SOURCE: China Media Group Corporation

November 05, 2007 07:24 ET

China Media Group Corporation Announces the Successful Testing of the Beta Version of CTTYP Website

SAN ANTONIO, TX--(Marketwire - November 5, 2007) - China Media Group Corporation (OTCBB: CHMD) ("CMG") announces today that it has completed the testing of the beta version of the China TieTong Communications Co., Ltd. Guangdong Branch ("Guangdong TieTong") Yellow Page Online directory website: www.cttyp.com and will now move towards the planning and commercialization of the online operations.

Mr. Con Unerkov, Chairman of China Media Group Corporation, stated, "There is tremendous growth potential in the online advertising and directory listing business in China, which has been evident by the high profile listing of the alibaba.com listing in Hong Kong. We have high hopes and expectations that with a recognizable brand name under the China Tietong Yellow Page directory, it will provide a market presence to draw advertisers to our website. Ultimately our aim is to build a directory listing that specializes in certain sectors to become web portals i.e. health portal and biz trading portals."

Online advertising industry is the highest growing segment in the advertising industry and China is experiencing the same growth as the rest of the world. In China, the online advertising revenue is expected to grow from US$621 million in 2006 to US$2,188 million in 2010, an annualized growth rate of 37%.

Mr. Unerkov further added, "We will put a lot of emphasis into online advertising business. Our recently announced WebCall product will provide a differentiation to advertisers connecting them to interested customers. WebCall unleashes the power of the interactivity of the internet, connecting parties seamlessly. WebCall will be featured as one of the mainstays of our online advertising product, to our customers for our China Tietong Yellow Pages online directory. We expect many of our advertisers will be based in Hong Kong, Taiwan, and Macau and overseas Chinese communities advertising in China, and what better way to provide an advertising forum to talk to the customers direct. WebCall is a way to connect potential customer to advertisers easily and seamlessly; all the user has to do is to enter his telephone number on the popup web page and click the call button, then within seconds his phone will ring and he will be speaking to the advertiser."

CMG has a cooperative agreement with Guangzhou Waho Culture & Media Co., Ltd ("GWCM") which holds the operational rights to the print and online edition to Guangdong Tietong Yellow Page. Guangdong Tietong is the provincial arm for China Tietong Telecommunications, one of the 6 licensed telecom carriers in China. Guangdong is next to the affluent market of Hong Kong and Macau, thus it provides an excellent opportunity for us to tap into the online advertising market for these locations.

GWCM was incorporated in the People's Republic of China in August 2006. Its mission is to become a leading new age "Online Advertising" and "Information Portal Website" for the Chinese Market. It focuses in 5 specific areas: "Online Directories," "Advanced Information Portals," "Online Advertising," "Print Media" and "Valued Added Services." CMG currently owns approximately 18% equity stake in GWCM.

About China Media Group Corporation:

China Media Group Corporation (OTCBB: CHMD) is a "Next Generation" advertising / media company focusing on the very lucrative Chinese market. It has offices in Beijing, China, Hong Kong and Texas, 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 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 http://www.chinamediagroup.net

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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