China Digital Media Corporation's Wholly-Owned Subsidiary Arcotect Technology (GZ) Ltd. Announces Operating Results in Annual Meeting

China Digital Media Corporation's Wholly-Owned Subsidiary Arcotect Technology (GZ) Ltd. Announces Operating Results in Annual Meeting

Company Expects to Double the Existing Number of Digital TV
Subscribers by the End of 2006

HONG KONG, Jan. 25 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media Corporation (the ''Company'') (BULLETIN BOARD: CDGT) announced today highlights of the Annual Meeting held by its wholly-owned subsidiary Arcotect Technology (GZ) Ltd. - Nanhai Branch (''Arcotect Nanhai''), the sole digitalization migration contractor and operator of digital television services in Nanhai.

Over 160 staff attended the Annual Meeting along with the Company's business partners. Daniel Ng, Chairman and CEO of China Digital Media, spoke at the event, where he recognized the accomplishments of the Company. Some of the achievements include:

-- migrated about 150,000 subscribers into digital system with effort of
the staff in the city of Nanhai;
-- deployed an operating support system to automate all processes
including customer services, database management, billing, inventory
control, work orders, call center, etc.;
-- built a sales team of more than 120 experienced people which has
divided into different divisions including corporate sales, retails
sales, migration services team and road show promotion team; and
-- produced 47 in-house TV commercials to promote the Company's value-
added packages which have been broadcast on-air for over 87,000 times.

Arcotect Nanhai also announced that it expects to double the existing number of digital TV subscribers by the end of 2006.

''Arcotect Nanhai has achieved its corporate goals for 2005 through an outstanding performance,'' said Mr. Daniel Ng. ''Two years of experience has made our operations and migration progress efficient and effective. This should help us achieve our targets for 2006. In addition to strong subscription growth, we plan to enhance number of subscriptions of second set top box and value added packages, and offer more services to our digital TV subscribers.''

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

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

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