China Digital Wireless, Inc. Continues Rapid Growth of Out-of-Home Digital Television Advertising Business; Advertising Revenue Increases 90% from Prior Quarter; Approximately 600 Digital Television Locations Installed in Shanghai.

SHANGHAI, China -- Company Targets Placement of 1,200 Locations in Shanghai by End of 2005 And 10,000 Throughout China by End of 2006

China Digital Wireless, Inc. (OTC BB: CHDW), a leading distributor of mobile phones and provider of out-of-home digital television advertising media in Shanghai, People's Republic of China, announced today that it has reached a significant milestone in the development of its digital television advertising business.

The Company's out-of-home digital television advertising strategy is similar to that of Focus Media, Inc. (NASDAQ NMS: FMCN) and Target Media Holdings, Ltd. According to a report published on July 14, 2005 by Forbes.com, Focus Media recently completed a $170 million IPO led by Goldman Sachs and CFSB. The same article reported that Target Media is planning a U.S. IPO and recently received an investment of $20 million from the Carlyle Group, a large private equity investment firm.

However, the Company's business model has a major competitive advantage. Because the Company's locations promote national charities, in addition to displaying advertising sponsored content on its screens, the Company pays no location costs. Therefore, one of the largest operating costs has been eliminated. The Company believes that such location costs may constitute as much as 30% of the direct costs of its competitors based upon its analysis of publicly available information.

The Company launched its out-of-home digital television business earlier this year, after it secured a coveted Digital Television Broadcast license. Through the installation of digital flat screen televisions and donation boxes for a national charity in various locations in Shanghai the Company is delivering out-of-home advertising using its exclusive broadcast spectrum.

China Digital management believes that they are now well positioned to expand throughout China in the rapidly growing out-of-home digital television advertising industry. The Company expects to broaden its placement of digital television from the Shanghai region to locations across China in 2006, with a target of 10,000 locations throughout the country by the end of 2006.

With the continuing growth in the number of digital television locations, the Company anticipates revenue from its digital media advertising sales will continue to increase. The Company expects that its digital television advertising business will be a substantial source of earnings in 2006 and beyond. Further, the Company anticipates that profit margins from this segment of the Company's business will be considerably higher than the Company's other business segments.

As of August 22, 2005 the Company has placed its digital television advertising media in 563 locations throughout Shanghai. This includes 423 locations in commercial banks and 140 in various other public locations.

Further, the Company is adding between 30 and 40 new digital television advertising locations each week. If the Company is able to continue at this pace, the Company anticipates that it will achieve its goal of 1200 locations by the end of 2005.

Commenting on the continued progress of the Company's digital TV business Mr. Tai Caihua, Chairman of China Digital Wireless said "We have consistently stated our intention to achieve 1200 locations in Shanghai by the end of 2005. We are pleased to report we have reached the halfway mark towards this objective and are installing locations at a pace sufficient to meet our goal of 1200 locations by year end 2005 should this pace continue."

The Company's second quarter 2005 financial results reflect net advertising revenue of $736,787 from the Company's out-of-home digital television advertising business, an increase of 90% over first quarter revenues of $387,954.

About China Digital Wireless, Inc.

China Digital Wireless distributes various mobile phone models in the Shanghai, China region and it provides out-of-home digital television advertising in commercial locations throughout Shanghai.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward- looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.