x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE      SECURITIES

| Delaware                                       |   | 52-1481284                            |
|------------------------------------------------|--------|---------------------------------------|
| (State                or other jurisdiction of |   | (I.R.S.                Employer       |
| incorporation                or organization)  |   | Identification                Number) |

| 708                Third Avenue, New York, NY           |   | 10017                     |
|---------------------------------------------------------|--------|---------------------------|
| (Address                of principal executive offices) |   | (Zip                Code) |

x      No ̈

| Large                accelerated filer  ̈                                                                                |                                       | Accelerated                filer  ̈ |
|------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|-----------------------------------------|
|                                                                                                                         |                                       |                                    |
| Non-accelerated filer  ̈ (Do not check if a smaller reporting company) | Smaller reporting company x |

----

**PART      I – FINANCIAL INFORMATION**

**Item      1. **
***Financial      Statements***

**MEDIALINK      WORLDWIDE INCORPORATED AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                         |   | **September 30,** |    | **December 31,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|-----------------------|--------|
|                                                                                                                                         |   | **2008**               |    | **2007**              |   |
| ASSETS                                                                                                                                       |   |                   |    |                  |   |
| Current                Assets:                                                                                                               |   |                   |    |                  |   |
| Cash                and cash equivalents                                                                                                     |   | $                      | 7,113   |                  | $      | 11,604 |   |
| Accounts                receivable, net of allowance for doubtful accounts of $105 and                $150                                   |   |                   | 2,906   |                  |   | 4,551 |   |
| Prepaid                expenses                                                                                                              |   |                   | 300     |                  |   | 450 |   |
| Prepaid                and refundable taxes                                                                                                  |   |                   | 1,308   |                  |   | 743 |   |
| Deferred                income taxes                                                                                                         |   |                   | -       |                  |   | 169 |   |
| Other                current assets                                                                                                          |   |                   | 119     |                  |   | 91 |   |
| Current                assets of discontinued operations                                                                                     |   |                   | -       |                  |   | 1,611 |   |
| Total                current assets                                                                                                          |   |                   | 11,746  |                  |   | 19,219 |   |
|                                                                                                                                         |   |                   |    |                  |   |   |   |
| Property                and equipment - net                                                                                                  |   |                   | 1,338   |                  |   | 2,574 |   |
| Goodwill                                                                                                                                     |   |                   | -       |                  |   | 3,429 |   |
| Deferred                income taxes                                                                                                         |   |                   | -       |                  |   | 217 |   |
| Other                assets                                                                                                                  |   |                   | 682     |                  |   | 738 |   |
| Non-current                assets of discontinued operations                                                                                 |   |                   | -       |                  |   | 1,968 |   |
|                                                                                                                                         |   |                   |    |                  |   |   |   |
| Total                assets                                                                                                                  |   | $                      | 13,766  |                  | $      | 28,145 |   |
|                                                                                                                                         |   |                   |    |                  |   |   |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                                                                                          |   |                   |    |                  |   |   |   |
| Current                Liabilities:                                                                                                          |   |                   |    |                  |   |   |   |
| Accounts                payable                                                                                                              |   | $                      | 1,211   |                  | $      | 1,836 |   |
| Accrued                expenses and other current liabilities                                                                                |   |                   | 3,327   |                  |   | 4,198 |   |
| Current                liabilities of discontinued operations                                                                                |   |                   | -       |                  |   | 1,292 |   |
| Total                current liabilities                                                                                                     |   |                   | 4,538   |                  |   | 7,326 |   |
|                                                                                                                                         |   |                   |    |                  |   |   |   |
| Convertible                debentures, net of unamortized discount of $257 and $422                                                          |   |                   | 4,093   |                  |   | 3,928 |   |
| Other                long-term liabilities                                                                                                   |   |                   | 434     |                  |   | 720 |   |
| Non-current                liabilities of discontinued operations                                                                            |   |                   | -       |                  |   | 45 |   |
| Total                liabilities                                                                                                             |   |                   | 9,065   |                  |   | 12,019 |   |
|                                                                                                                                         |   |                   |    |                  |   |   |   |
| Commitments                and contingencies                                                                                                 |   |                   |    |                  |   |   |   |
|                                                                                                                                         |   |                   |    |                  |   |   |   |
| Stockholders'                Equity:                                                                                                         |   |                   |    |                  |   |   |   |
| Series                A Preferred stock: $.01 par value, authorized 50,000 shares; none                issued                and outstanding |   |                   | -       |                  |   | - |   |
| Common                stock: $.01 par value, authorized 15,000,000 shares; issued 6,529,180                shares in 2008 and 2007           |   |                   | 65      |                  |   | 65 |   |
| Additional                paid-in capital                                                                                                    |   |                   | 28,689  |                  |   | 28,490 |   |
| Accumulated                deficit                                                                                                           |   |                   | (23,394 | )                     |   | (11,826 | ) |
| Accumulated                other comprehensive loss                                                                                          |   |                   | (316    | )                     |   | (260 | ) |
| Common                stock in treasury (at cost, 101,121 shares)                                                                            |   |                   | (343    | )                     |   | (343 | ) |
| Total                stockholders' equity                                                                                                    |   |                   | 4,701   |                  |   | 16,126 |   |
|                                                                                                                                         |   |                   |    |                  |   |   |   |
| Total                liabilities and stockholders' equity                                                                                    |   | $                      | 13,766  |                  | $      | 28,145 |   |

