China Digital TV announces strategic partnership with Beijing Gehua

BEIJING — China Digital TV Holding Co., Ltd. (NYSE: STV) (“China Digital TV” or the “Company”), the leading provider of conditional access (“CA”) systems and comprehensive services to China’s expanding digital television market, today announced that it has reached an agreement with Beijing Gehua CATV Network Co Ltd (“Gehua”) to establish a strategic partnership on cloud computing technology and related businesses, to cooperate on overseas business expansion, and to enter into an equity investment agreement.

Pursuant to the agreement, Gehua will make an equity investment in the Company and hold a 10% stake in Cyber Cloud, a subsidiary of China Digital TV. Meanwhile, China Digital TV will help Gehua build and improve its full media cloud computing platform. As part of this effort the two sides will aim to integrate the content from various media, cross-platform applications, streaming application platforms, cloud gaming and other relevant service offerings. Leveraging this cloud-computing platform, the two companies will integrate content resources and establish a cloud-based content platform. The cooperation will help improve user experience in the areas of gaming, somatic gaming, education and travel applications. In addition, China Digital TV and Gehua will also strengthen cooperation for multi-end interaction, mobile business and other key areas that will allow them to explore further mobile Internet business opportunities.

The two sides will also jointly develop their opportunities overseas by leveraging their respective advantages in the areas of technology, operations and management.

“We are delighted to establish this strategic partnership with Gehua and leverage our mutual strengths to provide users a superior cloud computing platform,” said Mr. Zhu Jianhua, China Digital TV’s Chairman and CEO. “As China’s leading television cable operator, we believe that Gehua’s significant role in the development of interactive digital and high-definition TV make it an ideal partner for us. Cloud computing is core to China Digital TV’s long-term development strategy and this agreement with Gehua marks a major step forward in this area. We believe the partnership with Gehua will help us elevate our cloud computing offer to a new level and further strengthen our TV services.”