China Digital Media Corporation Reports Significant Improvement in Operating Results for the First Quarter 2005

China Digital Media Corporation Reports Significant Improvement in Operating Results for the First Quarter 2005

HONG KONG, May 24 /Xinhua-PRNewswire/ -- China Digital Media Corporation (BULLETIN BOARD: CDGT) , one of the fastest growing companies in the China broadcasting media and cable TV industry, announced first Quarter Result ended March 31, 2005.

Financial Highlights for First Quarter 2005:
-- Revenues increased $334,163 or 51% to $993,472 for the first quarter,
from $659,309 for the same period in last year. The increase was
primarily due to increased demand for our product and services and
increased revenue from digitalization of television signals in Nanhai
of China.
-- Gross profit margins increased from 84% during the three months ended
March 31, 2004 to 87% during the three months ended March 31, 2005.
-- Net income increased $66,010 or 18% to $437,853 for the first quarter,
from $371,843 for the same period in last year. The increase was
primarily due to an increase in sales and related gross profit. Net
income was $.02 per common share for the three months ended March 31,
2005.

''We are pleased with our first quarter 2005 results and expect to see continued operational improvement for the remainder of the year,'' said Mr. Daniel Ng, Chairman and President of China Digital Media Corporation.

To be added to China Digital Media's investor e-mail list, please send e-mail to our Investors Relations at ir@chinadigimedia.com .

About China Digital Media Corporation

China Digital Media Corporation (BULLETIN BOARD: CDGT) is one of the fastest growing companies engaged in the business of broadcasting media and cable TV in the People's Republic of China. The company is the sole contractor and operator of digital television services in Nanhai, a city in the Guangdong province. The Company is realigning its business direction to cover more segments of the media industry through selective investment, mergers, acquisitions and alliance partnership.

For more information on us, please go to our website at http://www.chinadigimedia.com/ .

Certain information contained in these materials is "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. All forward-looking information is subject to known and unknown risks and uncertainties, many of which are outside of the control of the company. Consequently, actual results may, and probably will, differ materially from the results contemplated in such forward-looking information.

Source: China Digital Media Corporation

CONTACT: Daniel Ng of China Digital Media Corporation, +852-2390-8686,
or ir@chinadigimedia.com

Web Site: http://www.chinadigimedia.com/

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