China YouTV Corp.
OTC Bulletin Board : CYTV

March 23, 2007 13:56 ET

China YouTV's JV Partner Has Bundled Contract With Largest Chain Store in China

BEIJING, CHINA--(CCNMatthews - March 23, 2007) - China YouTV Corp. (OTCBB:CYTV), a publicly traded company that recently entered into the growing online video viewing market in China, reported that its Joint Venture Partner HuaJu NetMedia ("HuaJu")has a bundled contract with Gome Electrical Appliances Holding Ltd. ("Gome") (SEHK:0493), the largest chain store operator of electrical appliances in China, to distribute its 3G digital space cards.

HuaJu, our JV partner in China, operates www.cnboo.com ("CnBoo"). CnBoo is a leading video sharing platform in China. According to the contract, we will take advantage of our sophisticated network platform - CnBoo to provide DV (digital video) and cell phone users of Gome with free value-added services such as 3G space, online video conversion and storage, image storage and 3G videos download. Gome, the largest chain store operator of electrical appliances in China, will use its publicizing platform to promote CnBoo and our 3G digital space cards, and in conjunction with its terminal malls, extend value-added service cards provided by CnBoo to users by binding them with DV and cell phone sold, working with CnBoo to provide end users with the value-added service of 3G digital space cards.

It is estimated that Gome will sell 20 million DV and cell phones this year. If every such digital product client of Gome gets one 3G digital space card, we will issue 20 million cards this year. Our 3G digital space card has a face value of RMB120 (approx. $15.50 USD). Upon acquisition of 3G space cards from Gome, by activating accounts and passwords, users may enjoy a full range of value-added services worth RMB120 provided by CnBoo free for 1 year. To better serve its users, CnBoo will add high-performance servers to provide VIP users with backup storage services by disc matrix and special VIP pathways, the system will allow VIP users to create access including, among others, change password, authorize secondary passwords, video conversion & storage, album, album video technology service and video format conversion & download.

"We expect this bundled agreement will increase Cnboo's brand name substantially, and when 3G space card users get familiar with our services, they will continue using them in the future," said James Wei, CEO of HuaJu.

CnBoo 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. CnBoo web site is similar to YouTube (www.YouTube.com), the No. 1 online video site. Within less than 2 years, CnBoo already has over 1.2 million members and over 1 million pieces of original digital video (DV) shorts.

About China YouTV Corporation:

The Company has 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 will own 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.

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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