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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
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<font style="font-family:times new roman" size="2"><b></b></font>
<font style="font-family:times new roman" size="2"><b></b></font>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>1. Principal activities and organization </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(a) Principal activities </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
SearchMedia Holdings Limited (the “Company” or “SearchMedia Holdings” or “IDI”) is a holding company and, through its consolidated subsidiaries (collectively the
“Group”), is principally engaged in the provision of advertising services in the out-of-home advertising industry. Out-of-home advertising typically refers to advertising media in public places, such as billboards, in-elevator displays,
street furniture and transit area displays. The Group is one of the largest operators of integrated outdoor billboard and in-elevator advertising networks in China. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
<b><i>(b) Organization </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">On October 30, 2009, the Company completed the acquisition of
all the issued and outstanding shares and warrants of SearchMedia International Limited (“SearchMedia International”). SearchMedia International security holders, including certain note holders and warrant holders, received ordinary
shares, or securities exercisable or exchangeable for ordinary shares, of the Company. The business combination was accounted for as a reverse recapitalization, whereby SearchMedia International is the continuing entity for financial reporting
purposes and is deemed to be the accounting acquirer of SearchMedia Holdings Limited. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Prior to January 1, 2008, SearchMedia
International incorporated Jieli Investment Management Consulting (Shanghai) Co., Ltd. (“Jieli Consulting”), which in turn entered into contractual agreements (see “ VIEs Arrangements”) with the owners of Shanghai Jingli
Advertising Co., Ltd. (“Jingli”). The arrangement was to facilitate foreign investors to invest in SearchMedia International as the then PRC laws did not allow direct foreign investment or ownership in advertising companies in the PRC. The
terms of these agreements resulted in SearchMedia International, through its wholly-owned subsidiary, Jieli Consulting, bearing all the economic risks and receiving all the economic benefits from the businesses and controlling the financing and
operating affairs with respect to Jingli’s businesses. In accordance with ASC Topic 810, “<i>Consolidation</i>”, the financial statements of Jingli were consolidated by SearchMedia International in its consolidated financial
statements effective from the date SearchMedia International first became the primary beneficiary pursuant to this contractual arrangements. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In 2008, Jingli, the VIE, acquired 100% equity interests of the following subsidiaries. The Company has consolidated the financial results of the VIE and
its subsidiaries in the consolidated financial statements since the date of acquisitions. </font></p>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="85%"> </td>
<td valign="bottom" width="9%"> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom" nowrap="nowrap">
<p style="border-bottom:1px solid #000000;width:50pt"><font style="font-family:times new roman" size="1"><b>Name of entity</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>Place of incorporation</b></font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Shanghai Jincheng Advertising Co., Ltd. (“Jincheng”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Shaanxi Xinshichuang Advertising Planning Co., Ltd. (“Xinshichuang”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Beijing Wanshuizhiyuan Advertising Co., Ltd. (“Wanshuizhiyuan”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Shenyang Jingli Advertising Co., Ltd. (“Shenyang Jingli”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Qingdao Kaixiang Advertising Co., Ltd. (“Kaixiang”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Shanghai Haiya Advertising Co., Ltd. (“Haiya”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Tianjin Shengshitongda Advertising Creativity Co., Ltd. (“Shengshitongda”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Shanghai Botang Advertising Co., Ltd. (“Botang”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Ad-Icon Company Limited (“HK Ad-Icon”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">HKSAR</font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Changsha Jingli Advertising Co., Ltd. (“Changsha Jingli”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Wenzhou Rigao Advertising Co., Ltd. (“Wenzhou Rigao”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Wuxi Ruizhong Advertising Co., Ltd. (“Wuxi Ruizhong”)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">PRC</font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">On December 11, 2009, HK Ad-Icon established Ad-Icon Advertising (Shanghai) Co., Ltd. (“Ad-Icon
Shanghai”), a wholly-owned subsidiary in China, which is permitted to operate advertising businesses in China. In 2010, Ad-Icon Shanghai, acquired 100% of the equity interests in Zhejiang Continental Advertising Co., Ltd. Furthermore, 100% of
the equity interests in Botang, Wanshuizhiyuan, Kaixiang, Wuxi Ruizhong and Shenyang Jingli acquired by Jingli have been transferred to Ad-Icon Shanghai during 2010 and 2011. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
Effective December 23, 2011, the VIE, Jingli, and its subsidiaries including Jincheng, Xinshichuang, Haiya, Shengshitongda, Changsha Jingli and Wenzhou Rigao have all ceased their respective
advertisement business so that the VIE structure is no longer required or in place. The Company terminated the VIEs arrangements and ceased to consolidate the financial results of the VIE and its subsidiaries effective December 23, 2011.
</font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>VIEs arrangements (Terminated as of December 23, 2011) </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
A variable interest entity (“VIE”) is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or
(ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the
entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
If the Company determines that it has operating power and the obligation to absorb losses or receive benefits, the Company consolidates the VIE as the primary beneficiary, and if not, does not
consolidate. The Company’s involvement constitutes power that is most significant to the entity when it has unconstrained decision-making ability over key operational functions within the entity. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Assets recognized as a result of consolidating VIEs do not represent additional assets that could be used to satisfy claims against the Company’s
general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not claims against the Company’s general assets. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
PRC regulations currently prohibit or restrict foreign ownership of media and advertising business with the exception that foreign entities that directly invest in the advertising industry in China are
required to have at least three years of direct operations in the advertising industry outside of China pursuant to the Administrative Regulations on Foreign-invested Advertising Enterprises (2004, as amended in 2008). As a Cayman Islands
corporation, the Company is deemed a foreign legal person under PRC laws. Prior to the incorporation of Ad-Icon Shanghai, a WOFE permitted to operate advertising businesses in China, and to comply with PRC laws and regulations, the Company conducts
substantially all of its operations through its VIE. The VIE is wholly owned by certain ex-employees of the Company (“nominee shareholders”). </font></p>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Upon the formation of the VIE, the
Company entered into various agreements with the VIE, through which, the Company holds all of the variable interests of the VIE. Details of key agreements with the VIE are as follows: </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
<b>Loan Agreement. </b>Pursuant to the loan agreement dated September 10, 2007 between Jieli Consulting and the shareholders of Jingli Shanghai, namely Ms. Qinying Liu and Ms. Le Yang,
Jieli Consulting granted an interest-free loan to each shareholder. The principal amounts of the loans to Ms. Qinying Liu and Ms. Le Yang were $6.7 million and $4.5 million, respectively, in proportion with their respective original
capital contributions to Jingli Shanghai. The term of the loan agreement is 10 years and may be extended for another ten years automatically unless Jieli Consulting terminates the agreement in a written form three months before the expiration date
of the agreement. The loan can be repaid only with the proceeds from the transfer of the shareholder’s equity interest in Jingli Shanghai to Jieli Consulting or another person designated by Jieli Consulting at the minimum price permitted by
then applicable PRC law. Jieli Consulting may accelerate the loan repayment upon certain events, including if a shareholder dies, loses capacity to act, no longer works for Jingli Shanghai or any affiliate of Jingli Shanghai, or commits a crime, or
if Jieli Consulting so informs a shareholder as permitted by then applicable PRC law. <b> </b></font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>Equity Pledge Agreement.</b> Pursuant to the
equity pledge agreement dated September 10, 2007 among Jieli Consulting, Jingli Shanghai, and its shareholders, each shareholder has pledged all of her equity interest in Jingli Shanghai to Jieli Consulting to guarantee the performance of the
shareholders’ and Jingli Shanghai’s obligations under the loan agreement, the exclusive call option agreement, and the exclusive technical consulting and service agreement. If Jingli Shanghai or any of its shareholders breaches its
respective contractual obligations under these agreements, Jieli Consulting, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. The shareholders agreed not to transfer, sell, pledge, dispose of
or otherwise create any new encumbrance on their equity interest in Jingli Shanghai without the prior written consent of Jieli Consulting. The equity pledge agreement will expire after Jingli Shanghai and its shareholders fully perform their
respective obligations under the loan agreement, the exclusive call option agreement and the exclusive technical consulting and service agreement, each briefly described in this note.<b> </b></font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
<b>Exclusive Call Option Agreement. </b>Under the exclusive call option agreement dated September 10, 2007 among Jingli Shanghai, its shareholders, and Jieli Consulting, Jingli Shanghai and its
shareholders irrevocably granted Jieli Consulting or its designated person an exclusive option to purchase, when and to the extent permitted under then applicable PRC law, all or part of the equity interests in Jingli Shanghai. The exercise price
for all of the equity interests of Jingli Shanghai is the minimum price permitted by then applicable PRC law or a higher price determined by Jieli Consulting. Unless this exclusive call option agreement is terminated on an earlier date as agreed
upon by the parties to the agreement, the term of the agreement is ten years and may be extended for another ten years automatically unless Jieli Consulting terminates the agreement in writing three months before the expiration date of the
agreement. Pursuant to this call option agreement. </font></p>
<p style="font-size:1px;margin-top:6px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">The shareholders of Jingli Shanghai may not change the articles of association, bylaws, registered capital or shareholding structure of Jingli
Shanghai, without the prior written consent of Jieli Consulting; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">Jingli Shanghai may not acquire or merge with any third parties, or invest in any third parties, without the prior written consent of Jieli Consulting;
</font></p>
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<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
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<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">Jingli Shanghai may not generate, delegate, guarantee for, or allow existing any indebtedness without the prior consent or confirmation of Jieli
Consulting, except in the ordinary courses of business; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">Jingli Shanghai may not enter into any material contracts with the contractual price exceeding RMB1.0 million without the prior written consent of
Jieli Consulting, except in the ordinary courses of business; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">Jingli Shanghai may not grant loans or guaranties to any third parties, without the prior written consent of Jieli Consulting;
</font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">Jingli Shanghai may not transfer, pledge, have caused any encumbrances, or otherwise dispose of any shares of Jingli Shanghai, without the prior
written consent of Jieli Consulting; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">Jingli Shanghai may not declare or pay any dividends without the prior written consent of Jieli Consulting; upon the request of Jieli Consulting,
Jingli Shanghai shall declare and pay all distributable dividends to its shareholders; and </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">The shareholders of Jingli Shanghai may only appoint the persons nominated by Jieli Consulting as directors of Jingli Shanghai, upon request of Jieli
Consulting. </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="5%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b>Power of Attorney.</b> The shareholders of Jingli Shanghai have executed a power of attorney to Mr. Guojun Liang, which irrevocably authorizes
Mr. Liang (who is the husband of Ms. Qinying Liu), to vote as such shareholders’ attorney-in-fact on all of the matters of Jingli Shanghai requiring shareholder approval. </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="5%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b>Exclusive Technical Consulting and Service Agreement. </b>Pursuant to the exclusive technical consulting and service agreement dated
