China Digital Reports Sharp Production Increase in First Quarter; Demand for Battery Shells and Caps Leads to 25% Rise in Unit Volume; Employee Base Increases by over 12%.

SHENZHEN, China & LOS ANGELES -- China Digital Communication Group (OTCBB:CHID), one of the fastest growing battery components production companies in China, today reported preliminary factory data for the first quarter of 2005, showing rapid sequential growth in its production of battery shells and caps. It also announced that, in response to high product demand it increased its production force by 12% when it hired 65 new production employees during March 2005.

Based on initial estimates for the quarter ended March 31, 2005, the total production of shells and caps at China Digital's Shenzhen E'Jenie unit reached 63.85 million units, 25% higher than the 51.21 million units produced in the prior quarter, ended December 31, 2004. The increase was due to sharply higher demand for caps (up 42%) and aluminum shells (up 69%).

Yi Bo Sun, China Digital's Chairman and CEO, commented: "The latest production numbers from E'Jenie continue last year's trend of rapid growth at E'Jenie, which we attribute both to the robustness of the battery market, driven especially by demand for mobile phones, but also the superior product quality and production efficiency of E'Jenie itself. Our decisions to move to a substantially larger plant and to expand our workforce testify for our belief that the expanding demand for our products is no short-term phenomenon, and that we will continue to gain a larger share of a growing market."

The Company reported that it has been increasing its production lines to almost two full-time shifts. In order to increase production and market share, it hired 65 workers at its plant in Shenzhen, China during March. This workforce expansion followed China Digital's move in February to a larger Shenzhen plant with at least 40% more production capacity than the Company's former location.

The Company will provide a guidance showing the impact of this increased demand on the first quarter and full year 2005 revenues within the next two weeks.

To be added to China Digital's investor e-mail list, please contact Zack Noory of Investor Relations International at [e-mail].

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.