China Digital Media Corporation Reaches Record Level of Household Installations of Digital Set-To-Boxes

China Digital Media Corporation Reaches Record Level of Household Installations of Digital Set-To-Boxes

HONG KONG, Oct. 18 /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 a digital set-top-box (''STB''). As of September 30, 2005, more than 120,000 households have installed the equipment, with over 20% subscribing to receive premium packages of television broadcasting and additional digital STBs. The Company receives a portion of the subscription fees from each customer.

''This milestone represents a significant achievement for the Company, as it demonstrates that demand continues to increase for value-added cable television services in China,'' said Daniel Ng, Chairman and CEO of China Digital Media Corporation. ''The launch of our new IP based STB in Nanhai has generated tremendous interest, and with the growing momentum, as measured by increasing interest in our subscription services, we expect to add another 30,000 digital STB subscribers in the fourth quarter.''

Recently, the Company announced the launch of a trial for a new IP based STB in Nanhai, a city in Guangdong province with 400,000 Cable TV subscribers. The Company is one of the first digital TV operators in China to deploy the trial of IP based STB with its high-end users. The new STB in trial is equipped with an Ethernet port which could facilitate various Internet-based services to end users such as video-on-demand, online shopping channels, online games and interactive education services.

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 (BULLETIN BOARD: CDGT) focuses its business in three main areas: Cable Television Operations, Programs Production and Advertising Sales. Arcotect (Guangzhou) Technology 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 categorized 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 Group 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.

Source: China Digital Media Corporation

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

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

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