China Digital Media Corporation Announces Launch of IP Based Set-Top-Box In China

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To be added to China Digital Media's investor e-mail list, please send an
e-mail to our Investors Relations at ir@chinadigimedia. 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.
Frontier Silicon has successfully pioneered and helped to grow the DAB
digital radio market since its inception in 2002 and recorded impressive
growth.frontier-silicon.
About Quilvest
The Quilvest Group is a global financial group operating in Europe and in
the US with 6 billion dollars under management.

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As a fabless semiconductor business, Frontier Silicon's core products
include complete DAB modules, DVB-T solutions , DMB (digital multimedia
broadcasting) solutions, and the underlying system-on-chip (SoC) devices and
receiver chips.

listed processing

Our launch
this month of a mobile digital television chip set has been well received by
key mobile handset manufacturers.
This month Frontier Silicon launched two new chips which enable a
complete solution for receiving terrestrial digital multimedia broadcasting
(T-DMB) services on mobile phone handsets; the Apollo chip receives broadcast
signals while the Kino chip provides the digital baseband processing.

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radio production

About China Digital Media Corporation
China Digital Media Corporation (OTC Bulletin Board: CDGT) focuses its
business in three main areas: Cable TV Operations, Programs Production and
Advertising Sales. Ltd. Key
shareholders include ACT Venture Capital, Apax Partners Funds, Alta Berkeley,
GLG Partners and BlueRun Ventures, as well as Digital One, operator of one of
the world's largest DAB digital radio networks in the world, and Imagination
Technologies, a leading supplier of semiconductor intellectual property for
the multimedia and communications market.

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''We intend to invest and participate in system migration
projects in other cities like our Nanhai model. The lead new investor is ACT Venture Capital and the round was
supported by existing investors including funds advised by Apax Partners,
Alta Berkeley and BlueRun Ventures (formerly Nokia Venture Partners), and new
investor Quilvest. Frontier Silicon was advised by Citigroup Global Markets
Limited in this transaction. This latest funding round will enable the company to establish a
leading position in the mobile digital television market, and further develop
its DAB digital radio products. The management team
at Frontier Silicon is uniquely positioned to leverage the significant
opportunities afforded by DAB and emerging mobile digital television
standards such as T-DMB and DVB-H. For more
information visit http://www.

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We believe the provision
of value-added services through digitalized network will be a new business
model in digital TV operation and this new IP based STB will give us a head
start,'' said Mr. Funding Round is Supported by Existing Investors Apax Partners Funds,
Alta Berkeley and BlueRun Ventures (Formerly Nokia Venture Partners) Plus New
Investor Quilvest

LONDON, Frontier Silicon - the leading
fabless manufacturer of semiconductors for mobile digital television and DAB
digital radio products - has announced it has closed a $28 million investment
round.
The company develops and delivers both the broadcast signal receiver
modules and digital processing circuits as individual chips and complete
system modules to leading consumer electronics and mobile phone brands. It is funded by leading Irish, European and US institutional and
fund of fund investors.

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com . We will continue to focus on technologies targeted
at the digital radio and television markets, both for the home and mobile
broadcast sectors".
Anthony Sethill said about the launch, "The convergence of mobile
communications and broadcasting is happening now , and I believe the addition
of low power TV tuners to mobile handsets will enable the next killer
application for mobile phones, opening up significant new revenue
opportunities for content providers and network operators. Frontier
Silicon has won a number of awards and its products have also enabled
award-winning consumer products.

subcategory radio

Daniel Ng, Chairman and CEO of China Digital Media
Corporation .
Shenzhen Coship Electronics Co.
Certain information contained in these materials is 'forward-looking'
information, such as projections, estimates, pro formas, or statements of
intentions , expectations or plans.

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''Partnering with Coship in developing the IP based STB is our strategy in
advancing the quality of our broadcasting services. Ng added.

For more information on us, please go to our website at
http://www. The Group is seeking to establish similar
models elsewhere in China. ACT has a portfolio
of over 30 such companies and funds under management of EUR350 million.

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HONG KONG, China Digital Media
Corporation (''Digimedia'') (OTC Bulletin Board: CDGT ) today announced the
launch of a trial for a new IP based Set-Top-Box ("STB") in Nanhai, a city
in Guangdong province with 400,000 Cable TV subscribers. This new funding will be used to expand
existing and open new design centres for our future mobile digital television
IC and software products. Frontier Silicon's
objective is to be one of the key chip suppliers to this new market sector.

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(''Coship' ') that could transform a television set
into an interactive and a multimedia platform."
Editor 's notes:
About Frontier Silicon
Frontier Silicon is an award-winning company at the forefront of the
digital multimedia revolution with a range of semiconductor solutions for
mobile digital television, digital TV and digital radio.

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This collaboration with
Coship and the new IP based STB will provide us a convincing advantage to gain
more contracts in the future that would allow our Company to grow faster and
to enlarge our service coverage,'' Mr.

main electronics

Coship is the number one TV Set Top Box
exporter for five consecutive years in China, of which the growth rate has
been over 100 % in the last three years. The
combination provides the world's lowest power consumption and smallest
footprint solution that will allow handset manufacturers to rapidly enable
mobile operators and broadcasters to offer digital broadcast services to
consumers.

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The
service could offer more than 800 digital channels of pay TV programs and
value added multimedia services. Consequently, actual results may, and probably will,
differ materially from the results contemplated in such forward-looking
information.

"
Frontier Silicon was established in 2001, and is privately funded .
Key customers for the company's products include consumer electronic,
automotive entertainment and PDA/mobile phone manufacturers such as Bang +
Olufsen, Cambridge Audio, Goodmans, Grundig, Hitachi , Ministry of Sound,
Philips, PURE Digital, Roberts Radio, Samsung, Sharp, Sony and TEAC.

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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 company's awards include the Fabless
Semiconductor Association's start-up to watch award, PricewaterhouseCoopers
hottest technology company of 2004 award, the World Economic Forum's
technology pioneers to watch 2005, and the Tornado T100 award for one of the
best-performing and innovative high-tech private companies.

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is one the largest and world leading
digital TV Set Top Box manufacturers.
Anthony Sethill, CEO and founder of Frontier Silicon, said, "We are
pleased to welcome ACT Venture Capital and Quilvest as investors.

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ACT invests primarily in information + communications
technology and life sciences companies in Ireland and the UK which possess
innovative technologies aimed at international markets.

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Ltd.

About Shenzhen Coship Electronics Co.com
About ACT Venture Capital
ACT Venture Capital is Ireland's largest venture capital management
company .

processing industry

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. Ltd. All forward-looking information is subject
to known and unknown risks and uncertainties, many of which are outside of the
control of the company.
Kieron Branagan , general partner at ACT Venture Capital added, "We are
very excited to be involved with Frontier Silicon at this time as the company
ramps its development of digital broadcasting platforms.

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The new STB is developed in coordination with Shenzhen
Coship Electronics Co.com .

Frontier Silicon Closes $28 Million Investment led by ACT Venture Capital and Apax Partners' Funds

Quilvest has been investing
both in funds and private companies for more than 30 years, with a continuous
commitment to venture .

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This latest
investment allows us to aggressively target and drive market share in the
emerging mobile digital television market in the same way that we have
established our chips in over 70 percent of DAB digital radios.