SOURCE: China Media Group Corporation

June 12, 2007 07:31 ET

China Media Group Corporation Announces Rollout of Chinese Hospital Outdoor Advertising Program

BEIJING--(Marketwire - June 12, 2007) - China Media Group Corporation (OTCBB: CHMD) ("CMG") announces today that its subsidiary company Beijing Ren Ren Health Culture Promotion Limited ("BRR") has implemented plans to aggressively target the outdoor Chinese hospital advertising market with a program designed to initially target 10 hospitals, each hospital with an initial rollout of approximately 15 signs making a total of 150 outdoor billboards / light box signs per group of 10 hospitals.

Mr. Con Unerkov, Chairman of China Media Group, stated, "We have stated in the past that advertising in and around hospitals is an important component to support our health education program in China under Beijing Ren Ren's health education and awareness program. We plan to cooperate with Chinese hospitals to secure ad placements both inside and outside the hospital compound, and sell these ad placements to healthcare and pharmaceutical companies both locally and internationally. The process of rollout has already commenced with the current installation of billboards at the Beijing No. 6 Hospital."

Healthcare related advertising in China accounted for approximately USD4,116 million (or about RMB 33,961 million) in 2004 and was ranked as the largest advertising sector representing about 27% of the total adspent in China according to iResearch, a research and consulting group in China.

Mr. Unerkov added, "Healthcare advertising, specifically within Chinese Hospitals, is an area where BRR believes it has a strategic advantage in the market to its competitors. BRR is currently working with a number of Chinese Government Health organizations and through this close relationship, we plan to fast track our program. Our aim is to aggressively grow in groups of 10 hospitals each time. We believe that each grouping of 10 hospitals could bring in revenue in excess of $350,000 per annum and with a gross margin of at least 50% and greater once we have amortized the construction costs of each sign."

Mr. Unerkov added, "This is not a small project, as there are thousands of hospitals in China, and one that will take some time to rollout. There are a number of steps we must adhere to and further information about this exciting project will be provide in due course."

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 Beijing, Hong Kong and Texas, USA. The Company was incorporated in Texas on October 1, 2002. The Company is 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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