----

**MEDIALINK      WORLDWIDE INCORPORATED AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                  |   | **For the nine months ended** |    | **For the three months ended** |   |
|-----------------------------------------------------------------------|--------|---------------------------------------------------|---------|----------------------------------------------------|--------|
|                                                                  |   | **September 30,**                            |    | **September 30,**                             |   |
|                                                                  |   | **2008**                                          |    | **2007**                                           |   | **2008** |   | **2007** |   |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |
| Revenues                                                              |   | $                                                 | 16,927  |                                               | $      | 22,173 |   | $ | 5,260 |   | $ | 7,345 |   |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                                    |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Direct                costs                                           |   |                                              | 6,620   |                                               |   | 9,880 |   |   | 1,886 |   |   | 3,140 |   |
| Selling,                general, and administrative expenses          |   |                                              | 13,241  |                                               |   | 15,282 |   |   | 4,031 |   |   | 5,062 |   |
| Depreciation                and amortization                          |   |                                              | 855     |                                               |   | 883 |   |   | 240 |   |   | 297 |   |
| Goodwill                impairment                                    |   |                                              | 3,429   |                                               |   | - |   |   | - |   |   | - |   |
| Other                impairment charges                               |   |                                              | 605     |                                               |   | - |   |   | - |   |   | - |   |
| Charge                for exit activities                             |   |                                              | 170     |                                               |   | - |   |   | 51 |   |   | - |   |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Total                operating expenses                               |   |                                              | 24,920  |                                               |   | 26,045 |   |   | 6,208 |   |   | 8,499 |   |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Operating                loss                                         |   |                                              | (7,993  | )                                                  |   | (3,872 | ) |   | (948 | ) |   | (1,154 | ) |
| Interest                income (expense) - net                        |   |                                              | (399    | )                                                  |   | 54 |   |   | (151 | ) |   | (7 | ) |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Loss                from continuing operations before taxes           |   |                                              | (8,392  | )                                                  |   | (3,818 | ) |   | (1,099 | ) |   | (1,161 | ) |
| Income                tax provision (benefit)                         |   |                                              | (150    | )                                                  |   | (937 | ) |   | 5 |   |   | (299 | ) |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Loss                from continuing operations                        |   |                                              | (8,242  | )                                                  |   | (2,881 | ) |   | (1,104 | ) |   | (862 | ) |
| Income                (loss) from discontinued operations, net of tax |   |                                              | (3,326  | )                                                  |   | 441 |   |   | 113 |   |   | (731 | ) |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Net                loss                                               |   | $                                                 | (11,568 | )                                                  | $      | (2,440 | ) | $ | (991 | ) | $ | (1,593 | ) |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Net                loss                                               |   | $                                                 | (11,568 | )                                                  | $      | (2,440 | ) | $ | (991 | ) | $ | (1,593 | ) |
| Other                comprehensive income (loss)                      |   |                                              | (56     | )                                                  |   | 89 |   |   | (40 | ) |   | 53 |   |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Comprehensive                loss                                     |   | $                                                 | (11,624 | )                                                  | $      | (2,351 | ) | $ | (1,031 | ) | $ | (1,540 | ) |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Basic                and diluted income (loss) per common share:      |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Loss                from continuing operations                        |   | $                                                 | (1.28   | )                                                  | $      | (0.45 | ) | $ | (0.17 | ) | $ | (0.13 | ) |
| Income                (loss) from discontinued operations             |   |                                              | (0.52   | )                                                  |   | 0.07 |   |   | 0.02 |   |   | (0.12 | ) |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Net                loss                                               |   | $                                                 | (1.80   | )                                                  | $      | (0.38 | ) | $ | (0.15 | ) | $ | (0.25 | ) |
|                                                                  |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Weighted                average number of common shares:              |   |                                              |    |                                               |   |   |   |   |   |   |   |   |   |
| Basic                and diluted                                      |   |                                              | 6,428   |                                               |   | 6,380 |   |   | 6,428 |   |   | 6,415 |   |

