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    Second Quarter 2010 Highlights
    -- Net revenue increased 67.0% year-over-year to $17.0 million
    -- Gross profit increased 284.8% year-over-year to $1.5 million with gross
       margin improving 5.1 percentage points to 9.0%
    -- The Company reported net income of 0.1 million, or $0.01 per diluted
       share, compared to a net loss of $1.8 million, or $0.08 per diluted
       share, in the second quarter of fiscal year 2009
    -- Adjusted net loss (non-GAAP) was $0.05 million, or $0.00 per share,
       compared to an adjusted net loss of $1.3 million, or ($0.06) per
       diluted share, in the second quarter of fiscal year 2009

"We are pleased to report our first profitable quarter since Diguang was first impacted by the global economic crisis in the second half of 2008," said Mr. Song Yi, the President and Chief Executive Officer of Diguang. "During the second quarter, we maintained our focus on domestic sales, which grew in excess of 100%. Growth in sales of our LED products, including LED backlights, LED LCMs, LED general lighting products and LED monitors, continued to represent a majority of our total sales. Meanwhile, we witnessed strong momentum in our CCFL business, as our Wuhan facility saw an increase in OEM orders for large size CCFL backlights from our major customers in Taiwan. We successfully added new high-profile customers, including TCL and Skyworth, to supply China's two largest TV manufactures with LED backlights and LED TVs."

Highlights for the Three Months Ended June 30, 2010

Net revenue was $17.0 million for the three months ended June 30, 2010, an increase of 67.0% from $10.2 million for the comparable period in 2009. This was due to the improved market demand for the Company's traditional and newly-developed backlight products along with continued economic recovery from the global financial crisis which adversely affected sales in the previous year. Sales of LED products, including LED backlights, LED liquid crystal modules (LCM), LED general lights and liquid crystal displays (LCD), amounted to $9.8 million, or 58% of total sales revenue, while sales of CCFL products, including CCFL backlights and CCFL LCMs were $6.8 million, or 40% of total sales revenue. The remainder came from miscellaneous sales. Sales of LED backlights grew 33.2% to $7.4 million, while sales of CCFL backlights increased 162.8% to $6.6 million in the second quarter of 2010. Sales of LCM grew 25.9% to $1.9 million, and the Company generated additional revenue of $0.6 million from LCD LED monitors compared to $0.1 million in the second quarter of 2009, when it commenced mass production of this product. The Company expects further sales growth of LCD LED monitors. Sales of LED general lighting products declined due to aggressive competition. However, management is still confident about the prospect of the LED general lighting segment in the next few years.

Gross profit for the second quarter of 2010 totaled $1.5 million, or 9.0% of net revenue, compared to $0.4 million, or 3.9% of net revenue, for the same period of 2009. The increase in gross margin was primarily the result of the contribution from LED products, which had a gross margin of 11% compared to 5% in the second quarter of 2009. However, this was partially offset by the significant increase in OEM sales of lower margin, large size CCFL products during the quarter.

Operating expenses totaled approximately $1.3 million for the second quarter of 2010, down 39.5% from $2.2 million in the second quarter of 2009. Total operating expenses in the second quarter of 2010 amounted to 7.8% of net revenue, compared to 21.5% in the second quarter of 2009. Selling expenses rose 25.0%, primarily due to increased commissions and transportation expenses associated with increased sales. The Company's net research and development costs were a negative $0.2 million, due to a government subsidy of $0.5 million that was recorded following the completion of a display project for the Guangdong Department of Information Industry during the quarter. As the actual funding for this project was received in 2008, this was recorded as a non-cash item. General and administrative expenses were $0.9 million in the second quarter of 2010, compared to $1.1 million in the same period in 2009.

Interest expense was $0.2 million for the second quarter of 2010, up from $72,062 in the same period of 2009 as the Company utilized additional bank loans to support its working capital needs.

The Company's net income attributable to common shares during the three months ended June 30, 2010 was $0.1 million, improved from net loss of $1.8 million attributable to common shares for the same period in 2009. Earnings per basic and diluted share were $0.01 for the second quarter of 2010, improved from losses per basic and diluted share of ($0.08) for the same period of 2009.

Adjusted net loss (non-GAAP), which excludes non-cash items (including non-controlling interest, depreciation, inventory provision, loss on disposal of assets and share-based compensation), for the second quarter of 2010 would have been $47,156, or $0.00 per basic and diluted share. Adjusted net loss (non-GAAP) for the second quarter of 2009 would have been $1.3 million, or ($0.06) per basic and diluted share. Please see the reconciliation table below.

Six Months Results Ended June 30, 2010

Total revenue for the first six months of 2010 was $29.5 million, up 82.2% from the first six months of 2009. Gross profit for the first six months of 2010 was $3.2 million, a significant increase of 217.6% from gross profit of $1.0 million in the comparable period a year ago. Gross margin was 11.0% for the first six months of 2010, up from 6.3% in the same period of 2009. The Company recorded an operating loss of $0.3 million, compared with an operating loss of $3.2 million in the first six months of 2009. Net loss attributable to common shares for the first six months of 2010 was $0.5 million, compared with a loss of $3.0 million in the first six months of 2009. Basic and diluted loss per share were ($0.02) for the first six months of 2010 compared to ($0.14) in the first six months of 2009. Excluding non-cash items, net income for the first half year of 2010 on a non-GAAP basis would have been $30,857, or $0.00 per share, compared to non-GAAP net loss of $2.0 million, or ($0.09) per share a year ago. Please see the reconciliation table below.

Reconciliation of GAAP Net Income and Earnings per Share to Non-GAAP Net Income and Earnings per Share

                                   Three Months ended      Six Months ended
                                        June 30                June 30
                                    2010        2009        2010        2009

    GAAP net income (loss)        126,794  -1,837,175    -450,031  -3,047,593
    Non-cash items:
     Non controlling interest       6,282    -146,193     -44,571    -185,854
     Depreciation                 493,506     430,205     940,112     857,492
     Bad debts allowance
      (recovery)                 -170,638           0     107,940           0
     Inventory provision              -72     177,682     -33,470     156,614
     Loss (gain) on disposal
      of assets                      -379       6,140       2,307      20,179
     Share-based compensation      11,218     100,090      22,437     200,180
     Research and development
      costs offset by funding
      advanced                   -513,867           0    -513,867           0
     Deferred tax assets                0           0           0      28,485
    Non GAAP net income (loss)    -47,156  -1,269,251      30,857  -1,970,497

    GAAP net income (loss)           0.01       -0.08       -0.02       -0.14
     Non-cash items:
     Non controlling interest        0.00       -0.01        0.00       -0.01
     Depreciation                    0.02        0.02        0.04        0.04
     Bad debts allowance            -0.01        0.00        0.00        0.00
     Inventory provision             0.00        0.01        0.00        0.01
     Loss on disposal of
      assets                         0.00        0.00        0.00        0.00
     Share-based compensation        0.00        0.00        0.00        0.01
     Research and development
      costs offset by funding
      advanced                      -0.02        0.00        0.00        0.00
     Deferred tax assets             0.00        0.00        0.00        0.00
    Non GAAP net income (loss)       0.00       -0.06        0.02       -0.09
    Weighted average shares
     outstanding - diluted     22,072,000  22,072,000  22,072,000  22,072,000

Financial Condition

As of June 30, 2010, Diguang had $8.0 million in cash and cash equivalents and $3.0 million in restricted cash. Working capital increased significantly to approximately $6.7 million compared to $2.8 million at the end of 2009. As of June 30, 2010, the Company had $7.4 million in short-term bank loans and $8.1 million in long-term bank loans. Shareholders' equity was $19.8 million as of June 30, 2010. Cash used in operating activities was $1.2 million, improved from $6.2 million for the six months ended June 30, 2009, primarily due to an increase in accounts payable and a lower net loss, offset by an increase in accounts receivable related to increased sales to domestic customers.

Business Outlook

Diguang continues to anticipate strong growth driven by increased demand for its LED TVs and monitors and LED backlights. The Company recently began small scale production of its 32" and 42" ultra-thin LED backlights and TVs, and commenced large-scale production of 19" LED TV and 24" LED backlights for TCL, one of the largest TV manufacturers in China.

Diguang's new production facility in Shenzhen is proceeding on schedule. The new facility, which is designed to manufacture large-size LED backlights and LED TVs, can accommodate 15 production lines of LED backlights used in LED TVs, with annual capacity of over 6 million units, as well as 12 integrated production lines of LED TVs (including LED monitors) and LED backlights, with annual capacity of over 4 million units of LED TVs. The Company still expects to complete construction in the fourth quarter of 2010 and will begin production in the first quarter of 2011. The Company plans to increase production lines on a gradual basis according to market demand.

"We remain optimistic about the future of the LED market, especially for LED TVs and monitors. We believe our new contracts with China's two largest TV manufacturers have the potential to serve as an inflection point for our business to return to sustainable growth and profitability," commented Mr. Song. "Given our shift toward higher margin product mix and our efforts to aggressively cut costs, we are confident in our ability to maintain our current level of gross margin. We reaffirm our revenue guidance of $60 million to $80 million for the fiscal year 2010."

