U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-KSB

[X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     For the fiscal year ended December 31, 2003

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT
     OF 1934

       For the transition period from                   to
                                      -----------------    -----------------

       Commission file number

                                CYPER MEDIA,INC.
                      -------------------------------------
                     (Name of small business in its charter)

          New York                 000-33517                       11-357940
 ---------------------------    ---------------                 ---------------
(State or other jurisdiction    Commission File                (IRS Employer
      of Incorporation)         Number                         Identification #)

                         5650 Yonge Street, Suite 1500
            --------------------------------------------------------
            Address of Principal Executive Office (street and number)


                         Toronto, Ontario Canada M2M4G3
                            ------------------------
                            City, State and Zip Code

Issuer's telephone number:  (416) 512-3777

Securities registered under Section 12(b) of the Act:

Title of each class   N/A

Securities to be registered under Section 12(g) of the Act:

                          Common Stock $.001 par value
                                (Title of Class)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes [ X ]   No  [  ]

Check if there is no disclosure of delinquent filers in response to Item 405 of

Regulation S-B contained in this form, and no disclosure will be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [ ]

<PAGE>


Issuer's revenue for its most recent fiscal year: $56,076.

The aggregate market value of the voting stock held by non-affiliates computed
by reference to the price at which the stock was sold, or the average bid and
asked priced of such stock, as of a specified date within the past 60 days (See
definition of affiliate in Rule 12b-2):$4,917,285 as of 3/31/04.

The number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 88,470,560 as of March 31, 2003.

(Documents incorporated by reference. If the following documents are
incorporated by reference, briefly describe them and identify the part of the
Form 10-KSB (e.g. Part I, Part II, etc.) into which the document is
incorporated: (1) any annual report to security holders; (2) any proxy or
information statement; and (3) any prospectus filed pursuant to Rule 424(b) or
(c) of the Securities Act of 1933 ("Securities Act"). The listed documents
should be clearly described for identification purposes.

Forward Looking Statements
--------------------------

Certain statements contained herein constitute "forward-looking statements"
within the meaning of Section 27 A of the Securities Exchange Act of 1933, as
amended (the "Securities Act") and Section 21E of the Securities Exchange Act of
1934, as amended (the "Exchange Act"). These forward-looking statements can be
identified by the use of predictive, future-tense or forward-looking
terminology, such as "believes," "anticipates," "expects," "estimates," "plans,"
"may", "intends", "will," or similar terms. These statements appear in a n umber
of places in this report and include statements regarding the intent, belief or
current expectations of the Company, its directors or its officers with respect
to, among other things: (i) trends affecting the Company's financial condition
or results of operations, (ii) the Company's business and growth strategies,
(iii) the Company's financing plans.

Investors are cautioned that any such forward-looking statements are not
guarantees of future performance and involve significant risks and
uncertainties, and that actual results may differ from these projected in the
forward-looking statements. The discussion of the financial condition and
results of operations of the Company should be read in conjunction with the
financial statements and notes related thereto included elsewhere in this
report.

<PAGE>


                                     Part I

Item 1 - Description of Business
--------------------------------

Cyper Media, Inc. ("Cyper/the Company") was formed as a New York Corporation on
November 30, 2000 as JRE, Inc. The Company changed its name to Cyper Media Inc.
on October 2, 2003. JRE operated an internet web site which generated commission
revenues on the sale of products that were supplied by third party suppliers
which JRE sold at retail and wholesale.

JRE Inc. and its predecessors have not had filings of any bankruptcies,
receiverships or similar proceedings.

On July 10, 2003, 10,000,000 shares of restricted common stock of the Company
was issued to the shareholders of Cyper Entertainment, Inc. ("Entertainment") in
exchange for all of the issued and outstanding shares of Entertainment pursuant
to the provisions of the Acquisition Agreement dated May 23, 2003 by and between
JRE, Inc., Entertainment and shareholders of Entertainment. As a result of
closing pursuant to the Acquisition Agreement, and the issuance of such shares,
Entertainment has become a wholly owned subsidiary of the Company and the former
Entertainment shareholders now own approximately 67% of the Company's issued and
outstanding shares.

There are no arrangements known to the Company, including any pledge by any
person, of securities of the Company, the operation of which may, at a
subsequent date, result in a change in control of the Company.

As a result of the acquisition of Entertainment, a 3D Digital Animation
Production company located in Seoul, Korea, which provides services to the
television, commercial and film industries, the business of Entertainment is now
the Company's main line of business.

Cyper Entertainment, Inc.
-------------------------

Entertainment develops and produces 3D digital animation for television, short
films, feature films, home video, music video and multi-media applications such
as video games and operates in three revenue segments:

Independent Contractor for Services: Entertainment produces digital animation
projects for unrelated third-parties on a fee basis. Typically, the projects are
prepared to the specifications of the party hiring Entertainment.

