China YouTV Corporation
OTC Bulletin Board : CYTV

August 21, 2007 12:30 ET

China YouTV's JV Partner Signed Agreement for a Chinese Provincial Portal's DV Shorts Channel

Revenue Sharing Agreement

BEIJING, CHINA--(Marketwire - Aug. 21, 2007) - China YouTV Corp. (OTCBB:CYTV), a publicly traded company that provides online video viewing services through its CnBoo web site in China reported that its Chinese Joint Venture Partner HuaJu signed cooperation and revenue sharing agreement with 21Century Network Co. for "Special DV Shorts" channel on Vnet (http://gd.vnet.cn, "the Channel").

"Special DV Shorts" channel is established by Guangdong Telecom Co., Ltd, a Chinese provincial Telecom company and 21Century Network Co., on the basis of the clients of Guangdong Telecom's Internet portal: Vnet. Guangdong Telecom charge service fee for clients using its services and products, such as downloading DV Shorts, on-line ordering and View-on-Demand for DV shorts etc. on Vnet.

According to the Agreement, HuaJu will provide DV shorts and other contents for "the Channel" and share the revenue with 21Century Network Co. that generated from this Channel.

"We are excited to work with HuaJu's CnBoo on this "Special DV Shorts" channel", said Mr. Peng, Senior Manager of 21Century Network Co. for this cooperation project. "Their recent ranking on various searching engines such as No.1 on Microsoft Live, No.1 on Google China, No. 7 on BaiDu, No.11 on Yahoo China speaks for itself. They are tireless marketers and demonstrate a tremendous enthusiasm and creativity, not to mention results, in their efforts."

"This deal is consistent with our development strategy of increasing the brand name awareness and membership through cooperation with other online web sites." said Mr. Wei, President of China YouTV. "In particular, this deal will also bring us revenue and lay a foundation for future revenue sharing model."

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.

To increase membership and CnBoo's brand name awareness, HuaJu has worked both on-line and off-line.

On-line: HuaJu has signed several agreements to enhance its on-line contents, such as an agreement for CCTV's TV program "Exploring High and Low", an agreement with ManGoCity, a travel company, an agreement with Megadia to host Humor channel on CnBoo web site, and the recently signed agreement with Music Nation and VVSky to add more music on its web site.

Off-line: HuaJu has signed several agreements to promote its 3G space cards, such as the agreement with Gome Electrical Appliances Holding Ltd., the largest chain store operator of electrical appliances in China to distribute its 3G digital space cards to Gome customers; an agreement with HURRAY, a NASDAQ listed company, for the launch of 3G experience terminals in Gome's stores; an agreement with ManGoCity, and a promotion agreement with Z-Card. HuaJu also got exclusive right from AIDS Prevention Education Project for Chinese Youth to negotiate with investors to install LED displays in the colleges and universities across China. All LEDs will have HuaJu and CnBoo's logo on it.

The Company has shown increasing popularity as its CnBoo web sites had been ranked No.1 on Microsoft Live, 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.

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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