BUSINESS DEVELOPMENT (GREY:BDEV)

Highlights for the third quarter of 2010.

• Net Revenue: Our net revenue was $3,073,712 and $7,857,453 for the three and nine months ended September 30, 2010, respectively, an increase from $801,925 and $951,675 for the same periods in 2009, respectively.

• Net Income/Loss: Net income was $1,092,886 and $2,687,913 for the three and nine months ended September 30, 2010, respectively, as compared to net loss of $88,899 and $746,980 for the same periods in 2009, respectively.

• Basic and diluted net income/loss per share: Basic and diluted net income per share was $0.07 and $0.17 for three and nine months ended September 30, 2010, respectively, as compared to basic and diluted net loss per share of $0.01 and $0.05 for the same periods in 2009, respectively.

We will begin tracking the BDEV story. While it is likely too early to be overly enthused, the recent revenue performance of the fourth quarter has piqued are curiosity. For the full 2009 year BDEV reported revenues of $1.9 million, but $950 thousand of that came in the fourth quarter vs. $801 thousand in the third quarter . Unfortunately, losses also accelerated in the fourth quarter hampered by increased operating expenses.

We will offer an update if warranted.

"We expect that our financial results will continue to be affected by the overall growth rate of the economy and demand for travel services in China and the rest of the world. According to a 2007 report published by the National Bureau of Statistics of China, the gross domestic product, or GDP, of China grew from RMB11.7 trillion (approximately US$1.4 trillion) in 2003 to RMB30 trillion (approximately US$4.4 trillion) in 2008, representing a compound annual growth rate of approximately 10%. This growth led to a significant increase in the demand for travel services, and according to the China Tourism Statistical Bulletin 2008 published by China National Tourism Administration, or CNTA, domestic tourism spending grew from RMB344.2 billion (US$41.6 billion) in 2003 to RMB874.9 billion (US$105.7 billion) in 2008, representing a compound annual growth of 20.5%."

"However, while we expect the overall demand for travel services in China to continue to increase in the foreseeable future as the economy in China continues to grow, the recent global financial crisis and economic slow-down could have a material and adverse effect on the travel industry in China, which in turn would cause a negative effect on our business. The recent global credit crunch is impacting travel spending in China. According to the China Tourism Statistical Bulletin 2008 published by CNTA, the number of inbound tourists in China and inbound tourism spending decreased by approximately 1.4% and 2.6%, respectively, in 2008 as compared to 2007, while domestic and outbound tourism remained reasonably strong due to the strength of the Chinese economy and its currency. The domestic and global economic uncertainties have led companies to increasingly rely on professional business travel management solutions to reduce travel spending, and consumers increasingly rely on the efficiency and transparency of the internet to find value when booking travel services and products and demand a higher quality of services. We expect that in the current economic environment, our operating results will increasingly depend on how well we capitalize on the efficiency of our online platforms and the quality of our services."

Source: SEC Form 10Q (For the quarterly period ended: September 30, 2009)

BDEV completes reverse merger transaction a Chinese B2B e-commerce travel services and technology company.

The company's revenue grew by 945% in the year ended December 31, 2008 to $793,481, from $75,922 in the year ended December 31, 2007. Our net income decreased by 714% in the year ended December 31, 2008, to a net loss of $117,543, from a net income of $19,149 in the year ended December 31, 2007, due to a significant increase in our general and administrative expenses in connection with the significant ramping up of our operations in 2008. Our gross margin was 23% for the year ended December 31, 2008.

Source: SEC Form 8K (March 30, 2009)