September 10, 2007 between Jingli Shanghai and Jieli Consulting, Jieli Consulting has the exclusive and irrevocable right to provide to Jingli Shanghai technical consulting services related to the business operations of Jingli Shanghai. Jingli
Shanghai agrees to pay annual technical service fees to Jieli Consulting based on the actual services provided by Jieli Consulting. If Jingli Shanghai does not generate net profits in a fiscal year, Jieli Consulting agrees not to charge services for
that year. The term of this agreement is 10 years commencing on September 10, 2007 and may be extended automatically for another 10 years unless Jieli Consulting terminates the agreement by a written notice three months before the expiration
date. </font></p>
</td>
</tr>
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The agreements above did not provide substantive kick-out right of the VIE to unilaterally terminate the contracts
and the VIE could not force termination by paying a termination fee. The VIE also need to agree to an extension of fixed term. As a result of these agreements, Jieli Consulting exercised effective control over the VIE, received substantially all of
the economic benefits and residual interest and absorbs all of the risks and expected losses from the VIE, and had an exclusive call option to purchase all the equity interest in the VIE at a minimal price. Therefore, Jieli Consulting was considered
as the primary beneficiary of the VIE and accordingly the financial statements of these VIE were consolidated in the Company’s consolidated financial statements. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
The Company believes that Jieli Consulting’s contractual arrangements with the VIE were in compliance with PRC law and were legally enforceable. However, uncertainties in the PRC legal system could
limit the Company’s ability to enforce these contractual arrangements and if the shareholders of the VIE were to reduce their interest in the Company, their interests may diverge from that of the Company and that may potentially increase the
risk that they would seek to act contrary to the contractual terms, for example by influencing the VIE not to pay the service fees when required to do so. </font></p>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Company’s ability to control
the VIE also depended on the voting power obtained under the power of attorney, described above. Jieli Consulting had the power to vote on all matters requiring shareholder approval in the VIE. As noted above, the Company believed the power of
attorney is legally enforceable but may not be as effective as direct equity ownership. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In addition, if the legal structure and contractual
arrangements were found to be in violation of any existing PRC laws and regulations, the PRC government could, among other things: </font></p>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">revoke the Company’s business and operating licenses; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">require the Company to discontinue or restrict operations; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">restrict the Company’s right to issue the invoice and collect revenues; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">block the Company’s websites; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">require the Company to restructure the operations in such a way as to compel the Company to establish a new enterprise, re-apply for the necessary
licenses or relocate our businesses, staff and assets; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">impose additional conditions or requirements with which the Company may not be able to comply; or </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="9%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">take other regulatory or enforcement actions against the Company that could be harmful to the Company’s business. </font></p>
</td>
</tr>
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The imposition of any of these penalties may result in a material and adverse effect on the Company’s ability to conduct the Company’s
business. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of the VIE and its subsidiaries or the right to receive its economic benefits, the Company would no longer be able to
consolidate the VIE. The Company does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation of the Company, Jieli Consulting, or the VIE. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Effective December 23, 2011, the VIE, Jingli, and its subsidiaries have all ceased their respective advertisement business so that the VIE
structure is no longer required or in place (see note 5). </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(c) Reclassification </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Certain comparative figures have been reclassified to conform to current period’s presentation. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 2 - us-gaap:SignificantAccountingPoliciesTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>2. Summary of significant accounting policies </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(a) Basis of preparation </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>Principles of consolidation </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The
consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIE subsidiary for which the Company is the primary beneficiary. Operating results of its VIE subsidiary were excluded from the consolidated
financial statements since December 23, 2011 upon termination of the VIE contracts. All significant transactions among the Company, its subsidiaries and its VIE subsidiary have been eliminated upon consolidation. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Accounting Standards Codification (“ASC”) 810 “Consolidation” provides guidance on the identification of and financial reporting for
entities over which control is achieved through means other than voting interests, which requires certain VIEs to be consolidated by the primary beneficiary of the entity if the equity investors in the entity do not have the characteristics of a controlling financial interest or do not have
sufficient equity risk for the entity to finance its activities without additional subordinated financial support from other parties. Through the contractual arrangements, the Company held all the variable interests of the VIE and had been
determined to be the primary beneficiary of the VIEs. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Pursuant to the contractual arrangements with the VIE, the Company had the power to
direct activities of the VIE, and had assets transferred out of the VIE primarily in the form of the service fees paid by the VIE. Therefore, the Company believes it has control over the assets of a consolidated VIE to the extent permitted by the
applicable PRC law and the contractual arrangements. As the consolidated VIE was incorporated as a limited liability company under the PRC Company Law, creditors of the VIE did not have recourse to the general credit of the Company for any of the
liabilities of the consolidated VIE. Currently there was no contractual arrangement that could require the Company to provide additional financial support to the consolidated VIE. As the Company was conducting certain business in the PRC mainly
through the VIE, the Company might provide such support on a discretionary basis in the future, which could expose the Company to a loss. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">On
April 7, 2010, Crystal Liu, one of the equity holders of the VIE, initiated a lawsuit against the Company for an unpaid salary of approximately $150,000. Based on the advice from the Company’s PRC legal counsel, the lawsuit did not impact
the validity and performance of any of the agreements entered into between Jieli Consulting and Ms. Liu as the nominee shareholder of Jingli Shanghai. Consequently, it did not impact the Company’s previous or current accounting conclusion
on the consolidation of Jingli Shanghai. The labor dispute with Ms. Liu has been settled. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In the opinion of our PRC legal counsel, all
current VIE contractual arrangements were valid, binding and enforceable, and would not result in any violation of PRC laws or regulations currently in effect. If any of these business partners or contracting counterparties fails to perform its
obligations, the Company may not be able to enforce the relevant agreements if the agreements are ruled in violation of the PRC laws. If the PRC government finds that the agreements that establish the structure for operating our China businesses do
not comply with PRC governmental restrictions on foreign investment in the media and market research industries, or if these regulations or the interpretation of existing regulations change in the future, the Company could be subject to severe
penalties or be forced to relinquish our interests in those operations, even if the agreements are otherwise legal and valid. These conditions may also result in deconsolidation of the VIE. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
<b>Going concern </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Company incurred a net loss of $13,459 during the year ended
December 31, 2011. As of December 31, 2011, the Company’s net shareholders’ deficit was $13,453, and its current liabilities exceeded its current assets by $31,043. The Company had cash and cash equivalents of $4,630 as of
December 31, 2011. The Company may not have sufficient cash to meet its payment obligations in the next 12 months in which case we may (i) seek additional financing, (ii) dispose of certain assets or (iii) seek to refinance some
or all of our debts. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Company’s ability to continue as a going concern is dependent on many events outside of its direct control,
including, among other things, the amount of working capital that the Company has available and the financial performance of both the Company and the acquired companies entitled to receive an earn-out payment. The Company’s inability to
generate cash flows to meet its obligations due to the uncertainty of achieving operating profitability on an annual basis and raising required proceeds on reasonable terms, among other factors, raises substantial doubt as to the Company’s
ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. </font></p>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The management of the Company has
taken a number of actions and will continue to address this situation in order to restore the Company to a sound financial position with an appropriate business strategy going forward. These actions include: </font></p>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">1.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Issued shares to ex-owners of the subsidiaries and reduced $5.2 million earn-out liabilities in October 2011; </font></td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">2.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Eliminated its VIE structure and the underlying liabilities in December 2011; </font></td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">3.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Entered into a $3 million convertible note with its major shareholders with a one-year maturity in February 2012; </font></td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">4.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">In April, 2012, the Board of Directors approved and authorized a capped pool of 7 million common shares to be issued to certain ex-owners of the subsidiaries for
the purpose of converting and eliminating the outstanding earn-out liabilities; </font></td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">5.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Divested Zhejiang Continental in May 2012 (see note 21); </font></td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">6.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Started the process of securing additional funds; </font></td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">7.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Adopted various cost-saving strategies </font></td>
</tr>
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Based
on the management’s plans, the consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of
business. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(b) Use of estimates </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
The preparation of financial statements in accordance with US GAAP requires the Company’s management to make estimates and assumptions relating to the reported amounts of assets and liabilities
and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions
include the allowance for doubtful receivables; useful lives and residual values of property and equipment and intangible assets; recoverability of the carrying amount of property and equipment, goodwill and intangible assets; fair values of
financial instruments; the fair values of the assets acquired and liabilities assumed upon the consolidation of businesses acquired in 2008 and 2010 respectively; and the assessment of contingent obligations. These estimates are often based on
complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
<b><i>(c) Foreign currency transactions and translation </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group’s reporting
currency is the United States dollars (“US$”). The functional currency of the Company is the US$, whereas the functional currency of the Company’s consolidated subsidiaries and VIEs in the PRC is the Renminbi (“RMB”) and the
functional currency of the Company’s subsidiaries in the HKSAR is the Hong Kong Dollars (“HK$”), as the PRC and HKSAR are the primary economic environments in which the respective entities operate. Since the RMB is not a fully
convertible currency, all foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign currency. The exchange rates adopted
for the foreign exchange transactions are the rates of exchange quoted by the PBOC. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Transactions denominated in currencies other than the
functional currency are translated into the respective functional currency at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in a currency other than the functional currency are translated
into the functional currency using the applicable exchange rate at each balance sheet date. The resulting exchange differences are recorded in “foreign currency transaction gain (loss)” in the consolidated statements of operations.
