SOURCE: China Media Group Corporation

April 30, 2008 08:17 ET

China Media Group Corporation Chairman of the Board Issues Letter to Shareholders

SAN ANTONIO, TX--(Marketwire - April 30, 2008) - China Media Group Corporation (OTCBB: CHMD) ("CMG") announces today that the Chairman of the Board of Directors, Mr. Con Unerkov, has released the following letter to shareholders:

Dear Fellow Shareholders:

It has been a while since we last communicated with you on the progress your company has made. The purpose of this letter is to provide you with an update on our business, the developments / achievements, some background and an update on each of our business units for the fiscal years 2007 and year-to-date 2008.

Company Overview

I would like to restate our mission statement which is to become one of China's leading new age advertising and media companies through the use of new technologies and devices combined with traditional media of TV, Newspapers, Magazines, Billboards and Internet to reach today's mobile society.

The fiscal year 2007 has been a year where we have strengthened our position in all business units and continued to position ourselves strategically in the lucrative but often complex Chinese market place. During the last 12 months we have built on our existing opportunities and have secured additional opportunities that are complimentary to our current business which we anticipate will lead to greater wealth for all shareholders.

Our registered office is in the United States (San Antonio - Texas) and our principal operation is in Asia with offices in China, Hong Kong, Malaysia and Australia.

The Company's board and management are focused in 5 specific sectors:

--  Beijing Ren Ren - A China Media subsidiary that has undertaken on
    behalf of the Chinese Government to manage the project named, "Great Wall
    of China Project."
--  Advertising - Focus on advertising through Billboards (Outdoor /
    Indoor), Television, Radio, Short Message Services, Newspaper, Magazine,
    Internet.
--  Digital - Focus is to become a leading new age "Online Advertising"
    and a collection of "Information Portal Websites" aimed at the Chinese
    market.
--  Television - Focus on providing solutions to both the Mobile and
    Internet (IP) TV markets. Will evaluate additional opportunities when and
    if they become available.
--  Telecom & Mobile Computing - Focus on Convergent Devices and
    Application Services.
    

Major Projects / Acquisitions / Investments

The Company has been busy on a number of initiatives and projects. Listed below are some of the projects that the Company is currently working on that we anticipate will be further advanced in the remainder of 2008:

--  Beijing Ren Ren Health Culture Promotion Limited, has undertaken on
    behalf of the Chinese Government to manage the project named, "Great Wall
    of China Project" which has been granted the task of promoting health
    awareness and health education to the Chinese people under the United
    Nations Millennium Development Goals Program;
--  Beijing Chao Yang District: Approval for 800 outdoor signage billboard
    locations;
--  Beijing No. 6 Hospital: Build 20 lighted signage boards -- 9 have
    already been built;
--  Joint Venture agreement with Harbin Shengdong Advertising Co. Ltd to
    acquire controlling interests on 9 outdoor billboard signs and to develop
    new outdoor billboard signs in Harbin;
--  CHMD currently owns 18% equity stake in Guangzhou Waho Culture & Media
    Co., Ltd which has the exclusive rights to implement and operate the China
    TieTong Guangdong Yellow Pages Directory Service;
--  Acquired the sole distribution rights for China and Hong Kong for the
    Mobile Advanced Global Integrated Communicator (M.A.G.I.C.);
--  Changsha Central Hospital: Cooperative agreement with Changsha Central
    Hospital to undertake both indoor and outdoor advertising placements;
--  Outdoor Hospital Advertising rollout targeting 10 hospitals @ 15 signs
    per hospital;
--  Construction of online directory search engine and website for China
    TieTong Communications Co., Ltd. Guangdong Branch Yellow Page online
    directory and rights to certain advertising rights on the website;
--  Marketing and revenue share agreement with a telecom solutions
    provider for its web call solution platform which puts an online interested
    audience in direct contact with the advertiser so that they can communicate
    with each other;
--  Advanced discussions with the board and major shareholders of
    Guangzhou Waho Culture & Media Co. Ltd. ("GWCM") to acquire the majority
    interest in GWCM and apply for immediate quotation on the US OTCBB market;
    and
--  Entered into a Memorandum of Understanding with Premium AG Sdn Bhd
    ("PAG") to investigate the opportunity of establishing a joint venture
    company in China focusing on the outdoor advertising market.
    

Business Unit: Beijing Ren Ren Health Culture Promotion Limited ("BRR")

BRR, a subsidiary of China Media Group, was incorporated in the Peoples Republic of China in the year 2005. It has undertaken on behalf of the Chinese Government to manage the project named, "Great Wall of China Project" which has been granted the task of promoting health awareness and health education to the Chinese population under the United Nations Millennium Development Goals Program.

The Chinese Government has undertaken to the United Nations that it will promote health education and health awareness on certain issues to 85% of its citizens by 2015. Issues such as AIDS, Hepatitis, Disease Prevention, Children's Health, etc. Recently, bird flu highlights the importance of health education.

The Chinese Central Government has set up an association to oversee this commitment made to the UN. The association has appointed BRR to perform this benevolent work on behalf of the Chinese Government. Accordingly BRR applied for and has received the nationwide advertising license from the Chinese Central Government.

