China YouTV Corporation
OTC Bulletin Board : CYTV

August 14, 2007 10:54 ET

China YouTV Corp.: Strong Growth Trend in Internet Video in China Continues

BEIJING, CHINA--(Marketwire - Aug. 14, 2007) - China YouTV Corp. (OTC Bulletin Board:CYTV), a publicly traded company that provides online video sharing services through its CnBoo web site in China today highlights data showing that Internet video continues its strong growth trend in China.

The Data Centre of the China Internet's 2007 report reveals that online video has become the hotspot of Internet development in China, with 76 million users in 2006. The audience for View-on-Demand or Live View was even higher at 98 million users in 2006, with a market size of about US $80 million. The Centre forecasts this market will increase by 33 per cent to US$107 million in 2007.

"We continue to be encouraged by these numbers, as this type of growth is certainly remarkable and the sheer size of these numbers demonstrates the potential of China's Internet video market," said James Wei, President of China YouTV Corp., which operates CnBoo as a joint venture with China's HuaJu.

"To capitalize on this fast growing market, we have worked both on-line and off-line," added Mr. Wei. "We have entered into agreements with various content providers to enhance our offerings, partnered with retailers such as Gome to distribute our 3G Space Cards and we sponsor various events to increase our brand name awareness."

Since 2006, China has experienced a rapid increase in various forms of online video content distribution, including P2P technology, micro video sharing and online TV. The report from the Data Centre of the China Internet highlights growth in investments in China's online video market, coupled with increases in applications, online video service providers and users.

These trends have generated interest from TV stations and traditional advertising agencies in China. China held its first Online Video Advertising Conference in Beijing in April, providing a communication and networking platform for online video companies, traditional media and advertising agencies. China will also host an Online Advertising Festival in August.

Mr. Wei said China YouTV Corp. and HuaJu will continue its strategy to establish CnBoo as the leading choice in China for online video.

"We are pleased with our advancements and look forward to further developments as we see Internet video grow in popularity and become more and more of a mainstream utilization of the Internet," said Mr. Wei.

For more information, please go to www.chinayoutv.com.

About China YouTV Corporation:

The Company signed a Definitive Agreement with HuaJu to set up a Joint Venture in China on March 16, 2007. According to the Agreement, the China YouTV Corp. owns 51% of the joint venture company and will provide the required working capital for the Joint Venture. HuaJu will be in charge of the daily operation of the Joint Venture. HuaJu has agreed to conduct its video sharing business only through the Joint Venture, and has agreed to contribute its web site, www.CnBoo.com and customer contracts to the Joint Venture.

www.CnBoo.com ("CnBoo"), is the online video site belonging to the Joint Venture established by China YouTV Corp. and HuaJu. It is a video viewing site and social networking site that allows users to create their own profiles, post videos, and comment on each other's posts. The CnBoo web site is similar to YouTube (www.YouTube.com), the No. 1 online video site in operation. Within less than 2 years, CnBoo already has over 1.2 million members and over 2 million pieces of original digital video (DV) shorts.

To increase membership and CnBoo's brand name awareness, HuaJu has worked both on-line and off-line.

On-line: HuaJu has signed several agreements to enhance its on-line contents, such as an agreement for CCTV's TV program "Exploring High and Low", an agreement with ManGoCity, a travel company, an agreement with Megadia to host Humor channel on CnBoo web site, and the recently signed agreement with Music Nation and VVSky to add more music on its web site.

Off-line: HuaJu has signed several agreements to promote its 3G space cards, such as the agreement with Gome Electrical Appliances Holding Ltd., the largest chain store operator of electrical appliances in China to distribute its 3G digital space cards to Gome customers; an agreement with HURRAY, a NASDAQ listed company, for the launch of 3G experience terminals in Gome's stores; an agreement with ManGoCity, and a promotion agreement with Z-Card. HuaJu also got exclusive right from AIDS Prevention Education Project for Chinese Youth to negotiate with investors to install LED displays in the colleges and universities across China. All LEDs will have HuaJu and CnBoo's logo on it.

The Company has shown increasing popularity as its CnBoo web sites had been ranked No.1 on Microsoft Live, No.7 on BaiDu, No.11 on Yahoo China and No.12 on Google China when searching for keywords: on-line video and on-line video sharing web sites.

The Company has changed its name to China YouTV this year to reflect its new business operations: the fast growing video sharing web site market in China.

Forward-looking statements

This report contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this report are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion.

The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.

Source: China YouTV Corporation

Contact Information