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Business Description We are a leading diversified media company in China. We have assembled and built a group of media assets and strategic partnerships that we believe will enable us to achieve best in class media and advertising services across various sectors of the media business in China. We have developed a unique, integrated platform that includes the creation and production of high-quality content that is distributed across nationwide television and print media outlets and radio in Beijing and Shanghai, and where advertising sales are supported by our own advertising agency. These outlets reach an estimated 210 million potential television viewers, a potential listening audience of 33 million people, and the readers of leading magazines and newspapers. In addition, our market research business enables our advertisers to analyze, understand and better reach their targeted consumers. Our content currently focuses on business and financial news as well as wealth management and affluent lifestyle programming. We focus on this programming because we believe it attracts the highest income audience in China. This audience is highly sought after by our target advertisers. Our business operates across five groups: • Media production, which refers to our in-house production studios that create and produce a diverse array of high-quality programs, including business, entertainment, educational and animation shows; • Broadcasting, which refers to the distribution of our programming through Inner Mongolia Satellite Television; our production and syndication of the Fortune China series of financial programs, including Fortune Morning 7 a.m., a popular financial news programs in China; and our production and distribution of bilingual content for China Radio International’s EasyFM stations in Beijing and Shanghai; • Print, which refers to our exclusive rights to sell advertising for and provide management and information consulting services to, Money Journal magazine and the Economic Observer newspaper; • Advertising, which refers to our advertising agency that creates and places advertising for television, print media and campus billboards; and • Research, which refers to our market research group that provides research services on products, advertisements and markets. We generate revenue principally by selling advertising on broadcast and print distribution platforms; selling advertising space on newspaper and magazine pages; selling produced television programs; providing advertisement production services; and providing research services. ----- Our principal executive offices are located at Rooms 3905-3909, Tower 1, Grand Gateway, 1 Hongqiao Lu, Shanghai 200030, People’s Republic of China. Our telephone number at this address is (86-21) 6113-5900 and our fax number is (86-21) 6448-4955. Our registered office in the Cayman Islands is at Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman KYI-1111, Cayman Islands. We and our strategic partners maintain various websites such as www.mjc.com.cn, www.econ-world.com, www.money-journal.com, www.eobserver.net, www.eobserver.com.cn, www.jingjiguanchabao.com and www.eeo.com.cn. Our corporate website is www.xinhuafinancemedia.com.