China Digital TV Chosen as Conditional Access System Provider by Hebei Media Information Network Holdings Co., Ltd.

BEIJING, China — China Digital TV Holding Co., Ltd. (NYSE: STV), the leading provider of conditional access systems to China’s rapidly growing digital television market, today announced that the company has been chosen as the conditional access (CA) system provider to Hebei Media Information Network Holdings Co., Ltd. (Hebei TV Network). Hebei is a province of eastern China, which borders Beijing.

The contract allows China Digital TV to significantly deepen its penetration into eastern China. Hebei TV Network’s seven branch offices in Shijiazhuang, Langfang, Xingtai, Hengshui, Handan, Zhangjiakou and Baoding, together with their four subsidiaries in Tangshan, Qinhuangdao, Cangzhou and Chengde, service more than 6.6 million cable TV subscribers across the province.

“We are proud that Hebei TV Network has chosen China Digital TV as their trusted long-term partner. Advanced security technology, high-quality and trusted after-sale customer service and a strong brand name ensure China Digital’s momentum going forward,” said Mr. Jianhua Zhu, China Digital TV’s chief executive officer.

“China Digital TV has been active in Hebei for many years and has already provided CA systems to a number of cities in the province,” said Mason Xu, China Digital TV’s chief financial officer. “As the Hebei TV network speeds up its analog to digital mass migration, the network will gradually launch a mix of value-added services, such as interactive TV, data broadcasting, hi- definition TV, and it should evolve into a multi-service network operator. These are the types of services upon which China Digital TV’s long-term future will be built, making them a perfect partner.”

China Digital TV is the No.1 CA provider in China. According to Analysys International, a Beijing-based marketing research firm, in the first quarter of 2008, China Digital TV’s market share, in terms of smart cards shipped, was 52.4%, up from 51.5% in the fourth quarter of 2007. This is nearly four times the market share of the second largest player.