SOURCE: China Media Group Corporation

February 22, 2007 10:04 ET

China Media Group Corporation Announces Cooperative Agreement With DongGuan Zhishixin Advertising Limited for Online Directory for Its 10,000 Advertisers and Subscriber Database

CEDAR HILL, TX -- (MARKET WIRE) -- February 22, 2007 -- China Media Group Corporation (OTCBB: CHMD) ("CMG") announces today that it has entered into a cooperative agreement with DongGuan Zhishixin Advertising Limited ("Zhishixin"), which publishes a weekly advertising Chinese newsprint called "Furniture Material Express," to create an online directory listing of Zhishixin's 10,000 advertisers and subscribers. The second phase of the agreement will be to develop an online B2B trade engine to allow their advertisers and subscribers to sell their products and services on the web.

Zhishixin publishes and distributes about 30,000 copies of a weekly of Furniture Material Express. The publication focuses on furniture advertising and related materials for business-to-business advertisers, customers and subscribers. Furniture Material Express is currently distributed to over 2,000 furniture shops and mailed to over 1,000 subscribers. Mr. Liu Jianxiong, general manager of Zhishixin stated, "Online B2B portal is an integral part communicating information for advertisers to customers. The online directory permits interested parties to search the online directory for industry players and specialized industry information on the web. This creates value for our advertisers in the weekly Furniture Material Express. We are excited to work with China Media Group in adding our advertisers and subscribers onto their online directory engine. Not only are we impressed with the technical competency in web related engines but also with their potential to increase our business through driving web traffic to online directory for parties searching for information on furniture contacts and information."

According to the China Furniture Association, in 2004, the Chinese furniture market (domestic and export market) was estimated at about USD32.7 billion, a growth of 34% over the previous year. For Guangdong province alone, the furniture market was estimated to represent 30% of the total Chinese market. Mr. Liu stated, "Furniture Material Express is the only advertising publication dedicated to this sector. We are currently in most furniture shops in the Guangdong province. By working with China Media Group and utilizing their resources, we will expand Furniture Material Express online."

Mr. Con Unerkov, Chairman of China Media Group, stated, "We are delighted to announce the signing of this cooperative agreement. Online advertising is the fastest growing sector in the advertising industry." According to iResearch, China's online advertising in 2005 was about USD390 million and is forecasted to reach USD575 million in 2006, a projected growth of 48% year on year. Mr. Unerkov further added, "This agreement is the first step to enter the online directory and advertising sector, initially for 10,000 advertisers and subscribers in this specialized furniture industry. We will build from this and seek other specialized industries with captive customers or subscribers for our online directory business. The more subscribers we can capture the more valuable our online advertising revenue. We will seek to either develop this directory engine internally or work with specialized partners or associates, depending on resources and strength of our partners. Furthermore this will complement our recent investment in Guangzhou Waho Culture & Media Co., Ltd., which has an online directory business in Guangdong Province, China. The second stage of the cooperation with Zhishixin is to create a B2B engine. This is exciting for us as we expect many of our advertisers will request a medium to trade their goods or services online. This will compliment their traditional advertising in print or billboard to bringing the advertisers online and an opportunity to sell their goods or services on the web."

About DongGuan Zhishixin Advertising Limited:

DongGuan Zhishixin Advertising Limited publishes a weekly advertising newsprint called "Furniture Material Express." This publication is focused on advertising for furniture and related materials. Zhishixin was established in 2005 and is based in DongGuan, China. It publishes and distributes about 30,000 copies weekly to over 2,000 furniture shops and over 1,000 subscribers. In addition, Zhishixin attended over 40 trade exhibitions in China in 2006. At each trade show, it has booths to distribute and promote Furniture Material Express, increasing the exposure for its advertisers beyond the local distribution channels.

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 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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