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CHMD .07 China Media Group Corporation Announces Signing of Joint Venture Agreement for Advertising in Harbin, China
Jun 20, 2007 8:26:00 AM

BEIJING -- (MARKETWIRE) -- 06/20/07 -- China Media Group Corporation (OTCBB: CHMD) ("CMG") announces today that its subsidiary company Beijing Ren Ren Health Culture Promotion Limited ("BRR") has signed an agreement with Harbin Shengdong Decoration Advertising Ltd ("Harbin Shengdong") to establish a new joint venture company ("New JV") with a focus on outdoor advertising in the city of Harbin (Heilongjiang Province).

Both parties have reached an agreement in which BRR will invest RMB300,000 (representing 60% of registered capital) and Harbin Shengdong will invest RMB200,000 (representing 40% of the registered capital). All the existing business and assets, excluding any liabilities, of Harbin Shengdong will be transferred to the New JV at a price to be agreed upon by both parties.

Harbin Shengdong currently owns and operates 9 outdoor billboards with an annual revenue of approximately USD200,000 (RMB1,600,000).

Mr. Con Unerkov, Chairman of China Media Group Corporation, stated, "We are delighted to enter into this agreement with Harbin Shengdong. The establishment of this New JV is the commencement of China Media's operations in Harbin. Our initial plan is for the New JV at commencement to own the 9 outdoor billboards with existing customers / revenues."

About China Media Group Corporation:

China Media Group Corporation (OTCBB: CHMD) is a "Next Generation" advertising / media company focusing on the very lucrative Chinese market. It has offices in Beijing, Hong Kong and Texas, USA. The Company was incorporated in Texas on October 1, 2002. The Company is currently entering the fast growing advertising industry in China and plans to expand its offices in key cities such as Shanghai, Guangzhou and Shenzhen. The Company will also cooperate with strategic partners in other cities to serve our clients for nationwide advertising coverage.

Additional information concerning other areas and topics of China Media Group can be found on our web site at http://www.chinamediagroup.net

A number of statements contained in this Report are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Certain written statements in this press release constitute "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Words or phrases such as "should result," "are expected to," "we anticipate," "we estimate," "we project," "we intend," or similar expressions are intended to identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include demand for our services, product development, our ability to maintain acceptable margins and control costs, the impact of federal, state and local regulatory requirements on our business, the impact of competition and the uncertainty of economic conditions in general, including the timely development and market acceptance of products, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses, and other factors. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements, since the statements speak only as of the date that they are made, and we undertake no obligation to publicly update these statements based on events that may occur after the date of this document.

Contact:
China Media Group Corporation
San Antonio, Texas
[e-mail]