As the result of rapid acceptance of its proprietary NP Soft Switch IP telephone system, China VoIP & Digital Telecom through its new wholly owned subsidiary, Jinan Yinquan has added two additional cities in two new provinces to the ongoing marketing of the system. NP Soft Switch IP telephone system enables users to access Voice over the Internet Protocol (VoIP) services allowing customers to use the system to make telephone calls to anyone in the world at a much lower cost than standard telephone rates.

Jinan Yinquan, a technology company offering VoIP services in the People’s Republic of China, has been developing telecommunications solutions for China’s burgeoning Internet industry for more than half a decade.

The Company said the system, which provides users to access high-quality broadband telephone services in China by converting a customers’ cable/dsl router into a VoIP device, is now available in TaiYuan, in Shan Xi Province and ShenYeng in Liao Ning Province. There are 33 million people in Shan Xi province and 42 million in Liao Ning. The population of Shandong is 90 million with approximately 10 million Internet users.

“This will bring to 19 the number of cities and our first outside of Shandong Province where our system is available,” said Li Kunwu, President and CEO of China VoIP & Digital Telecom Inc. “We are extremely encouraged by the acceptance of the NP Soft Switch IP telephone system which has prompted us to accelerate our marketing efforts to areas outside of our core Shandong Province core market.

“The estimated number of Internet users in China is less than 10 percent of the total population of 1.3 billion people,” said Kunwu. “However, that number continues to grow exponentially as the economy booms and affordable access becomes more readily available. Combine this with the growing demand for quality, affordable phone service and it squarely places our Company in the enviable position to become a provider of telecommunications solutions using the Internet.”

Jinan Yinquan’s proprietary NP Soft Switch IP phone system is based on real-time Internet communications technology and related applications. It uses software to simulate circuit switching and as a result, provides networks call control and connection control networks.

“Less than 25 percent of China’s total population is landline subscribers,” Kunwu added. “This is due in part to availability and cost. But the convergence of accessible, economical high-speed Internet service and an affordable VoIP service such as our NP Soft Switch System creates a very exciting scenario for the growth of our company.”

Kunwu said the Company’s future plans call for the expansion into all of China with its current and future products and services.

More information on the Company and its wholly owned subsidiary can be found in the Company’s 8K filing of November 13, 2006 on the Securities and Exchange Commission official website at www.sec.gov.