China Digital Media Corporation Reports Strong Financial Results: Second Quarter of 2005 Revenues and Net Income Increase 59% and 38% Respectively

China Digital Media Corporation Reports Strong Financial Results: Second Quarter of 2005 Revenues and Net Income Increase 59% and 38% Respectively

HONG KONG, Aug. 15 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media Corporation ("Digimedia") (BULLETIN BOARD: CDGT) announced today its financial results for the Second Quarter ended June 30, 2005.

Financial Highlights for the Three Months Ended June 30, 2005 Compared to the Three Months Ended June 30, 2004:

-- Revenues increased 59% to $1,310,811 from $822,210
-- EBITDA improved 80% to $996,975 from $554,723
-- Net Income increased 38% to $705,651 from $511,411

Financial Highlights for the Six Months Ended June 30, 2005 Compared to the Six Months Ended June 30, 2004:

-- Revenues increased 56% to $2,304283 from $1,481,519
-- EBITDA improved 78% to $1,697,766 from $951,343
-- Net Income increased 29% to $1,143,504 from $883,255

The strong performance in the second quarter of 2005 compared to the same period in 2004 was primarily due to the increase in number of TV subscribers, sales of Pay-TV and revenues from commercial accounts of digitalization of television signals. Furthermore, the company experienced significant growth in the second quarter of 2005 as compared to the first quarter of 2005.

"We are very delighted with our strong performance in the second quarter of 2005. These results confirm our efforts in migration of the television broadcasting system and the operations of Pay-TV services in Nanhai, China. In addition, the per-subscriber revenue has increased significantly," said Mr. Daniel Ng, Chairman and CEO of China Digital Media Corporation. "We anticipate continued strong results from our core business. Our recent investments and upcoming acquisitions could further contribute considerably in our growth during the second half of 2005," Mr. Ng added.

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

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) focuses its business in three main areas: Cable TV Operations, Programs Production and Advertising Sales. Arcotect Technology (GZ) Limited, a wholly owned subsidiary of CDGT in China, is the sole contractor and operator of digital television services in Nanhai, a city with 400,000 cable TV subscribers. The service could offer more than 800 digital channels of pay TV programs and value added multimedia services. The Group is seeking to establish similar model elsewhere in China.

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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