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|   |  NETWORK      CN INC.                          |   |
|--------|-----------------------------------------------------|--------|
|   | (Name      of small business issuer in its charter) |   |

|   Delaware                                                |   |   90-0370486                         |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification No.) |

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| ITEM      6. | MANAGEMENT'S      DISCUSSION AND ANALYSIS OR PLAN OFOPERATION |
|--------------|---------------------------------------------------------------|

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| Consolidated Statements of      Operations     |   | Amortization of Deferred Charges       and Debt Discounts |       |   | Net Loss                   |   |
|------------------------------------------------|--------|-----------------------------------------------------------|------------|--------|----------------------------|--------|
|                                           |   | As      Previously  Reported                              |       |   | As      Restated           |   |   | As      Previously  Reported |   |   | As      Restated |   |
| For      the year ended December 31, 2007      |   | $                                                         | 4,866,351  |   |                       | $      | 206,391 |   |   | $ | (19,306,579 | ) |   | $ | (14,646,619 | ) |
| For      the three months ended March 31, 2008 |   |                                                      | 11,790,530 |   |                       |   | 1,348,284 |   |   |   | (18,813,760 | ) |   |   | (8,371,514 | ) |
| For      the three months ended June 30, 2008  |   | $                                                         | 541,573    |   |                       | $      | 1,350,704 |   |   | $ | (8,078,990 | ) |   | $ | (8,888,121 | ) |
|                                           |   |                                                      |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated Balance      Sheets               |   | 3% Convertible Promissory Notes,       Net                |       |   | Stockholders’ Equity |   |
|                                           |   | As      Previously  Reported                              |       |   | As      Restated           |   |   | As      Previously  Reported |   |   | As      Restated |   |
| As      of December 31, 2007                   |   | $                                                         | 12,545,456 |   |                       | $      | 7,885,496 |   |   | $ | 5,978,976 |   |   | $ | 10,638,936 |   |
| As      of March 31, 2008                      |   |                                                      | 42,045,203 |   |                       |   | 26,942,997 |   |   |   | 9,127,580 |   |   |   | 24,229,786 |   |
| As      of June 30, 2008                       |   | $                                                         | 42,471,397 |   |                       | $      | 28,178,322 |   |   | $ | 2,912,555 |   |   | $ | 17,205,630 |   |

| Net      Loss Per Common Share – Basic and Diluted |   | As      Previously  Reported |   |   | As      Restated |   |
|----------------------------------------------------------|--------|------------------------------|--------|--------|------------------|--------|
| For      the year ended December 31, 2007                |   | $                            | (0.28  | )      |             | $      | (0.21 | ) |
| For      the three months ended March 31, 2008           |   |                         | (0.26  | )      |             |   | (0.12 | ) |
| For      the three months ended June 30, 2008            |   | $                            | (0.11  | )      |             | $      | (0.12 | ) |

----

|                                         |   | 2007  Restated(1) |        |   | 2006   |   |
|----------------------------------------------|--------|-------------------|-------------|--------|--------|--------|
| Revenues                                     |   | $                 | 27,582,907  |   |   | $      | 4,442,602 |   |
| Costs      and Expenses                      |   |              | 41,990,807  |   |   |   | 9,515,590 |   |
| Loss      from Operations                    |   |              | (14,407,900 | )      |   |   | (5,072,988 | ) |
| Net      Loss from Continuing Operations     |   |              | (14,646,619 | )      |   |   | (4,995,002 | ) |
| Net      Income from Discontinued Operations |   |              | -           |   |   |   | 526,296 |   |
| Net      loss                                |   | $                 | (14,646,619 | )      |   | $      | (4,468,706 | ) |

| (1) | See      Note 2 – Restatement and Reclassification and Note 19 – Restated      Financial Information as included in Part II - Item 7 “Financial      Statements and SupplementaryData” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Fiscal      years ending December 31, |   | (In      millions) |   |
|---------------------------------------|--------|--------------------|--------|
| 2008                                  |   | $                  | 16.5   |   |
| 2009                                  |   |               | 13.9   |   |
| 2010                                  |   |               | 4.0    |   |
| 2011                                  |   |               | 3.9    |   |
| 2012                                  |   |               | 3.6    |   |
| Thereafter                            |   |               | 23.7   |   |
| Total      commitments                |   | $                  | 65.6   |   |

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| 1. | Issuance      of Common Stock |
|----|-------------------------------|

| 2. | Issuance      of Convertible Promissory Notes |
|----|-----------------------------------------------|

| a)  | 12%      Convertible Promissory Note andWarrants |
|----------|--------------------------------------------------|

| b) | 3%      Convertible Promissory Notes andWarrants |
|----|--------------------------------------------------|

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----

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| 1. | Tianma,      in consultation with sub-agents, organizes a tour or travel package,      including making reservations for blocks of tickets, rooms, etc. with      third-party service providers. Tianma may be required to make deposits,      pay all or part of the ultimate fees charged by such service providers or      make legally binding commitments to pay such fees. For air-tickets, Tianma      normally books a block of air tickets with airlines in advance and pays      the full amount of the tickets to reserve seats before any tours are      formed. The air tickets are usually valid for a certain period of time. If      the pre-packaged tours do not materialize and are eventually not formed,      Tianma will resell the air tickets to other travel agents or customers.      For hotels, meals and transportation, Tianma usually pays an upfront      deposit of 50-60% of the total cost. The remaining balance is then settled      after completion of the tours. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Tianma,      through its sub-agents, advertises tour and travel packages at prices set      by Tianma and sub-agents. |
|----|-----------------------------------------------------------------------------------------------------------------------|

| 3. | Customers      approach Tianma or its appointed sub-agents to book an advertised packaged      tour. |
|----|------------------------------------------------------------------------------------------------------|

| 4. | The      customers pay a deposit to Tianma directly or through its appointed      sub-agents. |
|----|-----------------------------------------------------------------------------------------------|

| 5. | When      the minimum required number of customers (which number is different for      each tour based on the elements and costs of the tour) for a particular      tour is reached, Tianma will contact the customers for tour confirmation      and request full payment. All payments received by the appointed      sub-agents are paid to Tianma prior to the commencement of the      tours. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Tianma      will then make or finalize corresponding bookings with outside service      providers such as airlines, bus operators, hotels, restaurants, etc. and      pay any unpaid fees or deposits to such  providers. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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PP

| PAGES  | F-1      – F-2  | REPORT OF INDEPENDENT REGISTERED      PUBLIC ACCOUNTING FIRMS                                                                              |
|--------|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
|   |                  |                                                                                                                                       |
| PAGE   | F-3                   | CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31,      2007 (RESTATED)                                                                         |
|   |                  |                                                                                                                                       |
| PAGE   | F-4                   | CONSOLIDATED STATEMENTS OF      OPERATIONS AND COMPREHENSIVE LOSS FOR THE YEARS ENDED DECEMBER 31, 2007      (RESTATED) AND      2006 |
|   |                  |                                                                                                                                       |
| PAGE   | F-5                   | CONSOLIDATED STATEMENTS OF      STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2007 (RESTATED) AND 2006                             |
|   |                  |                                                                                                                                       |
| PAGE   | F-6                   | CONSOLIDATED STATEMENTS OF CASH      FLOWS FOR THE YEARS ENDED DECEMBER 31, 2007 (RESTATED) AND 2006                                       |
|   |                  |                                                                                                                                       |
| PAGES  | F-7      – F-26 | NOTES TO CONSOLIDATED FINANCIAL      STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 (RESTATED) AND2006                                   |

----

EP

----

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|   | Jimmy      C.H. Cheung & CoCertified      Public Accountants(A      member of Kreston International) |   | Registered      with the Public Company Accounting      Oversight Board |
|--------|----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|

EP

----

ET

| ASSETS                                                                                           |   |
|--------------------------------------------------------------------------------------------------|--------|
| Current      Assets                                                                              |   | Note |   |   |   |   |
|     Cash                                                                     |   |   |   |   | $ | 2,233,528 |   |
|     Accounts      receivable, net                                            |   |   | 4 |   |   |   | 1,093,142 |   |
|     Prepayments      for advertising operating rights                        |   |   |   |   |   |   | 13,636,178 |   |
|     Prepaid      expenses and other current assets                           |   |   |   |   |   |   | 3,101,699 |   |
|           Total      Current Assets            |   |   |   |   |   |   | 20,064,547 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Equipment,      Net                                                                              |   |   | 5 |   |   |   | 257,403 |   |
| Intangible      Rights, Net                                                                      |   |   | 6 |   |   |   | 6,114,550 |   |
| Deferred      Charges, Net                                                                       |   |   | 7 |   |   |   | 670,843 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                |   |   |   |   |   | $ | 27,107,343 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                  |   |
| Current      Liabilities                                                                         |   |   |   |   |   |   |   |   |
|     Accounts      payable, accrued expenses and other payables               |   |   | 8 |   |   | $ | 3,490,586 |   |
|     Current      liabilities from discontinued operations                    |   |   | 15 |   |   |   | 3,655 |   |
|          12% convertible promissory note, net                                     |   |   | 10 |   |   |   | 4,740,796 |   |
|            Total      Current Liabilities |   |   |   |   |   |   | 8,235,037 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| 3%      Convertible Promissory Notes Due 2011, Net                                               |   |   | 10 |   |   |   | 7,885,496 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES                                                                           |   |   |   |   |   |   | 16,120,533 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                               |   |   | 11 |   |   |   |   |   |
|                                                                                             |   |
| MINORITY      INTERESTS                                                                          |   |   |   |   |   |   | 347,874 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’      EQUITY                                                                  |   |   |   |   |   |   |   |   |
|     Preferred      stock, $0.001 par value, 5,000,000 shares                 |   |   |   |   |   |   |   |   |
|      none      issued and outstanding                                   |   |   |   |   |   |   | - |   |
|     Common      stock, $0.001 par value, 800,000,000 shares                  |   |   |   |   |   |   |   |   |
|      69,151,608      shares issued and outstanding                      |   |   |   |   |   |   | 69,152 |   |
|     Additional      paid-in capital                                          |   |   | 12 |   |   |   | 35,673,586 |   |
|     Accumulated      deficit                                                 |   |   |   |   |   |   | (25,169,099 | ) |
|     Accumulated      other comprehensive income                              |   |   |   |   |   |   | 65,297 |   |
| TOTAL      STOCKHOLDERS’ EQUITY                                                            |   |   |   |   |   |   | 10,638,936 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY                                            |   |   |   |   |   | $ | 27,107,343 |   |

| (1) | See      Note 2 – Restatement and Reclassification and Note 19 – Restated      Financial Information of Consolidated Financial  Statements. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

ET

|                                                                            |   | Note   |   |   | 2007(Restated)(1) |       |        | 2006   |   |
|---------------------------------------------------------------------------------|--------|--------|--------|--------|-------------------|------------|-------------|--------|--------|
| REVENUES                                                                        |   |   |   |   |              |       |        |   |   |
|      Travel services                              |   |   |   |   | $                 | 26,140,355 |        |   | $      | 4,342,124 |   |
|      Advertising      services                         |   |   |   |   |              | 1,442,552  |        |   |   | - |   |
|      Related      parties                              |   |   | 13     |   |              |       | -           |   |   |   | 100,478 |   |
|      Total      Revenues                               |   |   |   |   |              |       | 27,582,907  |   |   |   | 4,442,602 |   |
|                                                                            |   |   |   |   |              |       |        |   |   |   |   |   |
| COSTS      AND EXPENSES                                                         |   |   |   |   |              |       |        |   |   |   |   |   |
|     Cost      of travel services                            |   |   |   |   |              |       | 25,830,401  |   |   |   | 4,231,952 |   |
|     Cost      of advertising services                       |   |   |   |   |              |       | 2,795,188   |   |   |   | - |   |
|     Professional      fees                                  |   |   |   |   |              |       | 5,612,810   |   |   |   | 3,260,103 |   |
|     Payroll                                                 |   |   |   |   |              |       | 4,098,842   |   |   |   | 1,004,731 |   |
|     Non-cash      impairment charges                        |   |   | 6      |   |              |       | 1,332,321   |   |   |   | 214,600 |   |
|     Other      selling, general & administrative        |   |   |   |   |              |       | 2,321,245   |   |   |   | 804,204 |   |
|     Total      Costs and Expenses                           |   |   |   |   |              |       | 41,990,807  |   |   |   | 9,515,590 |   |
|                                                                            |   |   |   |   |              |       |        |   |   |   |   |   |
| LOSS      FROM OPERATIONS                                                       |   |   |   |   |              |       | (14,407,900 | )      |   |   | (5,072,988 | ) |
|                                                                            |   |   |   |   |              |       |        |   |   |   |   |   |
| OTHER      INCOME                                                               |   |   |   |   |              |       |        |   |   |   |   |   |
|     Interest      income                                    |   |   |   |   |              |       | 26,811      |   |   |   | 38,395 |   |
|     Other      income                                       |   |   |   |   |              |       | 9,284       |   |   |   | 23,334 |   |
|     Total      Other Income                                 |   |   |   |   |              |       | 36,095      |   |   |   | 61,729 |   |
|                                                                            |   |   |   |   |              |       |        |   |   |   |   |   |
| INTEREST      EXPENSE                                                           |   |   |   |   |              |       |        |   |   |   |   |   |
|     Amortization      of deferred charges and debt discount |   |   | 10     |   |              |       | 206,391     |   |   |   | - |   |
|     Interest      expense                                   |   |   |   |   |              |       | 122,803     |   |   |   | 1,416 |   |
|     Total      Interest Expense                             |   |   |   |   |              |       | 329,194     |   |   |   | 1,416 |   |
|                                                                            |   |   |   |   |              |       |        |   |   |   |   |   |
| NET      LOSS BEFORE INCOME TAXES AND MINORITY INTERESTS                        |   |   |   |   |              |       | (14,700,999 | )      |   |   | (5,012,675 | ) |
|     Income      taxes                                       |   |   | 17     |   |              |       | (7,668      | )      |   |   | (6,984 | ) |
|     Minority      interests                                 |   |   |   |   |              |       | 62,048      |   |   |   | 24,657 |   |
| NET      LOSS FROM CONTINUING OPERATIONS                                        |   |   |   |   |              |       | (14,646,619 | )      |   |   | (4,995,002 | ) |
|                                                                            |   |   |   |   |              |       |        |   |   |   |   |   |
| DISCONTINUED      OPERATIONS                                                    |   |   |   |   |              |       |        |   |   |   |   |   |
|     Loss      from discontinued operations                  |   |   | 15     |   |              |       | -           |   |   |   | (53,574 | ) |
|     Gain      on disposal of an affiliate                   |   |   | 15     |   |              |       | -           |   |   |   | 579,870 |   |
| NET      INCOME FROMDISCONTINUED      OPERATIONS                                |   |   |   |   |              |       | -           |   |   |   | 526,296 |   |
|                                                                            |   |   |   |   |              |       |        |   |   |   |   |   |
| NET      LOSS                                                                   |   |   |   |   |              |       | (14,646,619 | )      |   |   | (4,468,706 | ) |
|                                                                            |   |   |   |   |              |       |        |   |   |   |   |   |
| OTHER      COMPREHENSIVE INCOME                                                 |   |   |   |   |              |       |        |   |   |   |   |   |
|     Foreign      currency translation gain                  |   |   |   |   |              |       | 61,817      |   |   |   | 3,480 |   |
| COMPREHENSIVE      LOSS                                                         |   |   |   |   |              | $          | (14,584,802 | )      |   | $ | (4,465,226 | ) |
|                                                                            |   |   |   |   |              |       |        |   |   |   |   |   |
| NET      INCOME (LOSS) PER COMMON SHARE – BASIC AND DILUTED               |   |   |   |   |              |       |        |   |   |   |   |   |
| Loss      per common share from continuing operations                           |   |   | 14     |   |              | $          | (0.21       | )      |   | $ | (0.10 | ) |
| Income      per common share from discontinued operations                       |   |   | 14     |   |              |       | -           |   |   |   | 0.01 |   |
| Net      loss per common share – basic and diluted                        |   |   | 14     |   |              | $          | (0.21       | )      |   | $ | (0.09 | ) |
| WEIGHTED      AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED              |   |   | 14     |   |              |       | 68,556,081  |   |   |   | 52,489,465 |   |

