Acquisition of Stellar Mega Media Empire from Mr. Qin Hui Cost Starwin Media Holdings Inc $225 Million

Acquisition of Stellar Mega Media Empire from Mr. Qin Hui Cost Starwin Media Holdings Inc $225 Million

April 13, 2006

    LOS ANGELES, April 13 /Xinhua-PRNewswire/ -- Starwin
Media Holdings Inc. (OTC: SWMD) announced today that the
acquisition of Stellar Mega Media Empire from Mr. Qin Hui
cost Starwin $225 million.

    Both parties have been negotiating since August 2005
and have reached a final agreement on February 25, 2006. 
In the agreement, Starwin to immediately acquire from Mr.
Qin 70% stake of Strategic Media International Limited for
a consideration of $25 million in stock and cash.  Under
the agreement Starwin shall raise an additional capital of
$200 million for Stellar Mega Media Group of Companies. 
Mr. Qin shall provide audited financial statements prepared
by an acceptable U.S. firm of auditor; transfer the
ownership of Stellar Mega Media Group in China to Starwin,
and hand-over of management and board to Starwin.  

    Currently, Starwin is planning to take over the media
empire, and also to restructure the management and heavy
debit structure.  Starwin is seeking assistances from the
regulatory agencies, Finance Department, and China Stock
Exchange Commission.  Based on the financial information
provided by Mr. Qin Hui (who directly and indirectly
controls).  Stellar Mega Media Group has a total debt of
more than RMB 2 billions equivalent to $250 million with
net assets of not less than $350 million.  The injection of
$200 million as capital by Starwin for Stellar Mega Media
Group is not sufficient to settle the current debts of the
group, and Starwin plans to raise an additional 
US$50 million to payoff Stellar's debts.

    List of creditor banks in mainland China of Stellar
Group are: Minsheng Bank, Construction Bank, Huaxia Bank,
Beijing Bank, Guangdong Development Bank, Pudong
Development Bank, Merchant bank, Bank of Communication,
Shenzhen Development Bank, Citic Bank, Industrial Bank,
Bank of China, CIBC, Agriculture Bank, Nanjin Commercial
Bank, Everbright Bank, Zhongguanchun Quantee Company,
Sanshen Credit Union, Bank of China-Hong Kong Branch. 

    For more information, please contact:

     Wendyfer Zhong
     President of Starwin Media Holdings Inc.
     Tel: [phone]

SOURCE  Starwin Media Holdings Inc.