</font></p>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The assets and liabilities of the
Company’s consolidated subsidiaries and VIEs are translated into the US$ reporting currency using the exchange rate at each balance sheet date. Revenue and expenses of these entities are translated into US$ at average rates prevailing during
the year. Equity accounts are translated at historical exchange rates. Gains and losses resulting from translation of these entities’ financial statements into the US$ reporting currency are recorded as a separate component of “accumulated
other comprehensive income” within shareholders’ equity. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(d) Cash and cash equivalents </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Cash and cash equivalents consist of cash on hand and bank deposits with original maturities of three months or less, which are unrestricted as to
withdrawal and use. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group’s cash and bank deposits were held in major financial institutions located in US and PRC, which management
believes have high credit ratings. Cash and bank deposit held in PRC as of December 31, 2010 and 2011 were $4,340 and $4,437, respectively. The remaining cash and bank deposits were held in US and HK denominated in USD, amounted to $3,214 and
$193 as of December 31, 2010 and 2011, respectively. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Financial instruments which potentially subject the Company to concentrations of
credit risk consist principally of cash investments. The Company places its temporary cash instruments with well-known financial institutions within the United States and, at times, may maintain balances in excess of the $250 US FDIC Insurance
limit. The Company monitors the credit ratings of the financial institutions to mitigate this risk. The Company maintains accounts with well established multi-national banks under a program where the funds are invested with various FDIC insured
banks so as not to exceed the insurance limit. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(e) Restricted cash </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
Restricted cash represents amounts held by a bank as to withdrawal for use under court orders to hold the accounts as escrow. The restriction on cash is expected to be released when the related litigation
is closed. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(f) Accounts receivable </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
Accounts receivable consist of amounts billed but not yet collected and unbilled receivables. Unbilled receivables relate to revenues earned and recognized, but which have not been billed by the Group in
accordance with the terms of the advertising service contract. The payment terms of the Group’s service contracts with its customers vary and typically require an initial payment to be billed or paid at the commencement of the service period,
progress payments to be billed during the service period, and a final payment to be billed after the completion of the service period. None of the Group’s accounts receivable bear interest. The allowance for doubtful accounts is
management’s best estimate of the amount of probable credit losses in the Group’s existing accounts receivable. Management determines the allowance based on historical write-off experience and reviews of customer-specific facts and
economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related
to its customers. </font></p>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(g) Property and equipment
</i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Property and equipment are stated at cost, net of accumulated depreciation or amortization. Depreciation is calculated on the
straight-line method over the estimated useful lives of the assets, taking into consideration the assets’ salvage or residual value. The estimated useful lives of property and equipment are as follows: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="68%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="84%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Leasehold improvements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">1 to 3 years</font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Advertisement display equipment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">5 years</font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Furniture, fixtures and office equipment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">5 years</font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Motor vehicles</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">5 years</font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">When items of property and equipment are retired or otherwise disposed of, loss/income is charged or credited for the
difference between the net book value and proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred, and replacements and betterments are capitalized. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
<b><i>(h) Intangible assets </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group’s intangible assets are amortized on a
straight line basis over their respective estimated useful lives, which are the periods over which the assets are expected to contribute directly or indirectly to the future cash flows of the Group. The Group’s intangible assets represent
customer relationship, lease agreements and non-compete agreements which have estimated useful lives ranging from 0.5 to 4.4 years. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(i)
Goodwill </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Goodwill and other intangible assets are accounted for in accordance with the provisions of FASB ASC 350 “<i>Intangibles
— Goodwill and Other</i>”. The Group accounts for business acquisitions using the acquisition method of accounting. Prior to 2009, goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired.
Other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of an
intent to do so. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Beginning on January 1, 2009, goodwill is measured as the excess of a over b below: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="100%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr>
<td valign="top">
<p style="margin-left:2.00em; text-indent:-2.00em"><font style="font-family:times new roman" size="2">a.      The aggregate of the following:</font></p>
</td>
</tr>
<tr>
<td height="8"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:4.00em; text-indent:-2.00em"><font style="font-family:times new roman" size="2">1.      The consideration transferred measured in accordance ASC 805, which generally requires
acquisition-date fair value.</font></p>
</td>
</tr>
<tr>
<td height="8"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:4.00em; text-indent:-2.00em"><font style="font-family:times new roman" size="2">2.      The fair value of any noncontrolling interest in the acquiree.</font></p>
</td>
</tr>
<tr>
<td height="8"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:4.00em; text-indent:-2.00em"><font style="font-family:times new roman" size="2">3.      In a business combination achieved in stages, the acquisition-date fair value of the
acquirer’s previously held equity interest in the acquiree.</font></p>
</td>
</tr>
<tr>
<td height="8"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:2.00em; text-indent:-2.00em"><font style="font-family:times new roman" size="2">b.      The net of the acquisition-date amounts of the identifiable assets acquired and the
liabilities assumed measured in accordance with ASC 805.</font></p>
</td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Under FASB ASC 350, goodwill, including any goodwill included in the carrying value of investments accounted for using
the equity method of accounting, and certain other intangible assets deemed to have indefinite useful lives, are not amortized. </font></p>
<p style="font-size:1px;margin-top:6px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(j) Impairment of long-lived
assets </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group tests goodwill for possible impairment in the fourth quarter of each year or when circumstances change that would
more likely than not reduce the fair value of a reporting unit below its carrying amount. Circumstances that could trigger an impairment test between annual tests include, but are not limited to: </font></p>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b></b>a significant adverse change in the business climate or legal factors; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b></b>an adverse action or assessment by a regulator; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b></b>unanticipated competition; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b></b>loss of key personnel; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b></b>the likelihood that a reporting unit or a significant portion of a reporting unit will be sold or disposed of; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b></b>a change in reportable segments; and/or results of testing for recoverability of a significant asset group within a reporting unit.
</font></p>
</td>
</tr>
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group utilizes a two-step method to perform a goodwill impairment review. In the first step, we determine the fair
value of the reporting unit using expected future discounted cash flows and estimated terminal values. If the net book value of the reporting unit exceeds the fair value, we would then perform the second step of the impairment test which requires
allocation of the reporting unit’s fair value of all of its assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill. The implied fair value of the goodwill is then
compared to the carrying value to determine impairment, if any. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Application of goodwill impairment test requires judgment, including the
identification of reporting units, assigning assets and liabilities to the reporting units, assigning goodwill to reporting units and estimating the fair value of each reporting unit. Changes in these estimates and assumptions could materially
affect the determination of fair value of each reporting unit which could trigger impairment. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In calculating the future cash flows, certain
assumptions are required to be made in respect of highly uncertain matters such as revenue growth rates, gross margin percentages and terminal growth rates. We may incur additional goodwill impairment charges in the future although we cannot predict
whether this will occur. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Indefinite-lived intangible assets are assessed for impairment at least annually based on comparisons of their
respective fair values to their carrying values. Finite-lived intangible assets are amortized over their respective useful lives and, along with other long-lived assets, are evaluated for impairment periodically whenever events or changes in
circumstances indicate that their related carrying amounts may not be recoverable in accordance with FASB ASC 360-10-15, “<i>Impairment or Disposal of Long-Lived Assets</i>”. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
In evaluating long-lived assets for recoverability, including finite-lived intangibles and property and equipment, the Group uses its best estimate of future cash flows expected to result from the use of
the asset and eventual disposition in accordance with FASB ASC 360-10-15. To the extent that estimated future, undiscounted cash inflows attributable to the asset, less estimated future, undiscounted cash outflows, are less than the carrying amount,
an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan of disposal, whether through sale or abandonment, are
reported at the lower of carrying value or fair value less costs to sell. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Asset recoverability is an area involving management judgment,
requiring assessment as to whether the carrying value of assets can be supported by the undiscounted future cash flows. In calculating the future cash flows, certain assumptions are required to be made in respect of highly uncertain matters such as
revenue growth rates, gross margin percentages and terminal growth rates. </font></p>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">No impairment loss once recognized is
subsequently reversed even if facts and circumstances indicate recovery. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(k) Fair Value of Financial Instruments </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">FASB ASC 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs used in
measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
These tiers include: </font></p>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b></b>Level 1 — defined as observable inputs such as quoted prices in active markets; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b></b>Level 2 — defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
</font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%"><font size="1"> </font></td>
<td width="2%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="1%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2"><b></b>Level 3 — defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own
assumptions. </font></p>
</td>
</tr>
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The fair value of the Group’s financial assets and liabilities approximate their carrying amount because
of the short-term maturity of these instruments. The Group’s options and acquisition consideration payable fall into Level 3 and there were no transfers in or out of Level 3 during the years presented. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(l) Revenue recognition </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The
Group recognizes advertising service revenue on a straight-line basis over the period in which the customer advertisement is to be displayed, which typically ranges from 1 month to 2 years, starting from the date the Group first displays the
advertisement. Written contracts are entered into between the Group and its customers to specify the price, the period and the location at which the advertisement is to be displayed. Revenue is only recognized if the collectability of the
advertising service fee is probable. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group generates advertising service revenues from the sales of frame space on the poster frame
network and advertising time slots on traditional billboard networks. In the majority of advertising arrangements, the Group acts as a principal in the transaction and records advertising revenues on a gross basis. The associated expenses are
recorded as cost of revenues. In some instances the Group is considered an agent and recognizes revenue on a net basis. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Customer payments
received in excess of the amount of revenue recognized are recorded as deferred revenue in the consolidated balance sheet, and are recognized as revenue when the advertising services are rendered. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(m) Cost of revenues </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Cost of
revenues consists primarily of operating lease cost of advertising space for displaying advertisements, depreciation of advertising display equipment, amortization of intangible assets relating to lease agreements and direct staff and material costs
associated with production and installation of advertising content. </font></p>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(n) Operating leases
</i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group leases advertising space, including billboards and poster frames, and office premises under non-cancellable operating
leases. Minimum lease payments are expensed on a straight-line basis over the lease term. Under the terms of the lease agreements, the Group has no legal or contractual asset retirement obligation at the end of the lease. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(o) Advertising and promotion costs </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
Advertising and promotion costs are expensed as incurred. Advertising and promotion costs, mainly sales commission, included in sales and marketing expenses amounted to $1,135, $1,834 and $3,852 for the
years ended December 31, 2009, 2010 and 2011, respectively. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(p) Retirement and other post-retirement benefits </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Pursuant to relevant PRC regulations, the Company’s consolidated subsidiaries in the PRC are required to make contributions to various defined
contribution retirement plans organized by the PRC government. The contributions are made for each qualifying PRC employee at rates ranging from 18% to 20% on a standard salary base as determined by the PRC governmental authority. Contributions to
the defined contribution plans are charged to the consolidated statements of income as the related employee service is provided. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The
Company’s subsidiaries in the HKSAR operate a Mandatory Provident Fund Scheme (“the MPF scheme”) under the Hong Kong Mandatory Provident Fund Schemes Ordinance for employees employed under the jurisdiction of the Hong Kong Employment
Ordinance. The MPF scheme is a defined contribution retirement scheme administered by independent trustees. Under the MPF scheme, the employer is required to make contributions to the scheme at 5% of the employees’ relevant income, subject to
an upper limit. Contributions to the scheme vest immediately. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group has no other obligation for the payment of employee benefits
associated with these retirement plans beyond the contributions described above. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(q) Share-based payments </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group accounts for share-based payments in accordance with ASC Topic 718,<i> “Compensation—Stock Compensation</i>”. Under ASC 718, the
Group measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the costs over the period the employee is required to provide service in exchange for
the award, which generally is the vesting period. For awards with performance conditions, the compensation expense is based on the grant-date fair value of the award, the number of shares ultimately expected to vest and the vesting period.
