China Digital Media Corporation Announces Investment in the Production Of Television Drama

China Digital Media Corporation Announces Investment in the Production Of Television Drama

HONG KONG, June 22 /Xinhua-PRNewswire/ -- China Digital Media Corporation (''Digimedia'') (BULLETIN BOARD: CDGT) , through its affiliated partner -- Guangdong Pukonyi Culture Development Limited ("Company"), and in partnership with Guangdong Runshi Movie & Music Production Co., Ltd. announced today it will invest for a minority interests of RMB1,680,000 in the production of a television drama, ''The Story of a Small Town,'' in the Peoples Republic of China ("PRC").

The Story of a Small Town is based on one of the most famous movies in the late 70s. The remaking of this movie through a television series with a total of 24 episodes is currently in progress and is expected to be finished by the end of 2005. The drama will initially be distributed to 26 out of 33 Provincial level TV Stations and 3 cities level TV stations throughout China in 2006, which covers more than two thirds of the 1.14 billion TV viewers in China. The Company expects the drama will generate profits in 2006.

''Content is King, participating in content and programs production is one of our prime business targets and we feel we are moving towards achieving that goal,'' said Mr. Daniel Ng, Chairman and CEO of China Digital Media Corporation. ''We are excited to have this privilege to take part in this investment and we believe that this drama will have a big impact when broadcasting,'' Mr. Ng added. ''Involvement in this drama will strengthen our Company's position in the media industry in China and give us more opportunities to participate and invest in productions and related businesses in the future.''

Further information about the drama can be found in the following web address (Chinese Language): http://www.hairunmedia.com/news_view.asp?id=168&page_id=003000 .

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 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 investment, mergers, acquisitions and alliance partnership.

About Guangdong Runshi Movie & Music Production Co., Ltd.

Guangdong Runshi Movie & Music Production Co., Ltd., a subsidiary of Hai Run Movies and TV Production Co., Ltd., is one of the fastest growing production houses in Guangdong Province, China. Guangdong Runshi Movie & Music Production Co., Ltd. was incorporated in 2002 and has already produced over 100 hours of television drama.

About Guangdong Pukonyi Culture Development Limited

Guangdong Pukonyi Culture Development Limited (''Pukonyi'') is a limited company registered in China and is involved in the business of television programs production and advertisement sales. Digimedia and Pukonyi signed an alliance agreement that the Digimedia acts as an exclusive services provider for Pukonyi and has a priority right to participate in Pukonyi's operations. Digimedia will also provide financial supports for Pukonyi's investment in media related businesses. In return, Pukonyi will distribute 90% of its gross profit to Digimedia as services and consulting fees.

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/
http://www.hairunmedia.com/news_view.asp?id=168&page_id=003000

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