China Digital TV Obtains Sales License from the Chinese Encryption Authority

BEIJING — China Digital TV Holding Co., Ltd. (NYSE: STV), the leading provider of conditional access (CA) systems to China’s rapidly growing digital television market, today announced that it has successfully obtained a sales license from the Chinese national encryption authority, the State Cryptography Administration (SCA).

SCA is the Chinese government’s administrative and enforcement body responsible for supervising all Commercial Encryption Product (CEP)-related activities. In March 2007, the SCA passed new regulations requiring all TV users in China to use only those encryption products certified by the SCA and only purchase these products from vendors that hold an encryption product sales license.

China Digital TV is one of the few CA system providers in China that secured a sales license during the encryption regulation transition period. The sales license allows vendors to sell commercial cryptography products certified by SCA to their customers.

“We are pleased to announce that we have obtained the SCA sales license,” said Mr. Jianhua Zhu, China Digital TV’s chief executive officer. “Our success in obtaining this license shows our deep understanding of the local regulatory environment and our ability to stay ahead of new guidelines in this rapidly developing market. It also reduces our forward-looking business risks and gives us a competitive edge that we expect will help us continue to attract new customers.”