<PAGE>


Proprietary Development: Entertainment develops original animation projects
based on characters and storylines conceived by Entertainment, in which event
Entertainment owns all proprietary rights in the project. To date,
Entertainment's principal efforts in proprietary development have been:

"Biggie and Danmu" - Entertainment has created a ten minute pilot episode of
this children's educational animation short. The show is designed to fill ten
minutes of airtime in a children's program and has no dialogue so that it can be
marketed worldwide. The pilot episode is currently being marketed to
distributors.

"The 5th Global Epoch" - Entertainment has prepared a demo reel with the
concepts and characters for this project, which is being marketed to
distributors.

Co-Production Development: Entertainment produces animation projects based on
characters conceived and owned by other parties. With co-production
developments, Entertainment enters into agreements with the owners of rights to
the characters regarding responsibility for production costs, marketing costs,
the allocation of gross or net revenues from the production, and the rights to
derivative works, such as sequels, spin-offs, toys and games.

JoongAng Movie Entertainment Co., Ltd.
--------------------------------------

On October 23, 2003, 4,000,000 shares of restricted common stock of the Company
were issued to the shareholders of JoongAng Movie Entertainment Co., Ltd.
("JoongAng") in exchange for all of the issued and outstanding shares of
JoongAng. JoongAng develops and produces 2D traditional/digital animation for
television, feature films and home video/DVD. JoongAng operates in two revenue
segments:

Independent Contractor for Services: JoongAng produces 2D animation for
unrelated third parties on a fee basis. The projects are prepared to the
specifications of the party hiring JoongAng.

Proprietary Development: JoongAng develops original animation, Costume Play
Events, Live Action Feature Film projects based on characters and storylines
conceived by JoongAng and also other parties in which JoongAng and their
respective partners hold certain rights in the project:

Administrative Offices - The Company's executive offices are maintained at 5650
Yonge Street, Suite 1508, Toronto, Canada.


Employees - Cyper Media has 8 full-time employees and 87 part-time and/or per
project basis employees.

<PAGE>


Item 2.   Description of Property
---------------------------------

Cyper Media, Inc. leases 100 square feet of office space at 5650 Yonge Street,
Toronto, Ontario, Canada where it maintains its executive offices, and
Entertainment and JoonAng share 3050 square feet of leased office space at
Ganghee Building, 4th Floor, 529-12, Shillim-Dong, Gwanak-Gu Seoul, South Korea.

Item 3.   Legal Proceedings
---------------------------

The Company is not currently involved in any legal proceedings.

Item 4. Submission of Matter to a Vote of Security Holders
----------------------------------------------------------

No matters were submitted to a vote of Security Holders during the 4th quarter
of the fiscal year.

                                     Part II
                                     -------

Item 5.   Market for Common Equity, Related Stockholder Matters and Company
---------------------------------------------------------------------------
          Purchase of Equity Securities
          -----------------------------

(a) The company underwent a 2 for 1 stock split of its stock on August 25, 2003.
The quotations shown below are on a post-split basis. The following table sets
forth the high and low bid prices as reported by Yahoo Finance for the periods
ending December 31, 2003. All quotations reflect inter-dealer prices, without
retail mark-up, mark-down or commissions, and may not reflect actual
transactions. There was no trading in the Company's stock in 2002.

         quarter           High             Low
         -------           ----             ---
2003     4th               0.47             0.15
         3rd               0.51             0.08
         2nd               0.53             0.20
         1st               0.30             0.05

(b) The Company has approximately 83 shareholders of its outstanding common
stock.

(c) No cash dividends have been declared on the Company's common stock within
the last two years. There are no restrictions that limit the Company's ability
to pay cash dividends nor are there likely to be any in the near future.

Recent Sales of Unregistered Securities.
----------------------------------------

On October 23, 2003, the Company issued 4,000,000 restricted shares of common
stock to the shareholders of Joonang Movie Entertainment Co., Ltd in exchange
for all of the issued and outstanding shares of JoonAng. Such issuance was
exempt from registration under Section 4(2) of the under the Securities Act as
it did not involve a public offering of securities as that term is defined in
the Securities Act.

<PAGE>


In February 2004, the Company issued 50,000,000 restricted shares of common
stock to a creditor in connection with the conversion of outstanding convertible
debt obligations, and in February 2004 the Company also issued 350,000
restricted shares of common stock valued at $17,500 for consulting services
related to the proposed debt financing arrangement. All of such shares were
issued without registration pursuant to an exemption from registration under
Section 4(2) of the Securities Act.

