Yangtze Telecom Corp.

Yangtze Telecom Corp.

October 12, 2006 05:42 ET

Yangtze Telecom Commences Operation of Wireless Digital TV Network in Ulan Bator, Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2006) - Yangtze Telecom Corp. (TSX VENTURE:SMS) is pleased to announce that it has officially launched its wireless digital TV service in Ulan Bator, Mongolia on October 1, 2006. The Company issued trial units to select customers about a month ago for feedback on signal quality. The results have been very positive. The consensus from this trial user group is that the Company's wireless digital network provides the best TV signals in terms of clarity and stability ever available in Mongolia.

The first shipment of 1,000 TV set top boxes is already in Ulan Bator. Another shipment of 300 mobile receivers plus antennae for automobiles will be shipped to UB from Beijing next week. While the size of this premium automobile digital TV market may be smaller than that for households, the Company is confident that the positive publicity from its sheer availability will help promote the digital TV service in Ulan Bator.

"During the last two months, in addition to getting the hardware ready, we have also been busy training our sales and customer service staff. Our plan is to sell 1,000 units each month in this last quarter of 2006. The total price of the set top box and one year's subscription is about USD200. At the moment, we already have about 500 customers signed up and we plan to start delivering the wireless TV set top boxes to these customers starting next Monday, October 16. We are very excited to be able to provide this first ever wireless digital TV service in Ulan Bator, a market that has been grossly underserved by the existing cable infrastructure," said Kevin He, CEO of Yangtze Telecom.

About Yangtze Telecom Corp.

Yangtze Telecom Corp. is a provider of telecom value-added services for consumers and businesses in China and Mongolia. The Company is focused on business applications utilizing a combination of satellite platform, the internet and wireless data communication technologies. Key applications to date are the Credit Management System, Wireless digital broadcasting and Distance Learning. For further information on Yangtze Telecom Corp., please visit the Company's web site at www.yangtzetelecom.com.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of, the contents of this press release.

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