----

**MEDIALINK      WORLDWIDE INCORPORATED AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                                                                                                                                         |   | **For the nine months ended** |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                                                                                                                                                         |   | **September 30,**                            |    |
|                                                                                                                                                                                         |   | **2008**                                          |    | **2007** |   |
|                                                                                                                                                                                         |   |                                              |    |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                         |   |                                              |    |   |   |
| Net                loss                                                                                                                                                                      |   | $                                                 | (11,568 | ) | $ | (2,440 | ) |
| Adjustments                to reconcile net loss to net cash used in operating                activities:                                                                                    |   |                                              |    |   |   |   |   |
| Depreciation                and amortization                                                                                                                                                 |   |                                              | 855     |   |   | 883 |   |
| Deferred                income taxes                                                                                                                                                         |   |                                              | 386     |   |   | 589 |   |
| Loss                (income) from discontinued operations                                                                                                                                    |   |                                              | 3,326   |   |   | (441 | ) |
| Goodwill                impairment                                                                                                                                                           |   |                                              | 3,429   |   |   | - |   |
| Other                impairment charges                                                                                                                                                      |   |                                              | 605     |   |   | - |   |
| Other                                                                                                                                                                                        |   |                                              | 602     |   |   | 533 |   |
| Changes                in operating assets and liabilities:                                                                                                                                  |   |                                              |    |   |   |   |   |
| Accounts                receivable                                                                                                                                                           |   |                                              | 1,502   |   |   | (237 | ) |
| Prepaid                expenses and other assets                                                                                                                                             |   |                                              | 47      |   |   | 718 |   |
| Prepaid                and refundable taxes                                                                                                                                                  |   |                                              | (565    | ) |   | (4,035 | ) |
| Accounts                payable and accrued expenses                                                                                                                                         |   |                                              | (1,425  | ) |   | (1,294 | ) |
| Other                liabilities                                                                                                                                                             |   |                                              | (349    | ) |   | (313 | ) |
| Net                cash used in operating activities of discontinued                operations                                                                                               |   |                                              | (569    | ) |   | (1,843 | ) |
| Net                cash used in operating activities                                                                                                                                         |   |                                              | (3,724  | ) |   | (7,880 | ) |
|                                                                                                                                                                                         |   |                                              |    |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                         |   |                                              |    |   |   |   |   |
| Purchases                of property and equipment                                                                                                                                           |   |                                              | (225    | ) |   | (793 | ) |
| Proceeds                (expenditures) on sale of businesses                                                                                                                                 |   |                                              | (192    | ) |   | 4,513 |   |
| Net                cash used in investing activities of discontinued                operations                                                                                               |   |                                              | (335    | ) |   | (285 | ) |
| Net                cash provided by (used in) investing activities                                                                                                                           |   |                                              | (752    | ) |   | 3,435 |   |
|                                                                                                                                                                                         |   |                                              |    |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES - Proceeds from the issuance of common                stock in connection with the exercise of stock options and                warrants |   |                                              | -       |   |   | 266 |   |
|                                                                                                                                                                                         |   |                                              |    |   |   |   |   |
| Net                decrease in cash and cash equivalents                                                                                                                                     |   |                                              | (4,476  | ) |   | (4,179 | ) |
| Effect                of exchange rate changes on cash and cash equivalents                                                                                                                  |   |                                              | (15     | ) |   | 25 |   |
| Cash                and cash equivalents at the beginning of period                                                                                                                          |   |                                              | 11,604  |   |   | 16,624 |   |
|                                                                                                                                                                                         |   |                                              |    |   |   |   |   |
| Cash                and cash equivalents at end of period                                                                                                                                    |   | $                                                 | 7,113   |   | $ | 12,470 |   |

----

**MEDIALINK      WORLDWIDE INCORPORATED AND SUBSIDIARIES**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**(In      thousands of dollars, except per-share amounts)**

