China Digital TV Announces Unaudited First Quarter 2009 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 expanding digital television market, today announced its unaudited financial results for the first quarter ended March 31, 2009.

Highlights for First Quarter 2009

• China Digital TV shipped approximately 2.38 million smart cards during the first quarter, an increase of 3.3% from the corresponding period in 2008. The Company cumulatively had shipped over 25 million smart cards to customers as of the end of the first quarter of 2009.
• According to market data collected by the Company, China Digital TV entered into 4 out of a total of 7 new contracts to install CA systems in China in the first quarter of 2009.
• Net revenues in the first quarter were US$14.3 million, close to the high-end of Company guidance.
• Diluted earnings per ADS (one ADS representing one ordinary share) in the first quarter were US$0.13.

Business Outlook

Based on information available on May 12, 2009, China Digital TV expects smart card shipments for the second quarter of 2009 to be in the range of 2.35 million to 2.55 million. Net revenues for the second quarter of 2009 are expected to be in the range of US$14.5 million to US$15.5 million, representing a year-over-year decrease in the range of 20% to 25%. Based on internal sales projections, the Company remains confident that the second half of 2009 will see meaningful increases in smart card shipments compared to the first half of 2009.

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