The company recently received a notice issued by the Ministry of Finance and the State Administration of Taxation, stating that for a period beginning on 1 Jul 2008 and extending to 30 Jun 2011, the company will be exempted from paying business taxes on its digital cable TV basic view maintenance revenue. Currently, the company charges RMB 18.00 per month per household as the maintenance fee.

According to preliminary estimates, the company's net profit for 2008 will increase by RMB 5 mln, due to the above-mentioned exemption.

Board of Directors
7 Nov 2008


Source: Shanghai Stock Exchange

Date: 7 Nov 2008

CN01/CW/RL/JE/KM