-- Net Income Up 478% and Revenues Increase 242% Year-over-Year in Q3 2005 -- LOS ANGELES and SHENZHEN, China, Nov. 15 /PRNewswire-FirstCall/ -- China Digital Communication Group (OTC:CHID) (BULLETIN BOARD: CHID) , one of the fastest growing battery components manufacturers in China, announced today that it has filed its Form 10-QSB for the third quarter ended September 30, 2005 at http://www.sec.gov/. Financial results were slightly higher than its previously announced guidance issued in a press release on November 1, 2005. The Company reported third quarter 2005 revenues of $3,405,238, representing an increase of 242% compared to pro-forma unaudited revenues of $994,963 in the third quarter of 2004 and 2% greater than revenues of $3,316,327 reported in the second quarter of 2005. The Company attributes its triple-digit growth trend to the expansion of the Company's product lines to meet the needs of its existing clients and to service new clients gained in the third quarter of 2005 as compared to 2004. The Company reported net income of $748,488, or $0.01 per fully diluted share, in the third quarter of 2005, representing an increase of 478% compared to unaudited net income of $129,441, or $0.00 per fully diluted share, reported in the third quarter of 2004. On a sequential basis, net income in the third quarter of 2005 increased 7% from net income of $698,656 reported in the second quarter of 2005. Share calculations are based on fully diluted shares outstanding totaling 54,460,626 in the third quarter of 2005 and 47,975,000 in third quarter of 2004. The Company's cost of sales for the third quarter of 2005 totaled 71.08% of net sales compared to 75.56% of net sales for the third quarter of 2004. The percentage decrease was due to maturity of the Company's production process and improvements made to increase efficiency. The Company's operating expenses for the third quarter of 2005 were 3.72% of net sales, compared to 10.88% of net sales for the third quarter of 2004. This decrease was primarily due to the growth in the company's revenue in the third quarter 2005. Through its wholly owned subsidiary, Shenzhen E'Jenie ("E'Jenie"), China Digital manufactures and distributes lithium battery shells and related products primarily in China. Based upon specifications from its customers, E'Jenie develops, customizes and produces steel, aluminum battery shells (ABS), aluminum caps, and lithium batteries for mobile phones, PDAs and MP3s and other small electronic consumer products. Yi Bo Sun, China Digital's Chairman and Chief Executive Officer, stated, "During the third quarter, we continued to ramp-up our production lines to meet new orders for our products, including continued growth in our ABS product line. In addition to serving an expanded client base, we are focused on building new distribution channels that can grow our domestic market share and create an international presence. With our recent test product agreement to sell our lithium ion batteries throughout 20 stores of a major U.S. retailer, we are making strides in serving the consumer electronics market overseas. We expect our strong growth trend to continue through the fourth quarter of 2005 and beyond." Use of Pro Forma Past Results Sales and earnings comparisons with 2004 are based on pro forma figures. For the first three quarters of 2004, China Digital was a shell company with no significant revenues. On November 15, 2004 it acquired its operating subsidiary, E'Jenie Science & Technology Co. Ltd. ("E'Jenie"). In order to present an accurate picture of revenue and profit trends, the results stated here for 2004 consist of sales and profit from E'Jenie, as if China Digital had owned the subsidiary for the comparable period. About China Digital Communication Group China Digital Communication Group, through its Shenzhen E'Jenie subsidiary, is a rapidly growing manufacturer of battery shells and related technology for use in electronic products, primarily mobile phones. Since December 2003, the Company has adopted the approach of using licenses, joint ventures, mergers and acquisitions to bring battery and telecom equipment makers in China to markets overseas. The Company's products now power digital cameras, camera phones, PDAs and laptop computers in East Asia and beyond. China Digital is continuing its expansion across China, while also seeking distribution partners in the United States. For more information, visit http://www.chinadigitalgroup.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. For further information, contact: At the Company: China Digital Communication Group Roy Teng 310-461-1322 E-mail: http://www.chinadigitalgroup.com/ Investor Relations: OTC Financial Network Peter Clark 781-444-6100, x629 http://www.otcfn.com/chid DATASOURCE: China Digital Communication Group CONTACT: Roy Teng of China Digital Communication Group, +1-310-461-1322, ; or Peter Clark of OTC Financial Network, +1-781-444-6100, ext. 629, Web site: http://www.chinadigitalgroup.com/

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