SOURCE: China Media Group Corporation

October 08, 2007 07:49 ET

China Media Group Corporation Secures Online Advertising Rights

SAN ANTONIO, TX--(Marketwire - October 8, 2007) - China Media Group Corporation (OTCBB: CHMD) ("CMG") announces today it has entered into a cooperative agreement with Guangzhou Waho Culture & Media Co., Ltd ("GWCM") to provide the directory search engine and website for the China TieTong Communications Co., Ltd. Guangdong Branch ("Guangdong TieTong") Yellow Page Online directory. Under the agreement, CMG will obtain the advertising rights to certain advertising spots on the directory website. CMG is currently a minority equity holder in GWCM.

Mr. Con Unerkov, Chairman of China Media Group Corporation, stated, "Both internationally and in China, online advertising is the fastest growth area in the advertising industry. In China, the online advertising revenue is expected to grow from USD621 million in 2006 to USD2,188 million in 2010, an annualized growth rate of 37%. We believe that by providing the search engine and the directory listing services, we can commence selling online advertising by end of the fourth quarter this year."

Mr. Unerkov further added, "It is important to enter the online advertising sector with a recognizable brand name which Guangdong Tietong Yellow Page is. 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."

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, 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 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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