SOURCE: China Media Group Corporation

March 16, 2007 06:01 ET

China Media Group Corporation Enters Sale and Purchase Agreement to Acquire 50% of Beijing Ren Ren Health Culture Promotion Limited

CEDAR HILL, TX -- (MARKET WIRE) -- March 16, 2007 -- China Media Group Corporation (OTCBB: CHMD) ("CMG") announces that on March 13, 2007, it entered into a Sale and Purchase Agreement to acquire 100% of the issued and outstanding shares of Good World Investments Limited which owns 50% of the registered capital of Beijing Ren Ren Health Culture Promotion Limited ("BRR").

BRR is a company incorporated in the People's Republic of China and is working with the Chinese Government on a benevolent project named "Great Wall of China Project" to promote health education and health awareness to the Chinese public.

Mr. Con Unerkov, Chairman of China Media Group stated, "We are delighted to finalize this transaction which has taken a little over 12 months. Its completion is a significant milestone for CMG. We are excited to be involved in this important national health awareness and educational program. In this connection, BRR provides a strategic advertising platform for CMG to launch its advertising operations in China, and the unique ability to reach all corners of China under the benevolent program."

As a background, the Chinese Government has undertaken to the United Nations to promote health education and awareness on certain health issues such as AIDS, Hepatitis, Disease Prevention, Children's Health, etc. to 85% of its citizens by 2015.

The Chinese 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. The United Nations project website is www.un.org/millenniumgoals/ The Great Wall of China Project website is http://www.unmdg.com/

Key Points:

--  BRR can advertise nationwide covering the media: billboards,
    television, newsprint, magazines and internet.
--  BRR is permitted to provide advertising both inside and outside of
    Hospitals in a controlled market.
--  BRR is permitted to provide advertising in all residential estates in
    China.
--  BRR is permitted to provide advertising on mobile hand held devices.
--  The Great Wall of China Project is "exclusive to Ren Ren" to
    perform/achieve this milestone for the Chinese Government
    
BRR has been busy on a number of initiatives and projects as per below:
--  Beijing ChaoYang District -- Approval to roll out over 600 outdoor
    billboards/signs in this very high profile district where the majority of
    foreign consulates, ministries and the 2008 Olympic Village are located.
--  Beijing No. 6 Hospital -- Outdoor advertising initially for 20 light
    boxes at Beijing No. 6 Hospital situated in the prestigious Dongcheng
    district which includes the Central Government of China, more than 20 State
    Departments, over 100 Bureau Departments, 200 Beijing City Committee and
    City Governmental Divisions.
--  Street Light Boxes located on a road near Russian Embassy -- Outdoor
    advertising in one of the most prosperous areas in Beijing on Dong-Zhi-Men-
    Bei-Zhong Road in the district of Dongcheng.  Initially to modify the
    existing 12 light boxes and to build another 12 on the adjacent side of the
    road.
--  Dalian Goal Media Limited -- Magazine advertising for the Chinese
    magazine "iVogue."
--  DreamWorks Movie & TV Culture Media Co. Ltd -- Mobile TV and
    advertising in the Chinese province of Hunan.
--  Harbin Shengdong Advertising Co. Ltd -- Outdoor advertising in the
    city of Harbin.
    
Mr. Pui Kit Lam, Chairman of BRR stated, "We are eagerly looking forward to working with China Media Group Corporation on the Great Wall of China Project and to launch the health awareness and education programs. China Media will bring invaluable contacts outside of China to further our joint objectives of creating health awareness through education. What better way than advertising and promotion through old and new media in China. We have been talking to China Media for well over a year now and we look forward to working with the quality team that makes up the China Media Group."

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 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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