China Digital TV Obtains Sales License from the Chinese Encryption Authority

BEIJING, Sept. 26 /Xinhua-PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV), the leading provider of conditional access (CA) systems to China's rapidly growing digital television market, today announced that it has successfully obtained a sales license from the Chinese national encryption authority, the State Cryptography Administration (SCA).

SCA is the Chinese government's administrative and enforcement body responsible for supervising all Commercial Encryption Product (CEP)-related activities. In March 2007, the SCA passed new regulations requiring all TV users in China to use only those encryption products certified by the SCA and only purchase these products from vendors that hold an encryption product sales license.

China Digital TV is one of the few CA system providers in China that secured a sales license during the encryption regulation transition period. The sales license allows vendors to sell commercial cryptography products certified by SCA to their customers.

"We are pleased to announce that we have obtained the SCA sales license," said Mr. Jianhua Zhu, China Digital TV's chief executive officer. "Our success in obtaining this license shows our deep understanding of the local regulatory environment and our ability to stay ahead of new guidelines in this rapidly developing market. It also reduces our forward-looking business risks and gives us a competitive edge that we expect will help us continue to attract new customers."

Safe Harbor Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "may," "should" and similar expressions. These statements include, among other things, China Digital TV's anticipated repurchase of its ADSs. China Digital TV may repurchase all US$40 million of its ADSs, no ADSs, or any amount in between, depending on the trading price of its ADSs, which may be positively or negatively impacted by the share repurchase program, market conditions, determinations following the date of this announcement to use such funds for other purposes, or for other reasons. China Digital TV may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Digital TV's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from projections contained or implied in any forward-looking statement. Further information regarding such risks and uncertainties is included in China Digital TV's annual report on Form 20-F and other documents filed with the U.S. Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the date of this press release.

About China Digital TV

Founded in 2004, China Digital TV is the leading provider of conditional access ("CA") systems to China's rapidly growing digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts its CA-related business through its subsidiary, Beijing Super TV Co. Ltd., and its affiliate, Beijing Novel-Super Digital TV Technology Co. Ltd. and its value-added services business through its subsidiary, Beijing Novel-Super Media Investment Co. Ltd.

For more information please visit the Investor Relations section of China Digital TV's website at http://ir.chinadtv.cn .

For investor and media inquiries, please contact:

In China:

Eric Yuan

China Digital TV

Tel: +86-10-8279-0021

Email: ericyuan@novel-supertv.com

Helen Plummer

Ogilvy Financial, Beijing

Tel: +86-10-8520-3090

Email: helen.plummer@ogilvy.com

In the United States:

Jessica Barist Cohen

Ogilvy Financial, New York

Tel: +1-646-460-9989

Email: jessica.cohen@ogilvy.com

For media inquiries, please contact:

Ceren Wende

Ogilvy Financial, Beijing

Tel: +86-10-8520-6514

Email: ceren.wende@ogilvy.com