| (1) | See      Note 2 – Restatement and Reclassification and Note 19 – Restated      Financial Information of Consolidated Financial  Statements. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ET

|                                                                                                             |   | Common      Stock |       |   |   |   |   |                                 |   |   |                                  |   |   |               |       |   |                                            |   |
|------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|--------|--------|--------|--------------------------------------|--------|--------|---------------------------------------|--------|--------|--------------------|------------|--------|-------------------------------------------------|--------|
|                                                                                                             |   | Share             |       |   | Amount |   |   | Additional      Paid-In      Capital |   |   | DeferredStock-Based      Compensation |   |   | AccumulatedDeficit |       |   | Accumulated OtherComprehensive      Income |   |   | Total |   |
|                                                                                                             |   |              |       |   |   |   |   |                                 |   |   |                                  |   |   |               |       |   |                                            |   |   |   |   |
| Balance      as of December 31, 2005                                                                             |   |              | 21,846,885 |   |   | $      | 21,847 |                                 |   | $      | 8,087,078                             |   |   | $                  | (66,355    | )      |                                            | $      | (6,053,774 | ) |   | $ | - |   |   | $ | 1,988,796 |   |
| Issuance      of stock for private placement                                                                     |   |              | 42,086,333 |   |   |   | 42,086 |                                 |   |   | 9,615,959                             |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 9,658,045 |   |
| Issuance      of stock for acquisition of a subsidiary                                                           |   |              | 362,500    |   |   |   | 363    |                                 |   |   | 102,587                               |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 102,950 |   |
| Issuance      of stock for service rendered by consultants and legal    counsel                                  |   |              | 3,005,000  |   |   |   | 3,005  |                                 |   |   | 4,873,995                             |   |   |               | (2,845,000 | )      |                                            |   | - |   |   |   | - |   |   |   | 2,032,000 |   |
| Contribution      from a stockholder                                                                             |   |              | -          |   |   |   | -      |                                 |   |   | 16,781                                |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 16,781 |   |
| Stock-based      compensation for stock options/warrants issued to consultant and legal      counsel for service |   |              | -          |   |   |   | -      |                                 |   |   | 25,551                                |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 25,551 |   |
| Amortization      of deferred stock-based compensation                                                           |   |              | -          |   |   |   | -      |                                 |   |   | -                                     |   |   |               | 66,355     |   |                                            |   | - |   |   |   | - |   |   |   | 66,355 |   |
| Translation      adjustment                                                                                      |   |              | -          |   |   |   | -      |                                 |   |   | -                                     |   |   |               | -          |   |                                            |   | - |   |   |   | 3,480 |   |   |   | 3,480 |   |
| Net      loss for the year                                                                                       |   |              | -          |   |   |   | -      |                                 |   |   | -                                     |   |   |               | -          |   |                                            |   | (4,468,706 | ) |   |   | - |   |   |   | (4,468,706 | ) |
| Balance      as ofDecember      31, 2006                                                                         |   |              | 67,300,718 |   |   | $      | 67,301 |                                 |   | $      | 22,721,951                            |   |   | $                  | (2,845,000 | )      |                                            | $      | (10,522,480 | ) |   | $ | 3,480 |   |   | $ | 9,425,252 |   |
| Issuance      of stock for private placement                                                                     |   |              | 500,000    |   |   |   | 500    |                                 |   |   | 1,499,500                             |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 1,500,000 |   |
| Issuance      of stock for acquisition of a subsidiary                                                           |   |              | 300,000    |   |   |   | 300    |                                 |   |   | 843,300                               |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 843,600 |   |
| Issuance      of stock for service rendered by directors and officers                                            |   |              | 607,260    |   |   |   | 607    |                                 |   |   | 166,227                               |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 166,834 |   |
| Issuance      of stock for service rendered by consultants                                                       |   |              | 218,630    |   |   |   | 219    |                                 |   |   | 441,785                               |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 442,004 |   |
| Exercise      of warrants by a consultant                                                                        |   |              | 225,000    |   |   |   | 225    |                                 |   |   | 22,275                                |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 22,500 |   |
| Stock-based      compensation for stock granted to directors, officers and employees for      service            |   |              | -          |   |   |   | -      |                                 |   |   | 2,378,380                             |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 2,378,380 |   |
| Stock-based      compensation for stock option/warrants issued to consultants for      service                   |   |              |       |   |   |   |   |                                 |   |   | 27,921                                |   |   |               |       |   |                                            |   |   |   |   |   |   |   |   |   | 27,921 |   |
| Stock-based      compensation for stock warrants issued to a placement agent for      service                    |   |              | -          |   |   |   | -      |                                 |   |   | 21,305                                |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 21,305 |   |
| Amortization      of deferred stock-based compensation                                                           |   |              | -          |   |   |   | -      |                                 |   |   | -                                     |   |   |               | 2,845,000  |   |                                            |   | - |   |   |   | - |   |   |   | 2,845,000 |   |
| Value      of warrants associated with convertible notes                                                         |   |              | -          |   |   |   | -      |                                 |   |   | 2,823,670                             |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 2,823,670 |   |
| Value      of beneficial conversion feature of convertible notes to common      stock                            |   |              | -          |   |   |   | -      |                                 |   |   | 4,727,272                             |   |   |               | -          |   |                                            |   | - |   |   |   | - |   |   |   | 4,727,272 |   |
| Translation      adjustment                                                                                      |   |              | -          |   |   |   | -      |                                 |   |   | -                                     |   |   |               | -          |   |                                            |   | - |   |   |   | 61,817 |   |   |   | 61,817 |   |
| Net      loss for the year (Restated) (1)                                                                        |   |              | -          |   |   |   | -      |                                 |   |   | -                                     |   |   |               | -          |   |                                            |   | (14,646,619 | ) |   |   | - |   |   |   | (14,646,619 | ) |
| Balance      as ofDecember      31, 2007                                                                         |   |              | 69,151,608 |   |   | $      | 69,152 |                                 |   | $      | 35,673,586                            |   |   | $                  | -          |   |                                            | $      | (25,169,099 | ) |   | $ | 65,297 |   |   | $ | 10,638,936 |   |

| (1) | See      Note 2 – Restatement and Reclassification and Note 19 – Restated      Financial Information of Consolidated Financial  Statements. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ET

|                                                                                     |   | 2007(Restated)(1) |        |   | 2006   |   |
|------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|--------|--------|
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                               |   |              |        |   |   |   |
| Net      loss                                                                            |   | $                 | (14,646,619 | )      |   | $      | (4,468,707 | ) |
| Add:      Loss from discontinued operations                                              |   |              | -           |   |   |   | 53,574 |   |
|                                                                                     |   |              | (14,646,619 | )      |   |   | (4,415,133 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities:    |   |              |        |   |   |   |   |   |
| Depreciation      and amortization:                                                      |   |              |        |   |   |   |   |   |
| Equipment      and intangible rights                                                     |   |              | 528,635     |   |   |   | 289,148 |   |
| Deferred      charges and debt discount                                                  |   |              | 206,391     |   |   |   | - |   |
| Stock-based      compensation for service                                                |   |              | 5,755,693   |   |   |   | 2,123,906 |   |
| Allowance      for doubtful debts                                                        |   |              | 10,716      |   |   |   | 15,542 |   |
|         Non-cash      impairment charges         |   |              | 1,332,321   |   |   |   | 214,600 |   |
|         Loss      on disposal of equipment       |   |              | 5,350       |   |   |   | - |   |
| Gain      on disposal of subsidiaries / affiliate                                        |   |              | (10,096     | )      |   |   | (579,870 | ) |
| Minority      interests                                                                  |   |              | (62,048     | )      |   |   | (8,081 | ) |
| Changes      in operating assets and liabilities, net of effects from      acquisitions: |   |              |        |   |   |   |   |   |
| Accounts      receivable                                                                 |   |              | (614,589    | )      |   |   | (134,659 | ) |
| Prepayments      for advertising operating rights                                        |   |              | (13,636,178 | )      |   |   | - |   |
| Prepaid      expenses and other current assets                                           |   |              | (2,375,340  | )      |   |   | (7,306 | ) |
| Accounts      payable, accrued expenses and other payables                               |   |              | 2,185,548   |   |   |   | 276,626 |   |
| Net      cash used in continuing operations                                              |   |              | (21,320,216 | )      |   |   | (2,225,227 | ) |
| Net      cash used in discontinued operations                                            |   |              | -           |   |   |   | (93,139 | ) |
| Net      cash used in operating activities                                               |   |              | (21,320,216 | )      |   |   | (2,318,366 | ) |
|                                                                                     |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                               |   |              |        |   |   |   |   |   |
| Proceeds      from disposal of an affiliate                                              |   |              | -           |   |   |   | 3,000,000 |   |
| Proceeds      from disposal of subsidiaries                                              |   |              | 551         |   |   |   | - |   |
| Proceeds      from disposal of equipment                                                 |   |              | 2,668       |   |   |   | - |   |
| Purchase      of equipment                                                               |   |              | (207,371    | )      |   |   | (90,888 | ) |
| Purchase      of intangible right                                                        |   |              | -           |   |   |   | (6,000,000 | ) |
| Net      cash used in acquisition of subsidiaries, net                                   |   |              | (319,167    | )      |   |   | (807,959 | ) |
|        Net      cash used in investing activities     |   |              | (523,319    | )      |   |   | (3,898,847 | ) |
|                                                                                     |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                               |   |              |        |   |   |   |   |   |
| Decrease      in amounts due to related parties                                          |   |              | -           |   |   |   | (639,130 | ) |
| Proceeds      from issuance of common stock in private placement, net of      costs      |   |              | 1,500,000   |   |   |   | 9,658,045 |   |
| Proceeds      from exercise of warrants issued for service                               |   |              | 22,500      |   |   |   | - |   |
| Proceeds      from issuance of 12% convertible promissory note, net of    costs          |   |              | 4,900,000   |   |   |   | - |   |
| Proceeds      from issuance of 3% convertible promissory notes, net of    costs          |   |              | 14,700,000  |   |   |   | - |   |
| Repayment      of capital lease obligation                                               |   |              | (3,120      | )      |   |   | (9,359 | ) |
| Contribution      from a stockholder                                                     |   |              | -           |   |   |   | 16,781 |   |
|        Net      cash provided by financing activities |   |              | 21,119,380  |   |   |   | 9,026,337 |   |
|                                                                                     |   |
| EFFECT      OF EXCHANGE RATE CHANGES ON CASH                                             |   |              | 59,160      |   |   |   | 3,480 |   |
|                                                                                     |   |              |        |   |   |   |   |   |
| NET      (DECREASE) INCREASE IN CASH                                                     |   |              | (664,995    | )      |   |   | 2,812,604 |   |
|                                                                                     |   |
| CASH,      BEGINNING OF PERIOD                                                           |   |              | 2,898,523   |   |   |   | 85,919 |   |
|                                                                                     |   |
| CASH,      END OF PERIOD                                                                 |   | $                 | 2,233,528   |   |   | $      | 2,898,523 |   |
|                                                                                     |   |              |        |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION:                                   |   |              |        |   |   |   |   |   |
| Cash      paid during the year for:                                                      |   |              |        |   |   |   |   |   |
| Income      taxes                                                                        |   | $                 | -           |   |   | $      | 19,450 |   |
| Interest      paid for 12% convertible promissory note                                   |   | $                 | 78,934      |   |   | $      | - |   |
| Interest      paid for capital lease arrangement                                         |   | $                 | 421         |   |   | $      | 5,423 |   |
|                                                                                     |   |              |        |   |   |   |   |   |
| Non-cash      activities:                                                                |   |              |        |   |   |   |   |   |
| Issuance      of common stock for acquisition of a subsidiary (Note 9)                   |   | $                 | 843,600     |   |   | $      | 102,950 |   |

| (1) | See      Note 2 – Restatement and Reclassification and Note 19 – Restated      Financial Information of Consolidated Financial  Statements. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ET

| NOTE      1 | ORGANIZATION      AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|        | (a)      ORGANIZATION AND PRINCIPAL ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|        | Network      CN Inc., originally incorporated on September 10, 1993, is a Delaware      company with headquarters in the Hong Kong Special Administrative Region,      the People’s Republic of China (“the PRC” or “China”). Network CN Inc. and      its subsidiaries (collectively “NCN” or the “Company”) were operated by      different management teams in the past, under different operating names,      pursuing a variety of business ventures. The most recent former name was      Teda Travel Group, Inc. On August 1, 2006, the Company was renamed from      “Teda Travel Group, Inc.” to “Network CN Inc.” in order to better      reflect the Company’s vision under the new and expanded management      team. The Company is mainly engaged in building a nationwide information      and entertainment network in China through its businesses in Travel      Network and Media Network. To      take advantage of China's booming travel market, in June 2006, the      Company, through its subsidiary NCN Management Services Limited ("NCN      Management Services"), acquired 55% of the equity interests of Tianma      International Travel Service Co., Ltd ("Tianma"), a travel agency      headquartered in Guangdong Province in the PRC. In order to comply with      certain PRC laws relating to foreign entities' ownership of travel      agencies in the PRC, the former owner of Tianma holds 55% of the equity      interests in Tianma in trust for the benefit of NCN Management      Services. The laws of the PRC govern the agreements by which the Company      acquired Tianma and by which the former owner of Tianma holds such equity      interest in trust. Through the contractual arrangements, NCN Management      Services is deemed the primary beneficiary of Tianma and Tianma being      deemed a subsidiary of NCN Management Services under the requirements of      FASB Interpretation No. 46 (Revised), "Consolidation of Variable Interest      Entities" ("FIN 46(R)"). PRC      regulations currently limit foreign ownership of companies that provide      advertising services. In order to help the Company to grow its advertising      business in China, on January 31, 2007, pursuant to a Purchase and Sales      Agreement and Trust Agreements, Crown Winner International Limited ("Crown      Winner), a wholly-owned subsidiary of the Company, is deemed the primary      beneficiary of Shanghai Quo Advertising Company Limited ("Quo      Advertising") resulting in Quo Advertising being deemed a subsidiary of      Crown Winner under the requirements of FIN 46(R). On September 1, 2007,      Quo Advertising acquired 51% of the equity interests of Xuancaiyi      (Beijing) Advertising Company Limited ("Xuancaiyi"), an advertising agency      in Beijing, China. Accordingly,      the effect of the above contractual arrangements is to give the Company      effective control of Tianma and Quo Advertising and to allow the Company      to consolidate the results of Tianma, Quo Advertising and Xuancaiyi      pursuant to FIN 46(R). Details      of the Company’s principal subsidiaries as of December 31, 2007 are      described in Note 3 – Subsidiaries. |

