China YouTV Corporation
OTC Bulletin Board : CYTV

April 16, 2008 09:02 ET

China YouTV's JV Partner Participates In Digital Music Download Market

BEIJING, CHINA--(Marketwire - April 16, 2008) - China YouTV Corp. (OTCBB:CYTV), a publicly traded company that provides online video viewing services through its CnBoo website in China, reports that its Chinese Joint Venture Partner HuaJu has signed an authorization agreement with Beijing Melting Point Ark Cultural Development Co., Ltd. (Melting Point Ark) to promote its published albums.

On April 3, 2008, Apple announced it has overtaken Wal-Mart to become the top music retailer in the US, based on the latest data from the NPD Group(1). iTunes has sold over four billion songs, accounting for more than 70% of worldwide online digital music sales(2). "The steady increase in downloads for the iTunes Store demonstrates the remarkable shift from the purchase of physical CDs to the virtual world of music retailing," stated James Wei, CEO of CYTV.

"While the world's leading music companies such as Sony BMG, Universal Music Group and Warner Music are forming strategic partnerships with MySpace to compete with Apple, Wal-Mart or Amazon, we need to face the reality that music has gone digital. In answer to this trend, CYTV has reached out to music providers such as Melting Point Ark to promote their songs and offer free trials on our CnBoo website. This is a "routine strategy" for all beginners providing online services and products to increase exposure and membership. For now, the songs and other content are free to download but charges will apply in the near future as CnBoo gains more popularity in China."

1. http://www.apple.com/pr/library/2008/04/03itunes.html

2. http://www.reuters.com/article/musicNews/idUSN0132743320071203?page
Number=3&virtualBrandChannel=0 (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your internet browser's URL address field.)

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, 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 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 Co. Ltd. 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;

- Hangzhou Julian Technology Co., Ltd. to jointly host a Video Creativity Competition on CnBoo.

- Beijing Zhide Diankang E-Business Co. Ltd. (Zhide) to exchange online video resources.

- 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.

- Cai Hua Media AD Ltd. to explore innovative financing opportunities.

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.

Recent Ranking:

As of October 2007, 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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