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China Digital Media Corporation Announces Termination of an Advertising Distribution Agreement in China

2007-01-17 18:05 2025

HONG KONG, Jan. 17 /Xinhua-PRNewswire-FirstCall/ -- China Digital Media Corporation (the "Company") (OTC Bulletin Board: CDGT) announced today that its affiliate company, Guangdong M-Rider Media Company Limited ("Guangdong M-Rider"), has terminated an Advertising Distribution Agreement with a television station as the exclusive advertising agent in Guangdong province of China after one year of services.

According to the original agreement, the services can be extended for one additional year; the management however has decided not to renew the agreement. Under a new arrangement, Guangdong M-Rider will remain as an advertising agent but does not have to pay any fixed commitment fee to the television station.

"This move will enable us to concentrate on serving our clients' needs and effectively utilizing our resources in other prospective areas without affecting our margin," said Daniel Ng, Chairman and CEO of China Digital Media Corporation. "In coming years, our advertising team will focus on providing media planning and consulting services to the clients, we believe these would generate better margin and prospect for our future growth."

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

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About China Digital Media Corporation

China Digital Media Corporation focuses its business in three main areas: Cable TV Operations, Programs Production and Advertising Sales. Guangdong

M-Rider Media Company Limited, a wholly owned subsidiary of CDGT and a limited company registered in China, is an advertising sales agent, its principal operating activities are in media planning, production, distribution of advertisement through television channels and related consulting services.

Certain information contained in these materials is "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. While management has based any forward-looking statements contained in the press release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the Company's control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Company's public filings with the SEC. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention to, and undertakes no obligation to, update or revise any forward-looking statement.

For more information, please contact:

China Digital Media Corporation

Investor Relations

Tel: +852-2390-8600

Source: China Digital Media Corporation
Related Stocks:
OTC:CDGT
Keywords: Advertising
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