Item 6. Managements Discussions & Analysis or Plan of Operation
---------------------------------------------------------------

The following discussion relates to the results of our operations to date, and
our financial condition: This report contains forward looking statements
relating to our Company's future economic performance, plans and objectives of
management for future operations, projections of revenue mix and other financial
items that are based on the beliefs of, as well as assumptions made by and
information currently known to, our management. The words "expects, intends,
believes, anticipates, may, cold should" and similar expressions and variations
thereof are intended to identify forward-looking statements. The cautionary
statements set forth in this section are intended to emphasize that actual
results may differ materially from those contained in any forward looking
statement.

Critical Accounting Policies and Estimates

Our discussion and analysis of financial condition and results of operations are
based upon our consolidated financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States.
The preparation of these financial statements requires us to make estimates and
judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure or contingent liabilities. We base there
estimates on our historical experience and on various other assumptions that we
believe to be reasonable under the circumstances, and these estimates from the
basis for our judgments concerning the carrying values of assets and liabilities
that are not readily apparent from other sources. We periodically evaluate these
estimates and judgments based on available information and experience. Actual
results will differ from our estimates under different assumptions and
conditions. If actual results significantly differ from our estimates, our
financial condition and results of operations could be materially impacted.

We believe that the accounting policies described below are critical to
understanding our business, results of operations and financial condition
because they involve more significant judgments and estimates used in the
preparation of our consolidated financial statements. An accounting policy is
deemed to be critical if it requires an accounting estimate to be made based on
assumptions about matters that are highly uncertain the time the estimate is
made, and if different estimates that could have been used, or changes in the
accounting estimates that are reasonably likely to occur periodically, could
materially impact our consolidated financial statement. We have discussed the
development, selection and application of our critical accounting policies with
the audit committee of our board of directors, and our audit committee has
reviewed our disclosure relating to our critical accounting policies in this
"Management's Discussion and Analysis or Plan of Operations."

<PAGE>


Revenue Recognition

The Company follows the guidance of the Securities and Exchange Commission's
Staff Accounting Bulletin 101 for revenue recognition. In general, the Company
records revenue when persuasive evidence of an arrangement exists, services have
been rendered or product delivery has occurred, the sales price to the customer
is fixed or determinable, and collectability is reasonably assured.

Foreign Currency Translation

Transactions and balances originally denominated in U.S. dollars are presented
at their original amounts. Transactions and balances in other currencies are
converted into U.S. dollars in accordance with Statement of Financial Accounting
Standards (SFAS) No. 52, "Foreign Currency Translation," and are included in
determining net income or loss.

For foreign operations with the local currency as the functional currency,
assets and liabilities are translated from the local currencies into U.S.
dollars at the exchange rate prevailing at the balance sheet date. Revenues and
expenses are translated at weighted average exchange rates for the period to
approximate translation at the exchange rates prevailing at the dates those
elements are recognized in the financial statements. Translation adjustments
resulting from the process of translating the local currency financial
statements into U.S. dollars are included in determining comprehensive loss.

The functional currency of the Company's Korean subsidiaries is the local
currency (Korean Won). The financial statements of the subsidiaries are
translated to United States dollars using year-end rates of exchange for assets
and liabilities, and average rates of exchange for the period for revenues,
costs, and expenses. Net gains and losses resulting from foreign exchange
transactions are included in the consolidated statements of operations and were
not material during the periods presented. The cumulative translation adjustment
and effect of exchange rate changes on case at December 31, 2003 was not
material.

Results of Operation
====================

The Company's revenue for the years ended December 31, 2003 and 2002 were
$56,076 and $193,919. The Company's revenues decreased in 2003 in comparison to
2002 primarily as a result of the increase in the Company's selling, general and
administrative expenses. The Company's selling, general and administrative
expenses for the year ended December 31, 2003 was $658,842 and the year ended
December 31, 2002 was $335,190.

<PAGE>


The Company does not believe that revenues for the year ended December 31, 2003
are indicative of revenues that the Company will incur in future periods. The
Company's management believes that revenues will increase in the next several
years.

Liquidity and Sources of Capital
================================

As of December 31, 2003, the Company had current assets of $80,152, current
liabilities of $3,348,488 and a working capital deficit of ($3,995,202) and
shareholders' equity of ($2,822,987).

The Company's working capital is currently not sufficient for the Company to
implement its business plan. The Company's ability to continue as a going
concern is contingent upon its ability to secure additional financing and
increase sale of its products. The Company is pursuing various sources of equity
financing and is also attempting to increase its sales. Although the Company
plans to pursue additional financing, there can be no assurance that the Company
will be able to secure such financing when needed or on terms satisfactory to
the Company.

