China Digital Media Corporation Achieves Significant Milestones in 2005

China Digital Media Corporation Achieves Significant Milestones in 2005

Successes Positions Company for Strong Growth in 2006 in Digital Media Sector

HONG KONG, Jan. 6 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media Corporation (the ''Company'') (BULLETIN BOARD: CDGT) announced today that the Company achieved a number of significant milestones in 2005, which has positioned the Company for strong growth this year. Some of the highlights include:

-- achieved a migration schedule in Nanhai City, Guangdong Province, in
which approximately 150,000 households converted into a digital
broadcasting system by the end of 2005;

-- acquired a television advertising distributor, Guangdong M-Rider Media
Company Limited, which has closed a multi-million dollar contract; and

-- invested in the development of new programs, positioning two of the
Company's television series to contribute to profitability in 2006.

''The media business in China is growing fast, and we have positioned the Company to capitalize on the opportunities, in the same way that successful digital media companies did in the U.S. several years ago,'' stated Daniel Ng CEO and Chairman of China Digital Media Corporation. Mr. Ng further stated, ''We are highly focused on continuing our expansion through acquisition and joint ventures that could rapidly enlarge the Company's operations and profit potential. With media opportunity and demand in China rising at a brisk pace, timing is perfect for the Company.''

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. 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.

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:

China Digital Media Corporation
Investor Relations
Tel: +1-866-843-2775

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

Source: China Digital Media Corporation

CONTACT: China Digital Media Corporation, Investor Relations,
+1-866-843-2775; or Ed Lewis of CEOcast, Inc., +1-212-732-4300, for CDGT

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

-------
Profile: intent