What is DigitalNetTV?

DigitalNet TV Corp ("DNTV" or the "Company") is a Nevada Corporation whose primary business is hardware and software enabled electronic delivery of proprietary and licensed digital programming, communications and entertainment including VoIP gateway systems and associated infrastructure.

DNTV's DigiTV System is an Internet Protocol Television ("IPTV") based electronic hardware/software solution that incorporates all of the features of a DVD player, cable television receiver, DVR and game console and VoIP phone, while seamlessly connecting the home television with the PC's internet connection. DNTV's integration of the television and the PC provides the consumer with an unlimited supply of downloadable high hefinition, digital rights management ("DRM") protected content and fully integrated communciations and entertainment possibilities.

DNTV's Differentiating Features - DNTV's competitors in the IPTV space focus on either hardware manufacturing and distribution, software development and licensing, or content distribution. DNTV enjoys the benefits of all of these markets through the exclusive manufacturing of its hardware via the Company's relationship with AVXing Inc., of China, in-house developed and integrated software applications which are housed in the IPTV hardware, and both proprietary and licensed content, directing users on all platforms to DNTV's on-line content offerings, thus maximizing all revenue streams.

Operations and Market - The Company's current, profitable operations are supported by digital media distribution with a focus on Video-on-Demand ("VOD") backed by the Company's proprietary DRM with real time billing and payout options to content providers and distribution partners. The Company has a growing user base of +160,000 members/clients and generates annual revenues of over USD$12million through a combination of VOD revenues and on-line DVD sales. The Company is exploiting its relationships and business expertise in the expansion of its digital media platforms to further develop its key position in the rapidly anticipated IPTV market, with initial and current penetration directly focused on the industries' fastest growing and most lucrative market - China.

DNTV has begun its roll-out of IPTV in China. Through longstanding, special and unique relationships with key Chinese State Managers, DNTV is partner to top State owned enterprises, through which the Company is concluding third and final test runs for both satellite and broadband content distribution and VoIP systems through the Company's DigiTV system. The successful conclusion of testing will enable DNTV to execute on standing orders for its DigiTV Boxes, and provide for execution on purchase orders for the Company's IPTV hardware and integrated software and content offerings.

IPTV Market - Asia, and particularly China, is leading the world in broadband penetration growth indicating that the bulk of global IPTV subscribers will come from this region. The broadband explosion in Asia is connected to the strong overall economic outlook for the region which is set to bring increased affluence to many countries in the coming years, fuelling growing entertainment consumption and demand for choice. This is the domain of DNTV and IPTV where channel variety and on-demand capability leads the new technology and entertainment charge. Additionally, ADSL with at least 6.0 Mbps to households is more widespread in Asia (95% in Hong Kong) thanks in part to geographic densities and provides even greater success for key DNTV penetration.

VoIP Market - Currently, the VoIP market is the fastest growing service in China's telecom industry with analysts forecasting that it will capture up to 30% of China's long-distance market in 2006. The increase in broadband subscription and broadband penetration has provided China with a solid base for VoIP services to build on.