Mobile Entertainment, Inc’s games constitute part of the value-added mobile telecommunication data services of China Mobile. We take up the role of the outsourced game developer of certain Service Providers of China Telecom, and the SP subsequently distributes our games over the China Mobile network. It is in this way that makes us to become an important application of 2.5G data service as China Mobile promotes their GPRS service under the brand name “Yi Qi Wan Ba” under “Monternet” (www.monternet.com)..

Apart from interactive mobile phone games, the services delivered over the telecommunication data services of China Mobile, or “Monternet”, also involves browsing WAP sites over mobile phone, subscription of push content (e.g. stock quote and other information of daily use), email sending and retrieval, as well as person-to-person text messaging.

The business model has somewhat mimicked Japan’s i-mode, with China Mobile charging content and application providers approximately 15% of each exchange. This policy is spurring developers to produce compelling content, in turn creating more ARPUs