China Digital Media Corporation Enters into Contracts to Form Two Joint Ventures with the Provincial Television Station in China

China Digital Media Corporation Enters into Contracts to Form Two Joint Ventures with the Provincial Television Station in China

HONG KONG, Feb. 28 /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 established two contracts (the ''Contracts'') with a leading provincial television station. The contracts formalized the arrangements between the parties that was outlined in a Memorandum of Understanding entered into on February 9, 2006.

Pursuant to the contracts, the provincial television station will provide the exclusive use of its television channel (the ''Channel'') while outsourcing its entire advertising time slots into two newly formed joint ventures. The television channel is capable of being seen by over 30 million people. HuaGuang has agreed to invest up to $2.5 million over two years into the two joint ventures. One of the joint ventures is responsible for sourcing and generating content, schedule planning and production of television programs. The second joint venture will serve as the Channel's sole advertising agent to manage television commercials.

''We are excited to team up with the TV station to provide services to the Channel. We will deploy our knowledge in advertising, program production and channel management to enhance the popularity of the Channel and hence to maximize the revenues generated by the Channel,'' said Daniel Ng, Chairman and CEO of China Digital Media Corporation. ''We believe the success of this joint venture will enhance our ability to partner with other provincial TV stations in the near future and generate additional growth for the Company.''

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) 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: +852-2390-8686

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

Source: China Digital Media Corporation

CONTACT: China Digital Media Corporation, Investor Relations,
+852-2390-8686; or Daniel Schustack of CEOcast, Inc., +1-212-732-4300, for
CDGT

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

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