Use of Non-GAAP Financial Measures

The Company's financial results prepared based on U.S. GAAP for the three and six months ended June 30, 2010 and 2009 include non-cash expenses such as depreciation, share based compensation, bad debt allowance, inventory provisions, loss on the disposal of assets, research and development costs offset by funding advanced and deferred tax assets. To supplement the Company's condensed consolidated financial statements presented in accordance with U.S. GAAP, the Company has provided non-GAAP financial measures excluding the impact of these items in this release, including adjusted net income and adjusted diluted earnings per share. The Company's management believes that, in conjunction with U.S. GAAP financial measures, these non-GAAP financial measures (i) improve transparency for investors, (ii) assist investors in their assessment of the Company's operating performance, (iii) facilitate comparison to the Company's historical performance, (iv) ensure that these measures are fully understood in light of how the Company evaluates its operating results, (v) properly define the metrics used and confirm their calculation. The additional adjusted information is not meant to be considered in isolation or as a substitute for items appearing on the Company's financial statements prepared in accordance with U.S GAAP. Rather, the non-GAAP measures should be used as supplement to U.S. GAAP results to assist the reader in better understanding the operational performance of the Company. The adjusted financial information that the Company provides may also differ from the adjusted information provided by other companies, which limits their usefulness as comparative measures. Our management believes that these adjusted financial measures are useful to investors because they exclude non-cash expenses that management excludes when it internally evaluates the performance of the Company's business and makes operating decisions, including internal budgeting, and performance measurement, as these measures provide a consistent method of comparison to historical periods. As a result, the provision of these adjusted measures allows investors to evaluate the Company's performance using the same methodology and information as that used by the Company's management. Moreover, management believes that these adjusted measures reflect the essential operating activities of the Company. Adjusted measures are subject to inherent limitations because they do not include all of the expenses included under the U.S. GAAP and because they involve the exercise of judgment of which charges are excluded from the adjusted financial measure. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded. A reconciliation of each adjusted measures to the nearest U.S. GAAP financial measures appears in the table above.

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang develops and produces CCFL and LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Leveraging its LED expertise, the Company also creates and markets energy-saving technologies and solutions for rapidly growing markets such as LED backlight monitors and LED general lighting. For more information, contact CCG Investor Relations directly or go to Diguang's website at http://www.diguangintl.c... .

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of backlights; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

                   DIGUANG INTERNATIONAL DEVELOPMENT CO., LTD.
                        CONSOLIDATED STATEMENTS OF INCOME
                              AND COMPREHENSIVE INCOME
                                   (In US Dollars)

                             Three Months Ended         Six Months Ended
                                   June 30,                 June 30,
                              2010         2009         2010         2009
                           (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
    Revenues:
    Revenues, net          $17,042,646  $10,203,137  $29,526,840  $16,202,990
    Cost of sales           15,503,593    9,803,156   26,283,433   15,181,644

    Gross profit             1,539,053      399,981    3,243,407    1,021,346

    Selling expense            651,082      520,662    1,251,913      938,896
    Research and
     development costs        (195,017)     619,107      333,967    1,025,431
    General and
     administrative
     expenses                  872,045    1,056,433    1,940,977    2,187,411
    Loss on disposing
     assets                       (379)      20,179        2,307       20,179

    Income (Loss) from
     operations                211,322   (1,816,400)    (285,757)  (3,150,571)

    Interest income
     (expense), net           (189,787)     (72,062)    (359,013)    (159,508)
    Investment income
     (expense)                      --          300           --          800
    Other income (expense)     108,473      (67,728)     147,065      110,193

    Income (loss) before
     income tax                130,008   (1,955,890)    (497,705)  (3,199,086)

    Income tax provision        12,829       28,485       12,829       31,573

    Net income (loss)          117,179   (1,984,375)    (510,534)  (3,230,659)

    Net income (loss)
     attributable to non-
     controlling interest       (9,615)    (147,200)     (60,503)    (183,066)

    Net income (loss)
     attributable to
     common shares            $126,794  $(1,837,175)   $(450,031) $(3,047,593)

    Weighted average
     common shares
     outstanding - basic    22,072,000   22,072,000   22,072,000   22,072,000

    Earnings (losses) per
     share - basic                0.01        (0.08)       (0.02)       (0.14)

    Weighted average
     common shares
     outstanding - diluted  22,072,000   22,072,000   22,072,000   22,072,000

    Earnings (losses) per
     shares - diluted             0.01        (0.08)       (0.02)       (0.14)


    Comprehensive income
     (loss):
     Net income (loss)         117,179   (1,984,375)    (510,534)  (3,230,659)
     Translation
      adjustment               135,125       43,052       96,160     (202,817)
    Comprehensive income
     (loss)                    252,304   (1,941,323)    (414,374)  (3,433,476)
     Comprehensive income
      (loss) attributable
      to non-controlling
      interest                   6,282     (146,193)     (44,571)    (185,854)

    Comprehensive income
     attributable to
     common shares            $246,022  $(1,795,130)   $(369,803) $(3,247,622)



                      DIGUANG INTERNATIONAL DEVELOPMENT CO., LTD.
                           CONSOLIDATED BALANCE SHEETS
                                 (In US Dollars)

                                                June 30,        December 31,
                                                 2010              2009
                                               (Unaudited)
    ASSETS
    Current assets:
    Cash and cash equivalents                   $7,985,036        $6,190,513
    Restricted cash                              2,990,186         4,341,112
    Accounts receivable, net of allowance
     for doubtful accounts $1,529,505 and
     $1,426,927                                 15,380,592        13,972,086
    Inventories, net of provision
     $3,519,124 and $3,508,548                  11,069,802         7,439,287
    Other receivables, net of provision
     $69,032 and $69,260                           312,100           465,013
    VAT recoverable                                541,297            82,497
    Advance to suppliers                         1,717,692           900,328
    Total current assets                        39,996,705        33,390,836

    Investment, net of impairment
     $1,500,000 and $1,500,000                          --                --
    Plant, property and equipment, net          17,480,483        17,736,766
    Construction in process                      4,103,667           132,079
    Long-term prepayments                          398,142           439,502

    Total assets                               $61,978,997       $51,699,183

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
    Bank loans                                  $7,420,789       $10,213,683
    Accounts payable                            21,267,387        15,446,721
    Advance from customers                         586,897           325,165
    Accruals and other payables                  2,492,387         2,510,206
    Accrued payroll and related expense            796,191           712,206
    Income tax payable                             386,289           394,989
    Amount due to stockholders - current           353,461           943,378
    Total current liabilities                   33,303,401        30,546,348

    Long-term bank loans                         8,110,300                --
    Research funding advanced                      756,654           952,255
    Total non-current liabilities                8,866,954           952,255

    Total liabilities                           42,170,355        31,498,603

    Equity
    Common stock, par value $0.001 per
     share, 50 million shares authorized,
     22,593,000 and 22,593,000 shares
     issued, 22,072,000 and 22,072,000
     shares outstanding                             22,593            22,593
    Additional paid-in capital                  20,904,072        20,881,635
    Treasury stock at cost                        (674,455)         (674,455)
    Appropriated earnings                          798,974           802,408
    Accumulated deficit                         (8,090,851)       (7,644,254)
    Translation adjustment                       4,419,119         4,338,891
    Total stockholders' equity                  17,379,452        17,726,818
     Non-controlling interest                    2,429,190         2,473,762
    Total equity                                19,808,642        20,200,580

    Total liabilities and stockholders'
     equity                                    $61,978,997       $51,699,183



                  DIGUANG INTERNATIONAL DEVELOPMENT CO., LTD.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
               Increase (Decrease) in Cash and Cash Equivalents
                           (In US Dollars)

                                                  Six months ended June 30,
                                                   2010               2009
                                                (Unaudited)        (Unaudited)
    Cash flows from operating activities:
    Net loss                                     $(510,534)       $(3,230,659)
    Adjustments to reconcile net income
     to net cash provided by (used in)
     operating activities:
    Depreciation                                   940,112            857,492
    Bad debts allowance                           (107,940)                --
    Inventory provision                            (33,470)           156,614
    Loss on disposing assets                         2,307             20,179
    Share-based compensation                        22,437            200,180
    Research and development costs offset
     by funding advanced                          (513,867)                --
    Deferred tax asset                                  --             28,485
    Changes in operating assets and
     liabilities:
    Accounts receivable                         (1,293,968)            15,066
    Inventory                                   (3,566,997)        (3,019,267)
    Other receivables                              152,168            273,569
    VAT recoverable                               (455,819)          (170,768)
    Prepayments and other assets                  (813,265)          (388,562)
    Accounts payable                             4,612,699           (795,191)
    Accruals and other payable                      74,284            (69,945)
    Advance from customers                         262,798           (131,108)
    Accrued interest payable to related
     parties                                            --             55,057
    Taxes payable                                   (8,773)           (17,745)

    Net cash used in operating activities       (1,237,828)        (6,216,603)

    Cash flows from investing activities:
    Purchase of fixed assets investment
     in construction                            (3,345,363)           (59,948)
    Proceeds from disposal of fixed
     assets                                          5,527             18,447

    Net cash used in investing activities       (3,339,836)           (41,501)

    Cash flows from financing activities:
    Due to related parties                        (597,568)          (800,508)
    Repayments for short-term bank
     facilities                                 (1,454,707)                --
    Proceeds from (repayments for) import
     financing loans                            (1,356,660)         4,338,227
    Restricted cash pledged for (released
     from) import financing loans                1,350,926         (4,338,227)
    Proceeds from long-term loan
     facilities                                  8,110,300                 --
    Research funding advanced                      317,237                 --

    Net cash received from financing
     activities                                  6,369,528           (800,508)

    Effect of changes in foreign exchange
     rates                                           2,659           (205,218)

    Net increase (decrease) in cash and
     cash equivalents                            1,794,523         (7,263,830)

    Cash and cash equivalents, beginning
     of the year                                 6,190,513         15,024,363

    Cash and cash equivalents, end of the
     year                                       $7,985,036         $7,760,533

    Supplemental disclosures of cash flow
     information:
     Cash paid for interest                        403,523            147,461
     Cash paid for income taxes                     24,067             14,820



    For more information, please contact:

    Company Contact:
     Victoria Liu
     Diguang International Development Co., Ltd.
     Email: victoria@diguang.com
     Tel:   +1-626-593-5486

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Email: Elaine.ketchmere@ccgir.com
     Tel:   +1-310-954-1345
     Web:   http://www.ccgirasia.com

SHENZHEN, China, March 31 /PRNewswire-Asia-FirstCall/ -- Diguang International Development Co., Ltd. (OTC Bulletin Board:DGNG.ob - News) ("Diguang" or the "Company") today announced financial results for the fourth quarter and the year ended December 31, 2009.