Recent Accounting Pronouncements
================================

In December 2002, the FASB issued Statement of Financial Accounting Standards
No. 148, Accounting for Stock-Based Compensation - Transition and Disclosure.
Statement 148 provides alternative methods of transition to Statement 123's fair
value method of accounting for stock-based employee compensation. It also amends
the disclosure provisions of Statement 123 and APB Opinion No. 28, Interim
Financial Reporting, to requires disclosure in the summary of significant
accounting policies of the effects of an entity's accounting with respect to
stock-based employee compensation on reported net income and earnings per share
in annual and interim financial statements. Statement 148"s amendment of the
transition and annual disclosure requirements of Statement's 123 are effective
for fiscal years ending after December 15, 2002. Statement 148's amendment of
the disclosure requirements of Opinion 28 is effective for interim periods
beginning after December 15, 2002. The adoption of the disclosure provisions of
Statement 148 as of December 31, 2002 did not have a material impact on the
Company's financial condition or results of operations.

In January 2003, the FASB issued Interpretation No. 46 ("FIN 46"),
"consolidation of Variable Interest Entities," FIN 46 requires that if an entity
has a controlling financial interest in a variable interest entity, the assets,
liabilities and results of activities of the variable interest entity should be
included in the consolidated financial statements of the entity. FIN 46 requires
that its provisions are effective immediately for all arrangements entered into
after January 31, 2003. The Company does not have any variable interest entities
created after January 31, 2003. For those arrangements entered into prior to
January 31, 2003, the FIN 46 provisions are required to be adopted at the
beginning of the first interim or annual period beginning after June 13, 2003.
The Company has not identified any variable interest entities to date and will
continue to evaluate whether it has variable interest entities that will have a
significant impact on its consolidated balance sheet and results of operations.

<PAGE>


In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of Both Liabilities and Equity." This statement
establishes standards for how an issuer classifies and measures certain
financial instruments with characteristics of both liabilities and equity. This
statement is effective for financial instruments entered into or modified after
May 31, 2003, and otherwise is effective for the first interim period beginning
after June 15, 2003, with certain exceptions. The adoption of SFAS No. 150 did
not have a significant impact on our consolidated financial position or results
of operations.

Item 7.  Financial Statements -  See Financial Statements Attached.
-----------------------------

Item 8.  Changes in or Disagreement With Accountants On Accounting and Financial
--------------------------------------------------------------------------------
         Disclosure
         ----------

The Company had no disagreements with Accountants on accounting and financial
disclosure.

On July 10, 2003 the Company engaged the accounting firm of SF Partnership LLP
as its independent accountants to audit the Company's financial statements
beginning with the fiscal year ended December 31, 2003. The Company amicably
concluded its relationship with its former accountant Stewart H. Benjamin with
the appointment of SF Partnership LLP.

Item 8(A)  Controls and Procedures
----------------------------------

We carried out an evaluation under the supervision and with the participation of
our management, including our Chief Executive Officer and Chief Financial
Officer, of the effectiveness of the design and operation of our disclosure
controls and procedures pursuant to Securities Exchange Act Rules 13a-15(e) and
15d-15(e). Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that our disclosure controls and procedures as of
December 31, 2003 are effective in timely alerting them to material information
relating to the company required to be included in our periodic SEC Filings. The
design of any system of controls is based in part upon certain assumptions about
the likelihood of future events, and there can be no assurance that any design
will succeed in achieving its stated goals under all potential future
conditions, regardless of how remote. There were no significant changes in our
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation.

Item 9.    Directors, Executive Officers, Promoters and Control Persons;
------------------------------------------------------------------------
           Compliance with Section 16(a) of the Exchange Act.
           --------------------------------------------------

The directors and executive officers currently serving the Company are as
follows:

  Name              Age                Title
------------        ---                -----

Duk Jin Jang        34                CEO & Director

Michael Chung       31                President, Secretary, Treasurer & Director

Jong Won Yoon       31                Vice-President, Director

<PAGE>


Duk Jin Jang:

Mr. Jang, the Company's CEO; has been Chairman and Chief Executive Officer of
Cyper Entertainment since June 1, 2002. Mr. Jang worked as a department manager
of POST Intermedia, Inc. from 1992 to 1993, and as a manager of Nowcom, Inc.
From 1996 to 1996. Mr. Jang worked as a manager of GEN Multimedia studio} from
1997 to 1998. Mr. Jang worked as a Professor at Kaywon School of Art and Design
from 1997 until 2000. Mr. Jang has been Director of Digital Contents Associates
in Korea since 2001, and an advisory committee member of Gyeonggi Digital Arts
Hive at Gyeonggi-Do, Korea since 2001. Mr. Jang started Cyper Entertainment,
Inc. In January 2000. Mr. Jang attended Kook Min University in Seoul Korea,
graduating with a degree in visual Communication Design in 1995.