**1.      Basis of Presentation **

**2.      Subsequent Events**

**3.      Discontinued Operations**

----

**MEDIALINK      WORLDWIDE INCORPORATED AND SUBSIDIARIES**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - Continued**

|                                                        |   | **Nine months ended September 30,** |   | **Three months ended September 30,** |   |
|-------------------------------------------------------------|--------|---------------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                                        |   | **2008**                                                |   | **2007**                                                 |   | **2008** |   | **2007** |   |
|                                                        |   |                                                    |   |                                                     |   |   |   |   |   |
| Revenues                                                    |   | $                                                       | 3,274  |                                                     | $      | 2,355 |   | $ | 804 |   | $ | 879 |   |
|                                                        |   |                                                    |   |                                                     |   |   |   |   |   |   |   |   |   |
| Loss                  from operations before income taxes   |   | $                                                       | (3,750 | )                                                        | $      | (3,063 | ) | $ | (311 | ) | $ | (1,009 | ) |
| Income                  tax benefit                         |   |                                                    | (12    | )                                                        |   | (886 | ) |   | (12 | ) |   | (278 | ) |
| Loss                  from operations                       |   |                                                    | (3,738 | )                                                        |   | (2,177 | ) |   | (299 | ) |   | (731 | ) |
|                                                        |   |                                                    |   |                                                     |   |   |   |   |   |   |   |   |   |
| Gain                  on sale before income taxes           |   |                                                    | 424    |                                                     |   | 4,513 |   |   | 424 |   |   | - |   |
| Income                  tax expense                         |   |                                                    | 12     |                                                     |   | 1,895 |   |   | 12 |   |   | - |   |
| Gain                  on sale of division                   |   |                                                    | 412    |                                                     |   | 2,618 |   |   | 412 |   |   | - |   |
|                                                        |   |                                                    |   |                                                     |   |   |   |   |   |   |   |   |   |
| Income                  (loss) from discontinued operations |   | $                                                       | (3,326 | )                                                        | $      | 441 |   | $ | 113 |   | $ | (731 | ) |

----

**MEDIALINK      WORLDWIDE INCORPORATED AND SUBSIDIARIES**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - Continued**

**4.      Goodwill**

**5.      Other Impairment Charges**

**6.      Earnings (Loss) per Share**

|                                                        |   | **Nine months ended September 30,** |      | **Three months ended September 30,** |   |
|-------------------------------------------------------------|--------|---------------------------------------------------------|-----------|----------------------------------------------------------|--------|
|                                                        |   | **2008**                                                |      | **2007**                                                 |   | **2008** |   | **2007** |   |
|                                                        |   |                                                    |      |                                                     |   |   |   |   |   |
| Shares                related to stock options and warrants |   |                                                    | 329       |                                                     |   | 324,849 |   |   | - |   |   | 181,612 |   |
|                                                        |   |                                                    |      |                                                     |   |   |   |   |   |   |   |   |   |
| Shares                related to convertible debentures     |   |                                                    | 1,074,074 |                                                     |   | 1,091,294 |   |   | 1,074,074 |   |   | 1,074,074 |   |

**7.      Exit Activities**

----

**MEDIALINK      WORLDWIDE INCORPORATED AND SUBSIDIARIES**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -      Continued**

|                                            |   | **Total** |   | **2003 Plan** |   | **2006 Q3****Plan** |   | **2006 Q4****Plan** |   | **2008 Q1****Plan** |   |
|-------------------------------------------------|--------|-----------|--------|--------------------|--------|--------------------------|--------|--------------------------|--------|--------------------------|--------|
|                                            |   |      |   |               |   |                     |   |                     |   |                     |   |
| Balance                  at January 1, 2008     |   | $         | 132    |               | $      | 22                       |   | $                        | 56     |                     | $      | 54 |   |   |   |   |
| Charge                  for exit activities     |   |      | 147    |               |   | -                        |   |                     | -      |                     |   | - |   | $ | 147 |   |
| Facility                  closure cost payments |   |      | (230   | )                  |   | (22                      | )      |                     | (56    | )                        |   | (38 | ) |   | (114 | ) |
| Adjustment                  to liability        |   |      | 23     |               |   | -                        |   |                     | -      |                     |   | 23 |   |   | - |   |
|                                            |   |      |   |               |   |                     |   |                     |   |                     |   |   |   |   |   |   |
| Balance                  at September 30, 2008  |   | $         | 72     |               | $      | -                        |   | $                        | -      |                     | $      | 39 |   | $ | 33 |   |

