. Therefore, mutual partnership will persist, despite the change in the EMC management.