Michael Chung

Mr. Chung is Secretary and Treasurer of the Company and has been with the
Company since March 14, 2001. Mr. Chung has worked as a digital colorist for
Cream Entertainment from October 2000 to February 2001. Mr. Chung worked as a
digital artist for Matrixcube from October 2000 to February 2001. Mr. Chung
worked as an animator on a short animated film for the 407 ETR in 1996 to 1997.
Mr. Chung worked as an animator on the Multimedia CD-Rom Lambchop Loves Music in
1995. Mr. Chung attended Digital Media Studios and studied 3D modeling and
animation using Alias Wavefront Maya. Mr. Chung attended Sheridan College from
1992-1996 studying fundamental arts and Classical Animation.

Jong Won Yoon

Mr. Yoon attended Dankook University in Chun Ahn, Korea, graduating with a
degree in Management in 1999 and thereafter attended Dankook University in
Seoul, Korea, graduating with a master's degree in Management in 2001. He worked
as a manager of FMG of Consulting Company until December, 2001 and worked TFT
Team of Korea Game Development & Promotion Institute with planning to Game
Education Institute in 2001.

Duk Jin and Jong Won Yoon officers and directors of the Company did not file
their Initial Statement of Beneficial Ownership of Securities on Form 3 at the
time they acquired their shares in the Company. They have advised the Company
that they will file same by May 30, 2004.

<PAGE>


Item  10. Executive Compensation
--------------------------------

None of the executive officers of the Company receive compensation in excess of
$60,000 and all of the Company's executive officers in the aggregate receive
compensation of less than $60,000 per annum.

The Company has not stock option, retirement, pension or profit-sharing programs
for the benefit of directors, officers or other employees, but the Board of
Directors may recommend adoption of one or more such programs in the future.

Item ll.  Security Ownership of Certain Beneficial Owners and Management.
------------------------------------------------------------------------

The following table sets forth, as of the end of the Company's most recent
fiscal year, the number of shares of Common Stock owned of record and
beneficially by executive officers, directors and persons who hold 5.0% or more
of the outstanding Common Stock of the Company. Also included are the shares
held by all executive officers and directors as a group.

Name and Address                           Number of Shares            % of
                                          Owned Beneficially        Class Owned
==============                            ==================        ===========
Hem Mutual Assurance LLC                      49,030,000               55.4
c/o Gottbetter  & Partners LLP
488 Madison Avenue
New York, NY 10022

Duk Jin Jang                                   6,815,966                7.7
Hosubmaeul Yuwon Apt 317 Dong 801 Ho
Janghang-Dong, LIsan-Gu
Goyang-Si, Kyungki-Do
Korea

Jong Won Yoon                                    791,498                 .9
Hallamaeui 130-Dong 1003-Ho
Ung 4(SA)-Dong
Wonmi-Gu, Bucheon-Si
Kyungki-Do, Korea

All directors and Executive                    7,607,464                8.6
Officers (2) persons

Item 12.  Certain Relationships and Related Transactions
--------------------------------------------------------

There were no transactions within the last two fiscal years to which the Company
was a party, in which any director, executive officer, nominee for election as a
director, beneficial owner of more than 5% of the shares, or any member of the
immediate family of any of those persons, had a direct or indirect material
interest.

<PAGE>


Item 13. Exhibits List and Reports on Form 8-K
----------------------------------------------

(a) The Exhibits listed below are filed as part of this Annual Report.

3.1 Articles of Incorporation (incorporated by reference from Registration
Statement on Form 10-SB filed with the Securities and Exchange Commission on
January 18, 2003.

3.2 Bylaws (incorporated by reference from Registration Statement on Form 10-SB
filed with the Securities and Exchange Commission on January 18, 2003.

14.1     Company Code of Ethics Statement.

31.1     Certification under Section 902 of the Sarbanes-Oxley Act of 2002.

32.1     Certification under Section 302 of the Sarbanes-Oxley Act of 2002.

(b) There were no reports filed on Form 8-K during the last quarter of fiscal
year ended December 31, 2003.

Item 14.  Principal Accountants Fees and Services
-------------------------------------------------

Audit Fees
==========

SF Partnership LLP provided audit services to us for our annual report for the
fiscal years ended December 31, 2003 and 2002. The aggregate fees billed by SF
Partnership LLP. for the audit of our annual financial statements and review of
financial statements included in our Form 10-QSBs was $26,000 and $17,000 for
2003 and 2002, respectively.

Audit Related Fees
==================

There were no fees billed in each of 2003 and 2002 for professional services
that are reasonably related to the audit or review of our financial statements
that are not covered in the "Audit Fees" disclosure above.

