China VoIP & Digital Telecom Wins Third Virtualization Project in the Southern Power Grid System

JINAN, Shandong, China, July 9 /PRNewswire-Asia-FirstCall/ -- Beijing PowerUnique Technology Co., Ltd (BPUT), one of the wholly-owned subsidiaries of China VoIP & Digital Telecom (OTC Bulletin Board: CVDT), today announced that its alliance system integrator (SI) has signed a virtualization agreement with Guizhou Power Grid.

China VoIP & Digital Telecom will launch the integrated datacenter virtualization solution for the Guizhou province enterprise. Guizhou Power Grid is CVDT's third customer in the China Southern Power Grid system. CVDT has already signed virtualization contracts with the Guangdong Power Grid and Guangxi Power Grid.

Partnering with SIs is a new marketing approach for CVDT allowing them to gain access to more government and enterprise customers thereby increasing CVDT's market share. BPUT provides SIs with a turn-key technology solution along with a comprehensive package of technical support to help their SIs implement CVDT's virtualization solutions. With leading technical implementation capabilities and preferred pricing, CVDT cannot only provide specific solutions and services to end users, but also assist the SIs in implementing turnkey projects.

Mr. Kunwu Li, President and CEO of CVDT, is very pleased with the success of this alliance. He said, "This third significant contract within the China Southern Power Grid system proves that our marketing strategy with our SI program is working. Not only do we have the ability to design and implement industry leading virtualization solutions for our customers, but our ability to identify key SI candidates and provide them with the tools necessary to succeed allows to gain increased market share in the virtualization industry in China. BPUT played a large and very crucial role in assisting the SI in this case. The continued execution of our current business strategy allows us to create a solid foundation for CVDT's long-term growth in the virtualization industry. I'm very confident that our SIs will continue to bring in new business in both the near and long term."

Mr. Kunwu Li continued, "We will continue to aggressively pursue other customers within the China Southern Power Grid system. This new agreement shows that our technology and customer service capabilities are the best value in the virtualization industry in China. We will definitely leverage our relationships and success to put more efforts in the promotion and marketing to the other members of the China Southern Power Grid system."

About China VoIP & Digital Telecom Inc.

China VoIP & Digital Telecom Inc. offers virtualization technology application in the People's Republic of China through its wholly owned subsidiary Jinan Yinquan Technology Co., Ltd and Beijing PowerUnique Technologies, Co., Ltd. Through the two subsidiaries, China VoIP & Digital Telecom is well positioned to take full advantage of the tremendous economic growth currently being experienced in China. The Company is currently marketing its integral virtualization solutions and services in China and at this time is in the testing stages of other Information Technology products. More information can be found at http://www.chinavoip-telecom.com .

About Virtualization Technology

Virtualization is a proven software technology that is rapidly transforming the IT landscape and fundamentally changing the way people compute.

Today's powerful x86 computer hardware was originally designed to run only a single operating system and a single application, but virtualization breaks that boundary, making it possible to run multiple operating systems and multiple applications on the same computer at the same time, increasing the utilization and flexibility of hardware.

Virtualization is a technology that can benefit anyone who uses a computer, from IT professionals and Mac enthusiasts to commercial businesses and government organizations. Millions of people around the world now use virtualization to save time, money and energy while achieving more with the computer hardware they already own.

Safe Harbor Statement

Certain statements made in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as 'believe,' 'expect,' 'may,' 'will,' 'should,' 'project,' 'plan,' 'seek,' 'intend,' or 'anticipate' or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

For more information please contact:

CVDT Investor Contacts:

Michelle Wong

Tel: +86-531-5558-5742

Email: michellewong@chinavoip-telecom.com

Great Wall Research LLC

Sheena Shen

Tel: +1-203-252-7266

Email: sshen@greatwallresearch.com