China Digital TV Announces Unaudited Fourth Quarter and Full Year 2007 Results

BEIJING — China Digital TV Holding, Co. Ltd. (NYSE: STV) (“China Digital TV” or the “Company”), the leading provider of conditional access (“CA”) systems to China’s rapidly growing digital television market, announced today its unaudited financial results for the fourth quarter and full year ended December 31, 2007.

During the fourth quarter, China Digital TV established a subsidiary, Beijing Novel-Super Media Investment Co., Ltd., to develop and market value- added services to network operators, including Electronic Program Guide-based advertising and PC card-based services, which enable PCs to function as HDTVs with DVR features.

In the fourth quarter of 2007, China Digital TV entered into 16 new contracts to install CA systems, bringing the total number of CA contracts signed in 2007 to 47.

Revenues from smart cards and related products were US$17.9 million in the fourth quarter of 2007, an increase of 113.9% from the same period of 2006 and 39.6% from US$12.8 million in the third quarter of 2007. Sales of smart cards and related products made up 90.8% of the total revenues for this quarter. China Digital TV shipped 2.6 million smart cards in the fourth quarter 2007, an increase of 109.6% from the same period of 2006 and 37.6% from the third quarter of 2007, reflecting accelerated adoption of digital television across China.

Revenues from smart cards and related products in 2007 were US$49.7 million, an increase of 88.1% from 2006. Sales of smart cards and related products made up 89.2% of total revenues for the year. China Digital TV shipped 7.3 million smart cards over full year 2007, an increase of 85.5% from 2006, reflecting increased digitalization across China.