China YouTV Corporation
OTC Bulletin Board : CYTV

October 19, 2007 13:14 ET

China YouTV's JV Partner Signs Agreement with YiCai Digital to Attract More Users to CnBoo

BEIJING, CHINA--(Marketwire - Oct. 19, 2007) - China YouTV Corp. (OTCBB:CYTV), a publicly traded company that provides online video viewing services through its CnBoo web site in China, reports that its Chinese Joint Venture Partner HuaJu has signed an agreement with Beijing Yi Cai Digital Technology Co. Limited, ("Yi Cai") to upload video through XMedia, a software provided to the CnBoo website by Yi Cai.

Per the agreement, XMedia will add a gateway to the CnBoo website on its interface, which allows uploading activities. In return, Yi Cai will enjoy priority use of CnBoo's video service and promote the CnBoo gateway to Yi Cai clients. After registration, users will be able to upload and download videos. HuaJu will ensure the uploading interface and video recommendation gateway adhere to Yi Cai's style.

"HuaJu has recently entered into a series of agreements with media and technology companies to increase the company's membership and brand awareness. Some of these agreements are based on an exchange of resources, while others are based on revenue sharing," stated James Wei, CEO and President of China YouTV Corp. "CYTV is operating under the same model as many other major websites in China, such as Sohu and Sina, whose marketing strategies have evolved from awareness campaigns to profit generation. These companies are extremely successful today - a positive sign for a company such as ours."

Beijing Yi Cai Digital Technology Co. Limited is a diversified integrated Internet company. Its services include interactive multimedia entertainment communities, mobile value-added services, and multimedia software services.

For more information, please go to www.chinayoutv.com.

About China YouTV Corporation:

The Company signed a Definitive Agreement with HuaJu to set up a Joint Venture in China on March 16, 2007. According to the Agreement, the China YouTV Corp. owns 51% of the joint venture company and will provide the required working capital for the Joint Venture. HuaJu will be in charge of the daily operation of the Joint Venture. HuaJu has agreed to conduct its video sharing business only through the Joint Venture, and has agreed to contribute its web site, www.CnBoo.com and customer contracts to the Joint Venture.

www.CnBoo.com ("CnBoo") is the online video site belonging to the Joint Venture established by China YouTV Corp. and HuaJu. It is a video viewing site and social networking site that allows users to create their own profiles, post videos, and comment on each other's posts. The CnBoo web site is similar to YouTube (www.YouTube.com), the No. 1 online video site in operation. Within less than 2 years, CnBoo already has over 1.2 million members and over 2 million pieces of original digital video (DV) shorts.

The company has signed several revenue-based contracts recently, including an agreement with 21 Century Network Co. and an agreement with Beijing Jiahe Interactive Network Technology Co., Ltd. These agreements coincide with the company's strategic plan to increase membership and interest in CnBoo, while moving towards sustained profitability.

To increase membership and CnBoo's brand name awareness, HuaJu has worked both on-line and off-line.

On-line: HuaJu has signed several agreements to enhance its on-line contents, such as an agreement for CCTV's TV program "Exploring High and Low", an agreement with ManGoCity, a travel company, an agreement with Megadia to host Humor channel on CnBoo web site, an agreement with Music Nation and VVSky to add more music on its web site, the recent advertisement exchanged agreement with 3g4a's subsidiary: Unlimited Chance Technology Development Co. Ltd and the agreement with YouYi to promote online game on our website.

Off-line: HuaJu has signed several agreements to promote its 3G space cards, such as the agreement with Gome Electrical Appliances Holding Ltd., the largest chain store operator of electrical appliances in China to distribute its 3G digital space cards to Gome customers; an agreement with HURRAY, a NASDAQ listed company, for the launch of 3G experience terminals in Gome's stores; an agreement with ManGoCity, and a promotion agreement with Z-Card. HuaJu also got exclusive right from AIDS Prevention Education Project for Chinese Youth to negotiate with investors to install LED displays in the colleges and universities across China. All LEDs will have HuaJu and CnBoo's logo on it.

The Company has shown increasing popularity as its CnBoo web sites had been ranked No.1 on Microsoft Live, No.1 on Google China, No.7 on BaiDu, No.11 on Yahoo China and No.12 on Google China when searching for keywords: on-line video, and on-line video sharing web sites recently. The Company also has launched its new version for enhanced functionality.

The Company has changed its name to China YouTV this year to reflect its new business operations: the fast growing video sharing web site market in China.

Forward-looking statements

This report contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this report are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion.

The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.

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