SOURCE: China Media Group Corporation

February 15, 2006 08:16 ET

China Media Group Corporation Announces Update on Co-Operation With Harbin Shengdong Advertising Co. Limited on Nine Outdoor Signs in China

CEDAR HILL, TX -- (MARKET WIRE) -- February 15, 2006 -- China Media Group Corporation (OTC BB: CHMD) ("CMG") announces today that further to the announced cooperation with Harbin Shengdong Advertising Co. Limited ("Shengdong") recently, the company is now in advanced discussions with Shengdong on acquiring an interest in nine outdoor signs in Harbin, China, which can bring in an estimated annual revenue of about US $550,000 (RMB4.5 million) after signing of the agreement.

Harbin has a population of about 9.7 million people and is the capital of Heiliongjiang Province. In 2004, according to an iResearch Consulting Group report, the adspent in Heiliongjiang Province was approximately US $207 million.

Mr. Con Unerkov, Chairman of China Media Group, stated, "We are in advanced discussions with Shengdong on taking up an interest in these nine outdoor signs in Harbin. This will give the Group a start in a key northeast coastal province in China and more importantly, build our revenue base in this business segment of the Group."

Mr. Unerkov further added, "We are aggressively pursuing the outdoor sign businesses as this is a growing segment of the advertising market in China. The estimated revenue from the nine signs in Harbin provides a rough indication of the potential revenue from the outdoor signs business, and bodes well for the revenue potential of the recently announced 600 outdoor signs in the ChaoYang District in Beijing. We hope to successfully conclude our negotiations and commence our operation in Harbin during this quarter."

About Shengdong:

Harbin Shengdong Advertising Co. Limited is a company incorporated in China with office in Harbin. Shengdong currently offers advertising outdoor, television, newspaper and magazine in the city of Harbin.

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 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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