China Media1 Corp.
OTC Bulletin Board : CMDA

China Media1 Corp.

November 21, 2006 13:31 ET

China Media1 Reports Profitable 3rd Quarter US$750,000 Deposit to Stay With Guangzhou Baiyun Airport

IRVINE, CALIFORNIA--(CCNMatthews - Nov. 21, 2006) - China Media1 Corp. (OTCBB:CMDA) wishes to announce that we have filed the quarterly Form 10-QSB for the quarter ended September 30, 2006. During the third quarter, our Chinese advertising properties generated Revenue of $592,938 (all in US$), $218,073 in Operating Income and $164,324 in Net Income despite a traditionally slow quarter for advertising in the Chinese market. The $164,324 was then brought into the Company's P/L as Net Income from Contract Rights (please see Note 10 of the financial statements for details). The presentation of revenue from contract rights on a net basis is SEC approved and according to US GAAP. The non-cash accounting related entries associated with convertible financing that had a negative effect on the Company's net income turned around and added almost nine hundred thousand dollars to the bottom line. We reported a Net Income of $934,527 for the quarter)

In addition, China Media1 has also received a letter from the Guangzhou Baiyun International Airport asking us to make arrangements for the RMB 6 million (approx. US$ 750,000) that we had deposited in August 2005 for the 50 outside scrolling light box advertising locations. We have decided to leave this deposit with the Airport at an Agricultural Bank account until a decision has been reached concerning the contracts. We are in the process of consulting with the Airport to rectify the confusion over the original contracts.

About China Media1 Corp.:

China Media1 Corp. has obtained rights to premiere Chinese advertising media assets in China. Its affiliate, Guangzhou Chuangrun Advertising Co. Ltd., operates the advertising space and advertising contracts with top-tier brand names and multi-national corporations as well as large advertising agencies. China Media1 has focused on providing its clients superior advertising locations based on viewership, exclusivity, and uniqueness through the use of its illuminated scrolling poster signs. China Media1's advertising locations include the Airports in Shenzhen, Chengdu, Haikou and Xian, and the Guangzhou MTR (12 Subway Stations). China Media1's website is www.chinamedia1corp.com.

Forward-Looking Statements:

Any forward-looking statement in this press release is made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertain-ties including, but not limited to, economic and political factors, technological developments, regulatory matters and increased competition. The Company disclaims any obligation to update any such factors or to publicly announce results of any revisions to the forward-looking statements contained herein to reflect future events or developments.


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