China Digital Communication Group Increases Production Capacity by over 40% with New Plant

From: China Digital Communications Group
Published: Sun Feb 13 2005

SHENZHEN, CHINA & LOS ANGELES - Feb. 11, 2005 - China Digital Communication Group (OTCBB: CHID), one of the fastest growing battery production companies in China, today announced that it will move its manufacturing operations to a new location in the Shenzhen region, providing it with 40% more production capacity.

Shenzhen E'Jenie, China Digital's battery-shell manufacturing subsidiary, will relocate on February 12, 2005, to the Xing Lian Industrial Zone. The new plant will provide E'Jenie a manufacturing area of nearly 65,000 square feet, up 50% from the 43,000 square feet at the current location. The added space is expected to enable E'Jenie to increase production capacity between 40%-50% going forward. With the new space and the addition of additional product lines in 2005, China Digital expects revenue from E'Jenie to increase at a faster pace in 2005.

"This relocation is driven by demand, and as such it is a very positive sign for China Digital," said Sun Yibo, China Digital's Chairman and CEO. "Less than three years after its inception, E'Jenie has now increased its production capacity several times over, starting with one steel battery-shell line and now operating 14, as well as adding two aluminum battery-shell lines, two aluminum cap lines and 115 sets of testing equipment. Now it has outgrown its current space. All this testifies to the rapid acceptance of our products in the fast-growing Chinese mobile-phone market."

To be added to China Digital's investor e-mail list, please contact Zack Noory of Investor Relations International at

About China Digital Communication Group

China Digital Communication Group (OTCBB: CHID), through its wholly-owned E'Jenie subsidiary, is a rapidly growing manufacturer of battery shells and related technology for use in electronic products, primarily mobile phones. Since December 2003, the Company has adopted the approach of using licenses, joint ventures, mergers and acquisitions to bring battery and telecom equipment makers in China to markets overseas. The Company's battery products now power digital cameras, camera phones, PDAs and laptop computers in East Asia and beyond. China Digital is continuing its expansion across China while also seeking distribution partners in the United States.

For more information on China Digital, go to its website at

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, risks related to doing business in China, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products, and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

Source: China Digital Communication Group

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China Digital Communication Group
Roy Teng, 310-461-1322
Investor Relations International
Zack Noory, 818-382-9718

Company: China Digital Communications Group
Contact Name: Zack Noory
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Contact Phone: 818-382-9718

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