China Media Group Corporation (OTC BB: CHMD) (“CMG”) announces today that it plans to provide advertising through telecommunication devices to broaden its advertising reach. Advertising messages transmitted by SMS including interactive advertising are the new age advertising medium that will continue to grow with increasing success and consumer acceptance to location-based ads, opt-in advertising and advertisers-supported premium contents.

In November 2005, there were over 390 million mobile users in China, and they sent over 274 billion SMS messages, generating about RMB 27 billion, an increase of [40]% of messages sent over 2004. China Media Group intends tap into this growing segment to provide advertising to the masses. Mr. Con Unerkov, Chairman of China Media Group, stated, “Technology is moving so fast today we need to prepare our business for the new advertising medium. We view the convergence of telecom, media and television fast becoming a reality, and we intend to be actively developing this business segment in Greater China. We are exploring several opportunities that would provide us a platform to launch the TMT convergent services, first in the telecommunication SMS sector.”

Xinhua News Agency reported recently that by 2006, there will be over 440 million mobile users in China, an increase of about 12% compared to 2005.