EarthNetMedia, Inc. (ENTM)
Interview with:
Alie Chang, President and CEO
Business News, Financial News, Stocks, Money & Investment Ideas, CEO Interview
and Information on their
multimedia and international marketing company, which produces and distributes lifestyle and interior design/home improvement television programs aimed at providing a gateway for businesses to enter the explosive markets in China.

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EarthNetMedia - an international marketing company producing television content, is positioned as a gateway between the United States and International companies to China

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Business Services

EarthNetMedia, Inc.

222 Amalfi Drive
Santa Monica, CA 90402
Phone: 310-459-10081

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Alie Chang
President and
Chief Executive Officer

Interview conducted by:
Lynn Fosse, Editor
April 2003

Alie Chang
President and Chief Executive Officer

Alie Chang, as co-founder of EarthNetMedia, Inc., serves as the Company's President and Chief Executive Officer. She combined business acumen, leadership and creative design abilities to position EarthNetMedia as a gateway to China for international businesses.

Ms. Chang produces and hosts "The Art of Living" television series, as well as other life-style, entertainment and informational programs for the Chinese and multicultural markets. Inspiring creative individual lifestyles, "The Art of Living" TV programs showcase innovative ideas about enhancing your home environment and give insights into home design secrets of celebrities. "The Art of Living" series enables product

placement and soft-selling sponsors’ products to her Chinese TV audience.

In June 1999, Ms. Chang was featured on China Central Television, the largest television network in China, as one of the most outstanding designers in the world today. She was the only woman and the only residential designer featured in a group of 20 prominent design architects from around the world, including such architectural giants as Richard Meyer, Robert Venturi and I. M. Pei.

Ms. Chang is an entrepreneur, accomplished artist and designer. Before turning her attention to television production, Ms. Chang has been recognized as one of the leading creative interior architects and environmental designers. Prior to receiving her Master of Arts degree in Environmental Design from the University of California, Los Angeles, she completed five years of a special design program at the National Academy of Arts in Taipei, Taiwan.

Besides receiving numerous U.S. and international design awards, her paintings have been exhibited as one woman show at major universities such as UC Berkeley, University of Chicago, University of Hawaii and many other major art galleries.

Ms. Chang's design and artistic abilities have long been sought by business and corporate communities, as well as Hollywood's elite. In early 1980, Ms. Chang founded Alie Design Inc., an architectural/interior design firm specializing in high-profile custom homes. Her clients include such international luminaries as Rod Stewart, Larry Hagman, the former CEO of Disney Frank Wells, and the CEO of Lorimar Production Merv Adelson. She has also worked on the homes of former President and Mrs. Ronald Regan, as well as Hugh Hefner's "Playboy Mansion West".  Her design works are highly regarded by major design books and magazines both in the United States and internationally.

Prior to forming her own company, Alie joined William L. Pereira Associates in Los Angeles as a project designer. There, she worked on projects such as the Master Plan for the University of Missouri's four campuses, the University of Hawaii's Master Plan, and the 400-acre urban renewal project in Queens, NY.

Ms. Chang is frequently requested as a speaker in the US and China. Her ability and leadership in the design field resulted in her twice being elected as co-president of Design International, an international design organization with twenty three categories of design disciplines. Her outstanding design achievements and contribution to society resulted in the State of California proclaiming a special honor to her: designating August 12, 1990 as "Alie Chang Day."

Company Profile:

EarthNetMedia, Inc., is a U.S. based multimedia and international marketing company, which produces and distributes lifestyle and interior design/home improvement television programs aimed at providing a gateway for businesses to enter the explosive markets in China. EarthNetMedia has been a multimedia leader, based on "The Art of Living" interior design and lifestyle television series, produced in Santa Monica, California and hosted by EarthNetMedia CEO Alie Chang. This television series targets a relatively affluent audience of 200 million viewers along the east coast of China. EarthNetMedia's main business is to be a conduit or gateway for U.S. and international companies to establish their presence in China and to assist firms with marketing and branding of their products and services. ENM merchandises consumer products via product placement on television, leading “The Art of Living” viewers to their website, providing the Company and its shareholders great capital value.

CEOCFOinterviews. Ms. Chang, please give us a brief overview on EarthNetMedia.

Ms. Chang: “EarthNetMedia is an international marketing company which also produces television content.  We intend to position our self as a gateway for United States and international companies to China.”