Tax Fees
========

There were no fees billed for the years 2003 and 2002 for professional services
rendered by SF Partnership LLP for tax advice and planning.

All Other Fees
==============

There were no fees billed in each of 2003 and 2002 for professional services
rendered by SF Partnership LLP. for all other services not disclosed above.

<PAGE>







SIGNATURES

In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

Dated:     April 19, 2004

                                            CYPER MEDIA  INC.



                                            By:  /s/  Duk Jin Jang
                                               --------------------------------
                                                      Duk Jin Jang
                                                      Chairman of the Board




                                            By:  /s/  Michael Chung
                                               --------------------------------
                                                      Michael Chung
                                                      Secretary



<PAGE>
                                CYPER MEDIA, INC.

                        CONSOLIDATED FINANCIAL STATEMENTS

                     YEARS ENDED DECEMBER 31, 2003 AND 2002






                                    CONTENTS

Independent Auditors' Report                                                  1

Consolidated Balance Sheets                                                   2

Consolidated Statement of Stockholders' Equity                                3

Consolidated Statement of Operations                                          4

Consolidated Statement of Cash Flows                                          5

Notes to Consolidated Financial Statements                               6 - 13


<PAGE>


                          INDEPENDENT AUDITORS' REPORT


To the Stockholders of
Cyper Media, Inc.


     We have audited the accompanying consolidated balance sheets of Cyper
Media, Inc. and subsidiaries (the "Company") as of December 31, 2003 and 2002,
and the related consolidated statements of stockholders' equity, operations, and
cash flows for the years then ended. These consolidated financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.

     We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall consolidated financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

     In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of the Company
as of December 31, 2003 and 2002, and the results of its operation, accumulated
deficit and its cash flows for the years ended, in conformity with accounting
principles generally accepted in the United States of America.

     The accompanying consolidated financial statements have been prepared
assuming that the Company will continue as a going concern. As discussed in Note
1(b) to the consolidated financial statements, the Company has suffered
recurring losses and negative working capital from operations, which raises
substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these matters are also described in Note 1(b). The
consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.



                                            "SF PARTNERSHIP, LLP"



Toronto, Canada                             CHARTERED ACCOUNTANTS
March 25, 2004

                                      - 1 -

<PAGE>


CYPER MEDIA, INC.
Consolidated Balance Sheets
December 31, 2003 and 2002

                                                        2003            2002

                                     ASSETS
Current
    Cash                                             $       553    $     9,244
    Term deposit                                            --           13,650
    Prepaid and sundry assets                                 12             44
    Accounts receivable                                   23,015           --
    Loan to a director (note 3)                           56,572           --
                                                     -----------    -----------

                                                          80,152         22,938
Long-term Prepaid Assets                                    --           34,893
Rent Deposits                                                419            420
Equipment (note 4)                                       327,930        706,644
Goodwill                                                 117,000           --
                                                     -----------    -----------

                                                     $   525,501    $    64,895
                                                     ===========    ===========


                                   LIABILITIES
Current
    Bank loans (note 5)                              $   374,373    $   323,400
    Accounts payable and accrued charges               1,488,465      1,038,234
    Loan payable                                            --           42,000
    Loans from shareholders and directors (note 6)     1,485,650        501,068
    Convertible bond (note 7)                               --          823,200
                                                     -----------    -----------
                                                       3,348,488      2,727,902
                                                     -----------    -----------


                              STOCKHOLDERS' EQUITY
Capital Stock (note 8)                                    38,120          9,920
Paid in Capital                                        1,208,248        893,125
Accumulated Other Comprehensive Loss                     (74,153)       (83,092)
Accumulated Deficit                                   (3,995,202)    (2,782,960)
                                                     -----------    -----------

                                                      (2,822,987)    (1,963,007)
                                                     -----------    -----------

                                                     $   525,501    $   764,895
                                                     ===========    ===========



APPROVED ON BEHALF OF THE BOARD



          "DUK JIN JANG"                          "MICHAEL CHUNG"
       ----------------------                 ----------------------
            Director                                 Director

                                     - 2 -

<PAGE>
<TABLE>
<CAPTION>


CYPER MEDIA, INC.
Consolidated Statement of Stockholders' Equity
Years Ended December 31, 2003 and 2002



                                                             Paid in    Accumulated
                                                          Capital in          Other                         Total
                               Number of       Capital     excess of  Comprehensive    Accumulated   Stockholders'
                                  Shares         Stock     Par Value           Loss        Deficit         Equity
                             -----------   -----------   -----------    -----------    -----------    -----------
<S>                       <C>         <C>           <C>            <C>            <C>            <C>
Balance, January 1, 2002       9,920,500   $     9,920   $   893,125    $    81,898    $(2,343,529)   $(1,358,586)
Foreign exchange on
  translation                       --            --            --         (164,990)          --         (164,990)
Net Loss                            --            --            --             --         (439,431)      (439,431)
                             -----------   -----------   -----------    -----------    -----------    -----------

