At present, some of our targeted businesses are subject to certain restrictions in the PRC. In order to enable us to invest in certain media sectors such as TV advertising and contents production before related regulations and policies are opened up to foreign investors, the Group strategically partners with a Chinese registered company, Guangdong HuaGuang DigiMedia Culture Development Limited (“Guangdong HuaGuang”) to hold investments in advertising operations and programs production on our behalf in July 2005. The Group anticipates that this arrangement will be continued until the relaxation of broadcasting policy in China. Before transferring entire equity interest in Guangdong HuaGuang to the Group according to the Alliance Agreement, the Group shall control and manage the operations of Guangdong HuaGuang and receive fees through various level of agreements signed between our subsidiaries in China and Guangdong HuaGuang.

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