SOURCE: China Broadband

China Broadband

October 06, 2010 14:58 ET

China Broadband Announces Warrant Exchange Offer

NEW YORK, NY--(Marketwire - October 6, 2010) -  China Broadband, Inc. ("China Broadband" or "the Company") (OTCBB: CBBD), a provider of cable broadband services and publisher of digital and analog program guides which, through its recent acquisition of Sinotop Group, is also engaged in the business of providing pay-per-view and video-on-demand services for viewers in the People's Republic of China, today announced an offer by the Company to exchange certain outstanding warrants held by investors for shares of China Broadband common stock (the "Warrants").

Upon the closing of the warrant exchange, and pursuant the terms set forth in a Warrant Exchange Agreement, holders of Warrants issued on January 11, 2008 (the "2008 Warrants") may exchange such Warrants, which are currently exercisable at $0.20 per share for 0.05 shares of common stock. There are currently 8,285,416 of 2008 Warrants outstanding.

In addition, upon closing of the warrant exchange, and pursuant to the terms and conditions set forth in a Warrant Exchange Agreement, holders of Warrants issued on July 30, 2010 (the "2010 Warrants"), which are currently exercisable at a price of $0.05 per share may exchange such Warrants for 0.6 shares of common stock. There are currently 622,591,300 of 2010 Warrants outstanding.

Marc Urbach, the President & Chief Financial Officer of China Broadband says, "We are pleased to be announcing our warrant exchange program. This transaction is intended to improve the Company's capital structure and to build a level of confidence and clarity amongst our current and future shareholders. With the strengthening of our financial position, we are now well-positioned to grow our core business in China's expanding pay-per-view and video-on-demand market."

To participate in the exchange, holders of warrants must tender their Warrants in accordance with the instructions included in the Exchange Offer Statement provided to them no later than 5:00 PM EDT on October 20, 2010.

About China Broadband

China Broadband's historical core business operations have been conducted through its affiliate, and with Jinan Jia He Broadband, also known as "Jinan Broadband," the fifth largest broadband operator in China and the second largest broadband service provider in Shandong's capital city of Jinan. Additionally, through its Shandong Group affiliate, China Broadband publishes digital and analog television program guides, newspapers and entertainment magazines. It holds the exclusive license to publish television program guides in Shandong Province, one of the largest regional economies in China. For more information, visit http://www.chinabroadband.tv. As mentioned above, through its recent acquisition of Sinotop Group, China Broadband is now beginning its engagement in the business of providing pay-per-view and video-on-demand services to viewers located in the People's Republic of China.

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

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