LOS ANGELES and SHENZHEN, China, Nov. 14 /PRNewswire-FirstCall/ -- China Digital Communication Group (OTC:CHID) (BULLETIN BOARD: CHID) , a growing Chinese battery components manufacturer and supplier of 3G telecommunications equipment, announced today that revenue in the third quarter ended September 30, 2006 was $4,031,596, up 18.4% from $3,405,238 in Q3 '05. Net income for the quarter was up 76.1% to $1,317,960, or $0.02 per basic and diluted share, compared with $748,488, or $0.01 per share, in the third quarter of 2005. For the first nine months of 2006, revenue was $10,242,953, up 6.4% from $9,629,077 in the first nine months of 2005. Net income was $2,528,848, or $0.05 per share, up 16.3% from $2,175,084, or $0.04 per diluted share in the comparable nine-month period a year earlier. At the end of the quarter, cash and cash equivalents were $1,160,521 and current assets totaled $6,926,303. Cost of sales for the third quarter was $2,364,631, compared to $2,420,281 in Q3 '05. Interest expense increased from $8,421 in Q3 '05 to $69,636 in Q3 '06, which was a result of a loan obtained for the acquisition of Galaxy View International. Selling, general and administrative fees for the third quarter totaled $288,301, compared to $171,606 a year ago. This $116,695 difference was primarily due to an increase in accounting, legal and professional fees and also general and additional expense from Sono Digital, a wholly owned subsidiary of Galaxy View International, that was not included in the Q3 '05 numbers. China Digital CEO Ran Liang, said, "We had a profitable third quarter. The increases in revenue and net income were the result of our acquisition of Galaxy View International at the end of the second quarter, as were the increases in interest expense and cost of sales. Galaxy View is integrating well into our business model, and we are beginning to see the benefits." About China Digital Communication Group China Digital Communication Group has two wholly owned subsidiaries, Shenzhen E'Jenie Science and Technology Development Co. Ltd. and Galaxy View International. E'Jenie manufactures and sells advanced high-quality lithium-ion battery shell and cap products to all major lithium-ion battery cell manufacturers in China and has recently begun manufacturing complete batteries. E'Jenie's products are used to power mobile phones, MP3 players, laptops, digital cameras, PDAs, camera recorders and other consumer electronic digital devices. Galaxy View, through its subsidiary Sono Digital, is a leading supplier of third-generation (3G) communications technology and equipment in China. China Digital Communication Group is continuing its expansion, while seeking distribution partners and acquisitions in new global markets, including the United States. For more information, visit http://www.chinadigitalgroup.com/. An investment profile on China Digital Communication Group may be found at http://www.hawkassociates.com/chidprofile.aspx. For investor relations information regarding China Digital Communication Group, contact Frank Hawkins or Ken AuYeung, Hawk Associates, at (305) 451- 1888, e-mail: . An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com/ and http://www.americanmicrocaps.com/. Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission. DATASOURCE: China Digital Communication Group CONTACT: Frank Hawkins or Ken AuYeung, both of Hawk Associates, +1-305- 451-1888, . Web site: http://www.chinadigitalgroup.com/

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