China Digital Media Corporation Announces Record Revenues And Earnings For 2005 Fiscal Year

China Digital Media Corporation Announces Record Revenues And Earnings For 2005 Fiscal Year

Revenue and Earnings Each Double

HONG KONG, Feb. 21 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media Corporation (BULLETIN BOARD: CDGT) , a leading provider of cable and digital television services and contents in China, announced today that the Company has doubled its revenues and earnings for the year-end ended December 31, 2005 as compared to the year-ended December 31, 2004.

Financial highlights for the twelve months ended December 31, 2005 compared to the twelve months ended December 31, 2004:

-- Revenues increased 103% to $7.9 million from $3.9 million;
-- EBITDA improved 89% to $5.1 million from $2.7 million
-- Net Earnings soared 111% to $4.0 million from $1.9 million

Earnings per share was $0.14 and earnings per diluted share was $ 0.11 for twelve months ended December 31, 2005.

The strong performance in 2005 was mainly driven by the Nanhai digitalization project, where the increase in the number of digital television subscribers with valued-added services contributed to a significant increase in revenue per subscriber. In addition, revenue from the Company's ownership interest in Guangdong M-Rider and the investment in television programs also generated significant sales and earnings.

''Our management and the Board of Directors are delighted to report terrific results for 2005. Our operations in Nanhai, driven by the digitalization project, is gaining momentum after two years, and the new investments we made in 2005 have also strengthened our competitive advantage and enhanced the Company's earnings,'' stated Mr. Daniel Ng, Chairman and CEO of China Digital Media Corporation. ''In the next two years, we will focus our development through advertising sales by building up a good customer base of international and domestic brand names. In the mid or longer term, our existing operations should generate sufficient cash flow to invest and to replicate our successful business model in other cities or provinces in China,'' added Mr. Ng. ''We will continue to drive our growth through acquisition and partnership.''

Recently, the Company announced an acquisition of assets of a leading media and advertising group and entered into a Memorandum of Understanding to form two joint ventures with the Provincial Television Station in China.

For more information on the Company, please visit the Company's 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 Television 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 television 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 bundled into various value added packages. The digital broadcasting system could offer more than 800 digital channels of pay television programs and value added multimedia services. The Company is seeking to establish similar models 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

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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