China Digital Media Corporation ("Digimedia") announced the launch of a trial for a new IP based Set-Top-Box in Nanhai, a city in Guangdong province with 400,000 Cable TV subscribers. The Company is one of the first digital TV operators in China to deploy the trial of IP based STB with its high-end users. The new STB in trial is equipped with an Ethernet port which could facilitate various Internet based services to end users; such as video-on-demand, online shopping channels, online games and interactive education services. The new STB is developed in coordination with Shenzhen Coship Electronics Co. Ltd. that could transform a television set into an interactive and a multimedia platform.

"Partnering with Coship in developing the IP based STB is our strategy in advancing the quality of our broadcasting services. We believe the provision of value-added services through digitalized network will be a new business model in digital TV operation and this new IP based STB will give us a head start," said Mr. Daniel Ng, Chairman and CEO of China Digital Media Corporation. "We intend to invest and participate in system migration projects in other cities like our Nanhai model. This collaboration with Coship and the new IP based STB will provide us a convincing advantage to gain more contracts in the future that would allow our Company to grow faster and to enlarge our service coverage," Mr. Ng added.