omniture

Diguang International Exercises Option to Purchase 65% Stake in North Diamond

SHENZHEN, China, Jan. 6 /Xinhua-PRNewswire/ -- Diguang International

Development Co., Ltd. (OTC Bulletin Board: DGNG - News) ("Diguang") today

announced that on January 3, 2007, the Company exercised its option to

purchase from Sino Olympics Industrial Limited all of its 65% equity interest

in North Diamond International Co., Ltd. As of September 30, 2006, North

Diamond's total assets were $4.4 million, its net asset value was $2.7 million,and its total net revenues for the nine months ended September 30, 2006 were $2.3 million. Sino Olympics currently owns 75.25% interest of Diguang International Development Co., Ltd. The shareholders of Sino Olympics are Song Yi and Song Hong, the Chief Executive Officer and Chief Operating Officer, respectively, of Diguang International. The purchase price determined in accordance with the Amended and Restated Purchase Option Agreement was estimated at approximately $2.0 million, subject to the final audit report as of December 31, 2006.

North Diamond is a holding company whose wholly owned subsidiary, Dihao

(Yangzhou) Co., Ltd., focuses on developing, manufacturing and marketing

backlight products for large-format electronic display devices and provides

relevant technical services in China. Dihao started operating activities in

December 2005. For 2007, Dihao will be focusing on the production of 19" CCFL

backlights for computer monitors, a key new product of Diguang launched in

2006. The capacity for 15"-19" CCFL backlights is currently 150,000 pieces

per month.

"We are pleased to consummate this acquisition, which will support our

efforts to effectively gain additional market share in the Yangtze River

Region, an important LCD manufacturing base. With our existing manufacturing

facilities in Guangdong Province, we have established ourselves as a leading

backlight supplier in the South China LCD manufacturing base," commented Song

Yi. "By securing additional manufacturing infrastructure close to our

prospective customers in the Yangtze River Region, we can minimize our

response time and logistical costs, providing us with enhanced growth and

industry leadership opportunities in this important market."

About Diguang International Development Co., Ltd.

Diguang, through its subsidiaries, specializes in the research,

development, production, sale and distribution of backlights and backlight

technologies. A backlight is the typical light source of a liquid crystal

display (LCD). The Company is focused on providing LED and CCFL backlights

for international producers of televisions, monitors, cellular phones, digital

cameras, DVDs and other home appliances. Diguang currently develops an

average of approximately 50 new products per month. Diguang is a Nevada

corporation with its manufacturing subsidiary located in Shenzhen, PRC, and

its sales and marketing subsidiary located in the British Virgin Islands.

Safe Harbor Statement

This press release contains forward-looking statements made under the

"safe harbor" provisions of the U.S. Private Securities Litigation Reform Act

of 1995. Forward looking statements are statements that are not historical

facts such as statements that the acquisition of North Diamond will support

our efforts to effectively gain additional market share in the Yangtze River

Region; and by securing additional manufacturing infrastructure close to our

prospective customers in the Yangtze River Region, we can minimize our

response time and logistical costs, providing us with enhanced growth and

industry leadership opportunities in this important market. Such forward-

looking statements are based upon the current plans, estimates and projections

of Diguang's management and are subject to risks and uncertainties, which

could cause actual results to differ from the forward looking statements.

Therefore, you should not place undue reliance on these forward-looking

statements. The following factors, among others, could cause actual results to

differ from those set forth in the forward-looking statements: business

conditions in China, weather and natural disasters, changing interpretations

of generally accepted accounting principles; outcomes of government reviews;

inquiries and investigations and related litigation; continued compliance with

government regulations; legislation or regulatory environments, requirements

or changes adversely affecting the businesses in which Diguang is engaged;

fluctuations in customer demand; management of rapid growth; intensity of

competition from other providers of backlights; timing approval and market

acceptance of new products introduction; general economic conditions;

geopolitical events and regulatory changes, as well as other relevant risks

not included herein, including but not limited to risks outlined in the

Company's periodic filings with the U.S. Securities and Exchange Commission.

The information set forth herein should be read in light of such risks.

Diguang does not assume any obligation to update the information contained in

this press release.

Source: Diguang International Development Co., Ltd.
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