The company announced that it received a RMB 70 mln subsidy from the Beijing Municipal Bureau of Radio & Television for the digitalization of its CATV network (converting cable TV to digital TV) trial project.

In support of the trial project, the company will receive a RMB 100 subsidy for the set-top box in each household. The company will regard this RMB 70 mln revenue as deferred income, which will be allotted over five years, based on the expected lifetime of the set-top boxes. Revenue is projected to be RMB 8,166,666.67 from June to December 2008 (seven months), thus increasing the company's 2008 earnings by RMB 8,166,666.67.

Source: China Securities Journal

Date: 1 July 2008

CN01/RZ/MZ/AR/MM