China Film Group and Crest Digital Announce Media Partnership

China Film Group and Crest Digital Announce Media Partnership

April 11, 2007

Multiple Media Ventures Located in the Largest
Entertainment and Studio Facility in Asia


    LOS ANGELES, April 11 /Xinhua-PRNewswire/ -- China Film
Group, the largest state-owned media company in China, and
Crest Digital, a 45-year-old Hollywood-based digital media
services company, today announced the formation of a
Sino-foreign joint venture partnership that will deliver a
full range of home entertainment and technology software
content via multiple digital platforms to mainland China
consumers.  The partnership combines the capabilities of
China's most influential entertainment and media
conglomerates with one of Hollywood's premier media
services and optical technology companies.  For
entertainment and technology content owners, this joint
venture provides a secured critical distribution and
pre-recorded DVD/CD manufacturing solution in China's
highly regulated domestic entertainment and media industry.
 The partnership will also focus on developing emerging
digital content delivery technologies for its clients,
including VOD, IPTV, Internet and mobile.

    "This partnership exists because of the unique
synergy, shared objectives, trust and respect that enabled
a relationship to develop between Crest Digital and China
Film Group," notes Ron Stein, president of Crest
Digital.  "For Crest Digital, it provides us with the
optimum partner and solution in China for our domestic
entertainment and technology customers."  

    The two companies will collaborate on a broad spectrum
of digital media ventures in China including the creation
of a new state-of-the-art DVD and CD manufacturing
facility, scheduled to open outside Beijing in the winter
of 2007.  With an initial land space of more than 800
acres, the complex will be the largest entertainment and
studio facility in Asia.  The world-class facility will be
15,000 square meters and will house 40 standard definition
and high definition DVD replication lines and employ 500
people.  China Film Group will also facilitate government
approval for additional optical manufacturing licenses
targeted for new regions, including South China. 

    The Beijing manufacturing facility is only the first of
several joint ventures planned between the two companies. 
Over the course of the next six to 12 months, the companies
intend to announce additional ventures including one focused
on CD & DVD anti-counterfeiting technology.

    "China Film Group is a critical component for
Hollywood and foreign content owners seeking distribution
of their valuable entertainment optical software and
intellectual property in China," says Eric Loong,
Crest Digital's chief operating officer.  "Crest
Digital is the first digital media services company to
create this type of partnership in China, and we are
honored to be partnered with China Film Group."

    "China Film Group's partnership with Crest Digital
will serve to advance and propel both China and America's
entertainment and media technology industries by blending
the expertise and capabilities of these two
companies," says Yang, Buting, Chairman of the Board
of the new venture.  "This partnership shows the
increasing globalization of our industry and will have a
tremendous impact on the efficiency and technological
advancement of our businesses."

    About China Film Group

    China Film Group is the most dominant and influential
state-run media conglomerate in China.  Its scope of
business spans movie and television content production,
film distribution and exhibition, movie importation and
exportation, cinema circuit management, digital cinema
construction, movie channel, print developing and
processing, film equipment management, digital film
production, CD/DVD manufacturing and advertising.  For more
than a decade, China Film Group's subsidiary, China Film
Import & Export Corporation, has been the sole
government-authorized importer of films.  Movie and TV
production units include: the former China Film
Corporation, Beijing Film Studio, China Youth Film Studio,
China Film Co-production Corporation, China Film Equipment
Corporation, Movie Channel Production Center, Beijing Film
& Video Laboratory and Huayun Film & TV Compact
Disk Co., Ltd.  Each year, China Film Group produces more
than 30 feature films, 400 TV plays and 
100 telefilms.

    About Crest Digital

    Crest Digital is a highly-innovative digital media
services company with a track record of developing
personalized solutions for the global entertainment and
technology industries.  A 45-year-old company based in
Hollywood, California, Crest has provided industry-leading
video, audio, language and DVD/CD media services for major
film studios, record labels, software companies and
industrial clients including Disney, Microsoft, Vivendi
Universal, Earthlink, Symantec, Paramount, Warner Bros.,
Apple, American Airlines, NBC/Universal and Intuit.  The
award-winning company has a well-earned reputation for
developing new technologies including many industry
"firsts," combined with an unwavering commitment
to the industry's highest standards of quality, service and
IP security.  More information is available at:
http://www.crestdigital.com .


    For more information, contact:

     Sara Shiffman
     Tel:   [phone]
     Cell:  [phone]
     Email: [e-mail]