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|   | (b)      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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|   |  (A)      Basis of Presentation The      consolidated financial statements of the Company have been prepared in      accordance with accounting principles generally accepted in the United      States of America. (B)      Principles of Consolidation The      consolidated financial statements include the financial statements of      Network CN Inc., its subsidiaries and its variable interest entities      (VIEs). In May 2006, the management of the Company decided to discontinue      the business and wind down the operations of Teda (Beijing) Hotels      Management Limited, a wholly owned subsidiary which has been accounted for      as discontinued operations since the fourth quarter of 2006 and the wind      down process was yet to be completed as of December 31, 2007. All      significant intercompany transactions and balances have been eliminated      upon consolidation. In      accordance with Interpretation No. 46R, Consolidation of Variable Interest      Entities (“FIN 46R”), VIEs are generally entities that lack sufficient      equity to finance their activities without additional financial support      from other parties or whose equity holders lack adequate decision making      ability. All VIEs with which the Company is involved must be evaluated to      determine the primary beneficiary of the risks and rewards of the VIE. The      primary beneficiary is required to consolidate the VIEs for financial      reporting purposes. The Company has concluded that Tianma and Quo      Advertising are VIEs and that the Company is the primary beneficiary.      Under the requirements of FIN 46R the Company consolidated the financial      statements of Tianma and Quo Advertising as VIEs of the      Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | (C)      Use of Estimates In      preparing financial statements in conformity with generally accepted      accounting principles, management is required to make estimates and      assumptions that affect the reported amounts of assets and liabilities and      the disclosure of contingent assets and liabilities as of the date of the      financial statements and the reported amounts of revenues and      expenses during the reported period. Actual results could differ from      those estimates. Differences from those estimates are reported in the      period they become known and are disclosed to the extent they are material      to the financial statements taken as a whole. (D)      Cash and Cash Equivalents Cash      includes cash on hand, cash accounts, and interest bearing savings      accounts placed with banks and financial institutions. For purposes of the      cash flow statements, the Company considers all highly liquid investments      with original maturities of three months or less at the time of purchase      to be cash equivalents. As of December 31, 2007 and 2006, the Company had      no cash equivalents. (E)      Prepayments for advertising operating rights Prepayments      for advertising operating rights are measured at cost less accumulated      amortization and impairment losses. Cost includes prepaid expenses      directly attributable to the acquisition of advertising operating rights.      Such prepaid expenses are in general charged to the consolidated      statements of operations on a straight-line basis over the operating      period. The operating periods of the existing advertising operating rights      range from 16 months to 20 years. All the costs expected to be      amortized after 12 months of the balance sheet date are classified as      non-current assets. An      impairment loss is recognized when the carrying amount of the prepayments      for advertising operating rights exceeds the sum of the undiscounted cash      flows expected to be generated from the advertising operating right’s use      and eventual disposition. An impairment loss is measured as the amount by      which the carrying amount exceeds the fair value of the asset calculated      using a discounted cash flow analysis.  |

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|   | (F)      Equipment, Net Equipment      is stated at cost, less accumulated depreciation. Depreciation is provided      using the straight-line method over the estimated useful life of the      assets, which is from three to five years. When equipment is retired or      otherwise disposed of, the related cost and accumulated depreciation are      removed from the respective accounts, and any gain or loss is reflected in      the statement of operations. Repairs and maintenance costs on equipment      are expensed as incurred. (G)      Intangible Rights, Net Intangible      rights are stated at cost, less accumulated amortization and provision for      impairment loss. Intangible rights that have indefinite useful lives are      not amortized. Other intangible rights with finite useful lives are      amortized on straight-line basis over their estimated useful lives of 16      months to 20 years. The amortization methods and estimated useful lives of      intangible rights are reviewed regularly. (H)      Impairment of Long-Lived Assets Long-lived      assets, including intangible rights with definite lives, are reviewed for      impairment whenever events or changes in circumstance indicate that the      carrying amount of the assets may not be recoverable. An intangible right      that is not subject to amortization is reviewed for impairment annually or      more frequently whenever events or changes in circumstances indicate that      the carrying amount of the asset may not be recoverable. An impairment      loss is recognized when the carrying amount of a long-lived asset and      intangible right exceeds the sum of the undiscounted cash flows expected      to be generated from the asset’s use and eventual disposition. An      impairment loss is measured as the amount by which the carrying amount      exceeds the fair value of the asset calculated using a discounted cash      flow analysis. (I)      Deferred Charges, Net Deferred      charges are fees and expenses directly related to an issuance of      convertible promissory notes, including placement agents’ fee. Deferred      charges are capitalized and amortized over the life of the convertible      promissory notes using the effective interest method. Amortization of      deferred charges is included in interest expense on the consolidated      statements of operations while the unamortized balance is included in      deferred charges on the consolidated balance  sheet. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (J)      Convertible Promissory Notes and Warrants In      2007, the Company issued 12% convertible promissory note and warrants and      3% convertible promissory notes and warrants. As of December 31, 2007, the      warrants and embedded conversion feature were classified as equity under      EITF 00-19,“Accounting for Derivative Financial Instruments Indexed to,      and Potentially Settled in, a Company’s Own Stock” and met the other      criteria in paragraph 11(a) of SFAS 133, “Accounting for Derivative      Instruments and Hedging Activities”. Such classification will be      reassessed at each balance sheet date. The Company allocated the proceeds      of the convertible promissory notes between convertible promissory notes      and the financial instruments related to warrants associated with      convertible promissory notes based on their relative fair values at      commitment date. The fair value of the financial instruments related to      warrants associated with convertible promissory notes was determined      utilizing the Black-Scholes option pricing model and the respective      allocated proceeds to warrants is recorded in additional paid-in capital.      The embedded beneficial conversion feature associated with convertible      promissory notes was recognized and measured by allocating a portion of      the proceeds equal to the intrinsic value of that feature to additional      paid-in capital in according to EITF Issue No. 98-5, “Accounting for      Convertible Securities with Beneficial Conversion Features or Contingently      Adjustable Conversion Ratio” and EITF Issue No. 00-27, “Application of      Issue No. 98-5 to Certain Convertible Instruments”. The      portion of debt discount resulting from allocation of proceeds to the      financial instruments related to warrants associated with convertible      promissory notes is being amortized to interest expense over the life of      the convertible promissory notes, using the effective yield method. For      portion of debt discount resulting from allocation of proceeds to the      beneficial conversion feature, it is amortized to interest expense over      the term of the notes from the respective dates of issuance, using the      effective yield method. (K)      Early Redemption of Convertible Promissory Notes Should      early redemption of convertible promissory notes occur, the unamortized      portion of the associated deferred charges and debt discount would be      fully written off and the early redemption premium, if any, will be      recognized as an expense upon its occurrence. All such related charges, if      material, would be aggregated and included in a separate line, charges on      early redemption of convertible promissory notes, which would be      included in ordinary activities on the consolidated statements of      operations as required by SFAS No.145,“Rescission of FASB Statements No.      4, 44, and 64, Amendment of FASB Statement No. 13, and Technical      Corrections” |
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|   | Pursuant      to the provisions of agreements in connection with 3% convertible      promissory notes, certain of investors may require the company to redeem      the 3% Convertible Promissory Notes at 100% of the principal amount, plus      any accrued and unpaid interest, plus an amount representing a 20%      internal rate of return on the then outstanding principal amount in the      event of a default, or if the Company’s actual EPS in any fiscal year is      less than 80% of the respective EPS target. The Company accounts for such      potential liability of 20% internal rate of return on the then outstanding      principal amount in accordance with SFAS No. 5,“Accounting for      Contingencies”. (L)      Revenue Recognition For      hotel management services, the Company recognizes revenue in the period      when the services are rendered and collection is reasonably      assured. For      tour services, the Company recognizes services-based revenue when the      services have been performed. Guangdong Tianma International Travel      Service Co., Ltd (“Tianma”) offers independent leisure travelers bundled      packaged-tour products, which include both air-ticketing and hotel      reservations. Tianma’s packaged-tour products cover a variety of domestic      and international destinations. Tianma      organizes inbound and outbound tour and travel packages, which can      incorporate, among other things, air and land transportation, hotels,      restaurants and tickets to tourist destinations and other excursions.      Tianma books all elements of such packages with third-party service      providers, such as airlines, car rental companies and hotels, or through      other tour package providers and then resells such packages to its      clients. A typical sale of tour services is as follows:  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Tianma,      in consultation with sub-agents, organizes a tour or travel package,      including making reservations for blocks of tickets, rooms, etc. with      third-party service providers. Tianma may be required to make deposits,      pay all or part of the ultimate fees charged by such service providers or      make legally binding commitments to pay such fees. For air-tickets, Tianma      normally books a block of air tickets with airlines in advance and pays      the full amount of the tickets to reserve seats before any tours are      formed. The air tickets are usually valid for a certain period of      time. If the pre-packaged tours do not materialize and are eventually      not formed, Tianma will resell the air tickets to other travel agents or      customers. For hotels, meals and transportation, Tianma usually pays an      upfront deposit of 50-60% of the total cost. The remaining balance is then      settled after completion of thetours. |

|   | 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Tianma,      through its sub-agents, advertises tour and travel packages at prices set      by Tianma and sub-agents.                                                                                                                                                                                                                                                                              |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Customers      approach Tianma or its appointed sub-agents to book an advertised packaged      tour.                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | The      customers pay a deposit to Tianma directly or through its appointed      sub-agents.                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | When      the minimum required number of customers (which number is different for      each tour based on the elements and costs of the tour) for a particular      tour is reached, Tianma will contact the customers for tour confirmation      and request full payment. All payments received by the appointed      sub-agents are paid to Tianma prior to the commencement of the      tours. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Tianma      will then make or finalize corresponding bookings with outside service      providers such as airlines, bus operators, hotels, restaurants, etc. and      pay any unpaid fees or deposits to such providers.                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Tianma      is the principal in such transactions and the primary obligor to the      third-party providers, regardless of whether it has received full payment      from its customers. In addition, Tianma is also liable to the customers      for any claims relating to the tours, such as accidents or tour services.      Tianma has adequate insurance coverage for accidental loss arising during      the tours. The Company utilizes a network of sub-agents who operate      strictly in Tianma’s name and can only advertise and promote the business      of Tianma with the prior approval of Tianma. For      advertising services, the Company recognizes revenue in the period when      advertisements are either aired or published. (M)      Stock-based Compensation In      December 2004, the Financial Accounting Standards Board (“FASB”) issued      Statement of Financial Accounting Standards (“SFAS”) No. 123R,“Share-Based      Payment” , a revision to SFAS No. 123, “Accounting for Stock-Based      Compensation” , and superseding APB Opinion No. 25, “Accounting for Stock      Issued to Employees”  and its related implementation guidance.      Effective January 1, 2006, the Company adopted SFAS 123R, using a modified      prospective application transition method, which establishes accounting      for stock-based awards in exchange for employee services. Under this      application, the Company is required to record stock-based compensation      expense for all awards granted after the date of adoption and nonvested      awards that were outstanding as of the date of adoption. SFAS 123R      requires that stock-based compensation cost is measured at grant date,      based on the fair value of the award, and recognized in expense over the      requisite services period. |

