(FU) Signs Distribution Agreement with Future TV Co., Ltd.

FAB Universal (NYSE MKT:FU), a worldwide distributor of digital media and entertainment, has entered into an agreement with Future TV Co. Ltd. to distribute its copyright-protected media content through pay TV terminals used in the home by Future TV’s subscribers.

Under the terms of the agreement, FAB will provide copyright protected content including high-definition video, music lessons, children’s programs, and other educational and related programming. Future TV will integrate the content provided by FAB Universal with its operational platform and manage subscriber payments.

Future TV is a subsidiary of China Network Television (CNTV), the online division of China Central Television (CCTV), which is the national public broadcaster in China. It operates a national Internet TV platform, China Internet TV, the first such platform authorized by China’s State Administration of Radio, Film and Television. With its established integrated broadcast platform for subscription TV, Future TV reaches 20 million families in China, provides over 1.3 million hours of quality video-on-demand programming and has one of the largest content libraries in China including prime-time shows, documentaries and educational curriculum programs and the exclusive Internet TV broadcasting of the Olympics and World Cup.

“The agreement with Future TV is a significant milestone for FAB, marking the launch of our subscription TV business and further extending our distribution platform. Future TV’s national Internet TV platform and extensive reach provides a strong foundation for us to enter the rapidly growing Internet TV industry in China. We can now market to Future TV’s sizeable subscriber base, leveraging FAB established premier brand to further monetize our copyright-protected media and entertainment content,” said Chris Spencer, CEO of FAB Universal. “Going forward, our ambition is to become a leading pay-TV content operator in China. Our plans include entering digital TV, through distribution agreements with cable network operators, and IPTV and over-the-top TV (with the set top box already installed in the television), through distribution agreements with telecom and content aggregation licensing providers. Expanding our distribution platform to encompass subscription TV will position FAB Universal at the forefront of the trend toward greater Internet usage and rising Internet penetration rates in China.”

According to Airoha Technology, IPTV home users in China numbered 8 million in 2010, and grew to 13.5 million users in 2011, and 23 million in 2012. IPTV users are estimated to reach 56.3 million in 2013 and break the 100 million-mark in 2015. Total cable TV users in China were approximately 220 million in the first quarter of 2013. However, digital cable TV is growing more rapidly as the Chinese Government is focused on its development. The users for digital cable TV amounted to over 120 million in 2012, representing a digitalization rate (the percentage of cable TV users switching to digital cable TV) of 64.2%, and grew to nearly 130 million users in the first quarter of 2013, representing a digitalization rate of 67.2%.

About FAB Universal Corp.

FAB Universal Corp. is a global leader in digital media entertainment sales and distribution. FAB delivers media to its customers worldwide through Intelligent Kiosks, Retail Stores and Franchises, and online through Apple iTunes and Google Android. We distribute billions of movie, music, podcast, TV show and other digital files to consumers in 240 countries through three business units: Digital Media Services, Retail Media Sales and Wholesale Media Distribution. Sales of digital media are generated through the kiosks networks, subscription sales for mobile devices, smartphone Apps and Netflix-like subscription models. In 2011, we distributed billions of downloads of copyrighted music, video games, ringtones, ebooks, movies and podcasts to over 50 million people worldwide through iPods, iPhones, iPads, iTunes, Blackberrys, Windows Phones, Androids and many other devices and destinations. We are a publicly held, Pittsburgh based company with thousands of shareholders and a world-class team. Visit us on the web at www.fabuniversal.com, email us at contact@fabuniversal.com.

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