China Networks International Reports Second Half and Full Year 2010 Financial Results

China Networks International Holdings Ltd ("China Networks" or the "Company") (OTCBB:CNWHF), a leading and exclusive operator of television advertising networks in the People's Republic of China, announced today its financial results for the second half and full year ended December 31, 2010.

Fourth Quarter 2010 Highlights:

• Revenues of $0.91 million (Excluding discontinued operations)
• US GAAP net loss of $8.53 million
• Adjusted net loss of $0.07 million or $0.001 per share based on 57,019,998 shares
• Adjusted EBITDA loss of $0.09 million

Third Quarter 2010 Highlights:

• Revenues of $0.84 million (Excluding discontinued operations)
• US GAAP net loss of $0.25 million
• Adjusted net loss of $0.81 million or $0.014 per share based on 57,019,998 shares
• Adjusted EBITDA loss of $0.81 million

Year Ended December 31, 2010 Highlights:

• Consolidated revenues were $3.75 million, down 11% compared to $4.21 million for the year ended December 31, 2009 (Excluding discontinued operations)
• US GAAP net loss was $3.07 million, compared to a net loss of $1.67 million for the year ended December 31, 2009
• Adjusted net loss of $2.41 million or $0.04 per share based on 57,019,998 shares
• Adjusted EBITDA loss of $2.7 million
• In December 2010, the Company disposed of its investments in Kunming Taishi Information Cartoon Co., Ltd ("Kunming JV") and Kunming Kaishi Advertising Co., Ltd. ("Kunming Ad Co.") to its PRC Joint Venture partner
• Income from discontinued operations was $4.15 million (2009: $7.25 million) (Excluding loss on disposal of subsidiaries)
• Loss on disposal of the investments in Kunming JV and Kunming Ad Co was $7.56 million to the Group.

Total common shares outstanding as of September 30 and December 31, 2010 was 41,019,998. Total adjusted shares outstanding as of September 30 and December 31, 2010 was 57,019,998. See "About Non-GAAP Financial Measures" below.

Management's Comments

Commenting on the Company's second half of 2010 results, the Company's Chairman and Chief Executive Officer, Mr. Shuangqing Li, said, "It's been a very eventful year overall. We were approached by our joint venture partners in Kunming regarding the repurchase of the assets given their interest to consolidate the media television advertising landscape. Since then, we have utilized these funds to clean up our debt structure and redeem all outstanding convertible notes and a portion of our outstanding preferred shares. Our focus for 2011 will be to continue to seek out business opportunities that would generate higher returns for our shareholders."

Management's Discussion and Analysis

The decrease of revenues in 2010 was mainly due to policies mandated by the State Administration of Radio, Film and Television in China ("SARFT") effective January 1, 2010. According to Policy Nos. 61 and No. 71, restrictions regarding the type and length of TV advertising which is allowed to be broadcast have increased significantly. As a result of these policies, total permitted advertising time was reduced by approximately 40-45%. In the past two years, Yellow River JV has had minimal inventory for quality TV programming, leading to decreased competitiveness for audience ratings and directly affecting the Company's top line revenue performance.

The overall increase in cost of sales during the year was due to increases in programming costs as compared with last year. The most significant cause of the increase was the program fee charged by Yellow River TV Station, which increased from RMB 800,000 to RMB 1,250,000 per month. According to the Company's agreement with Yellow River TV Station, during the first of year of business operations, Yellow River TV Station understated its total programming fees. As a result, Yellow River TV Station negotiated an increase of RMB 450,000 per month for programming fees.

About Non-GAAP Financial Measures

The release includes non-GAAP financial measures. The presentation of these non-GAAP financial measures should be considered in addition to the Company's GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The Company's management believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain charges, gains and tax effects that may not be indicative of the Company's core business operating results. It also excludes a gain on cancellation of debt as a result of the Company's debt restructuring completed in April 2010. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company's performance. The Company includes these non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making.

