China Digital Media Corporation to Ziegler, Ziegler & Associates: We Are Not a Spammer!

3 June 2005

China Digital Media Corporation (OTC: CDGT; OTC Bulletin Board: CDGT), a Hong Kong based corporation with
operations in Nanhai, China, where one of its major accomplishments is digitalizing a cable television franchise system with over 300,000 subscribers under a government contract, publicly denies the allegations of Scott Ziegler and Ziegler, Ziegler & Associates contained in their complaint filed last week. CDGT states that it did not hire a stock promoter and spammer to distribute e- mails about the company over the internet using the Ziegler domain name. In fact, CDGT denies playing any role in any stock promotion activity that may have caused its stock price to rise at or about the beginning of May 2005.

''We are not aware of any reason for the rise in our stock price other than our reporting in legitimate SEC filings of strong earnings performance and earnings growth over the last year,'' said Daniel Ng, Chairman and Chief
Executive Officer. ''Our Company was a victim of the careless claim made in this case. Our stock price was battered and we were portrayed as being part of a pump and dump scheme, when in reality our Company is a solid performer,'' said Mr. Ng. CDGT has retained counsel and is preparing its defense against the Ziegler complaint. In addition, it is contemplating an action for defamation against the law firm and its principal partner, Scott Ziegler.

''Using spamming tactics and hi-jacking domain names is against everything that I stand for,'' exclaimed Mr. Ng. ''In fact, I am the President of the Hong Kong Information Technology Federation, a non-profit trade association
founded in 1980 with more than 300 corporate members. We provide a forum in which IT-related businesses in Hong Kong can work together for the benefit of the industry, and we sponsor Anti-Spam Legislation," said Mr. Ng.

''Using spam is not how we operate our businesses. We are building value for shareholders through the old fashioned methods of hard work and skillful execution of our business plan. This lawsuit was a reckless personal attack on my company and my integrity, and it will not go unanswered,'' commented Mr. Ng.

About China Digital Media Corporation

China Digital Media Corporation (OTC: CDGT; OTC Bulletin Board: CDGT) is one of the fastest growing companies engaged in the business of broadcasting media and cable TV in the People's Republic of China. The company is the sole contractor and operator of digital television services in Nanhai, a city in the Guangdong province. The Company is realigning its business direction to cover more segments of the media industry through selective investment, mergers, acquisitions and alliance partnerships.

Source: PR Newswire

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