DVN (0500) will provide technological support for Guangxi's TV mass digitization program, and participate in the building of its digital TV platform based on which TV-commerce, interactive games, e- government, TV SMS and other value-added services can be developed in the future.

DVN entered into a framework letter of intent with Guangxi Broadcasting and Television Info-Network Company for the migration of the autonomous region's cable network from analog to digital on June 1.

Guangxi plans to cut off its analog TV signal in phases to the autonomous region's 3 million cable subscribers. DVN will generate revenues from licensing fees on the estimated 3 million DVN designed set top boxes to be sold in the province, and from the provision of software and supply of related services in the next two years as the migration rolls out; and over the long term from sharing in the revenues generated from value added services.

SARFT (State Administration for Radio Film and Television) approved on April 7, 2005 the designation of Guangxi as the country's only provincial trial site.

DVN is a market leader of digital STB in China with set top boxes sales soaring seven times in 2004 to 242,198.


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