China VoIP & Digital Telecom Awarded Additional Contract with China Southern Power Grid System

Successful New Virtualization Project Implemented in Guangdong Power Grid

JINAN, Shandong, China, July 14 /PRNewswire-Asia/ -- Beijing PowerUnique Technology Co., Ltd (BPUT), one of the subsidiaries of China VoIP & Digital Telecom (OTC Bulletin Board: CVDT), today announced that one of its alliance system integrators (the SI) has signed a virtualization agreement with Guangdong Power Grid to implement an integrated datacenter virtualization solution for Guangdong Power Grid Information Center. Guangdong Power Grid is one of the subsidiaries of China Southern Power Grid Company Limited, a large state-owned enterprise with 2009 revenue of $45.7 billion. China Southern Power Grid is ranked 156 in the 2010 Global Fortune 500 companies.

CVDT’s growing market penetration into China’s Southern Power Grid is the result of carefully targeted marketing efforts with system integrators. CVDT’s SI alliance program, which was launched early this year, has proven to be a very effective business strategy. By providing the SI with a turn-key technology solution as well as a comprehensive package of technical supports, CVDT helps the SI implement its sophisticated virtualization solutions. CVDT also offers the SI training on pre-sale techniques, solution design, software delivery and implementation.

Mr. Kunwu Li, President and CEO of CVDT, is very pleased with the success of this alliance. He said, "It is our privilege to work with another client in the China Southern Power Grid. We’re also glad to see our turn-key solution helped our SIs to expand their businesses, and BPUT played a very important role in assisting the SI in this case. I’m very confident that many more successful contracts will be signed by our SIs in the near future."

With leading technical implementation capabilities and preferred pricing, CVDT can provide not only specific solutions and services to end users, but also assist their SIs in implementing turn-key projects. Using CVDT’s own sales force and leveraging their SI partners, the company foresees a steady acceleration in market share growth. This is turn creates a solid foundation for CVDT’s long-term development in the virtualization industry.

Mr. Kunwu Li continued, "We plan to showcase this successful project in order to sign additional new customers in the China Southern Power Grid. The contract with the Guangdong Power Grid Information Center shows the outstanding value of our technological expertise and service capabilities in China’s virtualization field. Seeing the success of this implementation for Guangdong Power Grid, as well as our previous contracts in the system will make the case for other members of the China Southern Power Grid to work with our alliance teams to increase revenue and security while saving business expenses."

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 use virtualization to save time, money and energy while achieving more with the computer hardware they already own.

Safe Harbor Statement

Certain of the 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

Dina Ding

Tel: +1-203-252-7266

Email: dding@greatwallresearch.com