China YouTV Corporation
OTC Bulletin Board : CYTV

December 03, 2007 09:02 ET

China YouTV's JV Partner Launches Streaming Service on CnBoo

BEIJING, CHINA --(Marketwire - Dec. 3, 2007) - 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 Partner, HuaJu, has signed agreements with Beijing Baiyi Xingtu Culture Co. Ltd (Baiyi) and Beijing Bermu Culture Development Co. Ltd (Bermu) to build a partnership that will launch on-line streaming on CnBoo.

Per the agreement, CnBoo's Music Channel will legally stream new songs of all artists affiliated with "Baiyi" and "Bermu" at no charge to CnBoo users. Initially this service will be provided for promotional purposes only.

According to iResearch, a leading market research company for China's internet industry, the number of internet users frequenting online music sites reached 100 million in 2005. iResearch predicts this number will double and account for 90% of total internet users in China as early as 2008.

Renowned music companies have recently been drawing attention to the online music market and the inking of a ground-breaking strategic agreement between internet service provider Baidu and international music company EMI, has already set a meaningful precedent for this type of business model.

"The partnership between CYTV, Baiyi and Bermu will provide CnBoo users with even more outstanding online services," said Mr. Wei, CEO of CYTV. "This is a win-win model for both the internet and music industries and CYTV is poised to benefit from the anticipated growth of the online music market."

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.

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 contents 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;

- Comedy

- Bejing Megadia Company to host Humor channel on CnBoo;

- Advertising

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

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 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 advertisement;

- Shanghai Vekee Advertising Co. Ltd: Signed a long-term revenue based contract to distribute advertisement 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, and in the meanwhile to host Original DV contest 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 PAEPCY 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 it.

Recent Ranking:

The Company has shown increasing popularity as its CnBoo web sites had 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 also has 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.

Contact Information