WallStreet Research Initiates Coverage of China Digital Media Corporation's Shares With a Speculative Buy Recommendation at www.WallStreetResearch.org

WallStreet Research Initiates Coverage of China Digital Media Corporation's Shares With a Speculative Buy Recommendation at www.WallStreetResearch.org

HONG KONG, March 24 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media Corporation (the "Company") (BULLETIN BOARD: CDGT) announced today that WallStreet Research ("WSR") has initiated its analyst research coverage of the Company's shares with a speculative buy recommendation. The complete report, together with attendant risk factors, as well as additional information about WallStreet Research is available at http://www.wallstreetresearch.org/ .

WallStreet Research is a prominent research boutique led by Alan Stone, Managing Director of Alan Stone & Company, LLC ("ASC"). The firm specializes in the microcap and smallcap investment arena, looking for emerging growth companies with strong management, unique or proprietary technology, significant market potential, financial strength, and outstanding long-term earnings growth possibilities. Mr. Stone was formerly a securities analyst and assistant portfolio manager at Merrill Lynch Asset Management and an investment analyst at Prudential Insurance Company's Capital Markets Group. The firm has offices in Los Angeles, CA, Palm Beach, FL, and New York City, NY, and is well known for discovering undervalued companies and bringing them to the attention of the investment community. ASC/WSR also arranges road shows for its publicly traded clients, before the investment community in New York City, California, and Florida.

China Digital Media Corporation ( http://www.chinadigimedia.com/ ) is an integrated media company focused on digital cable television (DTV) operations, advertising sales and programming content production in the People's Republic of China (PRC). Through its wholly owned subsidiary, Arcotect (Guangzhou) Limited, the Company developed a digital broadcasting technology platform and provides DTV services in Nanhai, Guangdong Province by converting analogue cable television signals via digital set-top-boxes and smart cards. Operating since early 2004 as a sole contractor of a monopolistic cable TV provider owned by the local government, the Company has migrated approximately 150,000 out of 400,000 subscribers by yearend 2005. The Company is also engaged in television advertising sales business through its wholly owned subsidiary, Guangdong M-Rider Media Company Limited. Acting as an exclusive agent, the Company signed a $6.3 million advertising wholesaler contract, its largest in history, to manage the commercial airtime of a provincial television station's channel. Finally, through a strategic partnership with Guangdong HuaGuang DigiMedia Culture Development Limited, a variable interest entity, the Company invests in production of programming content. The Company has invested in the production of two drama television series, one of which already started generating revenue, and is undertaking additional investments through acquisitions and joint ventures. Overall, the Company has about 240 employees located predominately in the PRC, with more than half committed to the sales and marketing function. Trading on the OTC Bulletin Board under the symbol CDGT, the Company is positioned to benefit from the vertical integration of its media investments and capitalize on the rapid transformation in the television business in China.

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, 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.

Disclaimer

The information presented in the WallStreet Research report is not to be construed as an offer to sell, nor a solicitation of an offer to purchase, any securities referred to herein or otherwise. Readers are encouraged to conduct their own due diligence and review all of the company's financial statements and risk statements on file with the SEC. China Digital Media Corporation has paid a consulting fee of $2,000 and 2,381 shares of common stock to Alan Stone & Company LLC for certain investor relations roadshow services, as well as a research fee of $8,000 in conjunction with preparation and distribution of this report, and committed an additional $5,000 for an update of the report in the next quarter. Alan Stone & Company, LLC may also earn additional fees for organization of road shows or other investor relations activities. Alan Stone & Company, LLC or its associates may own shares, for investment purposes, in its corporate accounts, and may increase or decrease its positions at any time, without notice.

For more information, please contact:

China Digital Media Corporation
Investor Relations
Tel: +852-2390-8686

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

Alan Stone
Alan Stone & Company, LLC
Tel: +1-212-521-4102
Email: astone@alanstone.com

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, or Alan
Stone of Alan Stone & Company, LLC, +1-212-521-4102, or astone@alanstone.com,
both for China Digital Media Corporation

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

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