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|   | Common      stock, stock options and warrants issued to other than employees or      directors in exchange for services are recorded on the basis of their fair      value, as required by SFAS No. 123R, which is measured as of the date      required by EITF Issue 96-18,“Accounting for Equity Instruments That Are      Issued to Other Than Employees for Acquiring, or in Conjunction with      Selling, Goods or Services ”. In accordance with EITF 96-18, the      non-employee stock options or warrants are measured at their fair value by      using the Black-Scholes option pricing model as of the earlier of the date      at which a commitment for performance to earn the equity instruments is      reached (“performance commitment date”) or the date at which performance      is complete (“performance completion date”). The stock-based compensation      expenses are recognized on a straight-line basis over the shorter of the      period over which services are to be received or the vesting period.      Accounting for non-employee stock options or warrants which involve only      performance conditions when no performance commitment date or performance      completion date has occurred as of reporting date requires measurement at      the equity instruments then-current fair value. Any subsequent changes in      the market value of the underlying common stock are reflected in the      expense recorded in the subsequent period in which that change      occurs. (N)      Income Taxes The      Company accounts for income taxes under SFAS No. 109,“Accounting for      Income Taxes”. Under SFAS 109, deferred tax assets and liabilities are      provided for the future tax effects attributable to temporary differences      between the financial statement carrying amounts of assets and liabilities      and their respective tax bases, and for the expected future tax benefits      from items including tax loss 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 reversed. Under SFAS 109, the      effect on deferred tax assets and liabilities of a change in tax rates is      recognized in income in the period that includes the enactment      date. (O)      Comprehensive Income (Loss) The      Company follows SFAS No. 130,“Reporting Comprehensive Income” for the      reporting and display of its comprehensive income (loss) and related      components in the financial statements and thereby reports a measure of      all changes in equity of an enterprise that results from transactions and      economic events other than transactions with the shareholders. Items of      comprehensive income (loss) are reported in both the consolidated      statement of operations and comprehensive loss and the consolidated      statement of stockholders’ equity. (P)      Earnings (Loss) Per Common Share Basic      earnings (loss) per common share are computed by dividing the net income      (loss) attributable to holders of common stock by the weighted average      number of shares of common stock outstanding during the period. Diluted      earnings (loss) per share is computed by dividing net income (loss) by the      weighted average number of common shares including the dilutive effect of      common share equivalents then outstanding. The      diluted net loss per share is the same as the basic net loss per share for      the years ended December 31, 2007 and 2006 as all potential ordinary      shares including stock options and warrants are anti-dilutive and are      therefore excluded from the computation of diluted net loss per      share. (Q)      Operating Leases Leases      where substantially all the rewards and risks of ownership of assets      remain with the leasing company are accounted for as operating leases.      Payments made under operating leases are charged to the consolidated      statements of operations on a straight-line basis over the lease      period. (R)      Foreign Currency Translation The      assets and liabilities of the Company’s subsidiaries denominated in      currencies other than United States (“U.S.”) dollars are translated into      U.S. dollars using the applicable exchange rates at the balance sheet      date. For statement of operations’ items, amounts denominated in      currencies other than U.S. dollars were translated into U.S. dollars using      the average exchange rate during the period. Equity accounts were      translated at their historical exchange rates. Net gains and losses      resulting from translation of foreign currency financial statements are      included in the statements of stockholders’ equity as accumulated other      comprehensive income (loss). Foreign currency transaction gains and losses      are reflected in the statements of operations. (S)      Fair Value of Financial Instruments The      carrying value of the Company’s financial instruments, which consist of      cash, accounts receivables, prepaid expenses and other current assets,      accounts payable, accrued expenses and other payables, approximates fair      value due to the short-termmaturities. |
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|   | The      carrying value of the Company’s financial instruments related to warrants      associated with convertible promissory notes issued in 2007 is stated at a      value being equal to the allocated proceeds of convertible promissory      notes based on the relative fair value of notes and warrants. In the      measurement of the fair value of these instruments, the Black-Scholes      option pricing model is utilized, which is consistent with the Company’s      historical valuation techniques. These derived fair value estimates are      significantly affected by the assumptions used. The allocated value of the      financial instruments related to warrants associated with convertible      promissory notes is recorded as an equity, which does not require to      mark-to-market as of each subsequent reporting period , (T)      Concentration of Credit Risk The      Company places its cash with various financial institutions. The Company      believes that no significant credit risk exists as these cash investments      are made with high-credit-qualify financial institutions. All      the revenue of the Company and a significant portion of the Company’s      assets are generated and located in China. The Company’s business      activities and accounts receivables are mainly from tour services and      advertising services. Deposits are usually collected from customers in      advance and the Company performs ongoing credit evaluation of its      customers. The Company believes that no significant credit risk exists as      credit loss. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        | (U)      Segmental Reporting SFAS      No. 131,“Disclosures about Segments of an Enterprise and Related      Information” establishes standards for reporting information about      operating segments on a basis consistent with the Company’s internal      organization structure as well as information about geographical areas,      business segments and major customers in financial statements. The      Company’s operating segments are organized internally primarily by the      type of services rendered. In 2007, the Company changed their      operating segments as a result of change of internal organization      structure by management. It is the management’s view that the services      rendered by the Company are of three operating segments: Media Network,      Travel Network and Investment Holding in 2007. (V)      Recent Accounting Pronouncements In      September 2006, FASB issued SFAS 157,“Fair Value Measurements”. This      statement defines fair value and establishes a framework for measuring      fair value in generally accepted accounting principles. More precisely,      this statement sets forth a standard definition of fair value as it      applies to assets or liabilities, the principal market (or most      advantageous market) for determining fair value (price), the market      participants, inputs and the application of the derived fair value to      those assets and liabilities. The effective date of this pronouncement is      for all full fiscal and interim periods beginning after November 15, 2007.      The Company is currently evaluating the impact of adopting SFAS 157 on its      financial statements and related disclosures. In      February 2007, the FASB issued SFAS No. 159,“The Fair Value Option for      Financial Assets and Financial Liabilities” which permit entities to      choose to measure many financial instruments and certain other items at      fair value that are not currently required to be measured at fair value.      SFAS 159 is effective for fiscal years beginning after November 15, 2007.      The Company is currently evaluating the impact of adopting SFAS 159 on its      financial statements and related disclosures. In      December 2007, the FASB issued SFAS No. 141 (Revised),“Business      Combinations”  (“SFAS No. 141 (R)”), replacing SFAS No. 141,      “Business Combinations”  (“SFAS No. 141”), and SFAS No. 160,      “Noncontrolling Interests in Consolidated Financial Statements — an      Amendment of ARB No. 51” . SFAS No. 141(R) retains the fundamental      requirements of SFAS No. 141, broadens its scope by applying the      acquisition method to all transactions and other events in which one      entity obtains control over one or more other businesses, and requires,      among other things, that assets acquired and liabilities assumed be      measured at fair value as of the acquisition date, that liabilities      related to contingent consideration be recognized at the acquisition date      and re-measured at fair value in each subsequent reporting period, that      acquisition-related costs be expensed as incurred, and that income be      recognized if the fair value of the net assets acquired exceeds the fair      value of the consideration transferred. SFAS No. 160 establishes      accounting and reporting standards for non controlling interests (i.e.      minority interests) in a subsidiary, including changes in a parent’s      ownership interest in a subsidiary and requires, among other things, that      noncontrolling interests in subsidiaries be classified as a separate      component of equity. Except for the presentation and disclosure      requirements of SFAS No. 160, which are to be applied retrospectively for      all periods presented, SFAS No. 141 (R) and SFAS No. 160 are to be applied      prospectively in financial statements issued for fiscal years beginning      after December 15, 2008. The Company is currently assessing the impact of      adopting SFAS No. 141 (R) and SFAS No. 160 on its financial statements and      related disclosures.  |
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| NOTE      2 | RESTATEMENT      AND RECLASSIFICATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | (a) Restatement      of Financial Results                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        | On      October 10, 2008, we filed a Current Report on Form 8-K to      announce that our Board of Directors, based upon the consideration of      issues addressed in the SEC review and the recommendation of the Audit      Committee, determined that we should restate our previously issued      consolidated financial statements for the year ended December 31,      2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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|   | The      restatement adjustments corrected the accounting errors arising from our      misapplication of accounting policies to the discount associated with the      beneficial conversion feature attributed to the issuance of the 3%      convertible promissory notes in 2007. The Company initially amortized the      discount according to EITF Issue No. 98-5, “Accounting for Convertible      Securities with Beneficial Conversion Features or Contingently Adjustable      Conversion Ratio”, which stated that discount resulting from      allocation of proceeds to the beneficial conversion feature should be      recognized as interest expense over the minimum period from the date of      issuance to the date of earliest conversion. As the notes are convertible      at the date of issuance, the Company fully amortized such discount through      interest expense at the date of issuance accordingly. However, according      to Issue 6 of EITF Issue No. 00-27, “Application of Issue No.      98-5 to Certain Convertible Instruments”, EITF Issues No. 98-5      should be modified to require the discount related to the beneficial      conversion feature to be accreted from the date of issuance to the stated      redemption date regardless of when the earliest conversion date occurs      using the effective interest method. The restatement adjustments were to      reflect the retrospective application of the Issue 6 of EITF Issue No.      00-27. The      restatement affected our previously reported non-cash interest expense,      net loss, long-term debt and stockholders’ equity but had no effects on      our cash flow. There was no change to each subtotal (operating, investing      and financing activities) in the Company’s consolidated statements of cash      flows as a result of the restatement. Certain balances related to line      items within certain cash flows were corrected as part of the restatement.      The restatement in the consolidated financial statements as of and      for the year ended December 31, 2007 is as      follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| For the year ended      December 31,      2007           |   | As      Previously Reported |        |   | Restatement      Adjustments |   |       | As      Restated |   |
|----------------------------------------------------------|--------|-----------------------------|-------------|--------|------------------------------|--------|------------|------------------|--------|
| Interest      Expense                                    |   |                        |        |   |                         |   |       |             |   |
| Amortization      of deferred charges and debt discount  |   | $                           | 4,866,351   |   |                         | $      | (4,659,960 | )                |   | $ | 206,391 |   |
| Net      loss from continuing operations                 |   |                        | (19,306,579 | )      |                         |   | 4,659,960  |             |   |   | (14,646,619 | ) |
| Net      loss                                            |   |                        | (19,306,579 | )      |                         |   | 4,659,960  |             |   |   | (14,646,619 | ) |
| Comprehensive      loss                                  |   |                        | (19,244,762 | )      |                         |   | 4,659,960  |             |   |   | (14,584,802 | ) |
| Net      loss per common share – basic and diluted |   | $                           | (0.28       | )      |                         | $      | 0.07       |             |   | $ | (0.21 | ) |
|                                                     |   |                        |        |   |                         |   |       |             |   |   |   |   |
| As of December 31,      2007                             |   | As      Previously Reported |        |   | Restatement      Adjustments |   |       | As      Restated |   |
| Liabilities                                              |   |                        |        |   |                         |   |       |             |   |   |   |   |
| 3%      convertible promissory notes due 2011, net       |   | $                           | 12,545,456  |   |                         | $      | (4,659,960 | )                |   | $ | 7,885,496 |   |
| Total      liabilities                                   |   |                        | 20,780,493  |   |                         |   | (4,659,960 | )                |   |   | 16,120,533 |   |
| Stockholders’      Equity                          |   |                        |        |   |                         |   |       |             |   |   |   |   |
| Accumulated      deficit                                 |   |                        | (29,829,059 | )      |                         |   | 4,659,960  |             |   |   | (25,169,099 | ) |
| Total      stockholder’s equity                    |   | $                           | 5,978,976   |   |                         | $      | 4,659,960  |             |   | $ | 10,638,936 |   |

|   | (b) Reclassification                                                                                                                                                                                                                                          |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                               |
|   | Certain      prior year amounts have been reclassified to conform to the current      period’s presentation. The reclassification did not have an effect on      total revenues, total expenses, loss from operations, net loss and net      loss per share. |

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| NOTE      3 | SUBSIDIARIES                                                                                                                |
|-------------|-----------------------------------------------------------------------------------------------------------------------------|
|        |  Details      of the Company’s principal consolidated subsidiaries as of December 31,      2007 were as follows: |

| Name                                                                                                   | Place      ofincorporation  |   | Ownershipinterestattributable      tothe      Company |   |   | Principal      activities                  |
|-------------------------------------------------------------------------------------------------------------|-----------------------------|--------|-------------------------------------------------------|--------|--------|--------------------------------------------|
|                                                                                                        |                        |   |                                                  |   |   |                                       |
|   NCN      Group Limited                                                                          | British      Virgin Islands |   |                                                  | 100    | %      |         | Investment      holding |
|   NCN      Media Services Limited                                                                 | British      Virgin Islands |   |                                                  | 100    | %      |                                       | Investment      holding |
|   NCN      Management Services Limited                                                            | British      Virgin Islands |   |                                                  | 100    | %      |                                       | Investment      holding |
|   Crown      Winner International Limited                                                         | Hong      Kong              |   |                                                  | 100    | %      |                                       | Investment      holding |
|   Cityhorizon      Limited                                                                        | Hong      Kong              |   |                                                  | 100    | %      |                                       | Investment      holding |
|   NCN      Group Management Limited                                                               | Hong      Kong              |   |                                                  | 100    | %      |                                       | Provision      of administrative and management services |
|        NCN Huamin Management Consultancy (Beijing) Company        Limited     | The      PRC                |   |                                                  | 100    | %      |                                       | Provision      of administrative and management services |
|   Shanghai      Quo Advertising Company Limited                                                   | The      PRC                |   |                                                  | 100    | %      |                                       | Provision      of advertising services |
|   Xuancaiyi      (Beijing) Advertising Company Limited                                            | The      PRC                |   |                                                  | 51     | %      |                                       | Provision      of advertising services |
|   Guangdong      Tianma International Travel Service Co., Ltd.                                    | The      PRC                |   |                                                  | 55     | %      |                                       | Provision      of tour services |
|   NCN      Landmark International Hotel Group Limited                                             | British      Virgin Islands |   |                                                  | 99.9   | %      |                                       | Provision      of hotel management services |
|   Beijing      NCN Landmark Hotel Management Limited                                              | The      PRC                |   |                                                  | 99.9   | %      |                                       | Provision      of hotel management services |
|   Teda      (Beijing) Hotels Management Limited                                                   | The      PRC                |   |                                                  | 100    | %      |                                       | Dormant      and undergo wind down process |
|   NCN      Asset Management Services Limited                                                      | British      Virgin Islands |   |                                                  | 100    | %      |                                       | Dormant |
|   NCN      Travel Services Limited                                                                | British      Virgin Islands |   |                                                  | 100    | %      |                                       | Dormant |
|   NCN      Financial Services Limited                                                             | British      Virgin Islands |   |                                                  | 100    | %      |                                       | Dormant |
|   NCN      Hotels Investment Limited                                                              | British      Virgin Islands |   |                                                  | 100    | %      |                                       | Dormant |
|   NCN      Pacific Hotels Limited                                                                 | British      Virgin Islands |   |                                                  | 100    | %      |                                       | Dormant |
|   Linkrich      Enterprise Advertising and Investment Limited                                     | Hong      Kong              |   |                                                  | 100    | %      |                                       | Dormant |

|  Remarks:1)      The Company disposed of Know Win Investments Inc. and Simple Win Limited      in the fourth quarter of 2007 and recorded a gain of $10,096      accordingly. 2)      The Company acquired Shanghai Quo Advertising Company Limited and Linkrich      Enterprise Advertising and Investment Limited in 2007. In addition, the      Company also acquired 51% of the equity interest of Xuancaiyi (Beijing)      Advertising Company Limited in 2007. The Company also established its      wholly owned subsidiary, Cityhorizon Limited, in  2007. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE      4 | ACCOUNTS      RECEIVABLE, NET                                                                |
|-------------|----------------------------------------------------------------------------------------------|
|        |  Accounts      receivable, net as of December 31, 2007 consisted of the      following: |

| Accounts      receivable                |   | $      | 1,093,142 |   |
|-----------------------------------------|--------|--------|-----------|--------|
| Less:      allowance for doubtful debts |   |   | -         |   |
|   Total                       |   | $      | 1,093,142 |   |

|   | For      the years ended December 31, 2007 and 2006, the Company recorded a      provision for doubtful debts for accounts receivable of $nil and $15,542      respectively. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|        |                                                                           |
|-------------|--------------------------------------------------------------------------------|
| NOTE      5 | EQUIPMENT,      NET                                                            |
|        |  Equipment,      net as of December 31, 2007 consisted of the  following: |

