SOURCE: China Digital Communication Group

August 01, 2005 07:10 ET

China Digital Communications Group Exceeds Sales Projection for Second Quarter 2005

SHENZHEN, CHINA and LOS ANGELES, CA -- (MARKET WIRE) -- August 1, 2005 -- China Digital Communications Group (OTC BB: CHID) announced that its net income for the second quarter of 2005 was $698,656, approximately 800% greater than the Company's net income for the second quarter of 2004.

The Company's revenue for the second quarter of 2005 was $3,316,327, 234.46% greater than the Company's revenue for the first quarter of 2004.

The Company's cost of sales for the second quarter of 2005 totaled 73.68% of net sales compared to 80.60% of net sales for the second quarter of 2004. The percentage decrease was due to the maturity of the Company's production process and improvements made to increase the Company's efficiency. In addition, the Company's operating expenses for the second quarter of 2005 were 4.11% of net sales, compared to 10.84% of net sales for the second quarter of 2004. The decrease was primarily due to the growth in the Company's revenue for the second quarter of 2005.

China Digital Communication Group Chairman and CEO Yi Bo Sun is pleased that revenue for the second quarter of 2005 exceeded the Company's earlier projection and that the Company's overall performance is continuing to produce strong results.

"The Company has continued to expand and develop its products over the last several quarters and its strong performance in the second quarter of 2005 resulted from an increase in market demand for the Company's products and from its new marketing strategy of increasing product sales by continuing to diversify its customer portfolio," said Yi Bo Sun.

About China Digital Communication Group

China Digital Communication Group (OTC BB: CHID), through its Shenzhen E'Jenie subsidiary, is a rapidly growing manufacturer of battery shells and related technology for use in electronic products, primarily mobile phones. Since December 2003, the Company has adopted the approach of using licenses, joint ventures, mergers and acquisitions to bring battery and telecom equipment makers in China to markets overseas. The Company's products now power digital cameras, camera phones, PDAs and laptop computers in East Asia and beyond. China Digital is continuing its expansion across China while also seeking distribution partners in the United States.

For more information on China Digital, go to its website at www.chinadigitalgroup.com.

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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