SOURCE: China Media Group Corporation

June 14, 2007 08:42 ET

China Media Group Corporation Announces Signing of Advertising Contract for Hospital Advertising

BEIJING--(Marketwire - June 14, 2007) - China Media Group Corporation (OTCBB: CHMD) ("CMG") announces today it has entered into a contract with a trading and distribution company to advertise its herbal medicine product on our hospital sign boards.

Further to our recently announced initiative to build signs in 10 hospitals, we have now signed up this customer who will start advertising initially at the Beijing No. 6 Hospital where we currently have 10 signs constructed. The customer will initially take 2 sign boards, and we are in discussions with them on securing additional placements at the other 9 hospital locations that are part of our initial rollout once they have been constructed.

Mr. Con Unerkov, Chairman of China Media Group, stated, "This is a tremendous response to our stated objective of rolling out advertising in hospitals targeting the healthcare industry. It is a positive step towards building our hospital and outdoor advertising business and we will continue to talk to prospective advertisers and healthcare companies who we hope will take up placements at these hospitals."

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 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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