    Fourth Quarter Highlights
    -- Net revenue increased 65.0% year-over-year to $14.4 million
    -- Gross profit totaled $1.6 million, or 11.0% of sales, compared to gross
       loss of $1.0 million a year ago
    -- Net loss improved to $2.9 million, or $0.13 cents per diluted share,
       compared to a loss of $3.7 million, or $0.17 per diluted share, a year
       ago
    -- Non-GAAP net income was $0.4 million, or $0.02 per share, compared to a
       non-GAAP net loss of $1.6 million, or $0.07 per diluted share, a year
       ago
    -- In December 2009, Diguang commenced construction of its new production
       facility in Shenzhen to manufacture large sized LED back light products
       and LED TVs
    -- In October 2009, Diguang featured its LED lighting products at the Hong
       Kong International Lighting Fair
    -- In November 2009, Diguang featured its LED products at the China
       Hi-Tech Fair in Shenzhen

"Demand for our LED backlights continued to increase in the fourth quarter of 2009. As a result, revenue increased 7.1% over the third quarter of 2009 and jumped 65.0% on a year-over-year basis," said Mr. Song Yi, the President and Chief Executive Officer of Diguang. "In 2009, our product mix reflects our focus on the rapidly growing market for LED products. For the first time, sales of our LED products, including LED backlights, LED LCM, mini-notebooks, LED general lighting products and LED monitors, represented a majority of our total sales. We successfully introduced our LED TV backlight and LCM to major TV manufacturers and added 10 new customers, which accounted for approximately 19.0% of our total revenue for fiscal year 2009. During the year, we also delivered our 19" LED energy saving monitors, along with several LED general lighting products. While margin improved across LED product lines, most notably, large sized LED backlights recorded higher revenue and gross margin.

"We believe our LED TVs and TV assembly offerings will continue to gain momentum as consumers seek environmentally friendly, power-saving and superior quality products at affordable prices. This is especially true for the domestic market, and we are working to expand our network of agents within China," added Mr. Song

Highlights for the Three Months Ended December 31, 2009

Net revenue totaled approximately $14.4 million for the three months ended December 31, 2009, a significant increase of 65.0%, compared to $8.7 million for the three months ended December 31, 2008. On a sequential basis revenue increased 6.0% from $13.6 million in the third quarter of 2009 as a result of growing market demand for the Company's LED TV backlights and CCFL backlights. The fourth quarter of 2009 represents second consecutive quarter of expanded sales for the Company's traditional CCFL products and newly developed large size LED backlights and LED monitors, which benefited from continued economic recovery.

Gross profit for the fourth quarter of 2009 totaled $1.6 million, or 11.0% of net sales, compared with gross loss of $1.0 million for the same period of 2008. The turnaround in gross profit was largely attributable to upgrades to its small and mid size LED backlight products which generated negative margins in the year ago period, combined with the ability to generate high gross margin from sales of its large sized LED products. On a sequential basis, gross margin increased 4.0 percentage points from 7.0% in the third quarter of 2009.

Operating expenses totaled approximately $4.2 million for the fourth quarter of 2009, up 56.6% from $2.8 million in the fourth quarter of 2008. As a percentage of net revenue, fourth quarter 2009 total operating expenses amounted to 29.1%, compared to fourth quarter 2008 operating expenses at 56.6% of net revenue. This was largely attributable to a significant increase in R&D expenses as the Company aggressively upgraded its existing products and invested into product development initiatives and increase in selling expenses due to promotion activities for new products, which were partially offset by decline in general and administrative expenses as a result of management's disciplined efforts to control costs.

The Company's net loss attributable to common shares during the three months ended December 31, 2009 was $2.9 million, down from net loss attributable to common shares of $3.7 million for the three months ended December 31, 2008.

The loss per basic and diluted share was ($0.13) for the three months ended December 31, 2009, improving from loss per basic and diluted share of ($0.17) for the three months ended December 31, 2008.

Excluding non-cash items, net income for the fourth quarter of fiscal 2009 on a non-GAAP basis would have been $0.4 million, or $0.02 per basic and diluted share. Excluding non-cash items, net loss for the fourth quarter of 2008 on a non-GAAP basis would have been $1.6 million, or ($0.07) per basic and diluted share. Please see the reconciliation table below.

    Reconciliation of GAAP Net Income and Earnings per Share to Non-GAAP Net
    Income and Earnings per Share

                                Three Months Ended          Years Ended
                                    December 31,            December 31,
                                 2009         2008        2009        2008

    GAAP net income (loss)   (2,935,282)  (3,730,896) (7,200,452) (4,718,370)
    Non-cash items:
    Non controlling interest    202,927      (74,007)    (45,682)    195,925
    Depreciation                381,998      415,979   1,601,616   1,833,219
    Bad debt allowance          869,079      220,720     869,079     220,720
    Inventory provision       1,181,258    1,183,932   1,749,523   1,239,816
    Impairment of long-term
     investments                720,698      157,108     720,698     157,108
    Loss on disposal of
     assets                           2        3,726      30,489       3,726
    Share-based
     compensation               (20,305)     144,127     281,175     571,505
    Deferred tax assets              --       53,522      28,485      53,522
    Non GAAP net income
     (loss)                     400,375   (1,625,789) (1,965,069)   (442,869)

    GAAP net income (loss)        (0.13)       (0.17)      (0.33)      (0.21)
    Non-cash items:
    Non controlling interest       0.01        (0.00)      (0.00)       0.01
    Depreciation                   0.02         0.02        0.07        0.08
    Bad debt allowance             0.04         0.01        0.04        0.01
    Inventory provision            0.05         0.05        0.08        0.06
    Impairment of long-term
     investments                   0.03         0.01        0.03        0.01
    Loss on disposal of
     assets                        0.00         0.00        0.00        0.00
    Share-based
     compensation                 (0.00)        0.01        0.01        0.03
    Deferred tax assets            0.00         0.00        0.00        0.00
    Non GAAP net income
     (loss)                        0.02        (0.07)      (0.09)      (0.02)
    Weighted average shares
     outstanding -
     basic and diluted       22,200,822   22,072,000  22,072,000  22,155,882

Fiscal Year 2009 Results

Total revenue for 2009 was approximately $44.1 million, down 20.5% from $55.4 million in fiscal year 2008. Gross profit for 2009 was $3.6 million, down 25.1% from gross profit of $4.7 million a year ago. Gross margin was 8.1% for 2009, down from 8.6% for 2008. The Company recorded an operating loss of $7.0 million, compared with operating loss of $3.9 million in 2008. Net loss attributable to common shares for 2009 was $7.2 million, compared with net loss attributable to common shares of $4.7 million in 2008. Basic and diluted loss per share were ($0.33) for 2009 compared to ($0.21) in 2008.

Excluding non-cash items, net loss for 2009 on a non-GAAP basis would have been $2.0 million, or ($0.09) per share. Excluding non-cash items, net loss for 2008 on a non-GAAP basis would have been $0.4 million, or ($0.02) per share. Please see the reconciliation table above.

Financial Condition

As of December 31, 2009, Diguang had $6.2 million in cash and cash equivalents, $4.3 million in restricted cash and approximately $2.8 million in working capital. As of December 31, 2009, shareholders' equity was $51.7 million.

Recent Events

On March 9, 2010, Diguang's management team presented at the Rodman & Renshaw China Investment Conference in Beijing.

Business Outlook

Diguang continues to anticipate strong growth driven by increased demand in its LED backlight, LED TV, and general lighting product segments. According to DisplayBank's projections Global LED market will reach $14 billion in 2013, reflecting a five-year compound annual growth rate 18.7%. The Company has rolled out its 32", 42" and 52" LED TVs in small batches in the first quarter of 2010 and expects to deliver large orders in the second quarter of 2010. Diguang expects to launch its 24-inch ultra-thin monitor in the second quarter of 2010.

Diguang's new production facility in Shenzhen will be used to manufacture large size LED backlights and LED TVs. This new facility will house ten production lines with a total annual production capacity of 1.0 million units. The Company expects to complete construction in the third quarter of 2010 and anticipates the facility to commence production by the first quarter of 2011. With the additional capacity from the Shenzhen facility, the Company expects total capacity to expand to 6.6 million backlight units, 320,000 LED TV and monitor units, and 50,000 LED lighting units, an increase of 45.6%, 88.2% and 150%, respectively.

General lighting products, represent a longer term growth opportunity. According to DisplaySearch projections, the LED lighting market could reach $2 billion by 2013. Diguang employs sales agents to expand its geographic reach and has shipped samples of its LED general lighting products to the US, UK, France, Netherland and Singapore. The Company has received favorable response and is working on initial trial orders from customers in US, UK, and France.

The Company estimates fiscal 2010 revenue to be in the range of $60 million to $80 million.

"With distinguishing features such as superior quality, slimmer profiles, lower energy consumption and higher color contrast gaining consumers' attention, the global LED TV market is rapidly gaining momentum and we expect it to be a strong catalyst for our growth in the year ahead. We are also excited about the emerging LED general lighting segment with increasing government support and rising global environmental consciousness," commented Mr. Song. "Our new production facility in Shenzhen will enable us to capitalize on the long term growth opportunities in the LED industry. With strategically located manufacturing bases in China's vital electronics manufacturing regions, Diguang is well positioned to effectively meet increasing demand from both domestic and international customers."

Use of Non-GAAP Financial Measures

GAAP results for the three months and years ended December 31, 2009 and 2008 include non-cash expenses such as depreciation, share based compensation, bad debt allowance, inventory provisions, loss on the disposal of assets, and deferred tax assets. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided non- GAAP financial information excluding the impact of these items in this release, which are non-GAAP net income and non-GAAP diluted earnings per share. The Company's management believes that these non-GAAP measures provide investors with a better understanding of how the results related to the Company's historical performance. The additional adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies. Management believes that these adjusted financial measures are useful to investors because they exclude non-cash expenses that management excludes when it internally evaluates the performance of the Company's business and makes operating decisions, including internal budgeting, and performance measurement, as these measures provide a consistent method of comparison to historical periods. As a result, the provision of these adjusted measures allows investors to evaluate the Company's performance using the same methodology and information as that used by the Company's management. Moreover, management believes that these adjusted measures reflect the essential operating activities of the Company. Adjusted measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the adjusted financial measure. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded. A reconciliation of each adjusted measures to the nearest GAAP measure appears in the table above.