</font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(r) Income taxes </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in
income in the period that the change in tax rates or laws is enacted. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not
be realized. </font></p>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group applies ASC Topic 740
“<i>Income Taxes</i>”. ASC 740 clarifies the accounting for uncertain tax positions. This interpretation requires that an entity recognizes in the consolidated financial statements the impact of a tax position, if that position is more
likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or
measurement are reflected in the period in which the change in judgment occurs. The Group’s accounting policy is to accrue interest and penalties related to uncertain tax positions, if and when required, as interest expense and a component of
general and administrative expenses, respectively, in the consolidated statements of operations. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(s) Earnings/(loss) per share
</i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Basic earnings/(loss) per share is computed by dividing income/(loss) attributable to common shares shareholders by the weighted
average number of ordinary shares outstanding during the year. Diluted earnings (loss) per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into
ordinary shares and is calculated using the treasury stock method for stock options and unvested shares. Common equivalent shares for which the exercise price exceeds the average market price over the period have an anti-dilutive effect on loss per
share and, accordingly, are excluded from the calculation. Common equivalent shares are also excluded from the calculation in loss periods as their effects would be anti-dilutive. The Group incurred net loss for the three years ended December 2009,
2010 and 2011, no diluted earnings (loss) is presented. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(t) Segment reporting </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group has one operating segment as defined by ASC Topic 280, “<i>Segment Reporting</i>”. For the three years ended December 31, 2009,
2010 and 2011, the Group’s advertising service revenues generated from customers outside the PRC is less than 10% of the Group’s total consolidated revenues and the Group’s total long-lived tangible assets located outside the PRC is
less than 10% of the Group’s total consolidated long-lived tangible assets. Consequently no geographic information is presented. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(u) Significant concentrations and risks </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
No single group or customer contributed more than 10% of the Company’s revenue for the years ended December 31, 2009, 2010 and 2011. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
No single group or supplier contributed more than 10% of the Company’s cost of revenue for the years ended December 31, 2009, 2010 and 2011. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">An advertising agency customer accounted for 11% of the Company’s accounts receivable as of December 31, 2011. No advertising agency customer
or individual customer accounted for more than 10% of accounts receivable as of December 31, 2010. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(v) Recently issued accounting
standards </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><i></i>In May 2011, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update
(“ASU”) 2011-04, <i>Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs</i> (“ASU 2011-04”). ASU 2011-04 amended the FASB Accounting Standards Codification (“ASC”) 820,
<i>Fair Value Measurements and Disclosures</i> to converge the fair value measurement guidance in US GAAP and International Financial Reporting Standards (“IFRSs”). Some of the
amendments clarify the application of existing fair value measurement requirements, while other amendments change particular principles in ASC 820. In addition, ASU 2011-04 requires additional fair value disclosures. ASU 2011-04 is effective for
fiscal years beginning after December 15, 2011 and should be applied prospectively. The Group does not expect that ASU 2011-04 will have a significant impact on its consolidated results of operations or financial position. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In June 2011, the FASB issued ASU No. 2011-05, <i>Comprehensive Income (Topic 220): Presentation of Comprehensive Income</i> (“ASU
2011-05”). ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity and requires an entity to present items of net income, other comprehensive
income and total comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU 2011-12, <i>Comprehensive Income (Topic 220): Deferral of the
Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05</i> (“ASU 2011-12”). ASU 2011-12 defers the effective date of the
changes in ASI 2011-05 that relate to the presentation of reclassification adjustments for each component of other comprehensive income in both net income and other comprehensive income. The amendments in the ASU’s do not change the items that
must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. ASU 2011-05 and ASU 2011-12 are both effective for fiscal years, and interim periods within those years, beginning after
December 15, 2011 and must be applied retrospectively. The Group will be required to adopt ASU 2011-05 and ASU 2011-12 no later than the quarter beginning January 1, 2012. As the ASUs require additional presentation only, there will be no
impact to the Group’s consolidated results of operations or financial position. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In September 2011, the FASB issued ASU No. 2011-08,
<i>Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment</i> (“ASU 2011-08”). ASU 2011-08 gives an entity the option to first assess qualitative factors to determine whether it is more likely than not that the fair
value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. Previous guidance required an entity to test goodwill for
impairment by first comparing the fair value of a reporting unit with its carrying amount. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The Group will be
required to adopt ASU 2011-08 as of January 1, 2012 and does not expect that ASU 2011-08 will have a significant impact on its consolidated results of operations or financial position. </font></p>
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<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>3. Loss per share </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares
outstanding during the three years ended December 31, 2009, 2010 and 2011. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards
vest resulting in the issuance of common stock or conversion of notes into shares of the Company’s common stock that could increase the number of shares outstanding and lower the earnings per share of the Company’s common stock. This
calculation is not done for years in which a net loss was incurred as this would be antidilutive. The information related to basic and diluted earnings per share is as follows: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="61%"> </td>
<td valign="bottom" width="7%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="7%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="7%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>2009</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>2010</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>2011</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2"><b>Numerator:</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Net Loss</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(22,649</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(46,639</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(13,459</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2"><b>Denominator:</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Weighted average shares outstanding — Basic and diluted</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,100,465</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">20,796,789</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">20,994,015</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Loss per share — Basic and diluted (In US$)</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4.44</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(2.24</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(0.64</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">As of December 31, 2011, there
were a total of 1,019,333 stock options and 13,607,441 warrants that would have been included in the computation of diluted earnings per share that could potentially dilute basic earnings per share in the future. </font></p>
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<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>4. Acquisitions </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><u>I. 2010 acquisition </u></font></p>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2"><i>a.</i></font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2"><i>Initial recognition of contingent acquisition consideration </i></font></td>
</tr>
</table>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
On May 31, 2010, the Group acquired 100% of the equity interest in Zhejiang Continental initially valued at $19,698, including an initial cash consideration of $73 and $19,625 of contingent
consideration, which represents the lesser of the maximum amount of contingent consideration and the amount of goodwill, was recognized as of the date of acquisition. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
The following table summarizes the fair values of the assets acquired and liabilities assumed on the date of acquisition of Zhejiang Continental by the Group. </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="68%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="88%"> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Assets acquired:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Cash</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">302</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accounts receivable</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,706</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Prepaid expenses and other current assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">453</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Property and equipment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">21</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Intangible assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,282</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">6,764</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Liabilities assumed:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accounts payable</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(143 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accrued expenses and other payables</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(823 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Amounts due to related parties</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(2,412 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Income taxes payable</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(423 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Deferred tax liability</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,070 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4,871</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Goodwill</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17,805</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total consideration</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">19,698</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="79%"> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Amortization<br />Period</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">(Years)</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Intangible assets comprised of:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Customer relationship</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,067</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3.4</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Lease agreements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,749</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4.4</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Non-compete agreement</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">462</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3.4</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Assembled workforce</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">N/A</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,282</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In addition to the initial
consideration, the equity owners of Zhejiang Continental are entitled to subsequent consideration, including cash and ordinary shares of the Company on a predetermined earn-out formula applied to audited operating results through December 31,
2010 (“2010 earn-out”) and through December 31, 2011 (“2011 earn-out”). The 2010 earn-out is payable in cash based on a multiple of 3.5 of the full year audited operating results from 2010. The 2011 earn-out is payable in
ordinary shares of the Company based on a multiple of 3.3 of the full year audited operating results for 2011. The multiples of 2010 and 2011 earn-out can be reduced to 3.0 if the audited operating results were less than certain amounts. Both 2010
and 2011 earn-out are subject to a maximum amount of $10,665 and $10,681, respectively. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The contingent purchase price consideration is
payable when each individual 12-month period during the earn-out period is completed and the operational results were agreed to and confirmed. The 2010 earn-out is payable in cash and the 2011 earn-out is payable in ordinary shares of the Company at
market price. At the acquisition date, the contingent consideration was recognized at fair value based on historical and forecast operational results agreed to and confirmed by the Group and goodwill was recognized in accordance with ASC Topic
805-20. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The accompanying consolidated financial statements include the assets and liabilities of Zhejiang Continental as of December 31,
2010 and 2011 and the operating results for the period from May 31, 2010 (date of acquisition by the Group) to December 31, 2010 and for the year ended December 31, 2011. </font></p>
<p style="font-size:18px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2"><i>b.</i></font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2"><i>Change of fair value of contingent acquisition payable </i></font></td>
</tr>
</table>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
As at December 31, 2011, the contingent consideration of Zhejiang Continental was resolved and there was a reduction of total consideration compared to the initial estimated contingent purchase
price. An adjustment to contingent consideration of $10,681 was recognized to the income statements in accordance with ASC Topic 805-30-35. </font></p>
<p style="font-size:18px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2"><i>c.</i></font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2"><i>Subsequent disposal of Zhejiang Continental</i> </font></td>
</tr>
</table>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
On May 2, 2012, the Company divested 100% equity interests in Zhejiang Continental back to its original selling shareholders (see note 21). As a result of the decline in performance of Zhejiang
Continental, goodwill and intangible assets of Zhejiang Continental, amounting to $18,816 and $2,723 respectively were fully impaired at December 31, 2011 (see note 9). </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
Below is the reconciliation of acquisition consideration payable and goodwill from date of acquisition to December 31, 2011: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="68%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="87%"> </td>
<td valign="bottom" width="7%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2"><u>Acquisition consideration payable:</u></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as at date of acquisition</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">19,698</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Consideration paid in 2010</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(2,340</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Translation adjustment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">610</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as at December 31, 2010</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17,968</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Change of fair value of contingent consideration payable</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(10,681</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Translation adjustment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">918</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as at December 31, 2011</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"> 8,205</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2"><u>Goodwill:</u></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as at date of acquisition</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17,805</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Translation adjustment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">553</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as at December 31, 2010</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">18,358</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Impairment of goodwill</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(18,816</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Translation adjustment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">458</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as at December 31, 2011</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - idi:TerminationOfVieContractualAgreementsTextBlock-->
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>5. Termination of the VIE contractual agreements </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">On December 23, 2011, the Company terminated the contractual arrangement with the VIE, Jingli, so that the VIE structure was no
longer in place. The Company ceased to consolidate the financial results of the VIE and its subsidiaries including Jincheng, Xinshichuang, Haiya, Shengshitongda, Changsha Jingli and Wenzhou Rigao upon termination of the contractual agreements. A
gain of $9,551 on such termination was recognized to income statement in accordance with ASC 845-10-30-1. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The carrying amounts of the major
classes of assets and liabilities of the VIE and its subsidiaries at December 23, 2011 were as follows: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="68%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="88%"> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Assets:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Cash</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">120</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accounts receivable</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,319</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Prepaid expenses and other current assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">890</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Property and equipment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">204</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Deferred tax assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">147</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,680</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Liabilities:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accounts payable</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,841</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accrued expenses and other payables</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7,351</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Amounts due to related parties</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">336</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Income taxes payable</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,032</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Short-term bank loans</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,381</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">14,941</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Goodwill</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,710</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Net liabilities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">9,551</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Revenue and net income of the VIE and its subsidiaries from January 1, 2011 through December 23, 2011 were:
</font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="68%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="90%"> </td>
<td valign="bottom" width="7%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Advertising service revenue</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"> 530</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Loss from operations</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(618</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Net loss</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(883</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Company did not classify the termination of the VIE as discontinued operations because the Group expects to continue
to generate revenues from the sales of similar services to specific customers of the disposed component. As a result of the migration of customers, continuing cash flows are being generated by the Group from transactions with customers of the
disposed component. </font></p>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The following unaudited pro forma
information summarizes the effect of the termination, as if the termination of the VIE had occurred as of January 1, 2009. This pro forma information is presented for information purposes only. It is based on historical information and does not
purport to represent the actual results that may have occurred had the Company terminated the VIE on January 1, 2009, nor is it necessarily indicative of future results of operations of the consolidated enterprises: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="67%"> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>2009</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>2010</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>2011</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>(Unaudited)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>(Unaudited)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>(Unaudited)</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Advertising service revenues</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">30,165</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">44,318</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">55,041</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Loss from operations</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(11,127</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(39,234</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(12,620</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Net loss</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(8,728</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(40,620</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(12,576</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<!-- End Table Body -->
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>6. Accounts receivable, net </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Accounts receivable consist of the following: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="80%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">As of December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accounts receivable</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">21,259</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">20,366</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Less allowance for doubtful accounts</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(3,194</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4,544</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accounts receivable, net</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">18,065</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">15,822</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">As of December 31, 2010 and 2011, the Group’s accounts receivable includes amounts earned and recognized as
revenues of $6,105 and $2,133, respectively but not yet billed (unbilled receivables). Management expects all unbilled receivables to be billed and collected within 12 months of the balance sheet date. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The following table presents the movement of the allowance for doubtful accounts: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="82%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">As of December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Beginning allowance for doubtful accounts</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,325</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,194</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Effect of foreign currency translation</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">89</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">216</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Additions charged to bad debt expense</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,171</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,073</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-top:0px;margin-bottom:1px; margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Recoveries</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(391 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Termination of the VIEs</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(939 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Ending allowance for doubtful accounts</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,194</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,544</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - idi:OtherCurrentAssetsTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>7. Prepaid expenses and other current assets </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Prepaid expenses and other current assets consist of the following: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="82%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">As of December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Prepaid rent</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,651</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,001</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Other prepaid expenses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">82</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Rental deposits and other receivables</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,607</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,453</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total prepaid expenses and other current assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8,340</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">9,462</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:1px;margin-top:6px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Bad debt expense was $1,006 and $832
