SOURCE: China Digital Communication Group

July 12, 2005 06:30 ET

Shenzhen E'Jenie Establishes Strategic Business Partner Relationship With Hangzhou Le Tong

LOS ANGELES, CA and SHENZHEN, CHINA -- (MARKET WIRE) -- July 12, 2005 -- Yi Bo Sun, Chairman and CEO of China Digital Communications Group (OTC BB: CHID), announced today that Shenzhen E'Jenie, a subsidiary of China Digital, has signed a letter of intent to establish a strategic business partner relationship with Hangzhou Le Tong, a major distributor of brand mobile phones, mobile phone batteries and mobile phone accessories.

The benefits of this strategic business partner relationship include:

Each party having the right to use the other party's tangible resources, which include, but are not limited to, its customer base, distribution channel and key marketing personnel.

Each party giving the other party first priority in connection with all business transactions following the effective date of the strategic business partner relationship.

Each party will work with the other party to maximize mutual profit.

Hangzhou Le Tong owns a large distribution channel in the mobile phone industry and has successful relationships with various companies in the industry that should benefit Shenzhen E'Jenie.

Shenzhen E'Jenie is a lithium ion battery components manufacturer that specializes in producing lithium ion battery shells. The company is in an important high-speed development phase, which management believes is an ideal time to begin its new relationship with Hangzhou Le Tong.

About China Digital Communication Group

China Digital Communication Group (OTC BB: CHID), through its Shenzhen E'Jenie subsidiary, is a rapidly growing manufacturer of battery component products and related technology for use in electronic products, primarily mobile phones. Since December 2003, the Company has adopted the approach of using licenses, joint ventures, mergers and acquisitions to bring battery and telecom equipment makers in China to markets overseas. The Company's products now power digital cameras, camera phones, PDAs, and laptop computers in East Asia. China Digital is continuing its expansion across China while also seeking distribution partners in the United States.

For more information on China Digital, go to its website at www.chinadigitalgroup.com.

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products, and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

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