SOURCE: China Media Group Corporation

January 30, 2006 08:16 ET

China Media Group Corporation Announces Establishing Strategic Business Unit for Chinese Hospital Advertising

CEDAR HILL, TX -- (MARKET WIRE) -- January 30, 2006 -- China Media Group Corporation (OTC BB: CHMD) ("CMG") announces today that it will establish a business unit solely to focus on hospital advertising within China.

Mr. Con Unerkov, Chairman of China Media Group, stated, "Advertising in and around hospitals is an important component to support our health education program in China under our earlier announced cooperation with Beijing Ren Ren's health education and awareness program. We plan to cooperate with Chinese hospitals to secure ad placements both inside and outside, and sell these ad placements to healthcare and pharmaceutical companies both locally and internationally. We expect this division to be established by March 2006."

Healthcare-related advertising in China accounted for approximately USD4,116 million (or about RMB33,961 million) in 2004 and was ranked as the largest advertising sector representing about 27% of the total ad spent in China according to iResearch, a research and consulting group in China.

Mr. Unerkov added, "Health advertising specifically within Chinese Hospitals is a key strategic initiative for CMG. Our earlier announced cooperation with Beijing Ren Ren provides us with what we believe to be a strategic differentiator in the market that we hope one day will make us a market leader in this sector."

About China Media Group Corporation:

China Media Group Corporation (OTC BB: CHMD) is a "Next Generation" advertising/media company focusing on the very lucrative Chinese market. It has offices in China, Hong Kong and USA. The company was incorporated in Texas on October 1, 2002. The Company is currently entering the fast growing advertising industry in China and plans to expand its offices in key cities such as Shanghai, Guangzhou and Shenzhen. The Company will also cooperate with strategic partners in other cities to serve our clients for nationwide advertising coverage.

Additional information concerning other areas and topics of China Media Group can be found on our web site at

A number of statements contained in this Report are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Certain written statements in this press release constitute "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Words or phrases such as "should result," "are expected to," "we anticipate," "we estimate," "we project," "we intend," or similar expressions are intended to identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include demand for our services, product development, our ability to maintain acceptable margins and control costs, the impact of federal, state and local regulatory requirements on our business, the impact of competition and the uncertainty of economic conditions in general, including the timely development and market acceptance of products, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses, and other factors. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements, since the statements speak only as of the date that they are made, and we undertake no obligation to publicly update these statements based on events that may occur after the date of this document.

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