SOURCE: China Media Group Corporation

December 09, 2005 08:46 ET

China Media Group Corporation Announces Cooperation With DreamWorks Movie & TV Culture Media Co. Ltd. on Advertising in Hunan Province

CEDAR HILL, TX -- (MARKET WIRE) -- December 9, 2005 -- China Media Group Corporation (OTC BB: CHMD) ("CMG") announces today that it has entered into a cooperation agreement with DreamWorks Movie & TV Culture Media Co. Ltd. ("DMCM") on developing the advertising market for Changsha, the capital of Hunan Province in China.

DMCM is advertising placement agency in the Province of Hunan. DMCM is an agent for Hunan Television and Hunan Satellite Television selling advertising airtime. Currently DMCM clients include Hunan Unicom, Baisha Group who are amongst the larger companies in China. DMCM sells outdoor advertising billboards in Changsha, in particular the highway between the airport and Changsha, a city with a population of over 6.0 million people. DMCM has a creative team to produce television commercials and designs for advertising billboards and campaigns.

In 2004 according to iResearch Consulting Group report, the adspent in Hunan Province was approximately US$147.4 million.

Mr. Xiao wei, general manager of DMCM stated, "We are thrilled to have the opportunity to work with China Media Group to develop health related advertising on the local television stations in Hunan. We believe with China Media Group's diversified international contacts, we should be able to attract overseas advertisers to Changsha and the surrounding cities. We are also excited to work with China Media Group's recently announced pending acquisition of Beijing Ren Ren on its national program promoting health education and awareness." DMCM currently offers advertising on outdoor billboards and television in Changsha, and design advertising campaigns and producing commercials for television.

Mr. Con Unerkov, Chairman of China Media Group stated, "The cooperation with DreamWorks Movie & TV Culture Media Co. Ltd. is another step towards building a nationwide advertising presence in China. We are excited to work with DMCM to leverage their advertising design and television commercial production for our other clients in China. Hunan is strategically located next to Guangdong Province and an ideal stepping stone to offer cross boarder advertising."

About DMCM:

DreamWorks Movie & TV Culture Media Co. Ltd. is a company incorporated in China with office in Changsha. DMCM currently offers advertising on outdoor billboards and television, and advertising design and television commercial production services. About Beijing Ren Ren:

Beijing Ren Ren Health Culture Promotion Limited is a company incorporated in China with office in Beijing. Beijing Ren Ren has been granted a nationwide license in China covering the media of television, newspaper, magazine, outdoor billboards and Internet. Beijing Ren Ren has undertaken the Great Wall of China project, a national program, to promote heath education in China.

Additional information concerning Beijing Ren Ren Health Culture Promotion Limited can be found on the web site at http://www.chinamediagroup.net/renren/

About China Media Group Corporation:

China Media Group Corporation (OTC BB: 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, Shanghai, 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 http://www.chinamediagroup.net

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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