Diguang International Issues Letter to Shareholders

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Noting the Company's sympathy with victims of the massiveSichuan earthquake, and a combined management/employee/Company disaster relief contribution, Mr. Song's letter points out that none of the Company's facilities were impaired by the catastrophe.

Mr. Song goes on to outline the Company's achievements in the 2008 first quarter, which included a 139% increase in net sales compared to the 2007 first quarter, as well as a return to profitability. He also notes that ''the LCD industry has become extremely competitive in the last few years'' and articulates strategies to address the challenging industry environment.

These strategies include creation of a consignment model with the Company's major OEM customers for liquid crystal modules (LCMs). ''We receive an assured mark-up (gross profit) for a high volume of products,'' Mr. Song states. ''The OEM bears the risk of raw materials' costs. But there is another benefit to this strategy: by producing liquid crystal modules for our OEM customers, we are doing more for them than just making backlights. We are creating additional value for the customers and securing our role in their respective manufacturing processes.''

Mr. Song also updates readers on the success of the Company's restructuring into Strategic Business Units (SBUs), each with its own independent responsibility to achieve profits, stating, ''In the first quarter of 2008, all three of our operating regions were not only profitable, but better prepared to profitably grow their respective operations.''

''One of the most exciting initiatives that we have ever undertaken recently resulted in a pilot program to supply our LED general lighting technology to a 6,000 square meter area in Xiangfan, a city of 6.5 million people and the second largest city inHubei Province,'' Mr. Song states. ''Per the agreement, we will apply our lighting technologies to road and scenic lighting, as well as provide lighting for government agencies, schools, hospitals, and commercial buildings in the selected area. Once this model project is proven successful there is significant potential for broadening the use of our skills, technologies and solutions...to other areas ofHubei province and toChina as a whole...Diguang has an opportunity to bring its leadership in LED general lighting to many other municipalities and government departments.''

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. Diguang is aNevada corporation with its manufacturing subsidiary located inShenzhen, PRC, and its sales and marketing subsidiary located in theBritish 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: business conditions inChina, 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:

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

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

SOURCE Diguang International Development Co., Ltd.

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