CEOCFOinterviews: Tell me about the TV content, what you do there and how it works in the whole plan.

Ms. Chang: “The television program that we produce is a lifestyle, magazine format, television program called "The Art of Living". It is based on interior design and home improvement; it is an informative entertainment and a cultured type of program.  It’s for the international market, specifically for the United States and China. We are also  bringing television programs that are already completed that we think are suitable for China. For instance, two years ago our Company made arrangements with ICM (International Creative Management) to bring National Geographic Television programs to China Central Television station, which were very well received.  Now we have additional content that is in negotiation.”

CEOCFOinterviews: Do you represent the advertisers that go with this program? How does this fit in with your strategy?

Ms. Chang: “The program itself takes a thirty-minute slot in China and we will have three minutes of advertising time. For that advertising time we will obtain advertisers.  Each program works differently; some have international distribution already and have standing sponsorship. In those cases, we will be working in conjunction with the existing sponsors and advertising companies in United States. Sometimes we have to work with another advertising company in China in order to package and convert the commercial into a Chinese version.”

CEOCFOinterviews: Are there particular types of companies that are sponsors?

Ms. Chang: “Yes, we produce a home improvement design show. We target US building material companies, home accessories and home improvement products such as bathroom fixtures, interior finishing, home electronics, kitchen appliances; all of these are potential sponsors.”

CEOCFOinterviews: What is the landscape for marketing in China?

Ms. Chang: “The landscape there is very encouraging and probably the only major growth market in the world today. China is identified by the US Department of Commerce as the single largest market for US building material companies for the next decade. It has a growth rate that exceeds double digits in the arena of home building improvements.”

CEOCFOinterviews: Why do you need to bring products from other countries into China?

Ms. Chang: “China has to produce this tremendous amount of home improvement interior design and products and decorative including building materials. 80-90% of the products they produce are for local mass consumption. The type of building materials from the United States that we are marketing are environmentally friendly, higher quality and specially designed with higher standards of building and construction specifications. We are aiming for projects of the 200 million higher income families along the east coast of China.”

CEOCFOinterviews: I would imagine that is a pretty open market.

Ms. Chang: “That is correct; the reason is that in China all housing and property used to be soley owned by the government. Only in recent years has the housing become privately owned. Privatizing home-ownership stimulated new homeowners to start to thinking about home improvements. If you live in government owned housing, you don’t have to pay the rent, and you are not going to change it and update a bathroom and remodel the kitchen because you are expecting the government to do that. Now, everyone is taking pride in their homes, and using their savings accounts to improve their homes to enjoy a higher standard of living.”

CEOCFOinterviews: How do you reach the companies that should be marketing to China and how do you get them to work with you?

Ms. Chang: “We have a several ways; we work very closely with the U.S. Department of Commerce and they have specialty departments to assist US companies who are interested in going into Chinese markets. If our needs are compatible, then they could be our potential client sponsors.  We also work with the NAHB (National Association of Home Builders). It is the largest organization in the United States with over 206,000 company members in construction, building materials, manufacturing, building systems and design.  Recently we put together a US Pavilion at the Procurement Expo for the Olympics in Beijing which started on March 1st and ended March 4th, 2003. The purpose of the show was to exhibit US products to the builders and developers of Beijing.  We had 22 companies with us and we were extremely well received. The Chinese government has earmarked 60 billion US dollars in contracts for the Olympics that should be completed before 2008. The government owned divisions and the private sectors will coordinate with the Chinese government. We have a very comprehensive list of the type of projects and what projects are available for bids.

CEOCFOinterviews: Are the people in China more receptive to US companies than to European companies?   Does the US hold something special for them?

Ms. Chang: “That is a very good question. Chinese are very fond of American products and companies and maybe it goes way back to before WWII.   The US has always presented itself as a very good friend.  Now American building materials are made available in China. American building materials have branding and specification standards that are much higher than many other countries, so Chinese people are very fond of US products, including Coca Cola and McDonald's and other products than building materials.”

CEOCFOinterviews: Are there many companies that you are competing with that provide the type of services that you do?

Ms. Chang: “We have not come across a company that is competing in exactly what we do because we specialize in building materials and interior design/home improvement area.  My husband and myself are experts in this field; we have had our own companies for over twenty years.   Also, my parents are from China and I speak Chinese, which gives us a special edge. We have a special advantage in that we have our television shows, which provide us with our media time. We stay very strongly connected with the major television stations in China and we are using the Internet to cross promote with the television programs.  I think we are uniquely positioned.”