Balance, December 31, 2002     9,920,500   $     9,920   $   893,125    $   (83,092)   $(2,782,960)   $(1,963,007)
                             ===========   ===========   ===========    ===========    ===========    ===========


Balance, January 1, 2003       9,920,500   $     9,920   $   893,125    $   (83,092)   $(2,782,960)   $(1,963,007)
 Common shares issued on
  acquisition of Cyper
  Entertainment Co., Ltd.     20,000,000        20,000       (19,369)          --             --              631
Common shares issued on
  acquisition of Joongang
  Movie Entertainment
  Co., Ltd.                    4,000,000         4,000       128,692           --             --          132,692
Common shares issued for
  services                     4,200,000         4,200       205,800           --             --          210,000
Foreign exchange on
  translation                       --            --            --            8,939           --            8,939
Net Loss                            --            --            --             --       (1,212,242)    (1,212,242)
                             -----------   -----------   -----------    -----------    -----------    -----------


Balance, December 31, 2003    38,120,500   $    38,120   $ 1,208,248    $   (74,153)   $(3,995,202)   $(2,822,987)
                             ===========   ===========   ===========    ===========    ===========    ===========

                                                      - 3 -
</TABLE>

<PAGE>






CYPER MEDIA, INC.
Consolidated Statement of Operations
Years Ended December 31, 2003 and 2002



                                                       2003            2002

Sales                                              $     56,076    $    193,919

Cost of Sales                                           152,484         313,991
                                                   ------------    ------------

Gross Loss                                              (96,408)       (120,072)
                                                   ------------    ------------

Expenses
    Selling, general and administrative expenses        658,842         355,190
    Interest                                            121,143         124,863
    Miscellaneous                                           230             813
    Depreciation                                         92,019         118,493
                                                   ------------    ------------

                                                        872,234         599,359
                                                   ------------    ------------

Net Loss Before the Undernoted                         (968,642)       (719,431)

    Loss on disposition of equipment                   (243,600)           --
    Forgiveness of related party loan                      --           280,000
                                                   ------------    ------------


Net Loss                                           $ (1,212,242)   $   (439,431)
                                                   ============    ============


Fully Diluted Loss Per Share (note 8)              $      (0.05)   $      (0.02)
                                                   ============    ============


Basic Weighted Average Number of Shares              26,310,250      20,000,000
                                                   ============    ============

                                     - 4 -

<PAGE>
<TABLE>
<CAPTION>


CYPER MEDIA, INC.
Consolidated Statement of Cash Flows
Years Ended December 31, 2003 and 2002



                                                           2003           2002
<S>                                                    <C>            <C>
Cash Flows from Operating Activities
    Net loss                                           $(1,212,242)   $  (439,431)
    Adjustments for:
      Depreciation                                          92,019        118,493
      Common shares issued for services                    210,000           --
      Loss from disposition of equipment                   243,600           --
      Accounts receivable                                   (2,287)         9,663
      Prepaid and sundry assets                             31,874         26,191
      Accounts payable and accrued charges                 433,685        262,749
                                                       -----------    -----------



                                                          (203,351)       (22,335)
                                                       -----------    -----------


Cash Flows from Investing Activities
    Decrease in rent deposits                                 --           51,435
    Decrease (increase) in term deposits                    13,650         (5,063)
    Decrease (increase) in long-term prepaid assets         34,893         (4,860)
    Net proceeds (acquisition) of equipment                 42,630        (14,406)
                                                       -----------    -----------


                                                            91,173         27,106
                                                       -----------    -----------


Cash Flows from Financing Activities
    Increase in bank loans                                  52,225           --
    Repayment of convertible bond                         (823,200)          --
    Repayment of loan payable                              (42,000)          --
    Receipt of loans from shareholders and directors       973,226           --
    Loan to a director                                     (56,761)       (37,560)
                                                       -----------    -----------


                                                           103,490        (37,560)
                                                       -----------    -----------


Foreign Exchange on Cash                                        (3)         2,905
                                                       -----------    -----------


Net Decrease in Cash                                        (8,691)       (29,884)

Cash - beginning of year                                     9,244         39,128
                                                       -----------    -----------


Cash - end of year                                     $       553    $     9,244
                                                       ===========    ===========

                                     - 5 -
</TABLE>

<PAGE>




CYPER MEDIA, INC.
Notes to Consolidated Financial Statements
December 31, 2003 and 2002


1.   Description of Business and Going Concern

     a)   Description of Business

          Cyper Media, Inc., formerly JRE, Inc. ("the Company"), was
          incorporated in the State of New York on November 30, 2000. On July
          10, 2003 the Company changed its name to Cyper Media, Inc.