Teleconference and Webcast Information

Management will host a conference call and webcast to the 2009 fourth quarter and year-end financial results. The conference call will take place at 9:00 a.m. Eastern Time on Thursday, April 1, 2010.

To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: +1 (877) 833-3695. International callers should dial +1 (706) 679-8022. When prompted, please enter the conference ID number 645 864 20.

A replay will be available for 14 days starting at 10:00 a.m. Eastern Time on Thursday, April 1, 2010, and can be accessed by dialing +1 (800) 642-1687. International callers should dial +1 (706) 645-9291. When prompted, please enter the conference ID number 645 864 20.

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang develops and produces CCFL and LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Leveraging its LED expertise, the Company also creates and markets energy-saving technologies and solutions for rapidly growing markets such as LED backlight monitors and LED general lighting. For more information, contact CCG Investor Relations directly or go to Diguang's website at http://www.diguangintl.c... .

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of backlights; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Phone: +1-626-593-5486
     Email: viola@diguang.com

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Phone: +1-310-954-1345
     Email: Elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com


                               (financial tables follow)



                     DIGUANG INTERNATIONAL DEVELOPMENT CO., LTD.
             CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                   FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2009
                                  (In US Dollars)

                           Three Months Ended             Years Ended
                               December 31,               December 31,
                            2009         2008          2009         2008
    Revenues:
    Revenues, net        14,415,893    8,734,623   $44,075,249  $55,430,680
    Cost of sales        12,824,018    9,696,293    40,523,868   50,690,610

    Gross profit          1,591,875     (961,670)    3,551,381    4,740,070

    Selling expense         683,374      589,551     2,336,476    1,854,369
    Research and
     development          1,563,326      327,636     3,049,703    1,163,830
    General and
     administrative       1,226,559    1,742,804     4,411,902    5,509,517
    Loss on disposing
     assets                       2      157,108        30,489        3,726
    Impairment loss         720,698           --       720,698      157,108
    Loss from
     operations          (2,602,084)  (3,778,769)   (6,997,887)  (3,948,480)

    Interest income
     expense, net           (81,369)     (89,062)     (367,128)    (259,666)
    Investment
     income (loss)               --        1,471           800       67,523
    Other income
     (loss)                 (37,478)     137,674       160,459     (190,513)

    Loss before
     income taxes        (2,720,931)  (3,728,686)   (7,203,756)  (4,331,136)

    Income tax
     provision               11,424       76,217        42,351      191,309

    Net loss             (2,732,355)  (3,804,903)   (7,246,107)  (4,522,445)

    Net income (loss)
     attributable to
     non-controlling
     interest               202,927      (74,007)      (45,682)     195,925

    Net income (loss)
     attributable to
     common shares       (2,935,282)  (3,730,896)  $(7,200,425) $(4,718,370)

    Weighted average
     common shares
     outstanding -
     basic               22,200,822   22,072,000    22,072,000   22,155,882

    Losses per share
     - basic                  (0.13)       (0.17)        (0.33)       (0.21)

    Weighted average
     common shares
     outstanding -
     diluted             22,200,822   22,072,000    22,072,000   22,155,882

    Losses per
     shares -
     diluted                  (0.13)       (0.17)        (0.33)       (0.21)



                     DIGUANG INTERNATIONAL DEVELOPMENT CO., LTD.
                            CONSOLIDATED BALANCE SHEETS
                                  (In US Dollars)

                                                     December 31,
                                            2009                    2008
    ASSETS
    Current assets:
    Cash and cash equivalents            $6,190,513             $15,024,363
    Restricted cash                       4,341,112                      --
    Accounts receivable, net
     of allowance for
     doubtful accounts
     $ 655,893 and $1,529,505            13,972,086               9,944,208
    Inventories, net of
     provision $2,081,334
     and $3,519,124                       7,439,287               7,285,860
    Other receivables, net
     of provision $ 101,020
     and $ 69,032                           465,013                 535,493
    VAT recoverable                          82,497                 112,842
    Advance to suppliers                    900,328                 602,017
    Deferred tax asset                           --                  28,485

    Total current assets                 33,390,836              33,533,268

    Investment, net of
     impairment $779,302 and
     $ 1,500,000                                 --                 720,698
    Plant, property and
     equipment, net                      17,868,845              19,369,200
    Long-term prepayments                   439,502                      --

    Total assets                        $51,699,183             $53,623,166

    LIABILITIES AND
     SHAREHOLDERS' EQUITY
    Current liabilities:
    Bank loans                          $10,213,683              $4,397,215
    Accounts payable                     15,446,721              15,643,476
    Advance from customers                  325,165                 561,282
    Accruals and other
     payables                             2,510,206               2,337,800
    Accrued payroll and
     related expense                        712,206                 626,277
    Income tax payable                      394,989                 401,260
    Amount due to related
     parties                                     --                 674,548
    Amount due to
     stockholders - current                 943,378               1,005,480
    Total current
     liabilities                         30,546,348              25,647,338

    Research funding
     advanced                               952,255                 644,925
    Total non-current
     liabilities                            952,255                 644,925

    Total liabilities                    31,498,603              26,292,263

    Equity
    Common stock, par value $0.001
     per share, 50 million shares
     authorized, 22,593,000 and
     22,593,000 shares issued,
     22,072,000 and 22,072,000 shares
     outstanding                             22,593                  22,593
    Additional paid-in
     capital                             20,881,635              20,600,460
    Treasury stock at cost                 (674,455)               (674,455)
    Appropriated earnings                   802,408                 802,408
    Accumulated deficit                  (7,644,254)               (443,829)
    Translation adjustment                4,338,891               4,503,022
    Total stockholders'
     equity                              17,726,818              24,810,199
      Non-controlling
       interest                           2,473,762               2,520,704
    Total equity                         20,200,580              27,330,903

    Total liabilities and
     stockholders' equity               $51,699,183             $53,623,166



                     DIGUANG INTERNATIONAL DEVELOPMENT CO., LTD.
                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                Increase (Decrease) in Cash and Cash Equivalents
                                  (In US Dollars)

                                             Years Ended December 31,
                                          2009                      2008
    Cash flows from
     operating activities:
    Net income                        $(7,246,107)              $(4,522,445)
    Adjustments to reconcile net
     income to net cash provided
     by (used in) operating
     activities:
    Depreciation                        1,601,616                 1,833,219
    Bad debts allowance                   869,079                   220,720
    Inventory provision                 1,749,523                 1,239,816
    Impairment of long-term
     investment                           720,698                   157,108
    Loss on disposing
     assets                                30,489                     3,726
    Share-based
     compensation                         281,175                   571,505
    Deferred tax asset                     28,485                    53,522
    Changes in operating
     assets and
     liabilities:
    Accounts receivable                (4,898,836)                3,079,557
    Inventory                          (1,903,493)               (1,073,437)
    Other receivables                      70,470                  (134,174)
    VAT recoverable                        30,347                   291,740
    Prepayments and other
     assets                              (298,422)                  586,062
    Accounts payable                     (196,458)               (4,012,725)
    Accruals and other
     payable                              258,294                (1,273,957)
    Advance from customers               (236,042)                   79,739
    Accrued interest
     payable to related
     parties                               64,629                        --
    Taxes payable                          (6,268)                  (23,295)

    Net cash used in
     operating activities              (9,080,821)               (2,923,319)

    Cash flows from
     investing activities:
    Purchase of fixed
     assets                              (160,094)               (2,607,743)
    Cash paid for
     acquisition of
     entities                            (109,670)               (1,194,520)
    Proceeds from disposal
     of fixed assets                       29,154                     9,161

    Net cash used in
     investing activities                (240,610)               (3,793,102)

    Cash flows from
     financing activities:
    Stock repurchase                           --                  (245,160)
    Due to related parties               (691,273)                 (727,161)
    Capital infused by
     minority interest in
     North Diamond                             --                   737,500
    Proceeds from
     short-term bank
     facilities                         5,813,568                 4,397,215
    Restricted cash pledged
     for import facilities             (4,341,112)                       --
    Prepaid deposit for
     long-term credit
     facilities                          (439,502)                       --
    Research funding
     advanced                             307,731                   391,882

    Net cash received from
     financing activities                 649,412                 4,554,276

    Effect of changes in
     foreign exchange rates              (161,831)                  935,781

    Net increase (decrease)
     in cash and cash
     equivalents                       (8,833,850)               (1,226,364)

    Cash and cash
     equivalents, beginning
     of the year                       15,024,363                16,250,727

    Cash and cash
     equivalents, end of
     the year                          $6,190,513               $15,024,363

(Logo: http://www.cesweb.org/ .

"We are excited to participate in the world's largest consumer technology tradeshow in Las Vegas. With continual recovery in the world economy, we expect global demand for LED displays and LED lighting products to grow rapidly in 2010," commented Mr. Song Yi, President of Diguang. "Diguang is well positioned to take advantage of this market rebound with our independently developed LED products, which are known for innovative design, energy-efficiency and environmentally friendly features. We are confident that our LED products will bring fresh user experience and strongly cater to consumer preferences."

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang International develops and produces CCFL and LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Leveraging its LED expertise, the Company also creates and markets energy-saving technologies and solutions for rapidly growing markets such as LED backlight monitors and LED general lighting. For more information, contact CCG Investor Relations directly or go to Diguang's website at http://www.diguangintl.c... .

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward- looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: government support of LED products, prospective success of new and existing products, business conditions in China and globally; weather and natural disasters; legislative or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel:   +1-626-593-5486
     Email: viola@diguang.com

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: Elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

(Logo: http://www.chtf.com/engl... .

"CHTF is a premier industry event, providing Diguang with the opportunity to showcase our products at the largest exhibition for China's flat panel display industry. Our flat panel display products fit in well with the LED Expo's emphasis on energy-efficient and green products, as our LED products are energy-saving and radiation free. We believe that our continual efforts on developing environmentally friendly and energy saving technological innovations will become a major growth driver in the future," commented Mr. Song Yi, Diguang's CEO, "We look forward to interacting with both domestic and global partners and educating exhibition attendees about our high-tech LED innovations."

