SOURCE: China Media Group Corporation

November 27, 2007 08:42 ET

China Media Group Corporation Enters Into Letter of Intent to Acquire Telecom Service Provider With Existing Revenues of Approximately US$500,000

SAN ANTONIO, TX--(Marketwire - November 27, 2007) - China Media Group Corporation (OTCBB: CHMD) ("CMG") announces today it has entered into a Letter of Intent to acquire controlling interests in Level One Communications (M) Sdn Bhd ("Target") which is a Telecom Service Provider operating in Kuala Lumpur.

The Letter of Intent forms the basis to enter into a Sales and Purchase Agreement, which is expected to be signed within three weeks. The acquisition price for the 51% control is expected to be approximately USD80,000 (RM255,000), subject to final due diligence, which will be settled by cash and shares issued by the Company. The Target currently has a turnover of approximately USD500,000 or RM1,620,000 (estimated for the current year) which is predominately sale of voice service to its corporate client base. The Target was incorporated in 2000 and is a full service ASP with the rights to provide Internet Access and Data services in addition to the voice services it provides.

Mr. Con Unerkov, Chairman of China Media Group, stated, "Once this transaction is completed we will have an operation outside of China to roll out our digital online and telecom and mobile computing services. Malaysia is an ideal base to offer our online business services to Southeast Asia and Middle East to complement our business platform in China."

Malaysia has undertaken many initiatives to move the country towards e-commerce and e-services over the Internet. According to the subscriber data from Malaysia Communications and Multimedia Commission (MCMC), it is estimated that the number of Internet users in Malaysia at about 13.5 million in Oct. 2006 which represents a penetration rate of about 47.8%. The number of users has tripled in the past 5 years. One of the reasons for such rapid growth is the Malaysian government's involvement in bringing broadband access to its people. Aside from broadband access, the Malaysian government has been supportive of the high tech industries with the Multimedia Super Corridor initiative (started in 1996) which has helped propel many new industries in this area including that of online related companies. The Multimedia Super Corridor is Malaysia's initiative for the global information and communication technology industry. Currently, MSC is hosting more than 900 multinationals, foreign owned and home grown Malaysia companies focused on multimedia and communications solutions and development companies.

Mr. Unerkov further stated, "Strategically this acquisition will provide us with an experienced operating team that has a proven track record and existing revenue. We will build on that revenue by offering our online internet advertising services to their customer base to market and advertise their goods and services onto our China website. In addition we will look at creating web related advertising services to the Malaysia customers and markets. Malaysia has a big potential to become a leading Internet market in Southeast Asia, for us to grow our online advertising business regionally."

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 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 Beijing, 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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