**8.      Stock Options**

|                                   |   | **Employee Plan** |   | **Directors’ Plan** |   |
|----------------------------------------|--------|------------------------|--------|--------------------------------|--------|
|                                   |   |                   |   |                           |   |
| Expected                term           |   |                   | 3.82   |                           |   | 3.81 |   |
| Expected                volatility     |   |                   | .5818  |                           |   | .5630 |   |
| Expected                dividends      |   |                   | 0      | %                              |   | 0 | % |
| Risk-free                interest rate |   |                   | 3.00   | %                              |   | 3.63 | % |

----

**MEDIALINK      WORLDWIDE INCORPORATED AND SUBSIDIARIES**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - Continued**

|                                                     |   | **Number of****shares** |     | **Weighted****Average****Exercise****Price** |   | **Weighted****Average****Fair****Value** |   | **Aggregate****Intrinsic****Value** |   | **Weighted****Average****Remaining****Contractual****Term** |   |
|----------------------------------------------------------|--------|------------------------------|----------|----------------------------------------------|--------|------------------------------------------|--------|-------------------------------------|--------|-------------------------------------------------------------|--------|
|                                                     |   |                         |     |                                         |   |                                     |   |                                |   |                                                        |   |
| Options                outstanding at January 1, 2008    |   |                         | 762,080  |                                         | $      | 4.83                                     |   |                                |   |                                                        |   |   |   |   |   |   |
| Options                granted                           |   |                         | 21,000   |                                         | $      | 2.86                                     |   | $                                   | 1.32   |                                                        |   |   |   |   |   |   |
| Options                forfeited and expired             |   |                         | (234,990 | )                                            | $      | 5.60                                     |   |                                |   |                                                        |   |   |   |   |   |   |
|                                                     |   |                         |     |                                         |   |                                     |   |                                |   |                                                        |   |   |   |   |   |   |
| Options                outstanding at September 30, 2008 |   |                         | 548,090  |                                         | $      | 4.42                                     |   |                                |   |                                                        | $      | 0 |   |   | 6.58 |   |
|                                                     |   |                         |     |                                         |   |                                     |   |                                |   |                                                        |   |   |   |   |   |   |
| Options                exercisable at September 30, 2008 |   |                         | 327,410  |                                         | $      | 4.43                                     |   |                                |   |                                                        | $      | 0 |   |   | 5.40 |   |

|                                                     |   | **Number of****shares** |    | **Weighted****Average****Exercise****Price** |   | **Weighted****Average****Fair****Value** |   | **Aggregate****Intrinsic****Value** |   | **Weighted****Average****Remaining****Contractual****Term** |   |
|----------------------------------------------------------|--------|------------------------------|---------|----------------------------------------------|--------|------------------------------------------|--------|-------------------------------------|--------|-------------------------------------------------------------|--------|
|                                                     |   |                         |    |                                         |   |                                     |   |                                |   |                                                        |   |
| Options                outstanding at January 1, 2008    |   |                         | 240,600 |                                         | $      | 5.11                                     |   |                                |   |                                                        |   |   |   |   |   |   |
| Options                granted                           |   |                         | 24,000  |                                         | $      | 4.25                                     |   | $                                   | 1.94   |                                                        |   |   |   |   |   |   |
| Options                forfeited and expired             |   |                         | (47,400 | )                                            | $      | 7.25                                     |   |                                |   |                                                        |   |   |   |   |   |   |
|                                                     |   |                         |    |                                         |   |                                     |   |                                |   |                                                        |   |   |   |   |   |   |
| Options                outstanding at September 30, 2008 |   |                         | 217,200 |                                         | $      | 4.55                                     |   |                                |   |                                                        | $      | 0 |   |   | 6.05 |   |
|                                                     |   |                         |    |                                         |   |                                     |   |                                |   |                                                        |   |   |   |   |   |   |
| Options                exercisable at September 30, 2008 |   |                         | 163,200 |                                         | $      | 4.60                                     |   |                                |   |                                                        | $      | 0 |   |   | 5.20 |   |

----

**MEDIALINK      WORLDWIDE INCORPORATED AND SUBSIDIARIES**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - Continued**

**9.      Supplemental Cash Flow Information:**

|                                           |   | **2008** |   | **2007** |   |
|------------------------------------------------|--------|----------|--------|----------|--------|
|                                           |   |     |   |     |   |
| Interest                  paid                 |   | $        | 321    |     | $      | 327 |   |
|                                           |   |     |   |     |   |   |   |
| Income                  taxes paid – net |   | $        | 29     |     | $      | 1,592 |   |