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang International develops and produces CCFL and LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Leveraging its LED expertise, the Company also creates and markets energy-saving technologies and solutions for rapidly growing markets such as LED backlight monitors and LED general lighting. For more information, contact CCG Investor Relations directly or go to Diguang's website at http://www.diguangintl.c... .

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: government support of LED products, prospective success of new and existing products, business conditions in China and globally; weather and natural disasters; legislative or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel:   +1-626-593-5486
     Email: viola@diguang.com

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: Elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

(Logo: http://www.diguangintl.c... .

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: government support of LED products, prospective success of new and existing products, business conditions in China and globally; weather and natural disasters; legislative or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel:   +1-626-593-5486
     Email: viola@diguang.com

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: Elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

This year the fair, which is the largest exhibition of its kind in Asia and the second largest in the world, features a record 1,788 exhibitors from 31 countries and regions. Major exhibit categories at this year's Fair range from LED lighting, commercial and household lighting to green lighting, outdoor lighting, and lighting management, design and technology. For more information visit

Through its subsidiaries, Diguang International develops and produces CCFL and LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Leveraging its LED expertise, the Company also creates and markets energy-saving technologies and solutions for rapidly growing markets such as LED backlight monitors and LED general lighting. For more information, contact CCG Investor Relations directly or go to Diguang's website at http://www.diguangintl.c... .

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: government support of LED products, prospective success of new and existing products, business conditions in China and globally; weather and natural disasters; legislative or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel:   +1-626-593-5486
     Email: viola@diguang.com

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: Elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

(Logo:

    Date:   Wednesday, November 25, 2009
    Time:   10:00 am local time
    Venue:  23/F, Building A, Galaxy Century, No. 3069 Caitian Road,
            Futian District, Shenzhen, P.R. China/Post Code: 518026

    1. To elect five directors to hold office until the 2010 Annual Meeting of
       Stockholders or until their successors are elected and qualified.
    2. To ratify the appointment of BDO Guangdong Dahua Delu CPAs as the
       Company's independent auditors for the fiscal year ending December 31,
       2009.
    3. To transact such other business as may properly come before the meeting
       or any adjournments or postponements thereof.

The Company's proxy statement and annual report are also available for download by accessing the link:

Through its subsidiaries, Diguang International develops and produces CCFL and LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Leveraging its LED expertise, the Company also creates and markets energy-saving technologies and solutions for rapidly growing markets such as LED backlight monitors and LED general lighting. For more information, contact CCG Investor Relations directly or go to Diguang's website at http://www.diguangintl.c... .

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel:   +1-626-593-5486
     Email: viola@diguang.com

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: Elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

(Logo: http://www.hkelectronics... .

Diguang will display its products at booth No. CHF 14-16, Convention Hall, Hong Kong Convention and Exhibition Centre, Hong Kong. The products presented at this fair will include the newly developed 19" and 22" LED ultra-slim monitors, 19" LED ultra-slim all-in-one computers and 19", 22", 32" and 42" ultra-slim LED TVs.

"While we maintain a strong R&D focus to develop our integrated products, we also continue to develop cooperation with well-known TV manufactures and expand our presence in the global market. We remain confident in the growth outlook for LED monitors, all-in-one PC's and large-size LED TV's due to their cost advantages, enhanced performance, and positive response from consumers," commented Mr. Song Yi, Diguang's CEO, "We look forward to acquainting attendees from around the world to our exciting new products at this high profile event."

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang International develops and produces CCFL and LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Leveraging its LED expertise, the Company also creates and markets energy-saving technologies and solutions for rapidly growing markets such as LED backlight monitors and LED general lighting. For more information, contact CCG Investor Relations directly or go to Diguang's website at http://www.diguangintl.c... .

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: government support of LED products, prospective success of new and existing products, business conditions in China and globally; weather and natural disasters; legislative or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Email: viola@diguang.com
     Tel:   +1-626-593-5486
     Email: viola@diguang.com

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Email: Elaine.ketchmere@ccgir.com
     Tel:   +1-310-954-1345
     Web:   http://www.ccgirasia.com

In addition, Diguang was elected as the deputy director unit of the LED Light Source, Lighting and Display Manufacturing expert group, by the Experts Committee of Shenzhen LED Industry Alliance Association. As the deputy director unit, Diguang will make a greater contribution for setting and modifying the standards of Shenzhen's LED industry.

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang International develops and produces CCFL and LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Leveraging its LED expertise, the Company also creates and markets energy-saving technologies and solutions for rapidly growing markets such as LED backlight monitors and LED general lighting. For more information, contact CCG Investor Relations directly or go to Diguang's website at http://www.diguangintl.c... .

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: government support of LED products, prospective success of new and existing products, business conditions in China and globally; weather and natural disasters; legislative or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Email: viola@diguang.com
     Tel:   +1-626-593-5486
     Web:   http://www.diguangintl.c...

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Email: Elaine.ketchmere@ccgir.com
     Tel:   +1-310-954-1345
     Web:   http://www.ccgirasia.com

    (Logo: 

     IFA 2009
     Diguang International Development Co., Ltd,
     Hall 26
     Messedamm 22
     14055 Berlin

For further details about the IAS Consumer Electronic Show, please visit http://tinyurl.com/nfz2q... .

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang International develops and produces CCFL and LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Leveraging its LED expertise, the Company also creates and markets energy-saving technologies and solutions for rapidly growing markets such as LED backlight monitors and LED general lighting. For more information, contact CCG Investor Relations directly or go to Diguang's website at http://www.diguangintl.c... .

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: government support of LED products, prospective success of new and existing products, business conditions in China and globally; weather and natural disasters; legislative or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel:   +1-626-593-5486
     Email: viola@diguang.com
     Web:   http://www.diguangintl.c...

    Investor Relations Contact:
     Elaine Ketchmere, Partner
     CCG Investor Relations
     Tel:   +1-310-954-1345
     Email: Elaine.ketchmere@ccgir.com
     Web:   http://www.ccgirasia.com

SHENZHEN, China, June 2 /PRNewswire-Asia-FirstCall/ -- Diguang International Development Co., Ltd. (OTC Bulletin Board: DGNG - News; "Diguang" or the "Company") today announced plans for its subsidiary Diguang Electronics to participate in the COMPUTEX TAIPEI exhibition, being held June 2 through June 6, 2009.

(Logo: http://www.diguangintl.c... .

Organized by TAITRA (Taiwan External Trade Development Council) and the Taipei Computer Association (TCA), COMPUTEX TAIPEI 2009 has over 10,000 buyers registered to attend.

Diguang's CEO, Song Yi, commented: "As the world's leading ICT procurement platform, COMPUTEX TAIPEI 2009 provides our company with a truly world-class showcase. We look forward to acquainting exhibition attendees with a wide range of our products, which are at the forefront of cost-efficient, energy-saving LED display technologies, integrated solutions and general lighting innovations."

About COMPUTEX TAIPEI

COMPUTEX TAIPEI has become the largest computer exhibition in Asia and the second largest in the world, next to CeBIT in Germany. Each year, key global businesses come to this event to launch their new products. Since a large portion of the businesses in the world have research and deployment centers or production facilities in Taiwan, this exhibition attracts observers, analysts, and journalists of computer and information industries from all over the world to discover and report the latest technologies, developments, and trends. For more information, please visit

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel: +1-626-593-5486

    Investor Relations Contact:
     Ed Job, Account Manager
     CCG Investor Relations
     Tel: +1-646-213-1914
     Web: http://www.ccgirasia.com

SHENZHEN, China, May 4 /PRNewswire-Asia-FirstCall/ -- Diguang International Development Co., Ltd. (OTC Bulletin Board: DGNG.OB) today announced its plans to participate in LIGHTFAIR INTERNATIONAL. The world's largest architectural and commercial lighting trade show and conference is being held at the Jacob K. Javits Convention Center, 655 West 34th Street, New York City, from May 5 to May 7, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/... )

Diguang's products on display at booth No. 366 are its most popular LED general lighting innovations, including its newest LED down lights, panel lights, grid lights, street lights and tube fixtures.

According to market research firm Strategies Unlimited, the high- brightness LED market is expected to reach $8.3 billion in 2010, well over twice the level of 2005, with market growth driven by emerging applications such as illumination, automotive headlamps, and backlights for LCD monitors and TV screens.

Diguang's CEO, Song Yi, commented: "We have extensive experience in engineering LED backlights for a wide range of demanding OEM applications, which has positioned us favorably to compete successfully on both indoor and outdoor LED lighting projects in China. In support of the Chinese government's significant initiatives to promote LED lighting adoption, we are working to establish a technology leadership position in general LED lighting. Significant technology breakthroughs are still ahead in this energy-saving and environmentally sound next-generation area of lighting technology, and we believe we can make fundamental contributions. We look forward to acquainting LIGHTFAIR attendees from around the world with our expertise and capabilities across the entire spectrum of LED lighting applications."

About LIGHTFAIR INTERNATIONAL

Now in its 20th year as the world's largest annual architectural and commercial lighting trade show and conference, LIGHTFAIR(R) INTERNATIONAL blends continuing education courses with innovative products ranging from high-end design to cutting-edge technology.

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang International develops and produces CCFL and LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Leveraging its LED expertise, the Company also creates and markets energy-saving technologies and solutions for rapidly growing markets such as LED backlight monitors and LED general lighting.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward- looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: prospective success of the Company's participation in trade fairs, prospective success of new and existing products, business conditions in China and globally; weather and natural disasters; legislative or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel: +1-626-593-5486

    Investor Relations Contact:
     Sean Collins, Senior Partner
     CCG Investor Relations
     Tel: +1-310-477-9800 x202
     Web: http://www.ccgirasia.com

    (Logo:  http://www.newscom.com/cgi-bin/prnh/20070830/CNTH005LOGO )

    -- Net revenue for fiscal year 2008 increased 21% year over year to
       $55.4 million
    -- Sales to domestic (China-based) customers increased 106%
       year-over-year
    -- Growth initiatives underway on new ultra-slim 19" LED computer
       monitors, general LED lighting solutions and LED mini-notebook
       computers

"Along with every other company in our sector, we were heavily impacted by the global slow-down in consumer demand for such digital display products as automobile TVs, portable DVDs, MP3 and MP4 units and LCD products resulting from the global economic recession in the second half of 2008, especially in the fourth quarter," commented Song Yi, President and Chief Executive Officer of Diguang International. "However, we made excellent progress during the year on our strategy of diversifying our products into higher value-added products such as LCD modules, the ultra-slim 19" LED monitors that we launched commercially in March of 2009, general LED lighting solutions and mini-notebooks."

