SOURCE: China Media Group Corporation

March 07, 2006 07:54 ET

China Media Group Corporation Announces Update on Distribution of M.A.G.I.C. Communication Device

CEDAR HILL, TX -- (MARKET WIRE) -- March 7, 2006 -- China Media Group Corporation (OTC BB: CHMD) ("CMG") announces today that the prototype for the M.A.G.I.C. Convergent Communication device is on schedule to be available in April 2006. As announced previously, CMG has the sole distribution rights to the M.A.G.I.C. Convergent Communication device for China and Hong Kong.

Mobile Advanced Global Integrated Communicator (M.A.G.I.C.) is one of the world's first true convergent devices for the ubiquitous platforms of today. M.A.G.I.C. is a laptop computer miniaturized to the size of a handheld device, and incorporates a mobile phone, digital camera and global positioning device, and is probably the most powerful true convergent multimedia device of its kind in the world today. M.A.G.I.C. can deliver rich multimedia experiences like a powerful desktop PC because of its powerful hardware, comprising Intel's fastest mobile processor, inbuilt graphics accelerator and high fidelity audio codec.

Mr. Con Unerkov, Chairman of China Media Group, stated, "M.A.G.I.C. is a one of the key mobile devices for our strategic mission to be China's leading new age media companies through the use of new technologies and devices combined with traditional media of TV, newspapers, magazines, billboards and the internet to reach today's mobile society. By having the true convergent device capable of delivering the video services underpins our Mobile and IP TV strategy." In 2005, about 85.5 million mobile phones and about 3.0 million laptops were sold in China.

Mr. Unerkov added, "M.A.G.I.C. is really a mobile video communicator that unleashes new opportunities in information, entertainment and advertising. We are already in discussion with software developers for smart user interface, mobile contents providers for financial data, print and video media, and select advertisers. Once the M.A.G.I.C. prototype is available we can put some of these contents onto the device to demonstrate potential services that can be delivered, and approach channel partners and distributors."

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 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.

Contact Information