Sounds like you are not using the right attribute for the job. MED advertised from AS1 is intended to indicate preferred path from AS2 to AS1 and is not relevant to AS3. Can you use As-path prepend or communities instead?
I am not clear on what you want to accomplish. When BGP sends the MED update to another AS, the MED is reset to 0. No way around it. If you want to use MED on the backbone to chose a preferred path to a specific AS, you could define different MED values and use the bgp always-compare-med command (because by default the backbone router will only compare MED values from neihjbors in the same AS, with this command it will comapre MED values from different ASs). So with the following config, the backbone will always chose Router1 as the preferred path (lower MED value is preferred):
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