The Chinese advertising market grew in recent years as a result of, among other factors, the rapid increase in disposable income and consumption of urban residents in China. The National Bureau of Statistics of China reported that the annual disposable income per capita in urban households increased from RMB7,703 in 2002 to RMB11,759 in 2006, representing a CAGR of 11.2%. In Beijing, Guangzhou and Shenzhen the urban household annual disposable income per capita in 2006 was RMB19,978, RMB19,851 and RMB22,567, respectively, representing a level significantly above the national average.

China has the largest advertising market in Asia excluding Japan as measured by total advertising expenditure. According to ZenithOptimedia, advertising spending in China in 2006 was approximately US$12.5 billion, accounting for 29.6% of the total advertising spending in Asia excluding Japan.

ZenithOptimedia also projected that the advertising market in China will be one of the fastest growing advertising markets in the world in the next three years, at a CAGR of 18.2% from 2006 to 2009. By 2009, China is projected to account for 34.6% of the total advertising spending in Asia excluding Japan.

Television advertising accounts for the most significant portion of the total advertising spending in China. According to the National Bureau of Statistics, at the end of 2006, China had 296 television stations which broadcast 13.6 million hours of television programs to 96.2% of China’s population. According to ZenithOptimedia, spending on television advertising was US$5.1 billion in China in 2006, and is projected to grow to US$8.2 billion in 2009, representing a CAGR of 16.8% from 2006 to 2009.

The Company operates its mobile digital television advertising network under the exclusive agency model in five of its cities: Beijing, Guangzhou, Nanjing, Shenzhen and Wuxi. The Company’s entered into exclusive agency agreements with Beijing Beiguang Media Mobile Television Co., Ltd. on October 13, 2006 for a term of 10 years and Shenzhen Mobile Television Co., Ltd. on December 31, 2006 for a term of four years and seven months.

On August 31, 2007, the Company also entered into an exclusive agency agreement with the exclusive operator of the mobile digital television network on Beijing’s subway system to place its advertisements on the digital television displays located on the subway trains in Beijing. These digital television displays receive the mobile digital television broadcasts and constitute part of the Company’s network in Beijing.

In Shenzhen and Wuxi, the Company’s network operates under both the direct investment model and the exclusive agency model because the Company entered into exclusive agreements with its direct investment entities in these two cities. Under its exclusive agency model, the Company enter into an exclusive agreement with the local mobile digital television company to become the exclusive advertising agent for that network.

Cost of revenues increased to US$10.0 million for the nine months ended September 30, 2007 from US$2.2 million for the nine months ended September 30, 2006.

Operating expenses increased to US$3.0 million for the nine months ended September 30, 2007 from US$1.3 million for the nine months ended September 30, 2006.

Operating profit amounted to US$3.6 million for the nine months ended September 30, 2007 as compared to an operating loss of US$1.9 million for the nine months ended September 30, 2006.

Net income amounted to US$3.7 million for the nine months ended September 30, 2007 as compared to a net loss of US$1.8 million for the nine months ended September 30, 2006.