Full-Year 2008 Results

Revenue for the fiscal year ended December 31, 2008 increased 21% to $55.4 million from $45.9 million in 2007. The increase was primarily attributed to increased orders for CCFL products, especially higher-priced 19" CCFL products delivered to top TFT-LCD panel makers. New mini-computers, LED general lighting products, LCD modules and other products also contributed to this increase.

Sales to international customers totaled $40.4 million for the year ended December 31, 2008, an increase of 5% compared to $38.6 million in international sales during the year ended December 31, 2007. Sales to domestic (China-based) customers increased 106% during fiscal year 2008 to $15.0 million compared to $7.3 million reported in fiscal 2007. The increase in domestic sales primarily resulted from sales of mid-size LED products.

Cost of sales was $50.7 million for the year ended December 31, 2008, an increase of $12.6 million, or 33%, compared to $38.1 million for the year ended December 31, 2007. Included in this increase was a 30% rise in raw material costs in 2008, compared to 2007. Raw material costs accounted for 71% of total revenue versus 67% in 2007. Labor costs increased year over year by 38%, to $6.5 million, and accounted for 12% of 2008 total net revenue, compared to 10% in 2007. Cost of sales included production overhead amounting to $3.4 million, a 26% increase over 2007 overhead of $2.7 million. Also included in fiscal 2008 cost of sales was a one-time fourth-quarter inventory write-down totaling $1.2 million, compared to a fiscal 2007 fourth-quarter inventory write-down of $296,000.

Gross margin for the year ended December 31, 2008 was 9%, compared to 17% for the year ended December 31, 2007. The decline in gross margin is primarily attributed to industry-wide pricing pressure on legacy products, an inability to transfer pricing pressure to suppliers and the inventory write-down noted above.

Total operating expenses for fiscal year 2008 were $8.5 million, or 15.4% of sales, compared to $10.1 million, or 22% of sales, for fiscal year 2007. As components of total operating expenses, selling expenses decreased by 28% year over year to $1.9 million, research and development expenses increased by 10% to $1.2 million in support of new product development, and general and administrative expenses decreased by 15% to $5.5 million primarily due to reduction in headcount, decrease in bad debt allowance and start-up expenses related to the Wuhan facilities incurred in 2007, which did not recur in 2008.

Bad debt allowance was $350,000 for the year ended December 31, 2008, a 47% decrease compared to $658,000 for the year ended December 31, 2007. In addition, there was a non-cash impairment related to a long term investment amounting to $157,000 for the year ended December 31, 2008, down from $622,000 for the year ended December 31.

Net loss was $4.7 million for the year ended December 31, 2008, compared to a $2.9 million net loss for 2007. Net loss per diluted weighted average share totaled $(0.21) for the year ended December 31, 2008, compared to $(0.13) for the year ended December 31, 2007. The increase in loss per share for 2008 was primarily due to a significant decrease in gross margin, increased net interest expenses and a decrease in investment income year over year, offset by the decrease in selling , general and administrative expenses for the year. In addition, weighted average common shares outstanding decreased to 22,156,000 shares for 2008, compared with 22,531,000 shares for 2007.

Excluding non-cash items, the net loss for fiscal year 2008 on a non-GAAP basis would have been $2.3 million, or ($0.11) per share. Excluding non-cash items, net income for fiscal year 2007 on a non-GAAP basis would have been $417,000, or $0.02 per share. Please see the reconciliation table below.

Highlights for the three months Ended December 31, 2008

Net revenue totaled $8.7 million for the three months ended December 31, 2008, a decrease of $5.8 million, or 39.9%, compared to $14.5 million for the three months ended December 31, 2007.

Cost of sales was $9.7 million for the three months ended December 31, 2008, a decrease of $2.7 million, or 21.8%, compared to $12.4 million for the same period in 2007.

Gross profit for the three months ended December 31, 2008 was negative, compared to gross profit of $2.1 million, or 14.7% of net sales, for the same period of 2007. Negative impacts on the Company's fourth-quarter gross margin included a global recessionary slump in consumer demand for many products, a $1.2 million inventory write-down, compared to a fiscal 2007 fourth-quarter inventory write-down of $296,000, and incurrence of overhead costs despite lower sales.

Operating expenses totaled $2.7 million for the 2008 fourth quarter, a year-over-year decrease of 14.9%. As a percentage of net sales, fourth- quarter 2008 total operating expenses amounted to 30.4%, compared to fourth- quarter 2007 operating expenses at 21.5% of net sales. Quarterly selling expenses declined by 46.8% year over year, to approximately $511,000. Fourth- quarter research and development expenses increased by approximately 2 times to $328,000. Quarterly general and administrative expenses declined 11.3% year over year to $1.8 million.

The Company's net loss during the three months ended December 31, 2008 was $3.7 million, compared to an approximate $2.0 million net loss for the three months ended December 31, 2007.

The loss per basic and diluted share was ($0.17) for the three months ended December 31, 2008, compared to a ($0.09) loss per share for the three months ended December 31, 2007.

Excluding non-cash items, the net loss for the fourth quarter of year 2008 on a non-GAAP basis would have been $2.1 million, or ($0.09) per share. Excluding non-cash expenses, the net loss for the fourth quarter of year 2007 on a non-GAAP basis would have been $119,000, or ($0.01) per share. Please see the reconciliation table below.

As of December 31, 2008, Diguang had cash and cash equivalents of $15.0 million and working capital of $7.9 million. Shareholders' equity totaled approximately $24.8 million.

    Reconciliation of GAAP Net Income and Earnings per Share to Non-GAAP Net
                        Income and Earnings per Share

                               Three Months Ended         Year Ended
                                   December 31            December 31
                                  2007       2008       2007        2008

    GAAP net income/(loss)  (1,984,000)(3,720,000)(2,905,000) (4,718,000)
    Inventory write-down       296,000  1,184,000    296,000   1,240,000
    Stock-based compensation   411,000    144,000  1,206,000     572,000
    Minority Interest          117,000    (74,000)   335,000     196,000
    Bad debt allowance         604,000    221,000    604,000     221,000
    Impairment loss            622,000    157,000    622,000     157,000
    New manufacturing
     start-up expenses              --         --    260,000          --
    Non-GAAP net
     income/(loss)            (119,000)(2,088,000)   417,000  (2,332,000)
    GAAP net income/(loss)
     per share                   (0.09)     (0.17)     (0.13)      (0.21)
    Inventory write-down          0.01       0.05       0.01        0.06
    Stock-based compensation      0.02       0.01       0.05        0.03
    Minority Interest             0.01       0.00       0.01        0.01
    Bad debt allowance            0.03       0.01       0.03        0.01
    Impairment loss               0.03       0.01       0.03        0.01
    New manufacturing
     start-up expenses            0.00       0.00       0.01        0.00
    Non-GAAP earnings/(loss)
     per share - basic and
     diluted                     (0.01)     (0.09)      0.02       (0.11)
    Weighted average shares
     outstanding - basic and
     diluted                22,331,384 22,200,822 22,531,384  22,155,882

Use of Non-GAAP Financial Measures

Effective January 1, 2006, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 123R, which requires the Company to begin recognizing compensation expense relating to stock-based payment transactions. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company provides non-GAAP financial information. The Company's management believes that these non-GAAP measures provide investors with a better understanding of how the results relate to the Company's historical performance. The additional non-GAAP information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP financial information that the Company provides also may differ from the non-GAAP information provided by other companies.

Most Recent Events

In March, 2009, Diguang announced the commercial launch of its new ultra- slim 19" LED computer monitors in several major cities spanning all the most heavily populated regions of China. Management believes that these products answer unmet consumer demand and Chinese government mandates for affordable low-radiation, energy-saving computer monitors that the Company can market at relatively high margins.

Teleconference and Webcast Information

Management will conduct a conference call and webcast to discuss financial results for the full year and fourth quarter, ended December 31, of its 2008 fiscal year. The conference call and webcast will take place at 10:00 a.m. Eastern (U.S.) time today, Wednesday, April 1, 2009. Anyone interested in participating should call +1-866-730-5766 if calling from within the United States, or +1-857-350-1590 if calling internationally; the pass code is 76433907.

There will be a replay available until April 8, 2009. To listen to the playback, please call +1-... if calling within the United States, or +1-... if calling internationally. Please use pass code 36502466 for the replay.

The event will also be webcast live through a link on the Company's web site at http://www.diguangintl.com , and a webcast archive will be available for 90 days. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at http://www.earnings.com , Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (http://www.streetevents.com ), a password-protected event management site.

