Infosmart Group Inc (GREY:IFSG)

 On June 1, 2010, the Boards of Directors (the “Boards”) of Infoscience Media Limited and Info Smart Technology Limited, our wholly owned subsidiaries incorporated in Hong Kong, approved the decision to file Creditor’s Voluntary Winding Up of both companies, according to the relevant law of Hong Kong Special Administrative Region, People’s Republic of China. The Boards believed that it was in the Company’s best interest to wind up both companies because they owe significant amount of debts and cannot continue their business. We have commenced the process of filing voluntary liquidation with the court in Hong Kong. Yung Kwok Chung will be appointed as Provisional Liquidator of both companies upon filing of the voluntary liquidation.

We are in default with respect to the terms of our financing arrangement with Professional Offshore Opportunity Fund, Ltd. dated April 30, 2008, due to the fact that we are unable to repay the interest amount due as set forth in the repayment terms of the certain debenture agreement.