for the year ended December 31, 2010 and 2011. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>8. Property and equipment, net </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Property and equipment, net consist of the following: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="80%"> </td>
<td valign="bottom" width="7%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="7%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">As of December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Leasehold improvements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">114</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">25</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Advertising display equipment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,378</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,156</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Furniture, fixtures and office equipment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">793</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">510</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Motor vehicles</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">30</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">32</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total cost of property and equipment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,315</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,723</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Less: accumulated depreciation and amortization</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,182</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,090</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Property and equipment, net</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,133</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">633</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Depreciation of property and equipment were allocated to the following categories of cost and expenses: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="82%"> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Years Ended December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2009</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Cost of revenues</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">233</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">232</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">244</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Selling and marketing expenses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">33</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">General and administrative expenses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">166</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">139</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">114</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total depreciation and amortization</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">399</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">404</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">385</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 9 - us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>9. Goodwill and other intangible assets </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The changes in carrying amount of goodwill for the years ended December 31, 2010 and 2011 are as follows: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="43%"> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Wanshui</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Shenyang</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Shengshi</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Wenzhou</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Wuxi</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">HK</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Zhejiang</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Kaixiang</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">zhiyuan</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Jingli</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Haiya</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">tongda</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Botang</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Rigao</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Ruizhong</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Ad-Icon</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Continental</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1"><b>Total</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2"><b>Balance as of January 1, 2010</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>12,316</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>5,619</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>2,313</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>3,858</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>116</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>14,117</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>4,904</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>1,354</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>1,294</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>45,891</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Goodwill acquired during the year</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17,805</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>17,805</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Goodwill recorded as a result of contingent consideration resolved under ASC<br />Topic 805-20</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,309</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">225</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,205</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,755</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(21</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">6,442</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,806</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,958</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">897</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>20,576</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Impairment of goodwill</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(10,230</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(2,674</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(3,832</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(5,608</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(97</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(8,864</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(5,169</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,286</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,651</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>(39,411</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b>) </b></font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Translation adjustment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">154</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">114</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(14</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(5</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">241</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">38</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">14</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(3</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">553</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>1,094</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2"><b>Balance as of December 31, 2010</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>4,549</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>3,284</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>1,672</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>11,936</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>2,579</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>3,040</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>537</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>18,358</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>45,955</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Goodwill acquired during the year</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Deconsolidation of VIE</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(2,710</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>(2,710 </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b>) </b></font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Impairment of goodwill</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,460 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,044</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,714</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4,798 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(95 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(18,816</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>(27,927</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b>) </b></font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Translation adjustment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">195</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">142</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">42</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">487</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">131</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">152</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">458</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>1,608</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2"><b>Balance as of December 31, 2011</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>3,284</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>2,382</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>7,625</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>3,097</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>538</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>16,926</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The gross amount and accumulated
impairment losses of goodwill as of December 31, 2010 and 2011 are as follows: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="56%"> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="1%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Wanshui</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Shenyang</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Shengshi</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Wenzhou</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Wuxi</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">HK</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Zhejiang</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Kaixiang</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">zhiyuan</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Jingli</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Haiya</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">tongda</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Botang</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Rigao</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Ruizhong</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Ad-Icon</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1">Continental</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center"><font style="font-family:times new roman" size="1"><b>Total</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Goodwill, gross</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">15,007</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">10,168</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">15,862</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7,929</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">99</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">30,877</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7,862</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,354</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,187</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">18,358</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>112,703</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accumulated impairment losses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(10,458</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(6,884</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(14,190</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(7,929</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(99</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(18,941</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(5,283</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,314</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,650</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>(66,748</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b>) </b></font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2"><b>Balance as of December 31, 2010</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>4,549</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>3,284</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>1,672</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>11,936</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>2,579</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>3,040</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>537</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>18,358</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>45,955</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Goodwill, gross</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">15,774</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">10,688</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">16,672</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8,334</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">104</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">32,454</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8,264</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,576</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,190</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">19,295</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>118,351</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accumulated impairment losses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(12,490</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(8,306</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(16,672</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(8,334</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(104</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(24,829</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(8,264</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,479</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,652</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(19,295</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>(101,425</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b>) </b></font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2"><b>Balance as of December 31, 2011</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>3,284</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>2,382</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>7,625</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>3,097</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>538</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>—  </b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2"><b>16,926</b></font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"><b> </b></font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Accumulated impairment losses include current year impairment loss charged to Statement of Operations and translation
differences of Goodwill at different years end closing rate. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>Goodwill impairment </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Management performs a goodwill impairment test for each of its reporting units as of December 31 of each year or when circumstances change that would
more likely than not that the carrying amount of goodwill may be impaired. As a result of impairment tests, the Group recorded a goodwill impairment loss of $15,749, $39,411 and $27,927 for the years ended December 31, 2009, 2010 and 2011,
respectively. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group applied the income approach to estimate the fair value of its reporting units for goodwill impairment tests. The key
assumptions used in this approach, which requires significant management judgment, include business assumptions, growth rate, terminal value, discount rate, and tax amortization benefit. Under this approach, the free cash flow to the Company was
first estimated and then the after tax weighted average cost of capital (“WACC”) was used to discount the cash flow to calculate the estimated value. To select the appropriate discount rate, the Company used both the CAPM model and the
build up method and then using the weighted average by capital amount weighting. The Company then selected the average of both methods to estimate the WACC to arrive at the concluded discount rate of 20.0%, 21.5% and 18.0% as of December 31,
2009, 2010 and 2011 respectively. </font></p>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Our goodwill primarily arises from the
initial consideration paid and subsequent settlement of contingent consideration of our business acquisitions. Before the issuance of ASC Topic 805-20, the contingent purchase price consideration for each entity is payable when each individual
12-month period during the earn-out period is completed and the operational results were agreed and confirmed. As such, the purchase price allocation cannot be completed until the contingencies are resolved in accordance with SFAS No. 141.
Therefore, the contingent consideration was not determinable beyond a reasonable doubt for the 2008 acquisitions, and no goodwill was recognized due to the contingent nature of the consideration. Based on the Group’s audited operating results
through December 31, 2009 and the amended acquisition agreements during December 31, 2010, the Company recorded additional consideration payable which resulted in additional goodwill in 2010. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In April 2009, the FASB issued Staff Position No. FSP FAS 141(R)-1,”Accounting for Assets Acquired and Liabilities Assumed in a Business Combination
That Arise from Contingencies” (“ASC Topic 805-20”). This updated guidance amended the accounting treatment for assets and liabilities arising from contingencies in a business combination and requires that pre-acquisition
contingencies be recognized at fair value, if fair value can be reasonably determined. If fair value cannot be reasonably determined, measurement should be based on the best estimate in accordance with SFAS No. 5, “Accounting for
Contingencies” (“ASC Topic 450”). </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group performed its annual impairment test at the end of the year, which indicated that
the carrying amount exceeded the fair value by a significant margin. The impairment test resulted in an additional goodwill impairment loss in 2010 and 2011, as the valuation analysis indicated that the fair values of the reporting units were less
than the carrying value. The Group recognized significant goodwill impairment on the acquired companies right after the Company recorded additional contingent consideration due to: </font></p>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%"><font size="1"> </font></td>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">1.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Decline in performance of Zhejiang Continental, which results in goodwill impairment of $18,816 for the year ended December 31, 2011; </font></td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%"><font size="1"> </font></td>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">2.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">The implied fair value of the goodwill was lower than the carrying value when the Company considered cash flow stream in the goodwill impairment test;
</font></td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%"><font size="1"> </font></td>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">3.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">The discount rate used in the valuation model during the impairment test is higher than the discount rate used in the purchase price allocation due to higher risk
associates with advertising industry in recent years; </font></td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%"><font size="1"> </font></td>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">4.</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">For the acquisitions occurred in 2008, the Company accounted for the acquisition under FAS 141 and record goodwill when the contingent consideration is realized. As a
result, the Company recorded the 2009 earn-out payment only when the contingency was realized in 2010. As at the year ended December 31, 2010 and 2011, the Company performed the goodwill impairment test based on the actual net income which is
significantly lower than the 2008 and 2009 net income. Accordingly, the Company revised the future projection of its subsidiaries due to: </font></td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="8%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="2%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">the acquisitions took place before the financial crisis in 2008. The overall business dropped significantly due to the economic downturn;
</font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="8%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="2%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">the ex-owners had less incentive to expand the business after the earn-out period; </font></p>
</td>
</tr>
</table>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="8%"><font size="1"> </font></td>
<td width="3%" valign="top" align="left"><font style="font-family:times new roman" size="2">•</font></td>
<td width="2%" valign="top"><font size="1"> </font></td>
<td align="left" valign="top">
<p align="left"><font style="font-family:times new roman" size="2">the synergy of consolidating and integrating multiple acquired businesses is lower than what we expected. </font></p>
</td>
</tr>
</table>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>Intangible assets other than
goodwill consist of the following: </b></font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="66%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"> <font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" rowspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Weighted average</font><br /><font style="font-family:times new roman" size="1">amortization 
period</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">As of December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"> <font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Gross amount</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Customer relationship</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">0.5-3.4 years</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,511</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,533</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Lease agreements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">1-4.4 years</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7,831</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">6,696</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Non-compete agreements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">3.4 years</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">480</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">505</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">11,822</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">10,734</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accumulated amortization</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Customer relationship</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(2,584</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(2,915</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Lease agreements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4,242</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4,789</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Non-compete agreements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(86</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(237</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(6,912</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(7,941</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accumulated impairment</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Customer relationship</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(16</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(618</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Lease agreements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(940</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,907</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Non-compete agreements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(268 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(956</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(2,793</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Net intangible assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Customer relationship</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">911</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Lease agreements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,649</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Non-compete agreements</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">394</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,954</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">For year ended December 31, 2011, the Group recorded an impairment loss on its intangible assets in the amount of