The following tables provide reconciliations of net income (US GAAP) to Adjusted EBITDA (Non-GAAP) and Adjusted net income (Non-GAAP):

	Quarter ended
			Year ended
	December 31, 2010	September 30, 2010	December 31, 2010
Adjusted EBITDA calculation
Net loss	(8,531,417)	(251,012)	(3,070,783)
Add:
Loss on disposal of subsidiaries	7,562,491	--	7,562,491
Loss (Income) from discontinued operations	527,691	(1,106,088)	(4,153,505)
Gain on cancellation of debt	--	--	(5,576,855)
Interest expense	193,556	369,760	1,790,304
Interest income	(12,372)	(3,705)	(25,911)
Amortization of intangibles and depreciation	354,306	351,359	1,393,869
Taxes	(15,863)	14,761	148,529
Minority interest effect on amortization and tax	(169,222)	(183,060)	(771,199)
	(90,830)	(807,985)	(2,703,060)
	Quarter ended
			Year ended
	December 31, 2010	September 30, 2010	December 31, 2010
Adjusted Net Income calculation
Net loss	(8,531,417)	(251,012)	(3,070,783)
Add:
Loss on disposal of subsidiaries	7,562,491	--	7,562,491
Loss (Income) from discontinued operations	527,691	(1,106,088)	(4,153,505)
Gain on cancellation of debt	--	--	(5,576,855)
Interest expense	193,556	369,760	1,790,304
Amortization of intangibles	354,306	351,359	1,393,869
Minority interest effect on intangibles	(177,153)	(175,680)	(352,833)
	(70,526)	(811,661)	(2,407,312)

About China Networks

China Networks International Holdings, Ltd. is a media advertising company focusing on providing international and domestic advertising to its exclusive networks in tier two and tier three cities in China. Currently the Company owns and operates a 50% interest in the Shanxi Yellow River & Advertising Networks Cartoon Technology Co., Ltd (Yellow River) Joint Venture. Yellow River controls one television channel and one radio channel, covering 30 million and 23 million people, respectively. China Networks, along with its joint venture partners, seeks to add more television stations to its advertising network. For more information about China Networks, visit www.chinanetworks.com.

The China Networks International Holdings Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7329

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, as well as all our assumptions, expectations, predictions, intentions or beliefs about future events. Forward-looking statements can be identified by the use of forward-looking terminology such as "will," "believes," "expects" or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission ("SEC"), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at http://www.sec.gov.

CHINA NETWORKS INTERNATIONAL HOLDINGS, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
	For the three months ended		For the year ended
	December 31,	September 30,	December 31,	December 31,
	2010	2010	2010	2009
	(unaudited)	(unaudited)
CONTINUING OPERATION
NET REVENUE	$ 912,450	$ 840,694	$ 3,751,410	$ 4,217,296
COST OF REVENUE	609,423	635,399	2,394,173	1,478,202
Gross profit	303,027	205,295	1,357,237	2,739,094
OPERATING EXPENSES
Selling expense	645	2,693	19,903	--
General and administrative expense	765,994	603,515	2,253,785	2,278,538
	766,639	606,208	2,273,688	2,278,538
(LOSS) INCOME FROM OPERATIONS	(463,612)	(400,913)	(916,451)	460,556
OTHER INCOME/(EXPENSE)
Other expense	924	(186)	(9,023)	(327,625)
Interest expense	(193,556)	(369,760)	(1,790,304)	(6,800,158)
Interest income	12,372	3,705	25,911	44,165
Gain on extinguishment and cancellation of debt	--	--	5,576,855	1,328,861
Waiver of accrued liability	--	--	--	960,000
	(180,260)	(366,241)	3,803,439	(4,794,757)
(LOSS) INCOME BEFORE INCOME TAX	(643,872)	(767,154)	2,886,988	(4,334,201)
INCOME TAX	(15,863)	14,761	148,529	466,459
(LOSS) INCOME FROM CONTINUING OPERATION	(628,009)	(781,915)	2,738,459	(4,800,660)
Loss on disposal of subsidiaries	(7,562,491)	--	(7,562,491)	--
DISCONTINUED OPERATION
(Loss) Income from discontinued operations, net of taxes	(527,691)	1,106,088	4,153,505	7,249,093
NET (LOSS) INCOME	(8,718,191)	324,173	(670,527)	2,448,433
Less: Net (loss) income attributable to the non-controlling interest	186,774	(575,185)	(2,400,256)	(4,120,887)
NET (LOSS) INCOME ATTRIBUTABLE TO CHINA NETWORKS INTERNATIONAL HOLDINGS, LTD.	$ (8,531,417)	$ (251,012)	$ (3,070,783)	$ (1,672,454)
Dividend declared on redeemable convertible preferred shares	(201,644)	(201,644)	(574,247)	--
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	838,656	305,766	1,424,965	67,614
COMPREHENSIVE LOSS	$ (7,894,405)	$ (146,890)	$ (2,220,065)	$ (1,604,840)

CONTACT: Investor and Media Contact:
         Debra Chen, VP Corporate Affairs
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