Through CD Media Beijing, we are engaged in the promotion, sale and marketing of advertising packages on China television stations. We typically purchase advertising time packages that air on CCTV-1, CCTV-2 and CCTV-3, three of the main channels of CCTV, the state television station of the PRC, which we repackage and sell to our customers. Currently we obtain almost all of our advertising time from third parties that act as agents for the sale of advertising time slots by CCTV. During the six months ended June 30, 2010, we obtained a very small amount of advertising time directly from CCTV.

Our advertising business includes securing all or a portion of advertising time and other advertising rights, which include soft advertising, such as sponsorship, on a specific television channel or program. We derive revenues in these cases from selling the advertising media resources that we have acquired to advertisers.

Last updated April 13, 2010