News Release

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 (OTC 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 (OTC 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