China Digital Media Corporation Announces an Investment in Second Television Drama - 'Xiguan Affairs'

China Digital Media Corporation Announces an Investment in Second Television Drama - 'Xiguan Affairs'

HONG KONG, June 29 /Xinhua-PRNewswire/ -- China Digital Media Corporation (''Digimedia'') (BULLETIN BOARD: CDGT) with its subsidiaries (together the ''Group'') announced today the Group is committed to invest RMB4,680,000 for a minority interests in a television drama, ''Xiguan Affairs'', in the Peoples Republic of China with Guangdong Runshi Movie & Music Production Co., Ltd. (''Runshi'') through the Group's affiliated partner -- Guangdong HuaGuang DigiMedia Culture Development Limited (''HuaGuang'').

Xiguan Affairs is a 36-episode classic television drama and which is filmed in Guangdong Province. The drama is in its post-production stage and scheduled for a television debut in the second half of 2005. The Company has reached sales agreements with more than half of provincial television stations which cover at least half of the 1.14 billion TV viewers in China. The Company expects the drama will generate profits in 2005.

''This is the second project to partner with HuaGuang and Runshi and it has already produced an encouraging result that the response from the market is exciting,'' said Mr. Daniel Ng, Chairman and CEO of China Digital Media Corporation. ''We believe our tactic in investing in the production of programs is on the right direction and our confidence is getting stronger to achieve our objectives in the television media industry,'' Mr. Ng commented. ''We look forward to having more opportunities to participate in productions and related businesses with our partners in the future.''

Further information about the drama can be found in the following web address in Chinese:

http://www.hairunmedia.com/news_view.asp?id=93&page_id=003000 .

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 (BULLETIN BOARD: CDGT) focuses its business in three main areas: Cable TV Operations, Programs Production and Advertising Sales. Arcotect Technology (GZ) 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 Group is seeking to establish similar model elsewhere in China. The Group entered into the strategic alliance with Guangdong HuaGuang Digimedia Culture Development Limited in June 2005.

About Guangdong Runshi Movie & Music Production Co., Ltd.

Guangdong Runshi Movie & Music Production Co., Ltd., a subsidiary of Hai Run Movies and TV Production Co., Ltd., is one of the fastest growing production houses in Guangdong Province, China. Guangdong Runshi Movie & Music Production Co., Ltd. was incorporated in 2002 and has already produced over 100 hours of television drama.

About Guangdong HuaGuang Digimedia Culture Development Limited

Guangdong HuaGuang Digimedia Culture Development Limited (''HuaGuang''), formerly named Guangdong Pukonyi Culture Development Limited, is a limited company registered in China and is involved in the business of television programs production and advertising sales. The Group and HuaGuang signed the alliance agreement that the Group acts as an exclusive services provider for HuaGuang and has a priority right to participate in HuaGuang's operations. The Group will also provide financial supports for HuaGuang's investment in media related businesses. In return, HuaGuang will distribute 90% of its gross profit to the Group as services and consulting fees.

For more information on us, please go to our website at http://www.chinadigimedia.com/ .

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.

Web Sites: http://www.hairunmedia.com/news_view.asp?id=93&page_id=003000 http://www.chinadigimedia.com

Source: China Digital Media Corporation

CONTACT: Y. K. Ma of China Digital Media Corporation, +852-2390-8686, or ir@chinadigimedia.com

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