[14 December 2008 – Hong Kong] – C Y Foundation Group Limited (SEHK: 1182; “C Y Foundation”) announced that it has entered into a memorandum of understanding (“MOU”) with Network Media Center of the Communist Youth League of China (“Network Media Center”) and MBC Plus Media (“MBC”) to promote the International E-Sports Festival (“IEF”).

The MOU was signed at the 2008 IEF held in Wuhan, China, earlier this month. The three parties have agreed to focus on game and e-sports development. The MOU highlights close cooperation with the aim of increasing the number of IEF digital entertainment events including more tournaments and music entertainment. The three signatories will also co-produce and publish Korean games for the China market. MBC will provide programs from its satellite TV, broadband and IPTV network.

The recent 2008 IEF attracted widespread interest across China and Korea. Its live broadcasts reached an estimated audience of 5 million people. The MOU is expected to help China and Korea to expedite the expansion of digital entertainment content and audience interest for future IEF events.