China Digital Media Corporation Completes the Digital TV Migration for 200,000 Households in Nanhai

China Digital Media Corporation Completes the Digital TV Migration for 200,000 Households in Nanhai

HONG KONG, July 17 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media Corporation (BULLETIN BOARD: CDGT) , a leading provider of cable and digital television services and content in China, announced today that it has reached a record level of households that have installed digital set-top-boxes ("STB"). As of June 30, 2006, approximately 200,000 subscribers had installed over 220,000 digital STBs, with over 15% subscribing for additional digital STBs. The Company receives a portion of the subscription fees from each customer.

The Company installed over 30,000 STBs in May, the highest number of installations in a single month, and these newly installed STBs are equipped with JAVA platform and Ethernet port.

"This is a major milestone for the Company, as it represents a significant source of revenue," said Daniel Ng, Chairman and CEO of China Digital Media Corporation. "The launch of our new IP based STB has generated incredible interest in Nanhai and surrounding cities. We intend to focus on promoting our value added services and pay TV services, and searching for new projects elsewhere that we believe will enhance revenue growth."

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 TV Operations, Programs Production and Advertising Sales. 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 410,000 cable TV subscribers. As of today, Nanhai's cable television operation provides 148 television channels which comprise of 48 basic channels and 100 pay channels. The pay channels are categorized into various value added packages.

Certain information contained in these materials is "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. Forward-looking information in this release includes, without limitation, the Company's ability to continue to add new households in a timely and efficient manner, the future success of its IP based STBs, and its ability to find new projects in the future. 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:

Y. K. Ma
China Digital Media Corporation
Tel: +852-2390-8686
Email: ir@chinadigimedia.com

Ed Lewis
CEOcast, Inc.
China Digital Media Corporation
Tel: +1-212-732-4300

Source: China Digital Media Corporation

CONTACT: Y.K. Ma of China Digital Media Corporation, +852-2390-8686; or
Ed Lewis of CEOcast, Inc., +1-212-732-4300, for CDGT

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

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