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang develops energy-saving technologies and solutions for rapidly growing LED-related markets such as LED lighting, LED backlight monitors and LED netbooks, and produces other LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Diguang is a Nevada corporation with its manufacturing subsidiaries located in China, and a sales and marketing subsidiary located in Hong Kong.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of backlights; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

                         (financial tables follow)



                DIGUANG INTERNATIONAL DEVELOPMENT CO., LTD.
                         CONSOLIDATED BALANCE SHEETS
                             (In U.S. Dollars)

                                                         December 31,
                                                       2007           2008
    ASSETS
    Current assets:
    Cash and cash equivalents                    $16,250,727    $15,024,363
    Accounts receivable, net of allowance
     for doubtful account $680,784 and
     $655,893                                     12,713,705      9,944,208
    Inventories, net of provision
     $841,518 and $2,081,334                       7,499,768      7,285,860
    Other receivables, net of provision
     $102,574 and $ 101,020                          389,764        535,493
    VAT recoverable                                  407,376        112,842
    Advance to suppliers                             904,203        602,017
    Deferred tax asset                                86,572         28,485
    Total current assets                          38,252,115     33,533,268

    Investment, net of impairment $622,194
     and $779,302                                    877,806        720,698
    Property and equipment, net                   17,449,871     19,369,200

    Total assets                                 $56,579,792    $53,623,166

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
    Bank loans                                           $--     $4,397,215
    Accounts payable                              18,855,416     15,643,476
    Advance from customers                           464,281        561,282
    Accruals and other payables                    3,358,199      2,337,800
    Accrued payroll and related expense              795,690        626,277
    Income tax payable                               428,217        401,260
    Amount due to related parties                  1,465,790        674,548
    Amount due to stockholders - current           1,100,000      1,005,480
    Total current liabilities                     26,467,593     25,647,338

    Research funding advanced                        245,730        644,925
    Amount due to stockholders                     1,100,000             --
    Total non-current liabilities                  1,345,730        644,925

    Total liabilities                             27,813,323     26,292,263

    Minority interest                              1,475,361      2,520,704

    Stockholders' equity:
      Common stock, par value $0.001 per
       share, 50 million shares authorized,
       22,593,000 and 22,593,000 shares
       issued, 22,340,700 and 22,072,000
       shares outstanding                             22,593         22,593
    Additional paid-in capital                    20,028,955     20,600,460
    Treasury stock at cost                          (429,295)      (674,455)
    Appropriated earnings                          1,949,839      2,114,448
    Retained earnings                              3,127,110     (1,755,869)
    Translation adjustment                         2,591,906      4,503,022
    Total stockholders' equity                    27,291,108     24,810,199

    Total liabilities and stockholders'
     equity                                      $56,579,792    $53,623,166



                    DIGUANG INTERNATIONAL DEVELOPMENT CO., LTD.
            CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
               FOR THE YEARS ENDED DECEMBER 31, 2006, 2007 AND 2008
                                (In U.S. Dollars)

                                            Years Ended December 31,
                                        2006           2007           2008
    Revenues:
    Revenues, net                 $34,242,617    $45,909,256     $55,430,680
    Cost of sales                  23,145,450     38,087,919      50,690,610

    Gross profit                   11,097,167      7,821,337       4,740,070

    Selling expense                 1,574,524      2,582,456       1,854,369
    Research and development          786,322      1,054,367       1,163,830
    General and administrative      6,656,469      6,476,242       5,509,517
    Loss on disposal of assets             --             --           3,726
    Impairment loss                        --        622,194         157,108
    Income (loss) from operations   2,079,852     (2,913,922)     (3,948,480)

    Interest income (expense), net    158,699        122,251        (259,666)
    Investment income (loss)           53,676        483,311          67,523
    Other income (loss)               (99,908)      (168,017        (190,513)

    Income (loss) before
     income taxes                   2,192,319     (2,476,377)     (4,331,136)

    Income tax provision              452,562         94,343         191,309

    Net income (loss) before
     minority interest              1,739,757     (2,570,720)     (4,522,445)

    Minority interest                  74,941        334,617         195,925

    Net income (loss)              $1,664,816    $(2,905,337)    $(4,718,370)

    Weighted average common
     shares outstanding - basic    21,383,960     22,531,384      22,155,882

    Earnings (loss) per share -
     basic                               0.08          (0.13)          (0.21)

    Weighted average common shares
     outstanding - diluted         21,383,960     22,531,384      22,155,882

    Earning (loss) per shares -
     diluted                             0.08          (0.13)          (0.21)

    Other comprehensive income:
    Net income                     $1,664,816    $(2,905,337)    $(4,718,370)
    Translation adjustments           851,488      1,857,709       1,911,116

    Comprehensive income (loss)    $2,516,304    $(1,047,628)    $(2,807,254)



                     DIGUANG INTERNATIONAL DEVELOPMENT CO., LTD.
                       CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE YEARS ENDED DECEMBER 31, 2006, 2007 AND 2008
    (The Increase or Decrease in Cash and Cash Equivalents) (In U.S. Dollars)

                                              Years Ended December 31,
                                            2006         2007        2008
    Cash flows from operating
     activities:
    Net income(loss)                   $1,664,816 $(2,905,337) $(4,718,370)
    Adjustments to reconcile net
     income to net cash provided by
     operating activities:
    Minority interests                     74,941     334,617      195,925
    Depreciation                          766,141   1,197,819    1,833,219
    Imputed interest                       79,674          --           --
    Bad debts allowance                   259,237     604,258      220,720
    Inventory provision                   545,446     296,072    1,239,816
    Impairment of long-term investment         --     622,194      157,108
    Loss on disposing assets                   --          --        3,726
    Stock compensation                  2,134,342   1,206,091      571,505
    Deferred tax asset                    (86,572)         --       53,522
    Changes in operating assets and
     liabilities:
    Accounts receivable                  (541,888) (6,507,856)   3,079,557
    Inventory                          (1,221,802) (3,170,378)  (1,073,437)
    Other receivables                    (152,056)   (248,711)    (134,174)
    VAT recoverable                      (219,860)   (184,913)     291,740
    Prepayments and other assets         (638,015)    459,832      586,062
    Accounts payable                      734,551  10,075,059   (4,012,725)
    Accruals and other payable            610,856   1,732,009   (1,273,957)
    Advance from customers               (157,525)    295,936       79,739
    Taxes payable                        (228,046)     88,034      (23,295)

    Net cash provided by (used in)
     operating activities               3,624,240   3,894,726   (2,923,319)

    Cash flows from investing
     activities:
    Purchase of fixed assets           (3,214,600) (6,172,666)  (2,607,743)
    Cash paid for acquisition of
     entities                                  --  (3,977,864)  (1,194,520)
    Long term investment               (1,500,000)         --           --
    Disposal of marketable securities   1,056,122          --           --
    Deposit for office building        (1,808,773)         --           --
    Disposal of fixed assets                   --          --        9,161
    Due from related parties               21,538          --           --

    Net cash used in investing
     activities                        (5,445,713)(10,150,530)  (3,793,102)

    Cash flows from financing
     activities:
    Common share issued                12,000,000          --           --
    Stock repurchase                           --    (429,295)    (245,160)
    Offering expenses                  (1,740,624)         --           --
    Due to related parties               (469,590)    158,876     (727,161)
    Proceeds from short-term bank loan         --          --    4,397,215
    Capital infused by owners of North
     Diamond                            1,392,857          --      737,500
    Research funding advanced                  --     236,225      391,882
    Dividend paid                        (111,140)         --           --

    Net cash provided by (used in)
     financing activities              11,071,503     (34,194)   4,554,276

    Effect of changes in foreign
     exchange rates                       738,486   1,990,693      935,781

    Net increase (decrease) in cash
     and cash equivalents               9,988,516  (4,299,305)  (1,226,364)

    Cash and cash equivalents,
     beginning of the year             10,561,516  20,550,032   16,250,727

    Cash and cash equivalents, end of
     the year                         $20,550,032 $16,250,727  $15,024,363



    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel: +1-626-593-5486

    Investor Relations Contact:
     Sean Collins, Senior Partner
     CCG Investor Relations
     Tel: +1-310-477-9800 x202
     Web: http://www.ccgirasia.com

(Logo: http://www.newscom.com/cgi-bin/prnh/... )

The conference call and webcast will take place at 10:00 a.m. Eastern (U.S.) time on Wednesday, April 1, 2009. Anyone interested in participating should call +1-866-730-5766 if calling from within the United States, or +1-857-350-1590 if calling internationally; the passcode is 76433907.

There will be a replay available until April 8, 2009. To listen to the playback, please call +1-888-286-8010 if calling within the United States, or +1-617-801-6888 if calling internationally. Please use passcode 36502466 for the replay.

The event will also be webcast live through a link on the Company's web site at http://www.diguangintl.com , and a webcast archive will be available for 90 days. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at http://www.earnings.com , Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (http://www.streetevents.com ), a password-protected event management site.

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang develops energy-saving technologies and solutions for rapidly growing LED-related markets such as LED lighting, LED backlight monitors and LED netbooks, and produces other LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Diguang is a Nevada corporation with its manufacturing subsidiaries located in China, and a sales and marketing subsidiary located in Hong Kong.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel: +1-626-593-5486

    Investor Relations Contact:
     Sean Collins, Senior Partner
     CCG Investor Relations
     Tel: +1-310-477-9800 x202
     Web: http://www.ccgirasia.com/

(Logo: http://www.newscom.com/cgi-bin/prnh/... )

Diguang's newest models measure only 13.3mm thick and weigh only 2.5kg, 50% of the weight of an ordinary 19-inch monitor. Diguang's LED monitors are mercury-free and emit very low levels of VLF and ELF (very low frequency and extremely low frequency) emissions compared to television-style CRT monitors. Diguang's energy-saving new LED monitors consume only 20 watts on average, a saving of 40% to 50% in power consumption than the comparable 19" CCFL monitors.

Diguang's LED monitors have numerous additional technical and operating advantages over their CCFL counterparts. They offer greater brightness, better image quality and clearer tone gradation. Adjusting the brightness does not affect how colors are displayed, as is the case with many CCFL models. Moving images flow smoothly, without the flicker seen in CCFL monitors. And Diguang's ultra-thin 19-inch monitors can operate for 50,000 hours, equivalent to 10 hours of operation per day for 12 years, as contrasted with a typical CCFL life expectancy of 30,000 hours, or only five hours per day over a five- year span.

    To view the new product, please visit:
http://www.diguangintl.com/A1901.jsp

Diguang's roll-out of its new products spans several of China's largest cities and all of the nation's most populous regions, including Beijing in North China; Shanghai in the East; Guangzhou and Shenzhen in South China; and Chengdu, Chongqing, Changsha and Wuhan in Central China.

