China YouTV Corp.
OTC Bulletin Board : CYTV

April 06, 2007 04:11 ET

China YouTV's JV Partner Becomes the First Advertising Agent for Z-Cards of UK in Greater China

BEIJING, CHINA--(CCNMatthews - April 6, 2007) - China YouTV Corp. (OTCBB:CYTV), a publicly traded company that recently entered into the growing online video viewing market in China reported its Joint Venture Partner, HuaJu NetMedia ("HuaJu") has been officially appointed as the first agent for Z-Card in Greater China. HuaJu will become an official agent for Z-Card's advertisements of major consumer sectors in Greater China, focusing on, among others, mobile phones, digital products, home appliances, travel and financial fields.

The Z-Card is a new form of advertising that has been gaining popularity in Europe in recent years. The Z-Card company of UK has recently registered the patent in many countries across the world, and is set to enter the Chinese market in 2007. The planned type of entitlements card is in the folding Z-shape, although it has evolved into other variations like C, K, M and N-shapes. Z cards are often used by governments and businesses. These cards usually are made as maps, product labels, instruction manuals and brochures, and are distributed for free at public places such as airports, train stations and hotels.

HuaJu stated it currently has the right to manufacture and distribute with respect to several businesses advertising on Z-Cards in China. In the near future, the Z-cards will be used as stored-value of mobile phones and tourist tickets, among others. At that time, the cards will feature the corporate logo of CnBoo, the website jointly owned by China YouTV and HuaJu for distribution across the country.

The new Z-Card business will also closely link CnBoo's video sharing business, and CnBoo will customize special video columns for each vendor partner, thereby making video sharing enter commercial fields. This is also the first professional web site in China which is making market inroads in corporate video sharing.

Mr. Wei, CEO of HuaJu, also director of the ChinaYouTV said, both large domestic companies and multinational corporations are very interested in the Cnboo's cooperation in the Z-Card business, and several of them have already started negotiations with CnBoo. It is predicted by the Z-Card organization that over one billion Z-cards will be launched in the Chinese mainland market in the coming years., although Cnboo conservatively does not project the portion of those jointly launched cards which it will capture.

As stated before, China YouTV's strategy is to increase its membership on CnBoo and grow its franchise as quickly as possible. The opportunity to partner with Z-Cards and enter the corporate market place should help Cnboo realize its growth potential as soon as possible. China YouTV owns fifty-one percent of the Joint Venture that owns the Cnboo web site and the on-line video viewing market.

About China YouTV Corporation:

The Company signed a Definitive Agreement with HuaJu NetMedia to set up a Joint Venture in China on March 16, 2007. According to the Agreement, the Company 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, and customer contracts to the Joint Venture. ("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 (, the No. 1 online video site in operation. Within less than 2 years, CnBoo already has over 1.2 million members and over 1 million pieces of original digital video (DV) shorts.

Recently, HuaJu signed a bundled contract with Gome Electrical Appliances Holding Ltd. ("Gome", HK stock symbol: 0493), the largest chain store operator of electrical appliances in China to distribute its 3G digital space cards to Gome customers. Management believes that this should result in a significant growth in membership for CnBoo.

HuaJu has also signed an agreement with one of the most prestigious institutions in the TV media business in China - China Central Television (CCTV), to launch a video site of CCTV's TV program "Exploring High and Low" on the CnBoo web site. Management believes that this should result in a significant growth in membership for CnBoo.

Finally, HuaJu entered into a profit sharing agreement with a leading value-added mobile service and software technology provider in China, HURRAY, a NASDAQ listed company, for the launch of 3G experience terminals, which are designed to provide consumers with more direct services and interaction with the Cnboo website. Management believes that this should result in a significant growth in membership for CnBoo.

As stated above, one of the goals of Cnboo is to increase its membership as quickly as possible through products such as 3G space cards, which in this business, as in the case of YouTube, could translate into an increased value of the CnBoo franchise.

The Company has changed its name to China YouTV to reflect its new business operations: the fast growing video sharing web site market in China, and at the same time, to continue its exploration of mineral properties in British Columbia, Canada.

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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