China VoIP & Digital Telecom announced that the expansion plans of its wholly owned subsidiary, Jinan Yinquan Technology in China call for a cooperative venture with one of China’s premier licensed telecom providers. Through China Tie Tong, one of only six licensed providers in the country, Jinan Yinquan has formed a strategic alliance that will allow the company to rapidly deploy its VoIP technology throughout the world’s most populous country.

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

“It is important to note that in China, telecom services can only be provided by one of the six licensed providers,” said Li Kunwu, President and CEO of China VoIP & Digital Telecom Inc. “Our cooperative venture with Tie Tong not only allows us to expand throughout the country, but may bring to our Company many other advantages such as accessing the network server, network bandwidth and telephone numbers as well as provide the Company with additional sales channels for its NP Soft Switch system. Our association with Tie Tong is critical to our growth plans and we are delighted to be partnering with such an outstanding organization which shares our dedication to excellence.”

Jinan Yinquan’s proprietary 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.

China Tie Tong is one of the six largest basic telecom operators in China. The company, which has 31 provincial branches and 316 municipal branches, employs approximately 72,000 people. Its high-speed backbone optical transmission network consists of five fiber loops covering most of the cities in China’s 31 provinces and a distance of 52,000 kilometers. During the period of 2001 to 2005 annual revenues have grown by 30 percent while fixed-line subscribers increased from 135 million to 164 million. By the end of 2005 the company had 20 million Internet subscribers and assets of 42.4 billion RMB.

“All of the established telecommunication providers in China are actively pursuing VoIP technology as a means to generate further growth,” said Kunwu. “That’s why a strategic partnership with our company, utilizing our NP Soft Switch IP telephone system, makes a great deal of sense as it can possibly yield attractive profits with a very modest capital investment for China Tie Tong.”

Jinan Yinquan recently announced it has expanded its services to two provinces outside of Shandong bringing to 19 the number of cities where they are offering services. They have also recently announced that its technology has been implemented in 30 new retail calling centers, bringing the total number of retail calling facilities using the Company’s retail calling technology to 50. (For more information, go to www.chinatietong.com)

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