$2,723 associated with Zhejiang Continental mainly due to the decline in business performance. There was no impairment loss for the years ended December 31, 2009 and 2010. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
Amortization of intangible assets was allocated to the following categories of cost and expenses: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="76%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Years Ended December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2009</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Cost of revenues</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,379</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,273</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">854</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Sales and marketing expenses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">636</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">464</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">475</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total amortization expenses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,015</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,737</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,329</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">There is no future expected amortization of intangible assets as of December 31, 2011, since all of the intangible
assets were fully amortized or impaired. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 10 - idi:AcquisitionConsiderationPayableTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>10. Acquisition consideration payable </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">During the year ended December 31, 2008 and 2010, the Group acquired the respective advertising businesses of Jincheng,
Xinshichuang, Kaixiang, Wanshuizhiyuan, Shenyang Jingli, Botang, HK Ad-icon, Shengshitongda, Wenzhou Rigao, Wuxi Ruizhong and Zhejiang Continental (“acquired entities”). These acquisitions were unrelated to each other. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Pursuant to a series of acquisition agreements signed with each of the acquired entities’ former equity owners, which we refer to as the
“ex-owners”, in 2008 and 2010 (“original acquisition agreements”), the purchase consideration for each acquisition is contingent based on the operational results agreed and confirmed by the Group and each of the acquired
entities’ ex-owners in a 2-year earn-out period following respective acquisition dates (“earn-out period”). </font></p>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The table below summarizes the
contingent consideration associated with the Company’s 2008 and 2010 acquisitions: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="54%"> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="22" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Total contingent consideration and paid up to December 31, 2010</font><br /><font style="font-family:times new roman" size="1">
and consideration payable as of December 31, 2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom" nowrap="nowrap">
<p style="border-bottom:1px solid #000000;width:51pt"><font style="font-family:times new roman" size="1">Acquired Entity</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Contingent<br />consideration</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Consideration<br />paid in cash</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Consideration<br />paid in stock</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Consideration<br />payable</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Payable<br />in cash</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Payable<br />in stock</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Xinshichuang</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,132</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">981</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">151</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">151</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Jincheng</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,058</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">997</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">61</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">61</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Kaixiang</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">15,396</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7,423</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7,973</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,953</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,020</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Wanshuizhiyuan</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">10,554</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8,996</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,558</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,558</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Shenyang Jingli</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17,222</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">15,853</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,369</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,369</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Haiya</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8,537</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,662</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,875</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,120</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,755</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Botang</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">33,304</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">32,302</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,002</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,002</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">HK Ad-icon</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,407</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,545</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">862</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">593</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">269</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Shengshitongda</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">121</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">121</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Wenzhou Rigao</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7,953</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,527</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,426</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,014</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,412</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Wuxi Ruizhong</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,542</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,593</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,949</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,268</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">681</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Zhejiang Continental</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">20,309</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,340</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17,969</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7,807</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">10,162</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">122,535</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">83,340</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">39,195</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">16,967</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">22,228</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:18px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="100%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="53%"> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="2%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="22" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Total contingent consideration and paid up to December 31, 2011</font><br /><font style="font-family:times new roman" size="1">
and consideration payable as of December 31, 2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom" nowrap="nowrap">
<p style="border-bottom:1px solid #000000;width:51pt"><font style="font-family:times new roman" size="1">Acquired Entity</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Contingent<br />consideration</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Consideration<br />paid in cash</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Consideration<br />paid in stock</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Consideration<br />payable</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Payable<br />in cash</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Payable<br />in stock</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Kaixiang</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">16,183</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7,802</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,225</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,156</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,156</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Wanshuizhiyuan</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">11,093</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">9,890</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,203</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,203</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Shenyang Jingli</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">18,101</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">16,663</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,438</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,438</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Haiya</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8,973</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,951</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,022</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,178</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,844</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Botang</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">35,005</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">34,556</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">449</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">449</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">HK Ad-icon</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,410</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,547</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">269</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">594</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">594</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Wenzhou Rigao</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8,359</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,759</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,600</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,116</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,484</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Wuxi Ruizhong</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,774</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,487</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">716</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">571</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">571</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Zhejiang Continental</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">10,665</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,460</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8,205</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8,205</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td height="8"> </td>
<td height="8" colspan="4"> </td>
<td height="8" colspan="4"> </td>
<td height="8" colspan="4"> </td>
<td height="8" colspan="4"> </td>
<td height="8" colspan="4"> </td>
<td height="8" colspan="4"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">115,563</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">87,115</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,210</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">23,238</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">16,820</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">6,418</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">During 2011, 750,380 shares of the Company were issued to ex-owner of Kaixiang, Wuxi Ruizhong and HK Ad-icon to settle
consideration payable in stock of $5,210. A gain of $4,340 was recognized to the income statement due to issuance of the Company’s shares at the market price lower than the price initially agreed at acquisition. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">For subsequent changes to consideration payable, please refer to note 21. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - us-gaap:AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>11. Accrued expenses and other payables </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Accrued expenses and other payables consist of the following: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="80%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">As of December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accrued payroll and staff benefits</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,926</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">666</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accrued professional fee</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,044</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,638</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Business tax and surcharges payable</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">9,076</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">9,253</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Contingent liabilities (Note 20(c))</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,602</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">360</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Accrued liabilities for abandonment of lease</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,900</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Other accrued liabilities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,383</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,035</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total accrued expenses and other payables</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17,931</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">13,952</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 12 - us-gaap:ShortTermDebtTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>12. Short-term borrowings </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><i>Balances as of December 31, 2010 </i></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
The Group’s short term borrowing of $729 as of December 31, 2010 represents two short-term bank loans of $559 and $170. The short-term loan of $559 bears interest at 6% per annum and
matured on April 13, 2011. The loan of $170 bears interest at 14.23% per annum and matured on September 21, 2011. Total interest expense for the two short-term bank loans is $45 for the year ended December 31, 2010. </font></p>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><i>Balances as of December 31,
2011 </i></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The balance is zero as of December 31, 2011 due to deconsolidation of the VIE. Interest expenses for 2011 is $89. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 13 - us-gaap:StockholdersEquityNoteDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>13. Common shares and warrants </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><i>Common shares </i></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">As of
December 31, 2010 and 2011, the number of issued and outstanding common shares was 20,858,661 and 21,687,497, respectively. During 2011, 750,380 shares were issued to ex-owner of the acquired subsidiaries to offset earn-out liabilities of $5.2
million. The Company also issued 78,456 shares to employee upon exercise of their options and received $2. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><i>Warrants </i></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">SearchMedia has a total of 13,400,000 warrants outstanding prior to the business reverse acquisition. Each warrant entitles the registered holder to
purchase one share of the Company’s common stock at a price of $6.00 to $8.00 per share at any time commencing on the completion of a business combination. The warrants have a four years term and was supposed to expire in November 2011. On
April 13, 2011, the Board of Directors of the Company approved an extension of the expiration date of its publicly held warrants with an exercise price of $6.00 from November 19, 2011 to November 19, 2012. All other provisions of the
warrants remain the same. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Upon completion of the business reverse acquisition, which was October 30, 2009, the Company has 15,347,401
warrants outstanding, which includes 1,519,182 warrants issued to the SearchMedia International shareholders or warrantholders in the business reverse acquisition and 428,219 warrants issued to the note holder. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Each warrant issued to a SearchMedia International shareholder or warrant holder in the business reverse acquisition and note holder entitles the
registered holder to purchase one share of SearchMedia Holding’s common stock at a price ranging from $0.0001 to $8.14 per share, subject to adjustment, at any time. The exercise price and number of ordinary shares issuable on exercise of the
warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuances of ordinary shares at a price below
their respective exercise prices. The warrants will expire three years from the date of issuance of such warrant. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In January 2010, the
Company repurchased in aggregate 1,738,500 warrants in the open market for a total consideration of $3,809 under a Board authorized plan. During 2010, 1,460 warrants were exercised and the Company received net proceeds of $9. There were no warrants
exercised during 2011. As of December 31, 2010 and 2011, there were 13,607,441 warrants for the common stock outstanding. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 14 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>14. Share-based payments </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Effective on January 1, 2008, the board of directors and shareholders of the SearchMedia International approved and adopted the
2008 Share Inventive Plan (the “Share Incentive Plan”) which provides for the granting of up to 1,796,492 share options and restricted share units to the eligible employees to subscribe for ordinary shares of SearchMedia International. The
granted stock options and restricted share units were subsequently converted into SearchMedia Holdings’ stock options and restricted shares on October 30, 2009 pursuant to the Share Exchange Agreements. </font></p>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In August 2010, the Board approved an
increase of the number of authorized shares to be awarded under the Share Incentive Plan from 1,796,492 to 3,000,000 shares which may be granted to designated employees, directors and consultants of the Company. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(a) Share options </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Details of
stock options activity during the years ended December 31, 2009, 2010 and 2011 was as follows: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="64%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>Number of<br />options</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>Weighted<br />average<br />exercise<br />price per<br />share</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>Weighted<br />average<br />remaining<br />contractual<br />term</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>Aggregate<br />fair value</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as of January 1, 2009</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8,840,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.79</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">432</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Granted</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,650,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.53</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">33</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Forfeited</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4,215,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.69</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(149</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as of October 30, 2009</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">6,275,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Converted into IDI options</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">423,797</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3.19</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,253</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as of December 31, 2009</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">423,797</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3.19</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,253</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Granted</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">770,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5.47</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,924</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Exercised</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(86,673</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.01</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(345</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Forfeited</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(102,263 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2.69</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(316 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as of December 31, 2010</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,004,861</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2.13</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,253</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Granted</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">120,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1.74</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">123</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Exercised</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(77,387 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">0.01</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(307 </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Forfeited</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(28,141</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3.81</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(78</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as of December 31, 2011</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,019,333</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5.32</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8.0 years</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,880</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Options exercisable at December 31, 2011</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">530,077</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5.56</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7.6 years</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Company determined the estimated grant-date fair value of share options based on the Binomial Tree option-pricing
model using the following assumptions: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="64%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2009</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Risk-free rate of return</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" nowrap="nowrap" align="center"><font style="font-family:times new roman" size="2">3.43%</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" nowrap="nowrap" align="center"><font style="font-family:times new roman" size="2">2.744%-4.142%</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">2.35%</font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Weighted average expected option life</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">10 years</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">10 years</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">10 years</font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Expected volatility rate</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">40.30%</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">64.00 %</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">102.20%</font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Dividend yield</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">0%</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">0 %</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">0 %</font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The expected volatility in the table above was based on the actual volatility of the Company’s ordinary shares.
