SOURCE: China Digital Communication Group

April 25, 2007 16:04 ET

China Digital Communication Group Announces Strategic Repositioning

LOS ANGELES, CA and SHENZHEN, CHINA -- (MARKET WIRE) -- April 25, 2007 -- China Digital Communication Group (OTCBB: CHID), a manufacturer of battery components in China, announced today that it has initiated a strategic repositioning of the company with the sale of its subsidiary Galaxy View, International. The transaction was valued at US $3 million.

China Digital said it is working on other potential acquisitions that will restructure the company.

Xu Zhongnan, CEO of China Digital Communication Group, said, "Shortly after our acquisition we experienced unfavorable delays in the collection of Galaxy View's accounts receivable because of the bargaining power of its largest customer, who holds a great share of the market. Our vendors had to be paid immediately, which put pressure on our working capital to continue operations. As a result, we decided to sell the division."

Zhongnan said, "Our company is now actively looking for merger and acquisition candidates in several attractive industries. We believe the sale of Galaxy eases the pressure on our working capital and we look forward to finding and acquiring other promising companies. There are numerous opportunities in China today and we intend to capitalize on them."

About China Digital Communication Group

China Digital Communication Group owns Shenzhen E'Jenie Science and Technology Development Co. Ltd. E'Jenie manufactures and sells advanced high-quality lithium-ion battery shell and cap products to all major lithium-ion battery cell manufacturers in China and has recently begun manufacturing complete batteries. E'Jenie's products are used to power mobile phones, MP3 players, laptops, digital cameras, PDAs, camera recorders and other consumer electronic digital devices. China Digital Communication Group is continuing to seek acquisitions in new global markets, including the United States. For more information, visit http://www.chinadigitalgroup.com or contact Jacky Jiang of China Digital Communication Group at (626) 432-5427, e-mail: chinacso@chinadigitalgroup.com.

An investment profile on China Digital Communication Group may be found at http://www.hawkassociates.com/chidprofile.aspx.

For investor relations information regarding China Digital Communication Group, contact Frank Hawkins or Ken AuYeung, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com. To receive free e-mail notification of future press releases for this company, sign up at http://www.hawkassociates.com/email.aspx.

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

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