Subaye, Inc. Expands Into New Regions of Greater China

Guangzhou City :Subaye, Inc. , a leading video advertising and entertainment media provider in China, announced that it has expanded its customer base into Henan Province, Hong Kong and Taiwan. The new initiative increases its paying membership base by 30%, bringing total paying members to over 22,000 for its online video advertising business.

The Company’s video advertising platform provides members with production, upload, storage, and publishing onto video-sharing websites. Visitors of Subaye’s websites, namely, view video showcases of Subaye members, primarily small to mid-size enterprises (“SMEs”), and select products or services they wish to purchase. As of February 28, 2010, Subaye had approximately 73,000 total registered members utilizing the video advertising platform in the Guangdong province. Among them, 16,898 are paying members who pay $117 per month.

Subaye recently added 5,121 paying members in Hunan Province (3,021), Hong Kong (1,361) and Taiwan (739), an increase of 30% from its existing paying membership base. Management expects these new members to contribute approximately $1.9 million in revenues for fiscal year 2010 ending September 30, 2010, and approximately $4.7 million for the next 12 months starting May 1, 2010. The Company also expects to add new members from Hubei Province within the next two months, and will begin business development in five additional provinces and regions in May 2010, which include Hainan, Fujian, Shanxi and Shaanxi.

“We are very pleased to expand our video advertising platform into new regions of Greater China,” said Mr. Zhiguang Cai, Chief Executive Officer of Subaye, Inc. “We continue to experience robust growth driven by both existing and new customers. With over 20% annual growth projected for the Chinese Internet advertising market through 2010 fueled by a sharp trajectory in franchise and chain store enterprises, we believe Subaye’s online video advertising platform is well positioned to capitalize on this large secular growth opportunity and further increase market share in China’s rich media advertising business.”

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