China YouTV Corporation
OTC Bulletin Board : CYTV

February 25, 2008 08:30 ET

China YouTV JV Partner Signs Agreement to Host "Video Creativity Competition" on CnBoo

BEIJING, CHINA--(Marketwire - Feb. 25, 2008) - China YouTV Corp. (OTCBB:CYTV), a publicly traded company that provides online video viewing services through its CnBoo web site in China, reports that its Chinese Joint Venture Partners HuaJu and Hangzhou Julian Technology Co., Ltd. (Julian) have signed an agreement to jointly host a Video Creativity Competition on CnBoo.

The contest began on January 7, 2008 and will last for eight weeks. According to the contract, HuaJu will provide technical support and launch a dedicated channel on CnBoo for the contest. All candidates can join the competition and upload their video to CnBoo. Total prizes of RMB9,000 (approximately US$1,300) will be provided by Julian.

According to data from video contest clearinghouse VidOpp.com, 192 video contests with cash prizes were featured on variety sites in 2007, with prizes totalling $1,095,425. Video contests may be held for any number of reasons - to encourage brand loyalty, to create new viral video sensations, or to leverage "crowd-sourcing" for new entertainment concepts - but one thing is certain: video contests are on the rise.

Big brands such as Home Depot, LG Electronics and Sony have been getting into the act and have been successful in promoting related projects or increasing recognition and interest from customers. HuaJu is following this trend to increase membership and raise awareness of CnBoo.

"Taking a great idea from concept to completed product is quite possible using today's technology. Oftentimes, the only thing that prevents individuals from generating revenue from a completed product is an inability to share it with the public. For this reason, we are glad to provide a platform to all candidates who have a concept they want to show the world," said Mr. James Wei, CEO of CYTV. "With this contest, anyone can demonstrate their talent to the public, not just netizens. All of these efforts will translate into increased value of the Company."

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.

In order to increase membership and brand name awareness as well as moving the company towards sustained profitability, we have worked both on-line and off-line.

On-line:

1. HuaJu has signed a series of agreements to enhance its on-line content for raising brand awareness and membership.

- Travel

- launched a video site of CCTV's TV program "Exploring High and Low".

- launched value-added travel services together with ManGocity.com.

- Entertainment & Events

- Sulake Corporation Ltd. (HABBO) to host "HABBO Original DV Shorts Contest" on CnBoo;

- VVSky Broadband Media Group to acquire short video programs to feature on CnBoo;

- Beijing TaiDe Interactive Technology Co. Ltd. to cooperate on video sharing contents;

- BeiJing SiHaiDongXing Culture and Media Ltd. to develop online videos for high-speed internet users;

- Youyi Chunqiu Network Technology Ltd. Co. to promote online game "Pick" on CnBoo;

- Asia Media Group to promote "Creative Tube"-Global Awards of Chinese New Media Creative Tube Contest on CnBoo;

- Music

- Music Nation Records Company Ltd. to use its audio and video files on CnBoo;

- Shanghai Yue Sheng Information Technology Co., Ltd. to launch an exclusive music shopping channel on CnBoo;

- Beijing Da Sheng Chang Xiang Culture Broadcasting Co., Ltd. to promote an album of Chinese pop star Zhang Bo Hong on CnBoo;

- Beijing Baiyi Xingtu Culture Co., Ltd. and Beijing Bermu Culture Development Co., Ltd. to launch online streaming service on CnBoo;

- Beijing Tianyu Brothers Information Technology Co., Ltd. to enhance the online content of CnBoo's new music channel;

- Beijing Feixingzhe Records Co., Ltd. and Beijing Dasheng Xianzhi Culture Co., Ltd. to legally broadcast new songs on CnBoo's Music Channel;

- Comedy

- Bejing Megadia Company to host Humor channel on CnBoo;

- Advertising

- Unlimited Chance Technology Development Co., Ltd. to share and exchange advertising resources;

- Shen Zhou Yipin Advertising Co., Ltd. to promote CnBoo on trains.

2. The Company has signed several revenue-based contracts to move towards sustained profitability.

- 21Century Network Co.: signed a cooperation and revenue sharing agreement for "Special DV Shorts" channel on Vnet;

- TianWeiYuanChang Co.: HuaJu is entitled to 70% of the profit from online advertisements with TianWei content;

- Beijing Jiahe Interactive Network Technology Co., Ltd.: Both parties work together to launch a new category "Video House" on CnBoo. HuaJu will be entitled to 40% of revenue generated from the advertisements;

- Shanghai Vekee Advertising Co. Ltd.: signed a long-term revenue based contract to distribute advertisements on CnBoo;

Off-line:

HuaJu has signed several agreements to promote its 3G space cards as well as to increase the brand name awareness.

1. Cooperation with Gome: The Company signed a contract with Gome to use its publicizing platform to promote CnBoo and 3G digital space cards, meanwhile the Original DV contest will be hosted in Gome's selected stores during major Chinese holiday.

2. Cooperation with Z-CARD UK: The Company has been officially appointed as the first agent for Z-CARD's advertisements of major consumer sectors in Greater China.

3. Cooperation with APEPCY (AIDS Prevention Education Project for Chinese Youth): The Company was exclusively authorized by APEPCY to negotiate with media operators using LED displays with respect to the cooperation issues concerned. If the Company successfully locates media operators, all LED displays will have CnBoo's logo on them.

4. Cooperation with Cai Hua Media AD Ltd. (Cai Hua): Cai Hua authorized HuaJu to use all LED Screens located in central regions of Hangzhou, Wuhan and Shanghai to broadcast advertisements. HuaJu has made a quotation of 4 RMB per second on average to re-sell the time slot to other customers.

Recent Ranking:

The Company has shown increasing popularity as its CnBoo web sites have been ranked No.1 on Microsoft Live, No.1 on Google China, 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" recently. The Company has also launched its new version for enhanced functionality.

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.

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