SOURCE: China Media Group Corporation

March 10, 2008 10:23 ET

China Media Group Corporation to Acquire Controlling Interest in Guangzhou Waho Culture & Media Co. Ltd.

SAN ANTONIO, TX--(Marketwire - March 10, 2008) - China Media Group Corporation (OTCBB: CHMD) ("CMG") announces today that it is in advanced discussions with the board and major shareholders of Guangzhou Waho Culture & Media Co. Ltd. ("GWCM") to acquire the majority interest in GWCM.

GWCM was incorporated in the People's Republic of China in August 2006. Its mission is to become a leading new age "Online Advertising" and "Information Portal Website" for the Chinese Market. It focuses in 4 specific areas: "Advanced Information Portals," "Online Advertising," "Print Media" and "Valued Added Services." GWCM holds the operational rights to the print and online edition to Guangdong Tietong Yellow Pages. Guangdong Tietong is the provincial arm for China Tietong Telecommunications, one of the 6 licensed telecom carriers in China.

Mr. Con Unerkov, Chairman of China Media Group Corporation, stated, "CMG currently owns approximately 18% of GWCM and we are in discussions with the board and major shareholders to increase this stake to become the controlling equity owner. We see significant potential in this business especially in the Chinese market place. The online advertising industry is the highest growing segment in the advertising industry today and China is experiencing the same growth as the rest of the world. In China, the online advertising revenue is expected to grow from US$621 million in 2006 to US$2,188 million in 2010, an annualized growth rate of 37%."

Mr. Unerkov further added, "Our intention is to acquire controlling interest in GWCM and integrate it with our own internal projects. We also plan to immediately take the steps to apply for it to be quoted on the US OTCBB market as its own entity which we believe will provide further capital raising opportunities for the company and increase its current valuation. We will further update the market once all the details have been agreed to."

About China Media Group Corporation:

China Media Group Corporation (OTCBB: CHMD) is a "Next Generation" advertising / media company focusing on the very lucrative Chinese market. It has offices in China, Hong Kong and Texas, USA. The company was incorporated in Texas on October 1, 2002. The Company is currently entering the fast growing advertising industry in China and plans to expand its offices in key cities such as Beijing, Guangzhou and Shenzhen. The Company will also cooperate with strategic partners in other cities to serve our clients for nationwide advertising coverage.

Additional information concerning other areas and topics of China Media Group can be found on our web site at

A number of statements contained in this Report are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Certain written statements in this press release constitute "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Words or phrases such as "should result," "are expected to," "we anticipate," "we estimate," "we project," "we intend," or similar expressions are intended to identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include demand for our services, product development, our ability to maintain acceptable margins and control costs, the impact of federal, state and local regulatory requirements on our business, the impact of competition and the uncertainty of economic conditions in general, including the timely development and market acceptance of products, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses, and other factors. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements, since the statements speak only as of the date that they are made, and we undertake no obligation to publicly update these statements based on events that may occur after the date of this document.

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