Further re proposed disposal

14 February 2011

RedHot Media International Limited

("RedHot" or the "Company")

Further re proposed disposal

On 16 November 2010 the Company announced that they had entered into a conditional Sale of Shares Agreement ("SSA") with PUC Founder (MSC) Berhad ("Founder") for the proposed disposal of the entire issued share capital of RedHot Media Group Sdn Bhd ("RMG"), Red Media Asia Limited ("Red Media") and Ausscar Group Sdn Bhd ("Ausscar"), all of which are wholly owned operating subsidiaries of RedHot, (the "Proposed Disposal") to Founder. The total consideration payable on the Proposed Disposal is RM95,000,000 to be satisfied through the issuance of a total of 950,000,000 new ordinary shares in Founder at an issue price of RM0.10 (the "Consideration Shares").

As detailed in the announcement released by the Company on 16 November 2010 (the ("Announcement") the Proposed Disposal is subject to, inter alia, obtaining regulatory approvals in Malaysia, including approval by Bursa Malaysia Securities Berhad ("Bursa Securities"), the stock exchange of Malaysia.

Founder have today announced that the required applications to the relevant authorities in Malaysia to seek approval for the Proposed Disposal are now expected to be made within 6 months of the Announcement (by 16 May 2011) and not within 3 months of the Announcement (by 16 February 2011) as originally anticipated.

As detailed in the Announcement, the Proposed Disposal is, pursuant to Rule 15 of the AIM Rules for Companies, conditional on approval by shareholders of RedHot in a general meeting to be convened and the Company will despatch in due course a circular to shareholders of RedHot convening a general meeting of the Company (the "Circular"). It is now anticipated that the Circular will be posted to shareholders by 16 May 2011.

Full copies of the announcement released by Founder at 5:00pm Malaysian time (9:00am UK time) on 14 February 2011 and the announcement released by Founder on 16 November 2010, which contains full details of the Proposed Disposal, are available from www.bursamalaysia.com and a copy of the announcement released today can be found here:

http://www.rns-pdf.londonstockexchange.com/rns/1770B_-2011-2-14.pdf

Further announcements will be made by RedHot in due course.

For further information please contact: