[MANDALAY MEDIA, INC. LETTERHEAD]

March 7, 2008

Bruce Stein
1894 Westridge Road
Los Angeles, CA 90049

Dear Mr. Stein:

Reference is hereby made to that certain Employment Letter (“Employment Letter”)
dated November 7, 2007, between Mandalay Media, Inc. (the “Company”) and you.
Capitalized terms used herein but not otherwise defined herein shall have such
meanings ascribed to them in the Employment Letter. The parties have agreed to
amend and modify the Employment Letter as follows:

1. Effective as of the date first set forth above, you are hereby appointed as
Chief Executive Officer of the Company, which shall replace your position as
Chief Operating Officer.

2. The following language is hereby added as Paragraph 6 of the Employment
Letter:

“Additionally, subject to approval by the Board of Directors of the Company (or
an appropriate Committee appointed by the Board of Directors) you will be
granted options to purchase 1,001,864 shares of common stock (the “Additional
Options”) of the Company at an exercise price equal to the fair market value of
the closing trading price of the common stock on the date of grant. The
Additional Options will be issued subject to the terms of a formal stock option
agreement and the stock plan in effect on the date of grant.”

3.  Effective as of the date first set forth above, the salary set forth in
Paragraph 4 of the Employment Letter is hereby amended by deleting “$250,000”
from the first line thereof and replacing it with “$350,000”.

4. Except as modified hereby the Employment Letter remains in full force and
effect.

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Please confirm your agreement to the foregoing by signing the enclosed duplicate
of this letter.
 

          Sincerely,           Mandalay Media, Inc.  
   
   
       By: /s/ James Lefkowitz   

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Name: James Lefkowitz

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Title: President

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Acknowledged and agreed as of this
7h day of March, 2008

        By: /s/ Bruce Stein      

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Name:  Bruce Stein

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