China Digital Media Corporation Enters Into a Memorandum of Understanding to Form Two Joint Ventures With the Provincial Television Station in China

China Digital Media Corporation Enters Into a Memorandum of Understanding to Form Two Joint Ventures With the Provincial Television Station in China

HONG KONG, Feb. 9 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media Corporation (the ''Company'') (BULLETIN BOARD: CDGT) announced today the Company, through its affiliate Guangdong HuaGuang DigiMedia Culture Development Limited (''HuaGuang''), has revised a Memorandum of Understanding (the ''MOU'') with a leading provincial television station, expanding the agreement to form two joint ventures. This MOU replaces a previous agreement between the parties that was signed on November 2005.

Pursuant to the MOU, the provincial television station will grant exclusive content provision rights to its television channel and outsource its entire advertising time slots into two newly formed joint ventures. HuaGuang has committed to invest up to $2.5 million, along with providing business and marketing expertise for the two joint ventures. One of the joint ventures will be responsible for providing services to a television channel exclusively, including programs sourcing, schedule planning and production of television programs and major events. The second joint venture will act as a sole advertising wholesaler allowing a television channel to sell its advertising time slots to international and domestic brand names.

''Due to the tremendous success that Guangdong M-Rider has in managing and generating advertising sales for a television station, we have elected to expand our activities in this area,'' said Daniel Ng, Chairman and CEO of China Digital Media Corporation. ''This MOU further supports our efforts to build economies of scale in advertising, program production and channel management. We expect this new venture will strengthen our expertise in the sourcing and planning of programs for television channels and enhance our capability to provide services to other television stations which will further build our brand in the industry.''

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 focuses its business in three main areas: Cable TV Operations, Advertising Sales and Programs Production. 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 TV subscribers. The service could offer more than 800 digital channels of pay TV programs and value added multimedia services. The Company entered into the strategic alliance with Guangdong HuaGuang Digimedia Culture Development Limited in June 2005.

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

Daniel Schustack
CEOcast, Inc.
Tel: +1-212-732-4300

Source: China Digital Media Corporation

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

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

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