Based on preliminary review by the board of directors of Neo Telemedia Limited of the unaudited consolidated management accounts of the group, the board informed the shareholders of the company and potential investors that the group is expected to record a loss for the nine months ended March 31, 2013 as compared to the profit recorded in the corresponding period in 2012. Based on the relevant information currently available to the company, the Board considers that such loss was mainly attributable to the decrease in advertising income as a result of the temporary suspension of the operations in Xiamen and Nanchang due to road expansion and subway construction carried out by the municipal governments; and (2) fierce competition in the industry and the worsening economy in the PRC. The above factors have adversely affected the Group's revenue as well as its operating results for the nine months ended March 31, 2013.