CEOCFOinterviews: Tell me a bit about the financial condition of your company.

Ms. Chang: “The financial situation of our Company is an area on which we are working very hard.  In the past year or so, the stock market has been very slow and in the recent two months because of war concerns, stocks have slowed even more.  We are a OTCBB  NASDAQ company that was approved by the SEC in the end of 2001. We started trading in the beginning in 2002. We have had one year of trading on the market and we think we have gained ground towards our goals and will be able to raise the additional capital needed for all of the projects we have on our business plan.”

CEOCFOinterviews: Is there room for expansion in the type of companies you represent?

Ms. Chang: “We are still concentrating in the home improvement and design arena.  Diverse companies like Procter & Gamble (Procter & Gamble Co., NYSE:PG) and Johnson & Johnson( Johnson & Johnson Inc. NYSE:JNJ) have products for home cleaning and maintenance; they can be part of the whole program because some of their products are very much tied into our market.”

CEOCFOinterviews: So you have a tremendous area to work with.

Ms. Chang: “We believe so. We have an unbelievable market, because China’s current building market is like the United States was after World War II, and it is starting from scratch. China is at the first level and it will continue to grow for many decades to come. Recently we were offered the possibility of 50 minutes of weekend prime-time air-time on the largest Beijing television station for our TV show. We need to modify our show's format from that of informative design into a lifestyle audience participation show; this change will reach a much bigger audience and achieve better ratings. Of course, this means a little more in production cost and we are considering that. This is a great opportunity for us because our program has been so well received in China and they realize we offer something that they cannot do themselves.”

CEOCFOinterviews: Do the US companies you represent have a physical presence in China?

Ms. Chang: “Many companies that we represent do not yet have presence in China. They are interested in the Chinese market but they heard that it is a big and complex market and are apprehensive. We want to represent these companies and show them the short cuts and give them the benefit of our experience, so they don’t have to go through the lengthy process of registering and branding their company name in China.  Some very large companies are already in China like Armstrong and Owens Corning, both of them participated in our recent Building Procurement EXPO in Beijing. They have manufacturing plants in China now, however they cannot produce enough to meet the demand. The demand is so great they are just overwhelmed.  Armstrong, the largest commercial flooring and ceiling manufacturer in the world, was also one of our exhibitors and they are doing very well in China.  Company's such as Kohler definitely have a strong hold there. There are many companies like that and then there are many companies like Boise (engineered wood products), a Fortune 500 company, who has not yet tackled the Chinese market.  In fact, Boise didn’t have much of a plan for doing so until we approached them.  They didn’t have anyone to send to China.  Eventually, Boise realized our company had so much expertise in the building materials area and we understood their products so well that they decided to allow us to represent them at the show. For companies who don’t have a presence in China, we believe we can help them to formulate a plan for better cost efficiency and to gain more acceptance in the Chinese market for their products”

CEOCFOinterviews: How many markets are available to you in China.

Ms. Chang: “Our television program "The Art of Living" is viewed on the Beijing television and we have plans to extend to 20 major markets. These will be selective cities, in which American products are already selling or which are potentially good locations for the advertisers and sponsors. We will be syndicating a network of 20 plus major stations for our television shows, so it will be a tremendous tool and marketing outlet for American companies who want to get into China and brand and sell their products there.”

CEOCFOinterviews: What are your biggest challenges for the Company going forward and how are you ready for them? 

Ms. Chang: “Our biggest challenge is to get adequate financing to move ahead with our business plans.  I think the majority of the American financing institutions are looking at investing in China and other places outside of the United States, however they don’t know the markets. But since China joined the WTO (World Trade Organization) many concerns have been removed and we are in a better position to gain the support we need.”

CEOCFOinterviews: In closing, what should shareholders and potential investors know that they may not realize about the company?

Ms. Chang: “I believe our shareholders will be in on the ground level with us to tap into China's enormous market growth. Beijing alone has allocated $60 billion dollars for 2008 Olympics. Shanghai has won the Worlds Fair for 2010 and has another $60 billion allocated for construction and improvements of its city.   So we are talking about unprecedented growth and huge amount of money to be spent.   There are another 600 cities in China that have more than five million people which will be our second and third layer of growth, after major cities like Beijing and Shanghai reach their full potential.”

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