</font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Because the Company’s share options have certain characteristics that are significantly different from traded options, and because
changes in the subjective assumptions can materially affect the estimated value, in management’s opinion, the existing valuation model may not provide an accurate measure of the fair value of the Company’s share options. Although the fair
value of share options is determined in accordance with ASC Topic 718, “<i>Compensation—Stock Compensation</i>”, using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing
seller market transaction. </font></p>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Company has accounted for these
options in accordance with ASC Topic 718, <i>“Compensation—Stock Compensation</i>”, by measuring compensation cost based on the grant-date fair value and recognizing the cost over the period during which an employee is required to
provide service in exchange for the award. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">During first quarter of 2010, 545,000 options, at exercise prices ranging from $6.05 to $7.4, to
purchase common shares of the Company were granted to senior executives of the Company with the options vesting one-third annually over a three year period. A total of 225,000 options, at exercise price of $7.14, were also granted to Board members
with vesting one year from the date of grant. The fair value of these options at grant date was $1,924. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">On August 20, 2010, one of the
senior executives of the Company agreed to cancel 225,000 options granted in the first quarter of 2010 and, upon cancellation, the senior executive was issued an option to purchase 225,000 shares of common stock at exercise price of $2.62, which
vest one-third annually on the anniversary of the date of grant. The fair value of these options at grant date was $216. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">On September 1,
2011, 120,000 options, at exercise prices at $1.74, to purchase common shares of the Company were granted to a senior executive of the Company with the options vesting half annually over a two year period. The fair value of these options at grant
date was $123. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The amount of compensation cost recognized for these share options was $724 for the year ended December 31, 2009, of
which $83 and $641 was allocated to sales and marketing expenses and general and administrative expenses, respectively. As of December 31, 2009, unrecognized share-based compensation cost in respect of granted share options amounted to US$388.
</font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The amount of compensation cost recognized for these share options was
$1,680 for the year ended December 31, 2010, of which $291 and $1,389 was allocated to sales and marketing expenses and general and administrative expenses, respectively. As of December 31, 2010, unrecognized share-based compensation cost
in respect of granted share options amounted to $906. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The amount of compensation cost recognized for these share options was $662 for the
year ended December 31, 2011, of which $123 and $539 was allocated to sales and marketing expenses and general and administrative expenses, respectively. As of December 31, 2011, unrecognized share-based compensation cost in respect of
granted share options amounted to $308. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(b) Restricted share </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
Details of restricted share activity during the years ended December 31, 2009, 2010 and 2011 were as follows: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="64%"> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>Number of<br />restricted share<br />Granted</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" nowrap="nowrap" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>Grant-date<br />fair value</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1"><b>Weighted<br />average<br />remaining<br />contractual<br />term</b></font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as of January 1, 2009</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,867,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Granted</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,000,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">297</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Forfeitures</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as of October 30, 2009</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">6,867,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Converted into IDI restricted shares</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">463,779</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,572</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as of December 31, 2009</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">463,779</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Granted</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">100,000</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">605</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Exercised</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(5,910</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Forfeitures</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(204,604</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as of December 31, 2010</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">353,265</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Granted</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Exercised</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,069</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Forfeitures</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4,334</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Balance as of December 31, 2011</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">347,862</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7.6 years</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Units vested as of December 31, 2011</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">214,469</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7.4 years</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group recognized compensation cost
(included in general and administrative expenses in the consolidated statements of operations) for these restricted share units of $360, $719 and $232 for the years ended December 31, 2009, 2010 and 2011, respectively. The fair value of the
restricted share was estimated using the Binomial Tree option-pricing model. The assumptions used in estimating the fair value of the restricted share are the same as those related to valuation of share options set out in note 14(a). </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">As of December 31, 2011, unrecognized share-based compensation cost in respect of granted restricted share amounted to $143, which is expected to be
recognized over a weighted average period of 4 months. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 15 - idi:StatutoryReserveTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>15. Statutory reserve </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group’s PRC consolidated subsidiaries are required under PRC laws to transfer at least 10% of their after tax profits as
reported in their PRC statutory financial statements to a statutory surplus reserve. These entities are permitted to discontinue allocations to this reserve if the balance of such reserve has reached 50% of their respective registered capital. The
transfer to this reserve must be made before distribution of dividends to equity shareholders. The statutory reserve is not available for distribution to the owners (except in liquidation) and may not be transferred in the form of loans, advances or
cash dividends. For the years ended December 31, 2010 and 2011, the Group’s PRC consolidated subsidiaries made appropriations to the statutory reserve funds of $0 and $0, respectively. The accumulated balance of the statutory reserve funds
maintained at these PRC consolidated subsidiaries as of December 31, 2010 and 2011 was $162 and $162, respectively. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 16 - us-gaap:RelatedPartyTransactionsDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>16. Related party transactions and balances </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(a) Related party transactions </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
In the ordinary course of business, the Group enters into certain transactions with its related parties. Management believes that these related party transactions were conducted at normal commercial
terms. For the periods presented, material related party transactions are summarized as follows for the years ended December 31, 2009, 2010 and 2011: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="92%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="77%"> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="3%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Years Ended December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="1">Note</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2009</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Revenue from provision of advertising services</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">(i)</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,910</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">55</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">45</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Expenses for leases of advertising space</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">(ii)</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,515</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">643</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td nowrap="nowrap" valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Notes: </font></p>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">(i)</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Represents amounts received / receivable from affiliated entities of senior management personnel of the Company, for provision of advertising services to these
entities. The transactions are conducted on terms comparable to the terms of similar transactions with third parties. </font></td>
</tr>
</table>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">(ii)</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Represents amounts paid / payable to affiliated entities of senior management personnel of the Company, for leases of advertising spaces from these entities. The
transactions are conducted on terms comparable to the terms of similar transactions with third parties. </font></td>
</tr>
</table>
<p style="font-size:1px;margin-top:6px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(b) Amounts due from / to related
parties are analyzed as follows: </i></b></font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="78%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">As of December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Note</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Advances to ex-owners of acquired companies</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">(i)</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">966</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,078</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Due from related parties</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">966</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,078</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Operating expenses paid on behalf of the Group</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">(ii)</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,905</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">379</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Payables for the lease of advertising space</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" align="center"><font style="font-family:times new roman" size="2">(iii)</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">53</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Due to related parties</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,958</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">379</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Note: </font></p>
<p style="font-size:6px;margin-top:0px;margin-bottom:0px"> </p>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">(i)</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Represents the advances made by the Group to certain ex-owners of acquired subsidiaries. The amounts are interest free and are expected to be settled within 12 months
from the balance sheet date and are secured by the contingent purchase price payable to the ex-owners of the acquired companies. </font></td>
</tr>
</table>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">(ii)</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Represents operating expenses paid by certain senior management personnel of the Company. The amounts are interest free, unsecured and have no fixed terms of repayment.
</font></td>
</tr>
</table>
<table style="border-collapse:collapse; text-align: left" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="4%" valign="top" align="left"><font style="font-family:times new roman" size="2">(iii)</font></td>
<td align="left" valign="top"><font style="font-family:times new roman" size="2">Represents operating lease payments payable to affiliated companies of senior management personnel of the Company for leases of advertising space as described in note
(ii) above. The amounts are repayable in accordance with normal payment terms with other unrelated advertising space suppliers. </font></td>
</tr>
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 17 - us-gaap:InterestIncomeAndInterestExpenseDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>17. Interest expense </b></font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="80%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Years Ended December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2009</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Bank loan interest</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">45</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">89</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Convertible promissory notes interest</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">962</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td nowrap="nowrap" valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Interest on New Note, First Interim Notes and short-term loan from a third party lender</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">973</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td nowrap="nowrap" valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total interest expense</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,962</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">45</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">89</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 18 - us-gaap:IncomeTaxDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>18. Income taxes </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>Cayman Islands </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Under
the current laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, upon any payment of dividends by the Company, no withholding tax is imposed. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>Peoples’ Republic of China </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The
Company’s consolidated subsidiaries in the PRC are governed by the income tax law of the PRC and file separate income tax returns. They are subject to PRC enterprise income tax at 25% on their assessable profits. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Under the new tax law and related implementation rules, a withholding tax is applied on the gross amount of dividends received by the Company from its
PRC consolidated subsidiaries after January 1, 2008; however undistributed earnings prior to January 1, 2008 are exempted from withholding tax. The implementation rules provide that the withholding tax rate is 10% or the applicable rate
specified in a tax treaty. The Company has not provided for income taxes on accumulated earnings of its PRC subsidiaries as of December 31, 2008 since these earnings are intended to be reinvested indefinitely in the PRC. It is not practicable
to estimate the amount of additional taxes that might be payable on such undistributed earnings. </font></p>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>Hong Kong </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Subsidiaries reside in Hong Kong are subject to Hong Kong profits tax at a tax rate of 16.5% on their assessable profits. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">For the years ended December 31, 2009, 2010 and 2011, substantially all of the Group’s income before income taxes is derived from the PRC.
Income tax expense consists of the following: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="76%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Years Ended December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2009</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Current tax</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">- PRC</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,460</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">2,212</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,170</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">- HK</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">34</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">25</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Deferred tax</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">- PRC</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">808</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(813</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,087</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">- HK</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total income tax expense</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,319</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,420</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">83</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The actual income tax expense reported in the consolidated statements of income differs from the expected income tax
expense computed by applying the PRC statutory tax rate of 25% for the years ended December 31, 2009, 2010 and 2011 respectively to income before income taxes as a result of the following: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="72%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Years Ended December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2009</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Computed expected tax expense</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4,582</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(11,305</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(3,345</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Effect of differential tax rate on income of Hong Kong subsidiaries</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(26</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(13</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(22</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Effect of non-PRC entities not subject to income tax</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,748</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,279</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,006</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Non-deductible expenses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">5,267</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">9,778</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">7,263</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Tax loss which no deferred tax asset was recognized</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">3,278</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,369</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">775</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Tax loss that is expired</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">509</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Income not subject to tax</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(1,875</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(40</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(6,184</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Change in valuation allowance</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">352</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">590</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Actual income tax expense</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,319</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,420</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">83</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Non-deductible expenses primarily represent goodwill impairment which is not deductible for tax purpose and entertainment
expenses in excess of statutory limits for tax purpose. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Income not subject to tax primarily represents gain on termination of VIEs, change of
fair value of acquisition consideration payable and gain from extinguishment of acquisition consideration payable. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The tax effects of the
Group’s temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="84%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="78%"> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="5%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Years Ended December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2009</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Deferred tax assets-current:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">- Tax loss carried forwards of a subsidiary</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">23</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">89</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">- Allowance for doubtful accounts</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">430</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">802</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">866</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">- Accrued expenses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">27</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">480</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">891</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">866</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Deferred tax liabilities — non-current:</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom"> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">- Intangible assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(316</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(989</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Net deferred tax assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">164</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(98</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">866</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:1px;margin-top:12px;margin-bottom:0px"> </p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The realization of the future tax
benefits of a deferred tax asset is dependent on future taxable income against which such tax benefits can be applied or utilized and the consideration of the scheduled reversal of deferred tax liabilities and any available tax planning strategies.