| Office      equipment               |   | $      | 315,367  |   |
|-------------------------------------|--------|--------|----------|--------|
| Furniture      and fixtures         |   |   | 75,177   |   |
| Less:      accumulated depreciation |   |   | (133,141 | )      |
|  Total                         |   | $      | 257,403  |   |

|        | Depreciation      expenses for the years ended December 31, 2007 and 2006 amounted to      $56,603 and $29,926 respectively.                                                           |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                   |
| NOTE      6 | INTANGIBLE      RIGHTS, NET                                                                                                                                                            |
|        |  The      following table set forth information for intangible rights subject to      amortization and intangible right not subject to amortization as of      December 31, 2007: |

| Amortized      intangible rights         |   |   |      |
|------------------------------------------|--------|--------|-----------|
| Gross      carrying amount               |   | $      | 7,825,267 |   |
| Less:      accumulated amortization      |   |   | (999,106  | ) |
| Less:      provision for impairment loss |   |   | (711,611  | ) |
| Amortized      intangible rights, net    |   |   | 6,114,550 |   |
|                                     |   |   |      |   |
| Unamortized      intangible right        |   |   |      |   |
| Gross      carrying amount               |   |   | 815,902   |   |
| Less:      provision for impairment      |   |   | (815,902  | ) |
| Unamortized      intangible right, net   |   |   | -         |   |
|                                     |   |   |      |   |
| Intangible      rights, net              |   | $      | 6,114,550 |   |

|   | Total      amortization expense of intangible rights of the Company for the years      ended December 31, 2007 and 2006  amounted to $472,032 and $259,216      respectively and is expected to be as follows over the next five      years: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fiscal      years ending December 31, |   |   |      |
|---------------------------------------|--------|--------|-----------|
| 2008                                  |   | $      | 739,550   |   |
| 2009                                  |   |   | 300,000   |   |
| 2010                                  |   |   | 300,000   |   |
| 2011                                  |   |   | 300,000   |   |
| 2012                                  |   |   | 300,000   |   |
| Thereafter                            |   |   | 4,175,000 |   |
|                                  |   | $      | 6,114,550 |   |

|   | In      2007, the Company performed an impairment review on its intangible rights      and recorded an aggregate impairment loss of $1,332,321 for the intangible      rights of Shanghai Quo Advertising Company Limited (“Quo Advertising”) and      Tianma for the year ended December 31, 2007.The      Company compared the undiscounted cash flows to the carrying value of Quo      Advertising’s intangible right as a result of the non-LED business of Quo      Advertising is shrinking and recording a continuous operating loss. The      Company determined that the intangible right of Quo Advertising which      associated with non-LED advertising business should be fully provided with      impairment loss. An impairment loss of $516,419 included in non-cash      impairment charges on the consolidated statements of operation for the      year ended December 31, 2007 was recorded accordingly.For      the intangible right of Tianma, which associated with operating right to      conduct tour business, the Company compared the undiscounted cash flows to      the carrying values of Tianma’s intangible right as a result of continuous      operating loss recorded by Tianma. The Company has determined the      intangible right should be fully provided with impairment loss based on      discounted cash flow model. Accordingly, the Company recorded an      impairment loss of $815,902 which was included in non-cash impairment      charges on the consolidated statements of operation for the year ended      December 31, 2007 accordingly. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE      7 | DEFERRED      CHARGES, NET                                                 |
|-------------|----------------------------------------------------------------------------|
|        |  Deferred      charges, net as of December 31, 2007 were as  follows: |

| Deferred      charges               |   | $      | 700,000 |   |
|-------------------------------------|--------|--------|---------|--------|
| Less:      accumulated amortization |   |   | (29,157 | )      |
|   Total                   |   | $      | 670,843 |   |

|   | Amortization      of deferred charges included in interest expense for the years ended      December 31, 2007 and 2006 amounted to $29,157 and $nil      respectively. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| NOTE      8 | ACCOUNTS      PAYABLE, ACCRUED EXPENSES AND OTHER PAYABLES                                                                |
|-------------|---------------------------------------------------------------------------------------------------------------------------|
|        |  Accounts      payable, accrued expenses and other payables as of December 31, 2007      consisted of the following: |

| Accounts      payable                       |   | $      | 1,303,941 |   |
|---------------------------------------------|--------|--------|-----------|--------|
| Accrued      professional fee               |   |   | 17,530    |   |
| Accrued      staff benefit and related fees |   |   | 638,899   |   |
| Other      accrued expenses                 |   |   | 614,838   |   |
| Other      payables                         |   |   | 915,378   |   |
|   Total                           |   | $      | 3,490,586 |   |

| NOTE      9 | BUSINESS      COMBINATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|        | (a)  Acquisition      of Quo Advertising                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|        |  On      January 31, 2007, the Company acquired 100% of the equity interests of Quo      Advertising, an advertising agency headquartered in Shanghai, China,      pursuant to a Purchase and Sales Agreement and Trust Agreements entered      with Lina Zhang and Qinxiu Zhang dated January 24, 2007. The acquisition      helped the Company to grow its advertising business in China. The Company      paid $64,000 in cash and issued 300,000 shares of the Company’s common      stock of par value of $0.001 each, totaling $843,600 in exchange      for 100% of the equity interest of Quo Advertising. The total      consideration was $907,600. |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|        | The      acquisition has been accounted for using the purchase method of accounting      and the results of operations of Quo Advertising have been included in the      Company's consolidated statement of operations since the completion of the      acquisition on January 31, 2007.                                                                                                                                                                                                                                                                                                                                                                                     |

|   | The      allocation of the purchase price is asfollows: |
|--------|---------------------------------------------------------|

| Cash                                                       |   | $      | 18,001  |   |
|------------------------------------------------------------|--------|--------|---------|--------|
| Accounts      receivable                                   |   |   | 83,791  |   |
| Prepaid      expenses and other current assets             |   |   | 298,559 |   |
| Equipment,      net                                        |   |   | 15,114  |   |
| Intangible      right                                      |   |   | 536,540 |   |
| Accounts      payable, accrued expenses and other payables |   |   | (44,405 | )      |
| Total      purchase price                                  |   | $      | 907,600 |   |

|   | Identifiable      intangible right of $536,540 is measured at fair value as of the date of      the acquisition and amortized over 20 years. The intangible right of Quo      Advertising was fully provided with impairment loss in 2007. For details,      please refer to Note 6 – Intangible Rights, Nets for    details.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | (b)      Acquisition of Xuancaiyi                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | Effective      September 1, 2007, the Company, through Quo Advertising, acquired 51% of      the equity interests of Xuancaiyi (Beijing) Advertising Company Limited      (“Xuancaiyi”), an advertising agency in Beijing, China, for a      consideration of up to RMB 12,245,000 (equivalent to US$1,666,943) in      cash. Xuancaiyi secured the rights to operate a 758 square-meter mega-size      high resolution LED advertising billboard in a prominent location in      Beijing, China. The investment in Xuancaiyi will strengthen the Company’s      Media Network in China. The acquisition has been accounted for using the      purchase method of accounting and the results of operations of Xuancaiyi      have been included in the Company's consolidated statement of operations      since the acquisition date on September 1, 2007. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | The      purchase consideration, to be paid fully in cash, is payable as      follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

|   | 1.     | An      initial payment of RMB2,500,000 (approximately  US$330,128);                                                                           |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                           |
|   | 2.     | Up      to RMB 2,454,300 (approximately US$336,680) based on Xuancaiyi’s net      profit for the four months ended December 31, 2007;    |
|   |   |                                                                                                                                           |
|   | 3.     | Up      to RMB 1,834,500 (approximately US$251,656) based on Xuancaiyi’s net      profit for the first quarter of fiscal year 2008;      |
|   |   |                                                                                                                                           |
|   | 4.     | Up      to RMB 1,827,400 (approximately US$250,682) based on Xuancaiyi’s net      profit for the second quarter of fiscal year 2008;     |
|   |   |                                                                                                                                           |
|   | 5.     | Up      to RMB1,819,100 (approximately US$249,543) based on Xuancaiyi’s net profit      for the third quarter of fiscal year 2008; and   |
|   |   |                                                                                                                                           |
|   | 6.     |  Up      to RMB1,809,700 (approximately US$248,254) based on Xuancaiyi’s net profit      for the fourth quarter of fiscal year2008. |

----

|   | The      initial payment of RMB2,500,000 (equivalent to US$330,128) was made in      September 2007. The allocation of the initial payment is as      follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Cash                                                       |   | $      | 57,971   |   |
|------------------------------------------------------------|--------|--------|----------|--------|
| Prepaid      expenses and other current assets             |   |   | 82,150   |   |
| Equipment,      net                                        |   |   | 6,955    |   |
| Intangible      right                                      |   |   | 586,066  |   |
| Accounts      payable, accrued expenses and other payables |   |   | (85,833  | )      |
| Minority      Interests                                    |   |   | (317,181 | )      |
| Total      purchase price                                  |   | $      | 330,128  |   |

|   | Identifiable      intangible right of $586,066 is measured at fair value as of the date of      the acquisition and is amortized over 16 months based on initial contract      period with Xuancaiyi’s mediapartner. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      of December 31, 2007, based on the net profits for the four months ended      December 31, 2007 of Xuancaiyi, no further cash payment is expected to be      made with respect to the first earn-out consideration. Pursuant to SFAS      141 “Business Combinations”, the earn-out consideration is considered      contingent consideration, which will not become certain until the net      profits of Xuancaiyi for the coming quarters have been determined. As a      result, the obligation to pay the contingent consideration has not been      reflected in the consolidated financial statements of the Company as of      December 31, 2007. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Unaudited      Pro forma Consolidated Financial Information The      table below summarizes the unaudited pro forma results of operations      assuming the acquisitions of Quo Advertising and Xuancaiyi were completed      on January 1, 2007 and 2006. These unaudited pro forma results have been      prepared for information purposes only and do not purport to be indicative      of what the operating results would have been had the acquisitions      actually taken place on January 1, 2007 and 2006, and may not be      indicative of future operatingresults. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | Years      ended December 31 |        |
|------------------------------------------------------|--------|------------------------------|-------------|
|                                                 |   | 2007                         |        |   | 2006 |   |
|                                                 |   | (Unaudited)(Restated)        |        |   | (Unaudited) |   |
| Revenues                                             |   | $                            | 27,619,599  |   |   | $ | 6,712,060 |   |
| Loss      before income taxes and minority interests |   |                         | (14,807,565 | ) |   |   | (4,663,042 | ) |
| Net      loss                                        |   | $                            | (14,753,561 | ) |   | $ | (4,119,211 | ) |
| Net      loss per share                              |   |                         |        |   |   |   |   |   |
| Basic      and diluted                               |   | $                            | (0.22       | ) |   | $ | (0.08 | ) |

| NOTE      10 | CONVERTIBLE      PROMISSORY NOTES AND WARRANTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|         | (a)   12%      Convertible Promissory Note and Warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|         | On      November 12, 2007, the Company entered into a 12% Note and Warrant      Purchase Agreement with Wei An Developments Limited (“Wei An”) with      respect to the purchase by Wei An a convertible promissory note in the      principal account of $5,000,000 at interest rate of 12% per annum (the      “12% Convertible Promissory Note”). The 12% Convertible Promissory Note is      convertible into the Company’s common stock at the conversion price of      $2.40 per share. Pursuant to the agreement, the Company is subject to a      commitment fee of 2% of the principal amount of the 12% Convertible      Promissory Note. The term of the 12% Convertible Promissory Note is six      months and the Company has the option to extend the 12% Convertible      Promissory Note by an additional six-month period at an interest rate of      14% per annum and be subject to an additional commitment fee of 2% of the      principal amount of the note. However, the Company has the right to prepay      all or any portion of the amounts due under the note at any time without      penalty or premium.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|         | In      addition, pursuant to the Warrant Purchase Agreement, the Company issued      warrants to purchase up to 250,000 shares of the Company’s common stock at      the exercise price of $2.30 per share, which are exercisable for a period      of two years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|         | (b)   3%      Convertible Promissory Notes and warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|         | On      November 19, 2007, the Company, Quo Advertising and the Designated Holders      (as defined in the Purchase Agreement), entered into a 3% Note and Warrant      Purchase Agreement (the “Purchase Agreement”) with affiliated investment      funds of Och-Ziff Capital Management Group (the “Investors”). Pursuant to      the Purchase Agreement, the Company agreed to issue 3% Senior Secured      Convertible Notes due June 30, 2011 in the aggregate principal amount of      up to $50,000,000 (the “3% Convertible Promissory Notes”) and warrants to      acquire an aggregate amount of 34,285,715 shares of common stock of the      Company (the “Warrants”). The 3% Convertible Promissory Notes and Warrants      are issued and issuable in three tranches, with Convertible Notes in      the aggregate principal amount of $6,000,000, Warrants exercisable for      2,400,000 shares at $2.50 per share and Warrants exercisable for 1,714,285      shares at $3.50 per share, issued on 19 November, 2007,      Convertible Notes in the aggregate principal amount of $9,000,000,      Warrants exercisable for 3,600,000 shares at $2.50 per share and Warrants      exercisable for 2,571,430 shares at $3.50 per share issued on 28 November      2007, and Convertible Notes in the aggregate principal amount of      $35,000,000, Warrants exercisable for 14,000,000 shares at $2.50 per share      and Warrants exercisable for 10,000,000 shares at $3.50 per share to be      issued in the third tranche, which was completed in January 2008. Please      refer to Note 18 - Subsequent Events for details. The warrants shall      expire on June 30, 2011, pursuant to the Purchase    Agreement. |

