China YouTV Corporation
OTC Bulletin Board : CYTV

October 26, 2007 08:00 ET

China YouTV's JV Partner Signs Revenue-Based Agreement to Distribute Advertising on CnBoo

BEIJING, CHINA--(Marketwire - Oct. 26, 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 Shanghai Vekee advertising Co. Ltd., (Vekee), a leading online advertising company in China, to distribute advertising on CnBoo.

"Vekee" is a leading startup corporation focusing on online media advertising. "Vekee" currently works with more than 20 mainstream media enterprises in China, and has access to limitless advertising resources.

Per the agreement, "Vekee" will provide online advertising content for distribution on the CnBoo platform. Each advertisement will be subject to a revenue-sharing agreement. The duration of the agreement is one (1) year with an additional automatic one (1) year extension if both parties are satisfied with first year outcomes.

"This is the first long-term revenue based contract the Company has signed," said Mr. Wei, the CEO of CYTV. "This is a milestone that demonstrates our movement towards sustained profitability. We are very pleased to cooperate with renowned enterprises such as Vekee and we believe that our growing business will bring increased opportunities in the future."

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, and the recently signed agreement with Music Nation and VVSky to add more music on its web site and the recent advertisement exchanged agreement with 3g4a's subsidiary: Unlimited Chance Technology Development Co. Ltd.

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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