The BRR & Great Wall of China website is http://www.8085.com.cn/

Business Unit: Advertising

China Media's "Advertising" business unit was established with a focus on advertising through: Billboards (Indoor / Outdoor), Television, Radio, Short Message Service, Newspapers / Magazines, Online / Internet.

Our strategy is to secure advertising placements through our partners and through acquisitions, and then work with advertising agencies and advertising placement agents to sell these ad placements.

Our intention is to develop a nationwide advertising platform throughout China so that our customers have the ability to rollout their advertising programs through one supplier.

We specialize in ad placements in major cities and working with government bodies / partners to secure high profile ad placement sites. In addition we plan to undertake hospital advertising and specialize in the health sector to work with hospitals nationwide and target domestic and international healthcare companies.

The company has the approval for 800 outdoor signage locations to build a network of outdoor signage boards in Beijing and has currently engaged an aggressive hospital rollout plan of 10 hospitals each with a rollout of 12-15 billboards / light boxes per hospital.

China Media also entered into an agreement with Harbin Shengdong Advertising Co. Ltd to acquire controlling interests on 9 existing outdoor billboard signs and to develop new outdoor billboard signs in Harbin.

China Media also entered into a Memorandum of Understanding with Premium AG Sdn Bhd ("PAG") to investigate the opportunity of establishing a joint venture company in China focusing on the outdoor advertising market. PAG is a Malaysian corporation founded in 1997 that focuses on the outdoor advertising industry. They specialize in providing effective advertising and branding solutions to their clients ranging from medium to large size billboards while also including street furniture. PAG currently has over 80 billboards of medium and large size in various locations in Malaysia. As for street furniture PAG holds the concession rights to display advertisements on the back of public payphone booths that cover both Telekoms and Unipoles payphone booths (over 80,000 nationwide).

Business Unit: Digital

China Media's "Digital" business unit aims to become a leading new age "Online Advertising" and a collection of "Information Portal Websites" aimed at the Chinese Market. Its mission is to acquire, own and manage a portfolio of internet portal assets with a focus on assets with stable earnings and cash flows, strong market positions, barriers to entry and the potential for further earnings improvement.

The business unit focuses much of its attention in the areas of: "Advanced Information Portals," "Advertising" and "Value Added Services."

China Media currently owns approximately 18% equity interest in Guangzhou Waho Culture & Media Co., Ltd ("GWCM") which was incorporated in the People's Republic of China and has the exclusive rights to implement and operate the China TieTong Guangdong Yellow Pages Directory Service and all associated value added services (Online & Print). The website for Guangzhou Waho Culture & Media Ltd is www.waho.com.cn and the website for China TieTong Guangdong Province Yellow Pages is www.cttyp.com We are in advanced discussions with the board and major shareholders of Guangzhou Waho Culture & Media Co. Ltd. ("GWCM") to acquire the majority interest in GWCM and apply for immediate quotation on the US OTCBB market.

China Media entered into an agreement to acquire a controlling equity interest in Level One Communications (M) Sdn Bhd which was incorporated in Malaysia and provides an array of "Voice," "Data," "Wireless" and "Virtual" products and services. The website for Level One Communications (M) Sdn Bhd is www.level-one.com.my.

China Media entered into a marketing and revenue share agreement with a telecom solutions provider for its webcall solution platform with an aim to add the platform to our online advertising platform on the directory and search engine website for the China TieTong Communications Co., Ltd. Guangdong Branch Yellow Page Online Directory.

Business Unit: Telecom & Mobile Computing

China Media's "Telecom & Mobile Computing" business unit strategy is to provide the necessary tools to facilitate the use of new technologies and devices with more traditional based media to reach today's mobile society.

In addition our aim is to provide access to an end to end delivery platform either via a direct deployment or via partners and secure access to content partners and introduce mobile computing services including push email, online financial information, real time information, Mobile IP TV, Location Based Services (LBS), managed Value Added Network Services.

China Media has secured the sole distribution rights for China and Hong Kong for the "Mobile Advanced Global Integrated Communicator" (MAGIC). MAGIC is a laptop computer miniaturized to the size of a handheld device, and incorporates a mobile phone, digital camera and global positioning device, and which we believe to be one of the most powerful true convergent multimedia devices of its kind in the world today.

MAGIC is still very much an exciting opportunity for the Company. I personally visited the development office of MAGIC in Malaysia last month and left excited with where it currently is at and it's potential for the Company. We anticipate that we will be in a position shortly where we will be able to provide a more detailed update.

Closing Remarks

The management team and our Board of Directors are committed to building a strong brand and we believe the investments and steps we have made will help build greater wealth for all shareholders in the years ahead. As can be seen by the opportunities above there is a significant amount of potential and we are committed to delivering positive results to our shareholders.

In the coming year, based on the level of resources at our disposal, we will continue to focus on building our business operations, increasing our sales efforts and increase our profile within the investment community.

Much progress has been made in our Company this year and as always we would like to thank our employees for their commitment and our investors for their continued support.

Sincerely,
Con Unerkov
Chairman of the Board of Directors

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 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 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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