**10.      Operating Segment Information**

|                                                          |   | **Nine months ended September 30,** |   | **Three months ended September 30,** |   |
|---------------------------------------------------------------|--------|---------------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                                          |   | **2008**                                                |   | **2007**                                                 |   | **2008** |   | **2007** |   |
| *Revenues:*                                                   |   |                                                    |   |                                                     |   |   |   |   |   |
| US-based                  media communications services       |   | $                                                       | 14,660 |                                                     | $      | 15,629 |   | $ | 4,984 |   | $ | 4,894 |   |
| UK-based                  media communications services       |   |                                                    | 2,267  |                                                     |   | 6,544 |   |   | 276 |   |   | 2,451 |   |
|                                                          |   |                                                    |   |                                                     |   |   |   |   |   |   |   |   |   |
| Total                                                         |   | $                                                       | 16,927 |                                                     | $      | 22,173 |   | $ | 5,260 |   | $ | 7,345 |   |
|                                                          |   |                                                    |   |                                                     |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                                    |   |                                                     |   |   |   |   |   |   |   |   |   |
| *Operating                  income (loss):*                   |   |                                                    |   |                                                     |   |   |   |   |   |   |   |   |   |
| US-based                  media communications services       |   | $                                                       | 564    |                                                     | $      | 487 |   | $ | 550 |   | $ | 90 |   |
| UK-based                  media communications services       |   |                                                    | (1,001 | )                                                        |   | (243 | ) |   | (450 | ) |   | 60 |   |
|                                                          |   |                                                    |   |                                                     |   |   |   |   |   |   |   |   |   |
| Total                                                         |   |                                                    | (437   | )                                                        |   | 244 |   |   | 100 |   |   | 150 |   |
| Corporate                  and other business activities      |   |                                                    | (3,352 | )                                                        |   | (4,116 | ) |   | (997 | ) |   | (1,304 | ) |
| Goodwill                  impairment                          |   |                                                    | (3,429 | )                                                        |   | - |   |   | - |   |   | - |   |
| Other                  impairment charges                     |   |                                                    | (605   | )                                                        |   | - |   |   | - |   |   | - |   |
| Charges                  for exit activities                  |   |                                                    | (170   | )                                                        |   | - |   |   | (51 | ) |   | - |   |
| Interest                  income (expense) - net              |   |                                                    | (399   | )                                                        |   | 54 |   |   | (151 | ) |   | (7 | ) |
|                                                          |   |                                                    |   |                                                     |   |   |   |   |   |   |   |   |   |
| Loss                  from continuing operations before taxes |   | $                                                       | (8,392 | )                                                        | $      | (3,818 | ) | $ | (1,099 | ) | $ | (1,161 | ) |

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**MEDIALINK      WORLDWIDE INCORPORATED AND SUBSIDIARIES**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - Continued**

|                                                     |   | **September 30, ** |   | **December 31, ** |   |
|----------------------------------------------------------|--------|------------------------------|--------|-----------------------------|--------|
|                                                     |   | **2008**                     |   | **2007**                    |   |
| *Total                  assets:*                         |   |                         |   |                        |   |
| US-based                  media communications services  |   | $                            | 4,011  |                        | $      | 8,234 |   |
| UK-based                  media communications services  |   |                         | 1,137  |                        |   | 3,171 |   |
| Corporate                  and other business activities |   |                         | 8,618  |                        |   | 13,161 |   |
| Discontinued                  operations                 |   |                         | -      |                        |   | 3,579 |   |
|                                                     |   |                         |   |                        |   |   |   |
| Total                                                    |   | $                            | 13,766 |                        | $      | 28,145 |   |

**11.      Common Stock Listing**

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**Item      2. **
***Management’s      Discussion and Analysis of Financial Condition and Results of      Operations***

**Results      of Operations**

*Nine      months ended September 30, 2008, compared to nine months ended September 30,      2007*

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*Three      months ended September 30, 2008, compared to three months ended September 30,      2007*

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**Financial      Condition**

**Critical      Accounting Policies**

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**Item      3. **
***Quantitative      and Qualitative Disclosures About Market Risk***

**Item      4T. **
***Controls      and Procedures***

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**PART      II. OTHER INFORMATION**

**Item      1. **
***Legal      Proceedings***

**Item      1A. **
***Risk      Factors***

*Current      economic conditions *

*Available      capital –*

**Item      6. **
***Exhibits***

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**SIGNATURES**

| MEDIALINK                WORLDWIDE INCORPORATED                              |
|------------------------------------------------------------------------------|
| (Registrant)                                                                 |
|                                                                         |   |
| By:                                                                          | /s/                Laurence Moskowitz |
| Laurence                Moskowitz                                            |
| Chairman                of the Board, Chief Executive Officer, and President |
| (Principal                Executive Officer)                                 |

| By:                                                                                                                                                           | /s/                Kenneth G. Torosian |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|
| Kenneth                G. Torosian                                                                                                                            |
| Chief                Financial Officer, Treasurer, and Secretary (Principal Financial                Officer                and Principal Accounting Officer) |

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**EXHIBIT      INDEX**

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.1              |   | Asset                Purchase Agreement dated as of September 29, 2006, between Medialink                Worldwide Incorporated and PR Newswire Association, LLC (Incorporated                by                reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K                filed on October 5, 2006).                                                                                                                                                                                                                                                            |
| 2.2              |   | Securities                Purchase Agreement dated as of August 29, 2008, entered into by and                among                Philips Electronics North America Corporation, Koninklijke Philips                Electronics N.V., and Medialink Worldwide Incorporated (Incorporated                by                reference to Exhibit No. 2.2 of Registrant’s Current Report on Form 8-K                filed on September 4, 2008).                                                                                                                                                |
| 2.3              |   | Agreement                dated as of October 1, 2008, among Medialink UK Limited, World Television                Group plc, and Medialink Worldwide Incorporated (Incorporated by                reference                to Exhibit No. 2.2 of Registrant’s Current Report on Form 8-K filed on                October 7, 2008).                                                                                                                                                                                                                                                           |
| 3.1              |   | Amended                and Restated Certificate of Incorporation of Medialink Worldwide                Incorporated (Incorporated by reference to Exhibit No. 2.5 of Registrant’s                Registration Statement on Form 8-A filed on January 16, 1997 (File                No.                000-21989)).                                                                                                                                                                                                                                                                           |
| 3.2              |   | Amended                and Restated By-Laws of Medialink Worldwide Incorporated dated November                8,                2007 (Incorporated by reference to Exhibit No. 3.2 of Registrant’s Current                Report on Form 8-K filed on November 13, 2007).                                                                                                                                                                                                                                                                                                                    |
| 4.1              |   | Preferred                Stock Rights Agreement, dated as of August 16, 2001, between Medialink                Worldwide Incorporated and Mellon Investor Services, LLC, including                the                Certificate of Designation, the form of Rights Certificate and the                Summary                of Rights attached thereto as Exhibits A, B, and C, respectively                (Incorporated by reference to Exhibit No. 4.1 of Registrant’s Registration                Statement on Form 8-A filed on August 16, 2001 (File No.                000-21989)). |
| 4.2              |   | Form                of Variable Rate Convertible Debenture due November 9, 2009 (Incorporated                by reference to Exhibit No. 4.2 of Registrant’s Current Report on Form 8-K                filed on November 9, 2004).                                                                                                                                                                                                                                                                                                                                                           |
| 4.3              |   | Form                of Common Stock Purchase Warrant (Incorporated by reference to Exhibit                No.                4.1 of Registrant’s Current Report on Form 8-K filed on November 9,                2004).                                                                                                                                                                                                                                                                                                                                                                       |
| 4.4              |   | Form                of Registration Rights Agreement, dated as of November 8, 2004                (Incorporated by reference to Exhibit No. 4.3 of Registrant’s Current                Report on Form 8-K filed on November 9, 2004).                                                                                                                                                                                                                                                                                                                                                        |
| 4.5              |   | Form                of Amendment and Waiver Agreement dated as of October 6, 2008 (Incorporated                by reference to Exhibit No. 4.5 of Registrant’s Current Report on Form 8-K                filed on October 10, 2008).                                                                                                                                                                                                                                                                                                                                                         |
| 10.1             |   | Amended                and Restated Employment Agreement, dated as of December 31, 2005,                by and                between Medialink Worldwide Incorporated and Laurence Moskowitz                (Incorporated by reference to Exhibit No. 10.1 of the Registrant’s Annual                Report on Form 10-K for the fiscal year ended December 31,                2005).                                                                                                                                                                                                       |
| 10.2             |   | Amended                and Restated Employment Agreement, dated as of August 28, 2001, by                and                between Medialink Worldwide Incorporated and J. Graeme McWhirter                (Incorporated by reference to Exhibit No. 10.2 of Registrant’s Annual                Report on Form 10-K for the fiscal year ended December 31,                2001).                                                                                                                                                                                                            |
| 10.3             |   | Separation                Agreement and General Release, dated as of December 30, 2005, by                and                between Medialink Worldwide Incorporated and J. Graeme McWhirter                (Incorporated by reference to Exhibit No. 10.3 of the Registrant’s Annual                Report on Form 10-K for the fiscal year ended December 31,                2005).                                                                                                                                                                                                       |
| 10.4             |   | Asset                Purchase Agreement, dated December 31, 2004, by and between Medialink                Worldwide Incorporated and Bacon’s Information Inc. (Incorporated by                reference to Exhibit No. 10.1 of the Registrant’s Current Report on Form                8-K/A filed on March 14, 2005).                                                                                                                                                                                                                                                                  |
| 10.5             |   | Agreement                for the Sale and Purchase of Certain Assets of Medialink UK Limited                forming part of the Delahaye Business, dated December 31, 2004, by                and                between Medialink UK Limited and Romeike Limited (Incorporated by                reference to Exhibit No. 10.2 of the Registrant’s Current Report on Form                8-K/A filed on March 14, 2005).                                                                                                                                                                    |
| 10.7             |   | Medialink                Worldwide Incorporated 401(k) Employee Savings Plan (Incorporated                by                reference to Exhibit No. 10.7 of the Registrant’s Quarterly Report on Form                10-Q for the quarterly period ended September 30,                2006).                                                                                                                                                                                                                                                                                                |
| 10.8             |   | Medialink                Worldwide Incorporated Amended and Restated Stock Option Plan                (Incorporated by reference to Exhibit No. 10.8 of the Registrant’s Annual                Report on Form 10-K for the fiscal year ended December 31,                2006).                                                                                                                                                                                                                                                                                                              |
| 10.9             |   | Medialink                Worldwide Incorporated Amended and Restated 1996 Directors Stock                Option                Plan (Incorporated by reference to Exhibit No. 10.9 of the Registrant’s                Quarterly Report on Form 10-Q for the quarterly period ended March                31,                2006).                                                                                                                                                                                                                                                            |
| 10.12            |   | Amended                and Restated Employment Agreement, dated as of November 12, 2008,                by and                between Medialink Worldwide Incorporated and Kenneth G.                Torosian.                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.13            |   | Employment                Agreement, dated as of September 9, 2005, by and between Medialink                Worldwide Incorporated and Lawrence A. Thomas (Incorporated by reference                to Exhibit No. 10.13 of Registrant’s Quarterly Report on Form 10-Q for the                quarterly period ended September 30,                2005).                                                                                                                                                                                                                                     |

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| 10.14(a) |   | Technology                License Agreement dated as of April 8, 2002, by and between Koninklijke                Philips Electronics, N.V., and TTX Limited (Incorporated by reference                to                Exhibit No. 10.14(a) of Registrant’s Annual Report on Form 10-K for the                fiscal year ended December 31, 2007).                                                                                             |
|----------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.14(b) |   | Joinder                and First Amendment to the Technology License Agreement dated as                of                January 1, 2003, by and among Koninklijke Philips Electronics, N.V.,                TTX                Limited, and TTX (US) LLC (Incorporated by reference to Exhibit No.                10.14(b) of Registrant’s Annual Report on Form 10-K for the fiscal year                ended December 31, 2007).              |
| 10.15    |   | Securities                Purchase Agreement dated as of November 8, 2004 among Medialink Worldwide                Incorporated, Iroquois Capital LP, Portside Growth and Opportunity                Fund,                Rockmore Investment Master Fund Ltd., and Smithfield Fiduciary LLC                (Incorporated by reference to Exhibit No. 10.1 of Registrant’s Current                Report on Form 8-K filed on November 9, 2004). |
| 10.16    |   | Security                Agreement among Medialink Worldwide Incorporated, Iroquois Master                Fund,                Ltd., Portside Growth and Opportunity Fund, Rockmore Investment Master                Fund Ltd., and Smithfield Fiduciary LLC (Incorporated by reference                to                Exhibit No. 10.16 of Registrant’s Current Report on Form 8-K filed on                October 10, 2008).                  |
| 31.1     |   | Certification                of the principal executive officer pursuant to Rules 13a-14(a) and                15d-14(a) of the Securities Exchange Act of 1934, as                amended.                                                                                                                                                                                                                                                            |
| 31.2     |   | Certification                of the principal financial officer pursuant to Rules 13a-14(a) and                15d-14(a) of the Securities Exchange Act of 1934, as                amended.                                                                                                                                                                                                                                                            |
| 32       |   | Certification                of the principal executive officer and principal financial officer                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                 |

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