China Digital Media Corporation Announces a Strategic Alliance with Guangdong Pukonyi Culture Development Limited

China Digital Media Corporation Announces a Strategic Alliance with Guangdong Pukonyi Culture Development Limited

HONG KONG, June 15 /Xinhua-PRNewswire/ -- China Digital Media Corporation (BULLETIN BOARD: CDGT) , announced that its wholly owned subsidiary, China DigiMedia Holdings Limited (''Company''), has signed a strategic alliance agreement with Guangdong Pukonyi Culture Development Limited (''Pukonyi''), a limited company registered in the People's Republic of China. Pukonyi is involved in the businesses of creating television programming and advertising sales.

Under the agreement, the Company will act as an exclusive services provider for Pukonyi and have a priority right to participate in Pukonyi's business development and operations. The Company will have the power to appoint the majority of the board of directors of Pukonyi and will receive about 90% of Pukonyi's gross profit under its service contract. In return, the Company will issue RMB One Million Five Hundred Thousand worth of CDGT's restricted common stock for the revenue sharing rights and the rights to purchase all of the outstanding capital stock of Pukonyi over a 10-year term. Under the strategic alliance agreement, Pukonyi will be renamed to HuangGuang DigiMedia Culture Development Limited.

''We are very pleased to partner with Pukonyi; this strategic alliance marks a major milestone for the Company in its establishment of the Company in the business of advertising sales and program production in mainland China,'' said Mr. Daniel Ng, Chairman and CEO of China Digital Media Corporation. ''We believe that this strategic move will strengthen our sourcing of new business in China and consolidate the foundation of our operations in Guangzhou and Nanhai, It also provides tremendous growth opportunities for the Company, Mr. Ng added. ''The alliance would advance our involvement in the media industry in China and give us an opportunity to enter into exciting new businesses just when the market is opening up to foreign investment.'' China Digital Media, which is a Hong Kong-based company that trades on the Over-the-Counter Bulletin Board, is also a Nevada corporation, and, by this move, is making significant headway into the mainland China marketplace for media and entertainment based businesses, considering its status as a ''foreign'' 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 a company engaged its business in the broadcasting media and Cable TV industry 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 investment, mergers, acquisitions and alliance partnership.

About Guangdong Pukonyi Culture Development Limited

Guangdong Pukonyi Culture Development Limited is a limited company registered in the People's Republic of China. Pukonyi is involved in the business of investment holding and operations in Culture and Media industry including television programs production and advertisement sales. 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.

For more information, please contact:

Y. K. Ma of China Digital Media Corporation
Tel: +852-2390-8686
Email: ir@chinadigimedia.com

Source: China Digital Media Corporation

CONTACT: Y. K. Ma of China Digital Media Corporation, +852-2390-8686, or
ir@chinadigimedia.com

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

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