----

|   | The      3% Convertible Promissory Notes bear interest at 3% per annum payable      semi-annually in arrears and mature on June 30, 2011. The 3% Convertible      Promissory Notes are convertible into shares of common stock at an initial      conversion price of $1.65 per share, subject to customary anti-dilution      adjustments. In addition, the conversion price will be adjusted downward      on an annual basis if the Company should fail to meet certain annual      earnings per share (“EPS”) targets described in the Purchase Agreement. In      the event of a default, or if the Company’s actual EPS for any fiscal year      is less than 80% of the respective EPS target, certain of the investors      may require the Company to redeem the 3% Convertible Promissory Notes at      100% of the principal amount, plus any accrued and unpaid interest, plus      an amount representing a 20% internal rate of return on the then      outstanding principal amount. The Warrants grant the holders the right to      acquire shares of common stock at $2.50 and $3.50 per share, subject to      customary anti-dilution adjustments. The exercise price of the Warrants      will also be adjusted downward whenever the conversion price of the 3%      Convertible Promissory Notes is adjusted downward in accordance with the      provisions of the PurchaseAgreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      of December 31, 2007, none of the conversion options and warrants      associated with the above convertible promissory notes was      exercised. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                      |
|   | The      following table details the accounting treatment of the convertible      promissory notes: (Restated)                                            |

|                                                                                     |   | 12%      ConvertiblePromissory      Note |      |   | 3%      ConvertiblePromissory      Notes |   |       | Total  |   |
|------------------------------------------------------------------------------------------|--------|------------------------------------------|-----------|--------|------------------------------------------|--------|------------|--------|--------|
| Proceeds      of convertible promissory notes                                            |   | $                                        | 5,000,000 |   |                                     | $      | 15,000,000 |   |   | $ | 20,000,000 |   |
| Allocation      of proceeds:                                                             |   |                                     |      |   |                                     |   |       |   |   |   |   |   |
| Allocated      relative fair value of warrants                                           |   |                                     | (333,670  | )      |                                     |   | (2,490,000 | )      |   |   | (2,823,670 | ) |
| Allocated      intrinsic value of beneficial conversion feature                          |   |                                     | -         |   |                                     |   | (4,727,272 | )      |   |   | (4,727,272 | ) |
| Total      net proceeds of the convertible promissory notes as of December 31,      2007 |   |                                     | 4,666,330 |   |                                     |   | 7,782,728  |   |   |   | 12,449,058 |   |
|  Amortization      of debt discount for the year ended December 31, 2007            |   |                                     | 74,466    |   |                                     |   | 102,768    |   |   |   | 177,234 |   |
| Net      carrying value of convertible promissory notes                                  |   | $                                        | 4,740,796 |   |                                     | $      | 7,885,496  |   |   | $ | 12,626,292 |   |

|   | Warrant      and Beneficial Conversion Features                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The      fair value of the financial instruments associated with warrants of both      12% convertible promissory note and 3% convertible promissory notes was      determined utilizing Black-Scholes option pricing model, which is      consistent with the Company’s historical valuation methods. The following      assumptions and estimates were used in the Black-Scholes option pricing      model: (1) 12% convertible promissory note: volatility of 182%; an average      risk-free interest rate of 3.52%; dividend yield of 0%; and an expected      life of 2 years, (2) 3% convertible promissory notes: volatility of      47%; an average risk-free interest rate of 3.30%; dividend yield of 0%;      and an expected life of 3.5 years. |

|   | Both      the warrants and embedded conversion features issued in connection with      12% convertible promissory note and 3% convertible promissory notes meet      the criteria of EITF 00-19,“Accounting for Derivative Financial      Instruments Indexed to, and Potentially Settled in, a Company's Own Stock”      for equity classification and also met the other criteria in paragraph      11(a) of SFAS 133, “Accounting for Derivative Instruments and Hedging      Activities” as of December 31, 2007. Accordingly, the conversion features      do not require derivative accounting. The intrinsic value of beneficial      conversion feature is calculated in according to EITF Issue No. 98-5,      “Accounting for Convertible Securities with Beneficial Conversion Features      or Contingently Adjustable Conversion Ratio” and EITF Issue No. 00-27,      “Application of Issue No. 98-5 to Certain Convertible Instruments” . For      3% convertible promissory note, as the effective conversion price      after allocating a portion of the proceeds to the warrants was less than      the Company’s market price of common stock at commitment date, it was      considered to have a beneficial conversion feature while for 12%      convertible promissory note, no beneficial conversion feature existed. The      value of beneficial conversion feature is recorded as a reduction in the      carrying value of the convertible promissory notes against additional      paid-in capital. As the 3% convertible promissory notes has stated      redemption date, the respective debt discount being equal to the value of      beneficial conversion feature of $4,727,272 is amortized over the term of      the notes from the respective date of issuance using the effective      yield method. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Amortization      of Deferred Charges and Debt Discount                                                                          |
|--------|----------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                             |
|   | The      amortization of deferred charges and debt discount for the year ended      December 31, 2007 were as follows:(Restated) |

|                                 |   | Warrants |    |   | Conversion Features |   |   | Deferred Charges |   |   | Total  |   |
|--------------------------------------|--------|----------|---------|--------|--------------------------|--------|--------|-----------------------|--------|--------|--------|--------|
| 12%      convertible promissory note |   | $        | 74,466  |   |                     | $      | -      |                  |   | $      | 19,301 |   |   | $ | 93,767 |   |
| 3%      convertible promissory notes |   |     | 35,456  |   |                     |   | 67,312 |                  |   |   | 9,856  |   |   |   | 112,624 |   |
| Total                                |   | $        | 109,922 |   |                     | $      | 67,312 |                  |   | $      | 29,157 |   |   | $ | 206,391 |   |

| NOTE      11 | COMMITMENTS      AND CONTINGENCIES                                                                                                                                                                                                                              |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                            |
|         | (a)      Commitments                                                                                                                                                                                                                                            |
|         |                                                                                                                                                                                                                                                            |
|         | 1.      Rental Lease Commitment                                                                                                                                                                                                                                 |
|         |                                                                                                                                                                                                                                                            |
|         | The      Company’s existing rental leases do not contain significant restrictive      provisions. The following is a schedule by year of future minimum lease      obligations under non-cancelable rental operating leases as of December      31, 2007: |

| Fiscal      years ending December 31, |   |   |    |
|---------------------------------------|--------|--------|---------|
| 2008                                  |   | $      | 445,583 |   |
| 2009                                  |   |   | 325,360 |   |
| 2010                                  |   |   | 109,943 |   |
| Total                                 |   | $      | 880,886 |   |

|   | Total      rental expense associated with operating leases for the years ended      December 31, 2007 and 2006 were $593,441 and $118,423      respectively.                                                                                                                                                           |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                   |
|   | 2.      Annual Rights and Operating Fee Commitment                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                   |
|   | Since      November 2006, the Company, through its subsidiaries NCN Media Services      Limited, Quo Advertising and Xuancaiyi, has acquired rights from third      parties to operate 1,845 roadside advertising panels and 11 mega-size      advertising panels for periods ranging from 16 months to 20      years. |
|   |                                                                                                                                                                                                                                                                                                                   |
|   | The      following table sets forth the estimated future annual commitment of the      Company with respect to the rights 1,845 roadside advertising panels and      11 mega-size advertising panels that the Company held as of December 31,      2007:                                                               |

| Fiscal      years ending December 31, |   | (In      millions) |   |
|---------------------------------------|--------|--------------------|--------|
| 2008                                  |   | $                  | 16.5   |   |
| 2009                                  |   |               | 13.9   |   |
| 2010                                  |   |               | 4.0    |   |
| 2011                                  |   |               | 3.9    |   |
| 2012                                  |   |               | 3.6    |   |
| Thereafter                            |   |               | 23.7   |   |
| Total                                 |   | $                  | 65.6   |   |

|   | (b)   ContingenciesThe      Company accounts for loss contingencies in accordance with SFAS 5,      “Accounting for Loss Contingencies” and other related guidelines. Set      forth below is a description of certain loss contingencies as of December      31, 2007 and management’s opinion as to the likelihood of loss in respect      of loss contingency.The      Company’s 55%-owned subsidiary, Tianma, is a defendant in proceedings      brought in the Guangzhou Yuexiu District Court. The proceedings were      finalized on October 9, 2006. The facts surrounding the proceeding are as      follows:Guangdong      Yongan Travel Agency (“Yongan”) arranged a local tour in April 2001.      Yongan rented a car from an agent of Tianma but the car did not belong to      Tianma. A car accident happened during the tour, causing 20 injuries and      one death. Guangzhou Police issued a proposed determination on the      responsibilities of the accidents on May 18, 2001. The proposal      determined that the driver who used a non-functioning car was fully liable      for the accident. Those tourists sued Yongan for damages and Guangzhou      Intermediate People’s Court made a final judgment in 2004 that      Yongan was liable and Yongan paid approximately RMB2.2 million      ($302,000) to the injured. In 2005, Yongan sued the agent of Tianma,      Tianma and the car owner. In October 2006, the Guangzhou Yuexiu District      Court made a judgment that the agent was liable to pay RMB2.1 million      ($288,000) plus interest for damages. Tianma and the car owner have      joint-and-several liabilities. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|               | Tianma      is now appealing the court’s decision. The Company believes that there is      a reasonably high chance of overturning the court’s decision. In addition,      the Company has been indemnified for any future liability upon the      acquisition by the prior owners of Tianma. Accordingly, no provision has      been made by the Company to the above claims as of December 31,      2007. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |                                                                                                                                                                                                                                                                                                                                                                                                                    |
| NOTE      12  | STOCKHOLDERS’      EQUITY(a)   Stock,      Options and Warrants Issued forServices                                                                                                                                                                                                                                                                                                                 |

| 1.   | In      February 2006, the Company issued an option to purchase up to 225,000      shares of common stock to its legal counsel at an exercise price of $0.10      per share. So long as the counsel’s relationship with the Company      continues, one-twelfth of the shares underlying the option vest and become      exercisable each month from the date of issuance. The option may be      exercised for 120 days after termination of the relationship. The fair      market value of the option was estimated on the grant date using the      Black-Scholes option pricing model as required by SFAS 123R with the      following assumptions and estimates: expected dividend 0%, volatility      147%, a risk-free rate of 4.5% and an expected life of one (1) year. The      value of an option recognized during the years ended December 31, 2007 and      2006 was approximately $1,317 and $11,010 respectively. The options were      exercised in April 2007. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | In      August 2006, the Company issued a warrant to purchase up to 100,000 shares      of restricted common stock to a consultant at an exercise price $0.70 per      share. One-fourth of the shares underlying the warrant become exercisable      every 45 days beginning from the date of issuance. The warrant shall      remain exercisable until August 25, 2016. The fair market value of the      warrant was estimated on the grant date using the Black-Scholes option      pricing model as required by SFAS 123R with the following assumptions and      estimates: expected dividend 0%, volatility 192%, a risk-free rate of 4.5%      and an expected life of one (1) year. The value recognized for the years      ended December 31, 2007 and 2006 was approximately $26,604 and $14,451      respectively. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | In      April 2007, the Company issued 45,000 S-8 shares of common stock of par      value of $0.001 each, totaling $18,000 to its legal counsel for services      rendered. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | In      April 2007, the Company issued 377,260 S-8 shares of common stock of par      value of $0.001 each, totaling $85,353 to its directors and officers for      services rendered. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | In      July 2007, NCN Group Management Limited entered into Executive Employment      Agreements (the “Agreements”) with Godfrey Hui, Chief Executive Officer,      Daniel So, Managing Director, Daley Mok, Chief Financial Officer, Benedict      Fung, the President, and Stanley Chu, General Manager. Pursuant to the      Agreements, each executive was granted shares of the Company’s common      stock subject to annual vesting over five years in the following      amounts:  Mr. Hui, 2,000,000 shares; Mr. So, 2,000,000 shares;      Dr. Mok 1,500,000 shares; Mr. Fung 1,200,000 shares and Mr. Chu, 1,000,000      shares. In connection with these stock grants and in accordance with SFAS      123R, the Company recognized non-cash stock-based compensation of      $1,709,400 included in Payroll on the consolidated statement of operations      for the year ended December 31, 2007. The Company issued an aggregate      660,000 S-8 shares of common stock to them on January 2,    2008. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | In      August 2007, the Company issued 173,630 shares of restricted common stock      of par value of $0.001 each, totaling $424,004 to a consultant for      services rendered. The value of stock grant is fully amortized and      recognized during the year ended December 31,  2007. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | In      August 2007, the Company issued 230,000 S-8 shares of common stock of par      value of $0.001 each, totaling $69,500 to its directors and officers for      services rendered. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | In      September, 2007, the Company entered into a service agreement with      independent directors, Peter Mak, Gerd Jakob, Edward Lu, Ronglie Xu and      Joachim Burger. Pursuant to the service agreements, each independent      director was granted shares of the Company’s common stock subject to a      vesting period of ten months in the following amounts: Peter Mak:15,000      shares; Ronglie Xu:15,000 shares; Joachim Burger:15,000 shares, Gerd      Jakob:10,000 shares and Edward Lu:10,000 shares. In connection with these      stock grants and in accordance with SFAS 123R, the Company recognized      $57,980 of non-cash stock-based compensation included in Payroll on the      consolidated statement of operation for the year ended December 31,      2007. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | In      November 2007, the Company was obligated to issue a warrant to purchase up      to 300,000 shares of restricted common stock to a placement agent for      provision of agency services in connection with the issuance of 3%      convertible promissory notes as mentioned in Note 10 – Convertible      Promissory Notes and Warrants at an exercise price $3.0 per share which      are exercisable for a period of two years. The fair value of the warrant      was estimated on the grant date using the Black-Scholes option pricing      model as required by SFAS 123R with the following weighted average      assumptions: expected dividend 0%, volatility 182 %, a risk-free rate of      4.05 % and an expected life of two (2) year. The value of the warrant      recognized for the years ended December 31, 2007 was    $21,305. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.   | In      December 31, 2007, the Company committed to grant 235,000 S-8 shares of      common stock to certain employees of the Company for their services      rendered during the year ended December 31, 2007. In connection with these      stock grants and in accordance with SFAS 123R, the Company recognized      non-cash stock-based compensation of $611,000 included in Payroll on the      consolidated statement of operation for the year ended December 31, 2007.      Such 235,000 S-8 shares were issued on January 2,  2008. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      amortization for the deferred stock-based compensation recorded in the      Company for the years ended December 31, 2007 and 2006 was $2,845,000 and      $66,355 respectively.(b)   Stock      Issued for AcquisitionIn      January 2007, in connection with the acquisition of Quo Advertising, the      Company issued 300,000 shares of restricted common stock of par value of      $0.001 each, totaling $843,600.(c)   Stock      Issued for Private PlacementIn      April 2007, the Company issued and sold 500,000 shares of restricted      common stock of par value of $0.001 each, totaling $1,500,000 in a private      placement. No investment banking fees were incurred as a result of this      transaction. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         | (d)   Conversion      Option and Stock Warrants Issued in Notes Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|         | On      November 12, 2007, pursuant to the 12% Note and Warrant Purchase Agreement      of $5,000,000, the Company issued warrants to purchase up to 250,000      shares of the Company’s common stock at the exercise price of $2.30 per      share, which are exercisable for a period of two years to Wei An. The      allocated proceeds to the warrants of $333,670 based on the relative fair      value of 12% Convertible Promissory Notes and warrants were recorded as      reduction in the carrying value of the note against additional-paid in      capital. As the effective conversion price is higher than the Company’s      market price of common stock at commitment date, no beneficial conversion      existed. Please refer to Note 10 – Convertible Promissory Note and Warrant      for details.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|         | On      November 19, 2007, pursuant to the 3% Note and Warrant purchase Agreement,      the Company issued warrants to purchase up to 2,400,000 shares of the      Company’s common stock at the exercise price of $2.5 per share and      1,714,285 shares of the Company’s common stock at the exercise price of      $3.5 per share associated with the convertible notes of $6,000,000 in the      first closing. On November 28, 2007, the Company also issued warrants to      purchase up to 3,600,000 shares of the Company’s common stock at the      exercise price of $2.5 per share and 2,571,430 shares of the Company’s      common stock at the exercise price of $3.5 per share. The allocated      proceeds to these warrants were $2,490,000 in aggregate which were      recorded as reduction in the carrying value of the notes against      additional paid-in capital. As the effective conversion price after      allocating a portion of the proceeds to the warrants was less than the      Company’s market price of common stock at commitment date, it was      considered to have a beneficial conversion feature with value of      $4,727,272 recorded as a reduction in the carrying value of the notes      against additional paid-in capital. Please refer to Note 10 – Convertible      Promissory Note and Warrant for details. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| NOTE      13 | RELATED      PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|         | Except      as set forth below, during our last two fiscal years, the Company have not      entered into any material transactions or series of transactions that      would be considered material in which any officer, director or beneficial      owner of 5% or more of any class of the Company’s capital stock, or any      immediate family member of any of the preceding persons, had a direct or      indirect material interest:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|         | During      the years ended December 31, 2007 and 2006, the Company received hotel      management service fees of $nil and $100,478 respectively from two      properties it manages that are owned by a stockholder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|         | During      the years ended December 31, 2007 and 2006, the Company paid rent of $nil      and $47,489 respectively for office premises leased from a director and      stockholder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|         | On      December 21, 2007, the Company acquired 100% of voting shares of Linkrich      Enterprise Advertising and Investment Limited, a dormant corporation      incorporated in the Hong Kong Special Administrative Region, the PRC on      March 16, 2001 from a director at a consideration of $1,282 which is the      par value of the voting shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

