China Digital Media Corporation Enters into a Memorandum of Understanding With the Provincial Television Station in China

China Digital Media Corporation Enters into a Memorandum of Understanding With the Provincial Television Station in China

HONG KONG, Nov. 25 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media Corporation (''Digimedia'') (BULLETIN BOARD: CDGT) with its subsidiaries (together the ''Group'') announced today the Group, through it's affiliated partner -- Guangdong HuaGuang DigiMedia Culture Development Limited (''HuaGuang''), is entered into a memorandum of understanding (''MOU'') to form a joint venture with a provincial level television station to set up an advertising agent firm in the western part of China. The first contract this joint venture will be engaged is providing an exclusive advertising agent services for a provincial TV channel, which has coverage of over 30 million TV audiences.

According to the MOU, HuaGuang will take a majority stake in the joint venture. Both parties target to finalize a cooperative agreement in coming weeks.

''This is an exciting experience to collaborate with the Provincial level television station and we believe that there will be more excited opportunities to work with them in the future,'' said Mr. Daniel Ng, Chairman and CEO of China Digital Media Corporation. ''This new venture represents our continuous efforts to expand our self in a nationwide advertising agent network which can strengthen our competitive edge in the Chinese television commercial industry.''

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 Television Operations, Programs Production and Advertising Sales. Arcotect (Guangzhou) Technology 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 television subscribers. As of today, Nanhai's cable television operation provides 130 television channels which comprises of 38 basic channels and 92 pay channels. The pay channels are categorized into various value added packages. The digital broadcasting system could offer more than 800 digital channels of pay television programs and value added multimedia services. The Group is seeking to establish similar models elsewhere in China. The Group entered into the strategic alliance with Guangdong HuaGuang Digimedia Culture Development Limited in June 2005.

About Guangdong HuaGuang Digimedia Culture Development Limited

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

Ed Lewis of CEOcast, Inc.
Tel: +1-212-732-4300

Source: China Digital Media Corporation

CONTACT: Y. K. Ma of China Digital Media Corporation, +852-2390-8686, or
ir@chinadigimedia.com; or Ed Lewis of CEOcast, Inc., +1-212-732-4300, for
China Digital Media Corp.

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

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