China Digital Media Corporation Closes a TV Advertising Wholesaler Contract

China Digital Media Corporation Closes a TV Advertising Wholesaler Contract

HONG KONG, Dec. 13 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media Corporation (''Digimedia'') (BULLETIN BOARD: CDGT) announced today that its affiliate company, Guangdong M-Rider Media Company Limited (''Guangdong M-Rider''), has just signed an Advertising Distribution Agreement to exclusively manage advertising spaces of a television channel in the southern part of China.

Pursuant to Advertising Distribution Agreement, Guangdong M-Rider will pay approximately $6 million to acquire wholesale rights to manage and operate television commercial airtime for one year and is extendable for an additional year. CDGT will provide funding and marketing support to Guangdong M-Rider for this operation and the management believes it could generate positive result from this agreement.

''This contract is the largest agreement ever closed by Guangdong M-Rider. This should help them to build stronger business relation with branded clients so to strengthen its present in the television commercial sector,'' said Mr. Daniel Ng, Chairman and CEO of China Digital Media Corporation. ''We also believe that this agreement will assist our partner to establish further business opportunities with major television stations in China.''

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

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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. 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 Group is seeking to establish similar model elsewhere in China.

About Guangdong M-Rider Media Company Limited

Guangdong M-Rider is a limited company registered in Guangdong in the Peoples Republic of China. The principal operating activities are in design, production and distribution of advertisement through television channels in which the company is currently a sole advertising distributor for number of television channels in Guangdong Province. The management of Guangdong M- Rider has over ten years operating experience in the advertising industry. They are one of the top reputed advertising agents in Guangdong Province.

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

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

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