| NOTE      14 | NET      LOSS PER COMMON SHARE                                                                                     |
|--------------|--------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                               |
|         | Net      loss per share information for the years ended December 31, 2007      (Restated) and 2006 was as follows: |

|                                                                |   | 2007(Restated) |        |   | 2006   |   |
|---------------------------------------------------------------------|--------|----------------|-------------|--------|--------|--------|
| Numerator:                                                          |   |           |        |   |   |   |
| Net      loss from continuing operations                            |   | $              | (14,646,619 | )      |   | $      | (4,995,002 | ) |
| Net      income from discontinued operations                        |   |           | -           |   |   |   | 526,296 |   |
| Net      loss attributable to stockholders                          |   | $              | (14,646,619 | )      |   | $      | (4,468,706 | ) |
| Denominator:                                                        |   |           |        |   |   |   |   |   |
| Weighted      average number of shares outstanding, basic           |   |           | 68,556,081  |   |   |   | 52,489,465 |   |
| Effect      of dilutive securities                                  |   |           |        |   |   |   |   |   |
| Options      and warrants                                           |   |           | -           |   |   |   | - |   |
| Weighted      average number of shares outstanding, diluted         |   |           | 68,556,081  |   |   |   | 52,489,465 |   |
|                                                                |   |           |        |   |   |   |   |   |
| Earnings/(Losses)      per ordinary share – basic and diluted |   |           |        |   |   |   |   |   |
| Continuing      operations                                          |   | $              | (0.21       | )      |   | $      | (0.10 | ) |
| Discontinued      operations                                        |   |           | -           |   |   |   | 0.01 |   |
| Net      loss per share – basic and diluted                   |   | $              | (0.21       | )      |   | $      | (0.09 | ) |

|   | The      diluted net loss per share is the same as the basic net loss per share for      the years ended December 31, 2007 and 2006 as all potential ordinary      shares including stock options and warrants are anti-dilutive and are      therefore excluded from the computation of diluted net loss per share. The      securities that could potentially dilute basic earnings (loss) per share      in the future that were not included in the computation of diluted      earnings (loss) per share because of anti-dilutive effect during the years      ended December 31, 2007 and 2006 were summarized as      follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                 |   | 2007   |       |   | 2006   |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Potential      common equivalent shares:                                                                             |   |   |       |   |   |   |
| Stock      options for services                                                                                      |   |   | -          |   |   |   | 205,501 |   |
| Stock      warrants for services (1)                                                                                 |   |   | 122,394    |   |   |   | 39,337 |   |
| Warrants      associated with convertible promissory notes                                                           |   |   | 364,436    |   |   |   | - |   |
| Conversion      feature associated with convertible promissory notes to common      stock                            |   |   | 11,174,242 |   |   |   | - |   |
| Common      stock to be granted to directors executives and employees for services      (including nonvested shares) |   |   | 8,000,000  |   |   |   | 937,260 |   |
| Total                                                                                                                |   |   | 19,661,072 |   |   |   | 1,182,098 |   |
|                                                                                                                 |   |   |       |   |   |   |   |   |
|                                                                                                                 |   |   |       |   |   |   |   |   |

|   | Remarks: (1)   As of December 31,      2007, the number of potential common equivalent shares associated with      warrants issued for services was 122,394, which was related to (1) a      warrant to purchase 200,000 common stock issued to a consultant in 2004      for service rendered at an exercise price of $2.00, which expired in March      2009 and (2) a warrant to purchase100,000 common stock issued by the      Company to a consultant in 2006 for service rendered at an exercise      price of $0.70, which expired in August  2016. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE      15 | INVESTMENT      HELD FOR DISCONTINUED OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|         | (a)   Tianjin      Teda Yide Industrial Company Limited                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|         | On      April 29, 2006, the Company completed the sale of all of its equity      interest in a PRC real estate joint venture, namely Tianjin Teda Yide      Industrial Company Limited (“Yide”, formerly Tianjin Yide Real Estate      Company Limited) pursuant to a Purchase and Sale of Stock Agreement (the      “Agreement”) entered with Far Coast Asia Limited (“Far Coast”). Far Coast      paid the Company a deposit of $800,000 in respect of the sale in January      2006 and a balance payment of $2.2 million was paid on March 31, 2006 (the      “Purchase Price”). The Purchase Price was paid to the Company in Hong Kong      dollars. Far Coast and its affiliated entities have no prior relationship      to the Company and its affiliated entities.                                                                                                                                                      |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|         | In      accordance with FASB Interpretation No. 35,“Criteria for Applying the      Equity Method of Accounting for Investments in Common Stock—an      interpretation of APB Opinion No. 18” (“FIN 35”), the use of the equity      method of accounting for the investment is required if the investor has      the ability to exercise significant influence over the operating and      financial policies of the investee. However, management of the Company has      determined that the failure by the Company to obtain financial information      subsequent to September 30, 2005 has resulted in the loss of significant      influence over the operating and financial policies of Yide. As such, the      use of the equity method was therefore no longer appropriate and the      Company accounted for its investment from October 1, 2005 to April 29,      2006, the date of completion of the sale, under the cost      method. |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|         | On      April 29, 2006, the Company completed the sale of all of its equity      interest in Yide and recorded a gain on the disposal of the affiliate of      $579,870 in 2006 accordingly.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

|   | (b)    Teda      (Beijing) Hotels Management Limited                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | With      equity holding of 100%, Teda (Beijing) Hotels Management Limited (“Teda      BJ”) has been accounted for as a wholly owned subsidiary. In later half of      2006, because of a change in business direction, the Company determined to      dispose Teda BJ and began winding down its operations. No further      transaction associated with Teda BJ was recorded during the year ended      December 31, 2007 and the process of winding down Teda BJ was yet to be      completed as of December 31, 2007. We treated it as discontinued      operations and the effect on financial statements are as      follows: |

| Effect      on Consolidated Balance Sheet             |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Current      liabilities from discontinued operations |   | $      | (3,655 | )      |   | $      | (3,655 | ) |
|                                                  |   |   |   |   |   |   |   |   |
| Effect      on Consolidated Statements of Operations  |   |   |   |   |   |   |   |   |
| Revenues                                              |   | $      | -      |   |   | $      | 142,557 |   |
| Professional      fee                                 |   |   | -      |   |   |   | (376 | ) |
| Payroll                                               |   |   | -      |   |   |   | (109,550 | ) |
| Other      selling, general and administrative        |   |   | -      |   |   |   | (86,359 | ) |
| Other      income                                     |   |   | -      |   |   |   | 93 |   |
| Interest      income                                  |   |   | -      |   |   |   | 61 |   |
| Loss      from discontinued operations                |   | $      | -      |   |   | $      | (53,574 | ) |

| NOTE      16 | BUSINESS      SEGMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|         | The      Company has changed their operating segments in 2007 as a result of change      of internal organization structure by management. The Company currently      operates three operating segments instead of two operating segments in      2006. Each segment operates exclusively. The Company’s Media Network      segment provides marketing communications consultancy services to      customers in China. The Company’s Travel Network segment provides tour      services as well as management services to hotels and resorts in China.      The Company’s Investment Holding segment represents the companies which      provide administrative and management services to its subsidiaries or      fellow subsidiaries. The accounting policies of the segments are the same      as described in the summary of significant accounting policies. There are      no inter-segment sales. |

| 2007      (Restated)                                            |   | Media      Network |       |   | Travel      Network |   |       | InvestmentHolding |   |   | Total      |   |
|-----------------------------------------------------------------|--------|--------------------|------------|--------|---------------------|--------|------------|-------------------|--------|--------|------------|--------|
|   Revenue                                             |   | $                  | 1,442,552  |   |                | $      | 26,140,355 |              |   | $      | -          |   |   | $ | 27,582,907 |   |
|   Net      loss from continuing operations            |   |               | (4,457,881 | )      |                |   | (953,905   | )                 |   |   | (9,234,833 | )      |   |   | (14,646,619 | ) |
|   Depreciation      and amortization                  |   |               |       |   |                |   |       |              |   |   |       |   |   |   |   |   |
| Equipment      and intangible rights                            |   |               | 483,750    |   |                |   | 9,505      |              |   |   | 35,380     |   |   |   | 528,635 |   |
|     Deferred      charges and debt discount |   |               | -          |   |                |   | -          |              |   |   | 206,391    |   |   |   | 206,391 |   |
| Non-cash      impairment charges                                |   |               | 516,419    |   |                |   | 815,902    |              |   |   | -          |   |   |   | 1,332,321 |   |
| Interest      expense                                           |   |               | -          |   |                |   | -          |              |   |   | 122,803    |   |   |   | 122,803 |   |
|   Assets                                              |   |               | 23,509,377 |   |                |   | 2,119,999  |              |   |   | 1,477,967  |   |   |   | 27,107,343 |   |
|   Capital      Expenditures                           |   | $                  | 137,960    |   |                | $      | 3,007      |              |   | $      | 66,404     |   |   | $ | 207,371 |   |
|                                                            |   |               |       |   |                |   |       |              |   |   |       |   |   |   |   |   |

| 2006                                                   |   | Property      Management |       |   | Travel      Agency |   |      | Total  |   |
|--------------------------------------------------------|--------|--------------------------|------------|--------|--------------------|--------|-----------|--------|--------|
|   Revenue                                    |   | $                        | 214,108    |   |               | $      | 4,228,494 |   |   | $ | 4,442,602 |   |
|   Net      loss from continuing operations   |   |                     | (4,939,516 | )      |               |   | (55,486   | )      |   |   | (4,995,002 | ) |
|   Net      gain from discontinued operations |   |                     | 526,296    |   |               |   | -         |   |   |   | 526,296 |   |
|   Depreciation      and amortization         |   |                     | 288,344    |   |               |   | 804       |   |   |   | 289,148 |   |
|   Assets                                     |   |                     | 9,849,607  |   |               |   | 677,527   |   |   |   | 10,527,134 |   |
|   Capital      Expenditures                  |   | $                        | 72,010     |   |               | $      | 18,878    |   |   | $ | 90,888 |   |

| NOTE      17 | INCOME      TAXES                                                                                                                                                                                                                                            |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                         |
|         | Income      is subject to taxation in various countries in which the Company operate.      The loss before income taxes and minority interests by geographical      locations for the years ended December 31, 2007 and 2006 was summarized as      follows: |

|               |   | 2007(Restated) |       |   | 2006   |   |
|--------------------|--------|----------------|------------|--------|--------|--------|
| United      States |   | $              | 4,275,859  |   |   | $      | 2,395,882 |   |
| Foreign            |   |           | 10,425,140 |   |   |   | 2,616,793 |   |
|               |   | $              | 14,700,999 |   |   | $      | 5,012,675 |   |

