Alpha Spacecom Receives Approval of SARFT Agency for 30-Year Exclusive Contract to Digitalize Theatres in China

Alpha Spacecom Receives Approval of SARFT Agency for 30-Year Exclusive Contract to Digitalize Theatres in China

Investment by China Film Group & ASPC Speeds Construction of Digital Cinema Data Transmission System

HONG KONG and BEIJING and LOS ANGELES, Feb. 17 /PRNewswire-FirstCall/ -- Alpha Spacecom, Inc. (BULLETIN BOARD: ASPC) , today announced that The State Administration of Radio, Film and Television ("SARFT") of the People's Republic of China (PRC) has approved the application for the formation of the Joint Venture between China Film Group ("CFG") and Alpha Spacecom, Inc. ("Alpha"), to be known as Digital Cinema Reconstruction Corporation (DCRC).

Fung T. Sien, Alpha Spacecom's Chairman, said, "This is a bold move by the PRC to deliver state-of-the-art film entertainment to China's vast and growing leisure/entertainment society. Another important benefit is that the digital process promotes international intellectual property rights protections as set forth in China's accession to the WTO and allows exhibitors to control admissions and costs accounting electronically, thus supporting permanent normal trade relations with China."

Alpha Spacecom recently created four new operational divisions to manage and control the Company's rapid expansion into China's vast entertainment market.

ASPC Chairman Sien continued, "Joint Venture with China Film Group allows us to develop and expand the digital cinemas' related property, much as the American film industry accomplished in the 1920s and 30s. Real estate development connected with movie houses brought enormous financial benefits to the major U.S. film companies. CFG has already converted 60 theatres, which now become an asset of the Joint Venture, and we expect to have completed 400 additional installations by the end of 2006."

"The completed JV will be capitalized at $30 million US," Sien noted, "we at Alpha are adding financial experts, communications specialists, content producers, technical specialists, and support staff for our workforce to service our consumers and to satisfy the demands of our governmental and non-governmental contracts."

According to China Digital Film Company, China will overtake the United States in the number of digital theatres by the end of 2005, with more than 150 digital cinemas in China projected. The number of digital cinemas in the country is expected to reach 1,000 within a few years.

About Alpha Spacecom, Inc.

Alpha Spacecom, Inc. is a registered United States (Colorado) corporation (BULLETIN BOARD: ASPC) . Alpha Spacecom is engaged in the development of systems conversions related to the reconstruction and digital conversion of movie theaters and multi-cinema complexes and the production and distribution of entertainment media (film, theater, live music and sporting events) in China. (www.alphaspacecom.com).

Except for historical information contained herein, the matters set forth in this press release, such as statements relating to the Company's ability to drive technological developments and the acceptance and timing of entertainment systems, conversion and programming introductions, are forward-looking statements that are subject to risks and uncertainties, including timely development and acceptance of new systems technologies, theater conversions and linked communications systems.

Contact:

John Santoyo
VP Communications
213-426-3206
213-426-3207
Los Angeles, California, USA
info@alphaspacecom.com


Source: Alpha Spacecom, Inc.

CONTACT: John Santoyo, VP Communications of Alpha Spacecom, Inc.,
+1-213-426-3206, or +1-213-426-3207, info@alphaspacecom.com

Web site: http://www.alphaspacecom.com/


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