Diguang's CEO, Song Yi, commented: "At the recent CeBIT exhibition in Germany, we received great interest and extremely positive feedback from attendees and industry experts. The launch of these affordable and environmentally friendly monitors fits well with the Chinese government's stimulus plans to encourage domestic demand. China's growing ranks of high- technology consumers can choose our ultra-slim monitors knowing they are environmentally friendly, and without worrying about the relatively high radiation levels of earlier generations of computer monitors and TVs. We are proud to offer these industry-leading products to Chinese consumers, and to position ourselves for growth in international markets as LCD component demand improves globally."

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang develops energy-saving technologies and solutions for rapidly growing LED-related markets such as LED lighting, LED backlight monitors and LED netbooks, and produces other LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Diguang is a Nevada corporation with its manufacturing subsidiaries located in China, and a sales and marketing subsidiary located in Hong Kong.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward- looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: prospective success of new and existing products, business conditions in China and globally; weather and natural disasters; legislative or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release. For more information, please contact:

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel: +1-626-593-5486

    Investor Relations Contact:
     Sean Collins, Senior Partner
     CCG Investor Relations
     Tel: +1-310-477-9800 x202
     Web: http://www.ccgirasia.com

SHENZHEN, China, March 2 /PRNewswire-Asia-FirstCall/ -- Diguang International Development Co., Ltd. (OTC Bulletin Board: DGNG.OB) ("Diguang" or "the Company") today announced that it plans to exhibit ultra slim 19" and 22" LED monitors at CeBIT, the world's largest information technology trade fair.

(Logo: http://www.newscom.com/cgi-bin/prnh/... )

At a mere 13.3 millimeters thick, weighing only 2.5 kilograms, and consuming only 25W of power, Diguang's new 19" LED monitors mark among the slimmest products available in the market (as compared to 19" CCFL monitors, which have a thickness of 50 to 70 mm, weigh 4.5 to 5 kilograms, and consume 40-plus watt of power). With both the ultra-slim LED monitors and LED netbooks on display at CeBIT, Diguang has diversified from component integration into complete products ready for branding and marketing.

At CeBIT, management will highlight how its core competence in backlights provides a solid, organic and dynamic basis for its new growth initiatives.

Song Yi, Diguang's CEO, commented, "Since the backlight display technology powering a monitor is one of its most crucial and costly components, Diguang has a natural advantage in originating one of the world's thinnest LED monitors. Green IT is among the keynotes of this year's CeBIT, and our mercury-free, energy-saving ultra-slim LED monitors and efficient, affordable netbooks exemplify this green theme. Expertise and innovation in backlights continue to drive our growth initiatives, but we have become much more than a backlight manufacturer, and we look forward to sharing our exciting new directions with CeBIT participants from around the world."

CeBIT is being held in Hannover, Germany, from March 3 through 8, 2009. For further details about the show, please visit http://www.cebit.de . Diguang products will be displayed at its booth in Hall 24, E27.

About CeBIT

CeBIT is the world's largest trade fair showcasing digital IT and telecommunications solutions for home and work environments. The key target groups are users from industry, the wholesale/retail sector, skilled trades, banks, the services sector, government agencies, science and all users passionate about technology. CeBIT offers an international platform for comparing notes on current industry trends, networking, and product presentations. Deutsche Messe AG has organized CeBIT in Hannover each spring since 1986.

About Diguang International Development Co., Ltd.

Through its subsidiaries, Diguang develops energy-saving technologies and solutions for rapidly growing LED-related markets such as LED lighting, LED backlight monitors and LED netbooks, and produces other LED backlights for a wide range of TFT-LCD products. A backlight is the typical light source of a liquid crystal display (LCD), with applications spanning televisions, computer monitors, cellular phones, digital cameras, DVDs and other home appliances. Diguang is a Nevada corporation with its manufacturing subsidiaries located in China, and a sales and marketing subsidiary located in Hong Kong.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: prospective success of new and existing products and of Company participation in trade shows, market performance of Diguang International's products, business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of backlights; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

    Company Contact:
     Viola Tse
     Diguang International Development   Co., Ltd.
     Tel: +1-626-593-5486

    Investor Relations Contact:
     Sean Collins, Senior Partner
     CCG Investor Relations
     Tel: +1-310-477-9800 x202
     Web: http://www.ccgirasia.com/

(Logo: http://www.newscom.com/cgi-bin/prnh/... )

The products that Diguang will present at this world-renowned annual consumer electronics trade show include CCFL/LED backlights, LED lamps, mini-size laptops, 19'' super-thin LED displays and other innovations.

The Company has submitted its newly developed LED sensor lamp and 19'' Wellplanner A19 series super-thin display for this year's Best of CES Awards, and will debut these products during the exhibition.

Song Yi, Diguang's CEO, who will attend CES in person, commented, "Our presentation at this year's CES show establishes us as an innovative, technologically advanced and diversified manufacturer, and will provide us the opportunity to communicate productively with other participants from around the world. We are now producing not only state-of-the-art new backlight products, but also LED lamps and mini-size laptop computers for rapidly growing global markets. Meanwhile, we have developed a super-thin, 13.33-millimeter display with some of the highest-level and most cost-effective features available. We believe this super-thin technology represents a Diguang breakthrough that will rapidly expand in domestic demand and gain wide acceptance in global market."

The CES Exhibition is being held at the Las Vegas Convention Center/Las Vegas Hilton and the Sands Expo and Convention Center/The Venetian. Diguang's booth code is 72346 at the Sands. For further details about the CES show, please visit http://www.cesweb.org/ .

About Diguang International Development Co., Ltd.

Diguang, through its subsidiaries, specializes in the research, development, production, sale and distribution of backlights and backlight technologies. A backlight is the typical light source of a liquid crystal display (LCD). The Company is focused on providing LED and CCFL backlights for international producers of televisions, monitors, cellular phones, digital cameras, DVDs and other home appliances. Diguang currently develops an average of approximately 50 new products per month. The Company also develops energy-saving technologies and solutions for rapidly growing LED general lighting markets and offers a new line of mini-notebook computers. Diguang is a Nevada corporation with its manufacturing subsidiary located in Shenzhen, PRC, and its sales and marketing subsidiary located in the British Virgin Islands.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: prospective success of new and existing products and of Company participation in trade shows, market performance of Diguang International's products, business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of backlights; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

     Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel: +1-626-593-5486

     Investor Relations Contact:
     Sean Collins, Senior Partner
     CCG Investor Relations
     Tel: +1-310-477-9800 x202
     Web: http://www.ccgasia.com

(Logo: http://www.newscom.com/cgi-bin/prnh/... )

Prior to joining Diguang International, Mr. Yu served as the chief executive officer and a director of Shenzhen Baotian Investment Development Co. Ltd., a holding company with investments in real estate development, property management and business acquisitions. From 2001 to 2003, Mr. Yu served as the president and a director of Beijing Hai Hua Aquaculture, Ltd., an aqua- business specializing in high-intensity indoor shrimp farming which provides turn-key operation to customers, from feasibility studies, company set-up and site selection to factory design and construction, equipment importation and engineering services, as well as management, employee training and technology transfer.

Between 1992 and 2001, Mr. Yu was CEO and Director of Fair Fund Industrial Group, Ltd., a Hong Kong holding company with Hong Kong and China operations in real estate development, construction, property and service apartment management, food and entertainment services, manufacturing and import/export trading. In this position, he successfully negotiated several large-scale investments involving Chinese and foreign financial institutions. Among prior positions, he has also held responsibility for accounting, finance and administration for a Da Shung Construction company subsidiary that was the third largest light bulb and lighting fixture manufacturer in Taiwan. He gained audit experience in the 1980s with California offices of accountancy firms Johnson & Grover, Laventhal & Horwath and the former Ernst & Ernst.

Mr. Yu holds a Bachelor's Degree in Science, with a major in Accounting, from the California State University, Chico, and a Master's Degree in Business Taxation from the University of Southern California. He is a Certified Public Accountant and a member of the AICPA.

"We are pleased at the opportunity to tap into Jerry Yu's wide-ranging and extensive experience," stated Song Yi, President and Chief Executive Officer of Diguang. "He has international experience, language skills, a leadership track record and management know-how that should serve us well. We look forward to benefiting from his insights and contributions as our Chief Operating Officer. At the same time, we thank Mr. Hong Song for his service as COO and believe that his in-depth knowledge of our company and industry will yield us valuable dividends as he takes on his new portfolio of responsibilities as Vice President." Mr. Yu replaces Mr. Hong Song as Diguang's Chief Operating Officer. Mr. Song has been appointed as a Vice President of the Company in charge of internal controls, external affairs, engineering projects, and the Wuhan and Yangzhou Dihao subsidiaries of the Company. Mr. Song, a director of the Company, is a younger brother of the Chief Executive Officer, President and Chairman of the Board Song Yi.

Song Yi commented, "As we bolster our management resources through these appointments, we will also make changes aimed at cost savings. As of the beginning of 2009, my salary will be reduced by 30% until one year after the Company records a profit, and the salary of Hong Song will be adjusted to US$120,000 per year in his new position."

About Diguang International Development Co., Ltd.

Diguang, through its subsidiaries, specializes in the research, development, production, sale and distribution of backlights and backlight technologies. A backlight is the typical light source of a liquid crystal display (LCD). The Company is focused on providing LED and CCFL backlights for international producers of televisions, monitors, cellular phones, digital cameras, DVDs and other home appliances. Diguang currently develops an average of approximately 50 new products per month. The Company also develops energy-saving technologies and solutions for rapidly growing LED general lighting markets and offers a new line of mini-notebook computers. Diguang is a Nevada corporation with its manufacturing subsidiary located in Shenzhen, PRC, and its sales and marketing subsidiary located in the British Virgin Islands.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: future performance of Company executives, market performance of Diguang International's products, business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of backlights; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company's periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.

    For more information, please contact:

     Company Contact:
     Viola Tse
     Diguang International Development Co., Ltd.
     Tel: +1-626-593-5486

     Investor Relations Contact:
     Sean Collins, Senior Partner
     CCG Investor Relations
     Tel: +1-310-477-9800 x202
     Web: http://www.ccgasia.com