China’s YOU On Demand Receives New Investment

NEW YORK: The Chinese VOD platform YOU On Demand has received an additional $2 million investment from C Media Limited, a leading China-based mobile video service provider.

This $2 million injection brings C Media's total investment in YOU On Demand to $6 million. The Bridge Note would convert to Series E Convertible Preferred Stock with the proposed Phase 2 investment, bringing C Media's Phase 2 investment in the service to $12 million.

The two have agreed to extend the Phase 2 investment deadline from October 31 to December 4 as well.

Mr. Xuesong Song, co-founder, chairman and CEO of C Media, stated, "This increased investment in YOU On Demand further underscores C Media's growing confidence in the YOU On Demand team and represents what we believe is an exciting opportunity to jointly capitalize on China's fast-growing mobile and digital cable entertainment space together with a truly innovative partner. Based on their satisfaction of certain additional closing conditions that we anticipate will be completed prior to the December deadline, we expect to further expand upon our current $6 million investment in YOU On Demand later this year."

Shane McMahon, chairman of YOU On Demand, stated, "We are extremely pleased with the working relationship we have developed with C Media over the past several months and appreciate their continued support and confidence.  We look forward to making additional progress with the execution of our business plan, and specifically doing so with our C Media partnership."