China Broadband Corp. Forms A Joint Venture To Provide Cable Internet Access In Hunan Province,...

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)

China Broadband Corp. (OTCBB:CBBD), an Integrated Broadband Provider,announced today that its operational subsidiary Big Sky Network Canada Ltd., has signed a preliminary cooperative joint venture agreement with Changsa Guang

This new joint venture will use the cable TV infrastructure and Internet service provider license of Changsa Guang Da to provide broadband Internet access to both commercial and residential subscribers, initially in Changsha, the provincial capital, and thereafter throughout Hunan Province. Changsha Guang Da currently provides cable television service to some three million subscribers throughout Hunan province.

The joint venture will commence operations in Changsha, a market of approximately 450,000 cable television subscribers upon receiving approval from the Ministry of Information Industries ("MII").

"We are very pleased to have the opportunity to expand our presence in the Chinese cable Internet market in this strategically important Hunan province," said Mr. Daming Yang, President of China Broadband.

"This exclusive arrangement ensures that the Company will be well placed to develop a full service Internet solution to key communities in Hunan Province, following the pattern we have established in Shekou, Chengdu, and Deyang," added Matthew Heysel, Chairman and Chief Executive Officer of China Broadband. "During its 18-year term, this agreement gives us 65% of the net income in the first 5 years, 50% in the next 5 years and 40% for the remaining years. Our capital commitment over the life of the joint venture is up to US$18 million which is staged as required. Having already proven that the cable TV Internet broadband service is viable in China, we look forward to early approval from MII and rapid deployment."

About China Broadband

China Broadband is a leading cable broadband provider in China. The Company was formed to provide Internet technology to enable reliable, low-cost, high-speed Internet access over the modern hybrid fibre-optic coaxial Cable Television architecture in China. The Company, through its operational subsidiary, Big Sky Network, forms cooperative joint ventures with municipal governments, which own local cable television stations. These joint ventures provide Internet technology services to enable cable Internet access as government approvals are obtained.

ChinaBroadBand Corp. Calgary, Alberta, Canada Beijing, People's Republic of China www.chinabroadband.com

Note: The information contained in this press release contains "forward looking statements" within the meaning of the U.S. Federal Securities Law. Such statements are based on the current expectations of the management of China Broadband Corp. only, and actual results may differ materially. Factors that may affect such results include, but are not limited to, China Broadband's ability to realize anticipated benefits from the strategy partnership with Nortel Networks, China Broadband's ability to increase its subscriber bases in Shekou and Chengdu, China Broadband's ability to enter into new joint ventures to expand its presence in China, China Broadband's ability to obtain additional capital to meet its on-going capital requirements and capital for expansion needs, potentially adverse regulatory environment and governmental regulations, technological or competitive developments that may render existing systems obsolete, uncertain demand for China Broadband's services or products, potential inability to timely develop and introduce new technologies, products and services, failure to receive on a timely basis necessary permits or other governmental approvals, and delays in installing equipment or providing services. These factors and many others could cause the actual results or performance to differ materially from management's expectations. For a more detailed discussion of risks and other factors related to China Broadband please refer to its 10-KSB and 10QSB reports filed with the U.S. Securities and Exchange Commission.