China Digital Media Corporation Awarded $2 Million in New Contracts For its TV Advertising Wholesaler

China Digital Media Corporation Awarded $2 Million in New Contracts For its TV Advertising Wholesaler

HONG KONG, Jan. 10 /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 already secured over US$2 million worth of contracts with its clients to put their television commercials on its newly managed television channel.

In mid December, 2005, Guangdong M-Rider agreed to pay approximately $6 million for the rights to exclusively manage, operate and sell television commercials for a leading Chinese television channel. As of today, the value of these confirmed contracts represent over 30% of those committed amount.

''The contract value will continue to climb and we expect to generate a profit margin in excess of 20% of the cost of the contract,'' said Mr. Daniel Ng, Chairman and CEO of China Digital Media Corporation. ''These confirmed contracts have strengthened our confidence in entering into the television commercial advertising business and we believe this business area will represent a significant growth opportunity for us in the coming years,'' Mr. Ng added.

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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:

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

Ed Lewis of 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

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