Asia Digital Media to Deliver New Solutions for the Chinese Market

Asia Digital Media will deliver secure technology solutions enabling HDTV satellite broadcasting, high-speed Internet and on-line transaction services to the Chinese market. Asia Digital Media will be formed to help meet several programming, subscriber and technical goals that are part of the Chinese governments National Agenda project, including: -- Facilitating a conversion to digital television by a majority of Chinese television households by the time of the 2008 Beijing Summer Olympics; and -- Ensuring all Chinese television households receive digital video broadcasting capability by 2015. Asia Digital Media is designed to build a digital content transaction platform for the distribution of digital video broadcasting satellite signals. The platform is intended to consist of a public key infrastructure (PKI) enabled subscriber management system, which will provide security for both the broadcast signal and set-top boxes, and develop a wireless broadband return path for e-commerce transactions and high-speed Internet service. The transaction platform would be designed to enable service providers across China to offer cost effective and secure delivery of content and media. This platform will also be designed to serve as a means of generating transactional revenues and e-commerce through secure payment mechanisms, while preventing cloning of set-top boxes and content piracy. Additional components of the announced joint venture include: -- Under the brand of China Aerospace, Asia Digital Media will serve as a distributor of Entrust information security products and services in China; and -- Technology from Ohana Wireless, Inc., will be utilized to develop the broadband return path that enables two-way interactive services and online transactions. At closing of the joint venture, Ohana Wireless, Inc., will become a wholly owned subsidiary Asia Digital Media Co., Ltd. It is anticipated that Asia Digital Media will implement a demonstration system in early 2005. Planned commercial rollout to subscribers is scheduled for Q4 2005, which will coincide with China Aerospaces launch of Sinosat-2, a high capacity spot-beam KU band satellite for the digital broadcasting of television signals throughout China. The investment partners anticipate that Asia Digital Media will have an initial capitalization of approximately U.S. $20.0 million, with approximately 13 percent owned by China Aerospace New World Technology Limited, 10 percent by RockRidge Asia Digital Media, LLC, 60 percent by ADML Holdings, Ltd., and the remainder held by Entrust. In total, Entrusts direct and indirect holdings in Asia Digital Media will amount to 25 percent. Asia Digital Media will be registered in Hong Kong.