Asia Digital Media to Deliver HDTV Satellite Broadcasting, High Speed Internet and On-line Transaction Solutions for the Chinese Market

China Aerospace New World Technology, Entrust and RockRidge Asia Digital Media Form Joint Venture in China to Help Meet National Agenda Goals for 2008 Olympics in Beijing

Upon the closing of this joint venture, which is subject to a number of conditions, investment partners will include Dallas-based Entrust, Inc [NASDAQ: ENTU], a world-leading provider of Identity and Access Management solutions, China Aerospace New World Technology Limited, ADML Holdings, Ltd. and RockRidge Asia Digital Media, LLC.  

Asia Digital Media will be formed to help meet several programming, subscriber and technical goals that are part of the Chinese government’s 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 Aerospace’s 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, Entrust’s direct and indirect holdings in Asia Digital Media will amount to 25 percent.   Asia Digital Media will be registered in Hong Kong.

“The Chinese digital video broadcasting market is positioned for tremendous grow,” said Zhao Dong, Chief Executive Officer of China Aerospace New World Technology.  “Asia Digital Media’s shared expertise in understanding the Chinese market, in tandem with the technology and capital investments provided by our partners gives us a strong advantage in this enormous market.”

“It is estimated that by the year 2015 more than 225 million households will subscribe to digital video services in China,” said Anthony Hwang, Chairman and Chief Executive Officer of Asia Digital Media.  “Asia Digital Media is uniquely positioned with the technological solutions and capabilities to help support China’s plan for an all digital nation.”

“China provides a great opportunity for Entrust’s future growth,” said Bill Conner, Chairman, President and Chief Executive Officer of Entrust, Inc. “Asia Digital Media will be a key channel for Entrust’s security products into China.  Additionally, this unique business will allow us to participate in the development of the secure infrastructure necessary for the digital video broadcasting and satellite network envisioned under the Chinese National Agenda project. Having worked very successfully with leading institutions such as the China Financial Certificate Authority, we look forward to extending our expertise and market success throughout China as part of this new international venture.”

“RockRidge Capital Partners Inc., focuses on investing in unique opportunities in technology, infrastructure and media. When it comes to tremendous growth opportunities and sizable markets, China’s commitment to digital media represents a terrific and unique opportunity.  We are proud that our investment along with such a compelling group of partners will be a driving catalyst for this transformation,” said Jeff Marshall, Founding & Managing Partner of RockRidge Capital Partners Inc. and RockRidge Asia Digital Media LLC. “Asia Digital Media is very well positioned to serve as a vehicle for widespread adoption of digital video broadcasting, as well as additional media content, online services and transactions in a secure architecture in what will be the world’s largest media market.”

About China Aerospace New World Technology
China Aerospace New World Technology Limited (CANW) is the joint venture between China Aerospace International Holdings Limited (CASIL) and New World TMT Limited (NWTMT). CASIL is a Hong Kong publicly listed company owned by China Aerospace Science & Technology Corporation (CASC) and its business is targeted to Satellite Application, IT Networking and Hi-Tech product manufacture. NWTMT is a Hong Kong publicly listed company owned by New World Development Group and focus on the high-technology business.

China Aerospace New World Technology Limited (CANW) mainly relies on the powerful technology of CASC’s Satellite, the research and development of Aerospace aspect and the long-term good business co-operation with SARFT. Moreover, CANW has many years of experience in digital video broadcasting product development and marketing. 

About RockRidge Asia Digital Media, LLC.
RockRidge Capital Partners, Inc. is a private equity firm dedicated to investing in private and public companies, through a combination of both equity and debt structures. Our unique investment model and culture of execution excellence provide value-added capital investments to transforming companies in the following sectors: Communications, financial services, information technology, and technology-based growth companies.

For more information about this press release please contact us.

Entrust is a registered trademark of Entrust, Inc. in the United States and certain other countries. Entrust is a registered trademark of Entrust Limited in Canada. All other Entrust product names and service names are trademarks or registered trademarks of Entrust, Inc or Entrust Limited. All other company and product names are trademarks or registered trademarks of their respective owners.