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. All available evidence must be considered in the determination
of whether sufficient future taxable income will exist since the ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible and tax
loss carryforwards are utilized. Such evidence includes, but is not limited to, the financial performance of the entities, the market environment in which these entities operate and the length of relevant carryover periods. Sufficient negative
evidence, such as cumulative net losses during a three-year period that includes the current year and the prior two years, may require that a valuation allowance be established against the deferred tax assets. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">For the year ended December 31, 2009, 2010 and 2011, the Group did not have unrecognized tax benefits, and it does not expect that the amount of
unrecognized tax benefits will change significantly within the next 12 months. No interest and penalties related to unrecognized tax benefits were accrued at the date of initial adoption of FIN 48 and as of December 31, 2010 and 2011.
</font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to
computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than US$15 (RMB 100). In the case of transfer pricing
issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The tax returns of the Company’s consolidated subsidiaries in the PRC for the tax years beginning in 2006 are subject to examination
by the relevant tax authorities. The tax returns of the Company’s operating subsidiary in the HKSAR for the tax years beginning in 2002 are subject to examination by the relevant tax authorities. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 19 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>19. Employee benefit plans </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Employees of the Company and its subsidiaries located in Hong Kong are covered by the Mandatory Provident Fund Scheme (“MPF
Scheme”) established on December 1, 2000 under the Mandatory Provident Fund Scheme Ordinance of Hong Kong. The calculation of contributions for these eligible employees is based on 5% of the applicable payroll costs, and contributions are
matched by the employees. The amounts paid by the Company to the MPF Scheme were $6, $6 and $6; for the years ended December 31, 2009, 2010 and 2011, respectively. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
Employees of the Company and its subsidiaries located in the PRC are covered by the retirement schemes defined by local practice and regulations, which are essentially defined contribution schemes. The
contributed amounts are determined based on 22% of the applicable payroll costs. The amounts paid by the Company to these defined contribution schemes were $177, $194 and $196 for years ended December 31, 2009, 2010 and 2011, respectively.
</font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In addition, the Company is required by law to contribute medical insurance benefits, housing funds, unemployment, and other statutory
benefits ranging from 1% to 10% of applicable salaries. The PRC government is directly responsible for the payment of the benefits to these employees. The amounts contributed for medical insurance benefits were $97, $106 and $106 for the years ended
December 31, 2009, 2010 and 2011, respectively. The amounts contributed for housing funds was $56, $62 and $62 for the years ended December 31, 2009, 2010 and 2011, respectively. The amounts contributed for other benefits were $24 and $26
and $27 for the years ended December 31, 2009, 2010 and 2011, respectively. </font></p>
<p style="font-size:1px;margin-top:18px;margin-bottom:0px"> </p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 20 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>20. Commitments and contingencies </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(a) Operating lease commitments </i></b></font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
The Group leases space primarily inside elevators, light boxes and billboards to display the content of its customers’ advertisements, and office premises under operating lease arrangements. These
operating leases do not contain provisions for contingent rentals. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">Rental expenses under operating leases were allocated to the following
categories of cost and expenses: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="70%"> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
<td valign="bottom" width="4%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">Years Ended December 31,</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2009</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2010</font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Cost of revenues</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">24,386</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">33,301</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">43,710</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Selling and marketing expenses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">8</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">247</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">General and administrative expenses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,595</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">484</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">485</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total rental expenses</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">25,981</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">33,793</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">44,442</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">As of December 31, 2011, future minimum rental payments under non-cancellable operating leases having initial or
remaining lease terms of more than one year are as follows: </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="68%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="88%"> </td>
<td valign="bottom" width="6%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom" nowrap="nowrap">
<p style="border-bottom:1px solid #000000;width:16pt"><font style="font-family:times new roman" size="1"><b>Year</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td colspan="2" valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">2012</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">11,600</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">2013</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">1,427</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">2014</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">307</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">2015</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">2016</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Thereafter</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top"> </td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">13,334</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:3px double #000000"> </p>
</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(b) Capital commitment </i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
The Group has no material capital commitment as of December 31, 2011. </font></p>
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b><i>(c) Contingency
</i></b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Group is periodically involved in legal proceedings and has made provision for operational claims of $2,078 and $360 as of
December 31, 2010 and 2011, respectively. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In December 2011, one of the Ad-Icon Shanghai’s outsourcing companies filed a civil
lawsuit against Ad-Icon Shanghai for a defaulted fee of $255. The Group has not made provision for this lawsuit as the Company considered the probability for an unfavorable verdict was not probable, but only reasonably possible. </font></p>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 21 - us-gaap:SubsequentEventsTextBlock-->
<p style="margin-top:18px;margin-bottom:0px"><font style="font-family:times new roman" size="2"><b>21. Subsequent events </b></font></p>
<p style="margin-top:6px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The Company evaluated all events and transactions after December 31, 2011 through the date these financial statements were issued
and the material subsequent events were as follows: </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In January 2012 and May 2012, the Company reached settlement agreements for the
arbitration between the Company and certain of its predecessor shareholders related to matters from the Share Exchange Agreement signed October 30, 2009. Pursuant </font></p>
<p style="margin-top:0px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
to the settlement agreement (i) 2,471,968 shares will be repurchased by the Company at an average price per share of $0.25 and such shares will be retired, (ii) 2,029,700 shares will be
surrendered and cancelled without consideration, and (iii) 1,624,993 warrants will be surrendered and cancelled without consideration. As of the date of this report, 742,959 shares were returned for no consideration, 2,471,968 shares were
purchased for an average price of $0.25 share and 1,624,993 warrants were surrendered and canceled without consideration. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In February 2012,
the Company entered into an agreement for a new $3,000 Convertible Note (the “Note”) with its existing major shareholder and several other investors including an affiliate of the Company’s Chief Executive Officer. The Note has a one
year term and borrowings bear interest at a rate of 10% per annum. In addition, the Note is convertible into the Company’s common shares at $1.25 per share. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">
In February 2012, the Company scaled down its elevator poster frame businesses and abandoned certain concessions signed with property management companies. The remaining obligation of concessions
abandoned was approximately $1,205 and the amount was charged to income statement at the time of the abandonment. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">In May 2012, the Company
obtained wavier from Haiya to eliminate the consideration payable of $3,022. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">On May 2, 2012, the Company divested 100% equity interests
in Zhejiang Continental back to its original selling shareholders and eliminated the related acquisition contingent payable of $8,205 in exchange for the issuance of 1 million common shares of the Company at a price of $2.00 per share. The gain
on elimination on acquisition contingent payable was recognized by the Company to income statement in accordance with ASC Topic 805-30-35 and will be reflected in the Company’s 2012 financial statements. </font></p>
<p style="margin-top:12px;margin-bottom:0px"><font style="font-family:times new roman" size="2">The following unaudited pro forma financial information presents the results of operations of the Group as if the disposition of Zhejiang Continental had
occurred as of January 1, 2011, respectively. These results include the impact of preliminary fair value adjustments on intangible assets and the related adjustments on deferred taxes. The unaudited pro forma financial information is not
necessarily indicative of what the Group’s consolidated results of operations would actually have been had it completed the acquisitions on January 1, 2011, respectively. In addition, the unaudited pro forma financial information does not
attempt to project the future results of operations of the combined entity. </font></p>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="82%"> </td>
<td valign="bottom" width="14%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">December 31, 2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">(Unaudited)</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Cash</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">4,573</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Other current assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">24,551</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Other non-current assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">17,577</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total assets</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">46,701</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Acquisition consideration payable</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">15,033</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Other current liabilities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">38,224</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Other non-current liabilities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">—  </font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr style="font-size:1px">
<td valign="bottom"> </td>
<td valign="bottom"> </td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td valign="bottom">
<p style="border-top:1px solid #000000"> </p>
</td>
<td> </td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total liabilities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">53,257</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Net liabilities</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(6,556</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Total shareholders’ deficit</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(6,556</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<!-- End Table Body -->
</table>
<p style="font-size:12px;margin-top:0px;margin-bottom:0px"> </p>
<table cellspacing="0" cellpadding="0" width="76%" border="0" style="border-collapse:collapse; text-align: left" align="center">
<!-- Begin Table Head -->
<tr>
<td width="88%"> </td>
<td valign="bottom" width="7%"> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">2011</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:times new roman" size="1">(Unaudited)</font></td>
<td valign="bottom"><font size="1"> </font></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Advertising service revenues</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">52,959</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
</tr>
<tr>
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Loss from operations</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2"> </font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4,450</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<tr bgcolor="#cceeff">
<td valign="top">
<p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:times new roman" size="2">Net loss</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="font-family:times new roman" size="2">$</font></td>
<td valign="bottom" align="right"><font style="font-family:times new roman" size="2">(4,930</font></td>
<td nowrap="nowrap" valign="bottom"><font style="font-family:times new roman" size="2">) </font></td>
</tr>
<!-- End Table Body -->
</table>
16381000
39195000
15891000
1712874
76073000
87000
259000
10000
1460
9000
9000
1577000
1577000
1000
3000
3672000
3809000
3809000
100338
12462345
69255000
69253000
2000
871000
871000
750380
36000
-36000
6250
5072000
3586000
8098000
6830000
6830000
411000
411000
2398000
2398000
894000
894000
36289000
20709000
530000
5096000
29398000
7554000
1942000
4630000
24302000
-21844000
-2924000
-22698000
-46536000
-15683000
171000
5000
103000
219000
9924000
5556000
-54000
381000
465000
314000
3058000
3058000
2477000
45000
89000
73665000
-3465000
611000
-22649000
-22649000
-22649000
-23589000
-46639000
-46639000
-46639000
-19194000
-13459000
-13459000
-13459000
-883000
-20213000
-17358000
-618000
-49000
-49000
-49000
103000
103000
103000
-2224000
-2224000
-2224000
3809000
3525000
3525000
688000
768000
1346000
9000
2000
359000
5000000
1855000
693000
747000
675374
2169269
20758368
20858661
21687497
-44485000
722000
1099000
-46306000
48400000
1050000
122922000
2000
-75574000
463000
1153000
121521000
2000
-122213000
-13453000
-1071000
123288000
2000
-135672000
-675374
675374
2205549
1712874
92583
78456
26931000
17790000
-722000
722000
26931000
17790000
1000
1000
2000
2000
79579
628000
628000