China Digital Communication Group Projects Triple-Digit Increase in Sales for First Quarter 2005; Maker of Mobile-Phone Battery Components Cites Strong Demand and Continued Trend of Sharp Production Hikes.

SHENZHEN, China & LOS ANGELES -- China Digital Communication Group (OTCBB:CHID), one of the fastest growing battery components production companies in China, today offered sales and profit guidance for first quarter 2005.

For the first quarter of 2005, ended March 31, the Company projects revenue of approximately $2.71 million, up 250% from unaudited pro forma revenue of $774,000 in the first quarter of 2004. Net income in the first quarter of 2005 is expected to be approximately $630,000, or $0.01 per fully diluted share, up from unaudited pro forma loss of ($518,000), or ($0.09) per fully diluted share, in the year-earlier quarter.

The Company cited a continued trend of sharply increasing demand and production, along with continuing cost controls, in arriving at its sales and profit estimates for the quarter. "The projected increase in sales is large but, we believe, reasonable based on recent trends," said Yi Bo Sun, China Digital's chairman and chief executive officer. "It reflects the rapid growth we have been seeing for the past several quarters in demand for our products and in our production capacity. China Digital has seen sharp increases in orders from mobile-phone manufacturers for its battery shells and caps, and we have recently increased both our physical capacity and our workforce to meet this demand. We believe both that we are in a long-term wireless boom and that we have the ability to increase our market share substantially."

Within the past two months, China Digital's Shenzhen E'Jenie unit has taken two significant steps to increase production. In February, it moved to a new plant in Shenzhen, China, with at least 40% more production capacity than its previous location. In March, it hired 65 more production workers to increase output at its factory, which already was operating on a 24 hour basis. During the first quarter of 2005, preliminary figures show that the Company's unit volume of battery shells and caps rose 25% from the fourth quarter of 2004, to 63.85 million from 51.21 million. This increase was reflected in a 21% sequential rise in sales at Shenzhen E'Jenie, to $2.71 million (estimated) in the first quarter of 2005 from $2.39 million in the fourth quarter of 2004.

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 September 30, it acquired its operating subsidiary, E'Jenie Science & Technology Co. Ltd. (Shenzhen 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 Shenzhen E'Jenie, as if China Digital had owned the subsidiary for the comparable period.

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About China Digital Communication Group

China Digital Communication Group (OTCBB:CHID), 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 on China Digital, go to its website at 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.