China Digital TV Offers Update on Asset Restructuring

China Digital TV Holding Co., Ltd.

("China Digital TV" or the "Company"), the leading provider of cloud-based application platforms and conditional access ("CA") systems which enable China's digital cable television market to offer and secure diversified content services, today provided further updates on its asset restructuring (the "Restructuring") with Shanghai Tongda Venture Capital Co., Ltd ("Tongda Venture"), as referred to in the press releases dated June 13, 2014, October 9, 2014, October 27, 2014, November 27, 2014, respectively. The Company announced that Tongda Venture has received an approval in principle (the "Approval") from the Ministry of Commerce of the People's Republic of China ("PRC Ministry of Commerce"). According to the Approval, the PRC Ministry of Commerce principally agreed that Golden Benefit Technology Limited ("Golden Benefit"), a wholly owned subsidiary of STV, may use its 25% equity interest (approximately equal to RMB800 million) in Beijing Super TV Co., Ltd. ("Super TV"), a wholly-owned subsidiary of Golden Benefit, to subscribe for Tongda Venture's non-public offering of A shares ("New Shares"), and will be effective for 180 days from issuance date. It is required under the Approval that Tongda Venture should divest its equity interest in Beijing CNLive Culture Media Inc, a culture and media company focusing on mobile TV in which foreign investment is not allowed, prior to Golden Benefit acquiring the New Shares. The Company will submit related documents and materials to the China Securities Regulatory Commission (the "CSRC") for approval as soon as possible. There will be uncertainties in completing the Restructuring, which remains subject to regulatory clearance by the CSRC. The Restructuring will be subject to review by the respective regulators amid increasingly stringent standards for such transactions. As such, there is no assurance that these approvals or regulatory clearance will be obtained within a reasonable timeframe, or at all. According to the framework agreement signed on June 13, 2014, the Restructuring will be terminated if it is not completed by December 31, 2015.