China YouTV Corporation
OTC Bulletin Board : CYTV

November 13, 2007 08:30 ET

China YouTV's JV Partner Signs Music Promotion Agreement

BEIJING, CHINA--(Marketwire - Nov. 13, 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 an agreement with Beijing Da Sheng Chang Xiang Culture Broadcasting Co., Ltd. (hereinafter referred to as "DSCX") to promote the latest album of Chinese popstar Zhang Bo Hong on CnBoo.

An 18-year-old musical sensation, Zhang Bo Hong is a rising star on the Chinese pop music scene. His latest single, "Beijing Aboriginal", is a huge hit and has topped the Music Soundchart for the past five weeks.

Under the terms of the agreement, CnBoo users can listen to all 14 songs from Zhang Bo Hong's newest album for free online.

"There is no question that this non-profit promotion will greatly increase traffic to all areas of the CnBoo website," said Mr. Wei, CEO of CYTV. "Like Radiohead, who released their latest album "In Rainbows" using an innovative, online distribution method, the music industry is moving away from traditional distribution channels into a new era. This is leading edge thinking in the music industry, and CnBoo is proud to be working with online marketers to jointly develop this new business stream, which we anticipate will be a huge revenue generator."

As it has become easier to download music online, traditional CD sales are declining. Distributing music via innovative, online agreements is a new approach for musicians who want to get their music into the hands of fans in a faster, more economical way. CnBoo is poised to enter this new business model at the very beginning of its popularity, ensuring the company benefits from the anticipated growth of this sector.

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 several agreements, which are, among others, an agreement for CCTV's TV program "Exploring High and Low", an agreement with ManGoCity, a travel company, and an agreement to host "HABBO Original DV Shorts Contest" on CnBoo to enhance its on-line contents for raising brand awareness and membership.

2. Meanwhile, the Company has also signed several revenue-based contracts, including an agreement with 21 Century Network Co., an agreement with TianWei, and an agreement with Beijing Jiahe Interactive Network Technology Co., Ltd. These agreements coincide with the company's strategic plan to increase membership and interest in CnBoo, while moving towards sustained profitability.

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.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