MediaG3 Announces the Commencement of the Final Phase to the China Pilot Project

SANTA CLARA, CA, Oct 08 (MARKET WIRE) --
MediaG3, Inc. (www.mediag3.com) (PINKSHEETS: MDGC), a leading developer
of broadband wireless products and services, is pleased to announce the
launch of the final phase to its China Pilot Project in Yunnan Province,
which has a population in the range of 45 million.

This project features MediaG3's patent protected LMDS technology as the
wireless link to the provision of digital cable television to underserved
Chinese households in Yunnan Province. Under the sponsorship of China's
distinguished Academy of Broadcasting Science, MediaG3 will be featured in
a national demonstration of its LMDS technology within the cable network
of Yunnan Cable, one of the larger cable television providers in Yunnan
Province.

"We are delighted to advance to the final phase in our China Pilot Project
with our distinguished partners in China," says Joseph L. Anzalone,
MediaG3 President & Chief Operating Officer. "For over five years now, we
have worked tirelessly to demonstrate our system capabilities to the
growing broadband and mobile internet markets in China. This culminated
in the successful awarding of a US Government grant by The United States
Trade & Development Agency, after its independent and thorough due
diligence on MediaG3's technology and market viability, to provide
partial funding for this pilot project. Furthermore, we received rare and
commending endorsements from China's Ministry of Commerce and China's
State Administration of Radio, Film, and Television," added Mr. Anzalone.

"China's rural communities are in the midst of a major evolution toward
digital media and broadband infrastructure to serve hundreds of millions
of Chinese households, which have been underserved to date. This rapidly
evolving market and MediaG3's LMDS technology will provide a crucial 'last
mile solution' to the broadband and mobile network expansion in rural
China," added MediaG3 China Market General Manager, Gordon Guo.

The Chinese telecommunications and broadband market is the largest in the
world. The mobile sector is expanding at over 18% per year without the
added benefit of 3G services. Once the 3G services are rolled out, the
market growth is expected to accelerate, and MediaG3 will be well
positioned to address this demand.

"With our LMDS broadband wireless as the backhaul infrastructure, we will
pave the road for Imperial Wireless 4G WiMAX and our video technology and
products to enter the vast China market," says Val Westergard, Chairman of
MediaG3. "We are very excited about this unparalleled opportunity and
potential to participate in the largest broadband market in the world."

About MediaG3, Inc.

MediaG3, Inc. develops, markets, and delivers broadband wireless
technology products and services for today's fixed and mobile customers.
Under the brand of Imperial Wireless, MediaG3 offers Internet access and
Internet telephone via fixed and WiMax mobile wireless in 19 states and
over 500 cities with expansion plan into all 50 states in the US by 2010.
MediaG3 is based in Santa Clara, California, with an operation facility
in Boise Idaho and an office in Shenzhen, China. For more information on
the company, please visit www.mediag3.com and www.imperialwimax.com

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Investor Relations Contact:
Daniel Baldridge
President of Gibraltan Financial
(407) 830-9777

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