China Digital TV announces smart card shipment

China Digital TV Holding Co., Ltd. (NYSE: STV) (“China Digital TV” or the “Company”), the leading provider of conditional access systems to China’s expanding digital television market, has announced smart card shipment for its second quarter ended June 30, 2009.

In the second quarter of 2009, the Company shipped approximately 2.13 million smart cards as compared to the previously provided range of 2.35 million to 2.55 million.

“Shipment of smart cards during the quarter was lower than anticipated,” said Mr. Dong Li, China Digital TV’s president. “Some cable operators have chosen to delay digitization projects due to uncertainties resulting from ongoing consolidation in the cable industry and the present lack of mature value-added services for digital TV platforms.”

“While the availability of credit from domestic banks has improved in recent months, in the near term we expect some operators will maintain a wait-and-see attitude towards digitalization,” continued Mr. Li. “However, as China moves to government-mandated full digitization by 2015, we are confident that China Digital TV’s experience in providing CA solutions for large and complex projects, stable financial position, existing partnerships with more than 200 cable television operators and leadership in value-added services development will position us to play a leading role in China’s ongoing digital mass migration and beyond.”

Highlighting China Digital TV’s continued market leadership, the Company entered into 12 out of a total of 18 new contracts to install CA systems in China in the second quarter of 2009, according to Company data.

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