Acorn Enters Agreement to Sell 33% Equity Interests of its CPS Stock Tracking Software...

Acorn Enters Agreement to Sell 33% Equity Interests of its CPS Stock Tracking
Software Business
-- Sale Reinforces Core Competency and Enhances Operating Efficiency

SHANGHAI, June 24 /PRNewswire-Asia-FirstCall/ -- Acorn International, Inc.
(NYSE: ATV) ("Acorn" or the "Company"), a leading integrated
multi-platform marketing company in China engaged in developing, promoting and
selling consumer products and services, announced today that it has reached an
agreement to sell 33% equity interests of Shanghai Yimeng Software Technology
Co., Ltd. ("Yimeng"), a company engaged in the development and marketing of
CPS stock tracking software, to Mr. Zeng Shan, the CEO of Yimeng. In
accordance with the terms of a share purchase agreement approved by Acorn's
board of directors, Acorn will receive approximately $7.5 million in dividends
and $15.5 million for sale of 33% equity interests of Yimeng, which is valued,
post-dividend, at approximately $47.0 million. The Company will continue to
hold 18% equity interests of Yimeng after the sale as part of Acorn's long-
term investments. The CPS stock tracking software provides stock trading
analysis to retail investors in China. The Company originally acquired 51%
equity interests of Yimeng for a cash consideration of approximately $160,000
in December 2005.
"Divesting part of our CPS investment represents an important step towards
focusing on our core competency in the online and offline marketing and
distributional synergy. The banning of TV advertisements for stock tracking
software products significantly impaired CPS' ability to fully capitalize on
Acorn's dual platform marketing and distribution benefit," said James Hu,
Chairman and CEO of Acorn. "We believe that the partial divestiture of CPS on
favorable financial terms will further strengthen our balance sheet and
provide the capital to fund our future strategic business objectives and
operations. Furthermore, we believe that a sharper strategic focus can further
improve operating efficiency and accelerate our timeline for a faster and
stronger recovery in 2009."
About Acorn
Acorn is a leading integrated multi-platform marketing company in China,
operating one of China's largest TV direct sales businesses in terms of
revenues and TV air time and a nationwide off-TV distribution network. Acorn's
TV direct sales platform consists of airtime purchased from both national and
local channels. In addition to marketing and selling through its TV direct
sales programs and its off-TV nationwide distribution network, Acorn also
offers consumer products and services through catalogs, third-party bank
channels, outbound telemarketing center and an ecommerce website. Leveraging
its integrated multiple sales and marketing platforms, Acorn has built a
proven track record of developing and selling proprietary-branded consumer
products, as well as products and services from established third parties.
For more information, please visit http://www.chinadrtv.com .
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements," including, among
other things, the benefits of Acorn's sale of its 33% equity interests in
Yimeng, the ability of Acorn to strengthen its balance sheet and fund future
strategic business objectives following its sale of 33% equity interests of
Yimeng and Acorn's ability to improve operating efficiency and recover from
the effects of the global economic crisis during fiscal year 2009. These
forward-looking statements are not historical facts but instead represent only
our belief regarding future events, many of which, by their nature, are
inherently uncertain and outside of our control. Our actual results and
financial condition and other circumstances may differ, possibly materially,
from the anticipated results and financial condition indicated in these
forward-looking statements. In particular, our operating results for any
period are impacted significantly by the mix of products and services sold by
us in the period and the platforms through which they are sold, causing our
operating results to fluctuate and making them difficult to predict.
Other factors that could cause forward-looking statements to differ
materially from actual future events or results include risks and
uncertainties related to: our ability to effectively sell our 33% equity
interests in Yimeng on time or at all; our ability to successfully capitalize
on our sale of 33% equity interests of Yimeng, our ability to offset declines
in sales of existing products and services; our ability to stay abreast of
consumer market trends and maintain our reputation and consumer confidence;
continued access to and effective usage of TV advertising time and pricing
related risks; relevant government policies and regulations relating to TV
media time and TV direct sales programs, including actions that may make TV
media time unavailable to us or require we suspend or terminate a particular
TV direct sales program; our reliance on and ability to effectively manage our
nationwide distribution network; potential unauthorized use of our
intellectual property; potential disruption of our manufacturing process;
increasing competition in China's consumer market; our U.S. tax status as a
passive foreign investment company; and general economic and business
conditions in China. Any financial information contained in this release
should be read in conjunction with the consolidated financial statements and
notes thereto included in our 2008 annual report on Form 20-F filed with
Securities and Exchange Commission on April 24, 2009. For a discussion of
other important factors that could adversely affect our business, financial
condition, results of operations and prospects, see "Risk Factors" beginning
on page 6 of our Form 20-F for the fiscal year ended December 31, 2008. Any
projections in this release are based on limited information currently
available to us, which is subject to change. Although such projections and the
factors influencing them will likely change, we will not necessarily update
the information. Such information speaks only as of the date of this release.
For more information, please contact:

Acorn International
Chen Fu, Director of Investor Relations
Tel: +86-21-5151-8888 x2228
Email: ir@chinadrtv.com

PRChina
Jane Liu
Tel: +852-2522-1838
Email: jliu@prchina.com.hk

Henry Chik
Tel: +852-2522-1368
Email: hchik@prchina.com.hk

SOURCE Acorn International, Inc.

Chen Fu, Director of Investor Relations of Acorn International,
+86-21-5151-8888 x2228, or ir@chinadrtv.com; Or PRChina - Jane Liu,
+852-2522-1838, or jliu@prchina.com.hk; Or Henry Chik, +852-2522-1368, or
hchik@prchina.com.hk