----

|   | Income      tax expenses by geographical locations for the years ended December 31,      2007 and 2006 was summarized asfollows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

|                           |   | 2007   |                                                    |   | 2006   |   |
|--------------------------------|--------|--------|---------------------------------------------------------|--------|--------|--------|
|  Current                  |   |   |                                                    |   |   |   |
|   United      States |   | $      | -                                                       |   |   | $      | - |   |
|   Foreign            |   |   | 7,668                                                   |   |   |   |    6,984 |   |
|                           |   | $      | 7,668                                                   |   |   | $      | 6,984 |   |
|  Deferred                 |   |   |                                                    |   |   |   |   |   |
|   United      States |   | $      | -                                                       |   |   | $      | - |   |
|   Foreign            |   |   |          - |   |   |   |           - |   |
|                           |   | $      | -                                                       |   |   | $      | - |   |

|   | The      reconciliation of the effective income tax of the Company to the U.S.      federal statutory rate (the principal tax jurisdiction of the Company) was      as follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                      |   | 2007(Restated) |       |   | 2006   |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|--------|--------|
| Expected      income tax benefit                                                                          |   | $              | 4,998,340  |   |   | $      | 1,519,360 |   |
| Operating      loss carried forward                                                                       |   |           | (1,453,792 | )      |   |   | (814,600 | ) |
| Tax      effect on foreign income which is not subject U.S. federal corporate      income tax rate of 34% |   |           | (3,536,880 | )      |   |   | (711,744 | ) |
|                                                                                                      |   | $              | 7,668      |   |   | $      | 6,984 |   |

|   | An      analysis of the Company’s deferred tax liabilities and deferred tax assets      as of December 31, 2007 and 2006 was asfollows: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   | 2007(Restated) |       |   | 2006   |   |
|--------------------------------------------------|--------|----------------|------------|--------|--------|--------|
| Deferred      tax assets:                        |   |           |       |   |   |   |
| Net      operating loss carried forward          |   | $              | 3,807,148  |   |   | $      | 2,353,356 |   |
|    Less:      valuation allowance |   |           | (3,807,148 | )      |   |   | (2,353,356 | ) |
| Net      deferred tax assets                     |   | $              | -          |   |   | $      | - |   |

|               | The      Company provided a full valuation allowance against the deferred tax      assets as of December 31, 2006 and 2007 due to the uncertainty surrounding      the realizability of these benefits in future tax  returns.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| NOTE      18  | SUBSEQUENT      EVENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|               | On      January 1, 2008, the Company and its wholly owned subsidiary CityHorizon      Limited, a Hong Kong company (“CityHorizon Hong Kong”), entered into a      Share Purchase Agreement with CityHorizon Limited, a British Virgin      Islands company (“CityHorizon BVI”), Hui Zhong Lian He Media Technology      Co., Ltd., a wholly owned subsidiary of CityHorizon BVI (“Lianhe”),      Beijing Hui Zhong Bo Na Media Advertising Co., Ltd., a wholly owned      subsidiary of CityHorizon BVI (“Bona”), and Liu Man Ling, an individual      and sole shareholder of CityHorizon BVI pursuant to which the Company,      through its subsidiary CityHorizon Hong Kong, acquired 100% of the issued      and outstanding shares of CityHorizon BVI from Liu Man Ling. Pursuant to      the Share Purchase Agreement, the Company paid the Liu Man Ling      US$5,000,000 in cash and issued Liu Man Ling 1.5 million duly authorized,      validly issued, fully paid and non-assessable shares of the Company’s      common stock.In      connection with the Company’s financing transaction with affiliated      investment funds of Och-Ziff Capital Management Group, effective January      1, 2008 the Company caused its subsidiary, Lianhe, to enter into a series      of commercial agreements with Quo Advertising, pursuant to which Lianhe      provides exclusive technology and management consulting services to      Quo Advertising in exchange for services fees, which amount to      substantially all of the net income of Quo Advertising. Each of the      registered PRC shareholders of Quo Advertising also entered into equity      pledge agreements and option agreements, which cannot be amended or      terminated except by written consent of all parties, with Lianhe. Pursuant      to these equity pledge agreements and option agreements, each shareholder      pledged such shareholder’s interest in Quo Advertising for the performance      of such Quo Advertising’s payment obligations under its respective      exclusive technology and management consulting services agreements. In      addition, Lianhe has been assigned all voting rights by the shareholders      of Quo Advertising and has the option to acquire the equity interests      of Quo Advertising at a mutually agreed purchase price which shall first      be used to repay any loans payable to Lianhe or any affiliate of Lianhe by      the registered PRC shareholders. At the same time, Quo Advertising      terminated its trust arrangement with Crown Winner International Limited.      Effective January 1, 2008, Lianhe also entered into a series of similar      commercial agreements with Bona and Hui Zhi Bo Tong Media Advertising      Beijing Co., Ltd (“Botong”), a company organized under the laws of the      PRC, and their respective registered shareholders.The      effect of these contractual arrangements is to give effective control of      Quo Advertising, Bona and Botong to Lianhe and to allow the Company to      consolidate the results of these entities as variable interest entities      pursuant to FIN 46 (Revised), “Consolidation of Variable Interest      Entities”. |

----

|         | On      January 31, 2008, the Company issued $35,000,000 in 3% Convertible      Promissory Notes and amended and restated $15,000,000 in 3% Convertible      Promissory Notes issued in late 2007. In addition, the Company issued      additional warrants to purchase 14,000,000 shares of the Company’s common      stock at $2.50 per share and warrants to purchase 10,000,000 shares of the      Company’s common stock at $3.50 per share. Concurrently with the Third      Closing, the Company loaned substantially all the proceeds from 3%      Convertible Promissory Notes to its direct wholly owned subsidiary, NCN      Group Limited (“NCN Group”), and such loan was evidenced by an      intercompany note issued by NCN Group in favor of the Company (the “NCN      Group Note”). The Company entered into a Security Agreement, dated as of      January 31, 2008 pursuant to which the Company granted to the collateral      agent for the benefit of the Investors a first-priority security interest      in certain of its assets, including the NCN Group Note and 66% of the      shares of NCN Group. In addition, NCN Group and certain of the Company’s      indirect wholly owned subsidiaries each granted the Company a security      interest in certain of the assets of such subsidiaries to, among other      things, secure the NCN Group Note and certain related      obligations.On      February 13, 2008, the Company fully redeemed 12% promissory notes due May      2008 which was issued in November 2007 at a redemption price equal to 100%      of the principal amount of $5,000,000 plus accrued and unpaid interest. No      penalty or premium was charged for such early  redemption. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| NOTE      19 | RESTATED      FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|         | The      following tables set forth the effects of the restatement as described in      Note 2 of the Company’s consolidated balance sheet as of December 31,      2007 and the Company’s statement of operations for the year ended      December 31, 2007. There was no change to each subtotal (operating,      investing and financing) in the Company’s consolidated statement of cash      flows for the year ended December 31, 2007 as a result of the      restatement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| ASSETS                                                                                            |   |
|---------------------------------------------------------------------------------------------------|--------|
| Current      Assets                                                                          |   | As      Previously Reported |   | As      Restated |   |
|           Cash                                                                     |   | $ | 2,233,528 |   |   | $ | 2,233,528 |   |
|           Accounts receivable, net                                                 |   |   | 1,093,142 |   |   |   | 1,093,142 |   |
|           Prepayments for advertising operating      rights                   |   |   | 13,636,178 |   |   |   | 13,636,178 |   |
|           Prepaid expenses and other current    assets                        |   |   | 3,101,699 |   |   |   | 3,101,699 |   |
|                Total Current Assets             |   |   | 20,064,547 |   |   |   | 20,064,547 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Equipment,      Net                                                                               |   |   | 257,403 |   |   |   | 257,403 |   |
| Intangible      Rights, Net                                                                       |   |   | 6,114,550 |   |   |   | 6,114,550 |   |
| Deferred      Charges, Net                                                                        |   |   | 670,843 |   |   |   | 670,843 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                 |   | $ | 27,107,343 |   |   | $ | 27,107,343 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                   |   |
| Current      Liabilities                                                                     |   |   |   |   |   |   |   |   |
|           Accounts payable, accrued expenses and other      payables               |   | $ | 3,490,586 |   |   | $ | 3,490,586 |   |
|           Current liabilities from discontinued    operations                      |   |   | 3,655 |   |   |   | 3,655 |   |
|     12%      convertible promissory note, net                                 |   |   | 4,740,796 |   |   |   | 4,740,796 |   |
|                 Total Current Liabilities  |   |   | 8,235,037 |   |   |   | 8,235,037 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| 3%      Convertible Promissory Notes Due 2011, Net                                                |   |   | 12,545,456 |   |   |   | 7,885,496 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES                                                                            |   |   | 20,780,493 |   |   |   | 16,120,533 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                |   |   |   |   |   |   |   |   |
|                                                                                              |   |
| MINORITY      INTERESTS                                                                      |   |   | 347,874 |   |   |   | 347,874 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’      EQUITY                                                              |   |   |   |   |   |   |   |   |
|           Preferred stock, $0.001 par value, 5,000,000      shares            |   |   |   |   |   |   |   |   |
|             none issued and outstanding                                  |   |   | - |   |   |   | - |   |
|           Common stock, $0.001 par value, 800,000,000      shares             |   |   |   |   |   |   |   |   |
|              69,151,608 shares issued and      outstanding               |   |   | 69,152 |   |   |   | 69,152 |   |
|           Additional paid-in capital                                          |   |   | 35,673,586 |   |   |   | 35,673,586 |   |
|           Accumulated deficit                                                 |   |   | (29,829,059 | ) |   |   | (25,169,099 | ) |
|           Accumulated other comprehensive income                                   |   |   | 65,297 |   |   |   | 65,297 |   |
| TOTAL      STOCKHOLDERS’ EQUITY                                                        |   |   | 5,978,976 |   |   |   | 10,638,936 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY                                             |   | $ | 27,107,343 |   |   | $ | 27,107,343 |   |

----

|                                                                                   |   | As      Previously Reported |        |   | As      Restated |   |
|----------------------------------------------------------------------------------------|--------|-----------------------------|-------------|--------|------------------|--------|
| REVENUES                                                                          |   |                        |        |   |             |   |
|           Travel services                                     |   | $                           | 26,140,355  |   |             | $      | 26,140,355 |   |
|           Advertising services                                |   |                        | 1,442,552   |   |             |   | 1,442,552 |   |
|           Related parties                                     |   |                        | -           |   |             |   | - |   |
|           Total Revenues                                           |   |                        | 27,582,907  |   |             |   | 27,582,907 |   |
|                                                                                   |   |                        |        |   |             |   |   |   |
| COSTS AND      EXPENSES                                                           |   |                        |        |   |             |   |   |   |
|           Cost of travel services                                  |   |                        | 25,830,401  |   |             |   | 25,830,401 |   |
|           Cost of advertising services                             |   |                        | 2,795,188   |   |             |   | 2,795,188 |   |
|           Professional fees                                        |   |                        | 5,612,810   |   |             |   | 5,612,810 |   |
|           Payroll                                                       |   |                        | 4,098,842   |   |             |   | 4,098,842 |   |
|           Non-cash impairment charges                                   |   |                        | 1,332,321   |   |             |   | 1,332,321 |   |
|           Other selling, general &    administrative           |   |                        | 2,321,245   |   |             |   | 2,321,245 |   |
|           Total Costs and Expenses                                 |   |                        | 41,990,807  |   |             |   | 41,990,807 |   |
|                                                                                   |   |                        |        |   |             |   |   |   |
| LOSS      FROM OPERATIONS                                                         |   |                        | (14,407,900 | )      |             |   | (14,407,900 | ) |
|                                                                                   |   |                        |        |   |             |   |   |   |
| OTHER      INCOME                                                                      |   |                        |        |   |             |   |   |   |
|           Interest income                                          |   |                        | 26,811      |   |             |   | 26,811 |   |
|           Other income                                             |   |                        | 9,284       |   |             |   | 9,284 |   |
|           Total Other Income                                            |   |                        | 36,095      |   |             |   | 36,095 |   |
|                                                                                   |   |                        |        |   |             |   |   |   |
| INTEREST      EXPENSE                                                                  |   |                        |        |   |             |   |   |   |
|           Amortization of deferred charges and debt      discount  |   |                        | 4,866,351   |   |             |   | 206,391 |   |
|           Interest expense                                         |   |                        | 122,803     |   |             |   | 122,803 |   |
|           Total Interest Expense                                   |   |                        | 4,989,154   |   |             |   | 329,194 |   |
|                                                                                   |   |                        |        |   |             |   |   |   |
| NET      LOSS BEFORE INCOME TAXES AND MINORITY INTERESTS                               |   |                        | (19,360,959 | )      |             |   | (14,700,999 | ) |
|           Income taxes                                                  |   |                        | (7,668      | )      |             |   | (7,668 | ) |
|           Minority interests                                       |   |                        | 62,048      |   |             |   | 62,048 |   |
| NET LOSS FROM CONTINUING      OPERATIONS                                          |   |                        | (19,306,579 | )      |             |   | (14,646,619 | ) |
|                                                                                   |   |                        |        |   |             |   |   |   |
| DISCONTINUED      OPERATIONS                                                      |   |                        |        |   |             |   |   |   |
|           Loss from discontinued operations                             |   |                        | -           |   |             |   | - |   |
|           Gain on disposal of an affiliate                         |   |                        | -           |   |             |   | - |   |
| NET      INCOME FROMDISCONTINUED      OPERATIONS                                       |   |                        | -           |   |             |   | - |   |
|                                                                                   |   |                        |        |   |             |   |   |   |
| NET      LOSS                                                                          |   |                        | (19,306,579 | )      |             |   | (14,646,619 | ) |
|                                                                                   |   |                        |        |   |             |   |   |   |
| OTHER      COMPREHENSIVE INCOME                                                        |   |                        |        |   |             |   |   |   |
|           Foreign currency translation gain                             |   |                        | 61,817      |   |             |   | 61,817 |   |
| COMPREHENSIVE      LOSS                                                                |   | $                           | (19,244,762 | )      |             | $      | (14,584,802 | ) |
|                                                                                   |   |                        |        |   |             |   |   |   |
| NET      INCOME (LOSS) PER COMMON SHARE – BASIC AND DILUTED                      |   |                        |        |   |             |   |   |   |
| Loss      per common share from continuing operations                                  |   | $                           | (0.28       | )      |             | $      | (0.21 | ) |
| Income      per common share from discontinued operations                              |   |                        | -           |   |             |   | - |   |
| Net      loss per common share – basic and diluted                               |   | $                           | (0.28       | )      |             | $      | (0.21 | ) |
| WEIGHTED      AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED                     |   |                        | 68,556,081  |   |             |   | 68,556,081 |   |

----

----

| ITEM      13. | EXHIBITS |
|---------------|----------|

| 23.1 | Consent      of independent auditors Webb & Company, P.A. *                                                                                                         |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 23.2 | Consent      of independent auditors Jimmy C.H. Cheung & Co. *                                                                                                      |
| 24.1 | Power      of Attorney (included in the Signatures section of this      report).                                                                                        |
| 31.1 | Rule      13a-15(e)/15d-15(e) Certification by the Chief Executive Officer.      *                                                                                      |
| 31.2 | Rule      13a-15(e)/15d-15(e) Certification by the Chief Financial Officer.      *                                                                                      |
| 32.1 | Certification      by the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.      * |
| 32.2 | Certification      by the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.      * |

----

| NETWORK      CN INC.         |
|------------------------------|
| By:      /s/ Godfrey Hui     |
| Godfrey      Hui             |
| Chief      Executive Officer |

| Name                 |   | Title                                     | Date                       |
|----------------------|--------|-------------------------------------------|----------------------------|
|                 |   |                                      |                       |
| /s/      Godfrey Hui |   | Director      and Chief Executive Officer | October 22,      2008 |
| Godfrey      Hui     |   |                                      |                       |
|                 |   |                                      |                       |
| /s/      Daley Mok   |   | Director      and Chief Financial Officer | October 22,      2008 |
| Daley      Mok       |   |                                      |                       |
|                 |   |                                      |                       |
| /s/      Daniel So   |   | Director                                  | October 22,      2008 |
| Daniel      So       |   |                                      |                       |
|                 |   |                                      |                       |
| /s/      Stanley Chu |   | Director                                  | October 22,      2008 |
| Stanley      Chu     |   |                                      |                       |
|                 |   |                                      |                       |
| /s/      Peter Mak   |   | Director                                  | October      22, 2008      |
| Peter      Mak       |   |                                      |                       |

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