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Mobile Entertainment, Inc¡¯s games constitute part of the value-added mobile telecommunication data services of China Unicom. We take up the role of an outsourced game developer of certain Service Providers of China Unicom, and the SP distribute our games over the China Unicom network. It is in this way that makes us to become an important application of 2.5G data service as China Mobile promotes their CDMA 1X data service.

Apart from interactive mobile phone games, the services delivered over the telecommunication data services of China Unicom, or ¡°Uni-Info¡± (sms.cnunicnet.com), 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 Unicom charging content and application providers approximately 15% of each exchange. This policy is spurring developers to produce compelling content, in turn creating more ARPUs