          On July 10, 2003, the Company entered into a definitive Share Exchange
          Agreement (the "Agreement") with Cyper Entertainment, Inc., ("Cyper
          Korea") a Korean corporation and its shareholders. The Agreement
          provided for the acquisition by the Company of 100% of the issued and
          outstanding capital stock of Cyper Korea. In exchange, the
          shareholders of Cyper Korea received 10,000,000 shares of the Company,
          equivalent to 20,000,000 after the 1 to 2 forward stock split as
          described in note 8. As a result, the shareholders of Cyper Korea
          controlled 67% of the Company. While the Company is the legal parent,
          as a result of the reverse-takeover, Cyper Korea became the parent
          company for accounting purposes.

          Upon completion of the share exchange, the business operations of
          Cyper Korea constituted virtually all of the business operations of
          the Company. Cyper Korea is a Digital Animation Production company
          providing services to the television, commercial and film industries
          globally. The Company develops and produces 3D digital animation for
          television, short films, computer generated image ("CGI") feature
          films, home video, music video and multi-media applications such as
          video games. Cyper Korea has produced CGI animations with the
          objective of providing high-quality animation TV programming and
          feature film for the North American market. The business operations of
          Cyper Korea are located in Seoul, Korea.

          In October 2003, in accordance with a Share Exchange Agreement, the
          Company acquired Joongang Movie Entertainment Co., Ltd. ("Joongang"),
          a Korean corporation. The agreement provided for the acquisition by
          the Company of 100% of the issued and outstanding capital stock of
          Joongang in exchange for 4,000,000 shares of the Company. As a result
          of the transaction, the shareholders of Joongang controlled 12% of the
          Company. Joongang produces animated content television and various
          other media. Joongang is a 13-year-old animation company with over 60
          different clients in the Far East and Europe.

     b)   Going Concern

          The Company's financial statements are presented on a going concern
          basis, which contemplates the realization of assets and satisfaction
          of liabilities in the normal course of business. The Company has
          experienced recurring losses since inception, has not made payments on
          its bank loans subsequent to July 2003 and has negative cash flows
          from operations that raise substantial doubt as to its ability to
          continue as a going concern. For the years ended December 31, 2003 and
          2002, the Company experienced net losses of $1,212,242 and $439,431
          respectively.

                                     - 6 -

<PAGE>


CYPER MEDIA, INC.
Notes to Consolidated Financial Statements
December 31, 2003 and 2002


1.   Description of Business and Going Concern (cont'd)

          The Company's ability to continue as a going concern is contingent
          upon its ability to secure additional financing, initiating sale of
          its product and attaining profitable operations.

          Management is pursuing various sources of equity financing in addition
          to increasing its sales base. The Company has entered into
          negotiations for a new issuance of convertible debt (see note 11).
          During the year, the Company acquired Joongang Movie Entertainment
          Co., Ltd. which management believes will greatly increase the
          Company's our brand and image with North American product launches.
          Although the Company has plans to pursue additional financing, there
          can be no assurance that the Company will be able to secure financing
          when needed or obtain such on terms satisfactory to the Company, if at
          all.

          The financial statements do not include any adjustments to reflect the
          possible future effects on the recoverability and classification of
          assets or the amounts and classification of liabilities that may
          result from the possible inability of the Company to continue as a
          going concern.


2.   Summary of Significant Accounting Policies

     The accounting policies of the Company are in accordance with generally
     accepted accounting principles of the United States of America, and their
     basis of application is consistent. Outlined below are those policies
     considered particularly significant:

     a)   Reporting Currency

          The Company's functional currency is Korean won. Financial statements
          have been translated into US dollars in accordance with SFAS No. 52,
          "Foreign Currency Translation". All translation gains and losses are
          directly reflected separately in stockholders equity as Accumulated
          Other Comprehensive Income (loss).

          Foreign currency transactions of the Korean operation have been
          translated to Korean Won at the rate prevailing at the time of the
          transaction. Realized foreign exchange gains and losses have been
          charged to income in the year.

     b)   Equipment

          Equipment is stated at cost.

          Depreciation is computed by the straight line method using rates based
          on estimated useful lives of the respective assets.

                                                     Useful lives (years)
                                                     --------------------
               Machinery and equipment                       10
               Furniture and office equipment                 5
               Vehicles                                       5

                                     - 7 -

<PAGE>


CYPER MEDIA, INC.
Notes to Consolidated Financial Statements
December 31, 2003 and 2002


2.   Summary of Significant Accounting Policies (cont'd)

     c)   Goodwill

          In July 2001, the Financial Accounting Standards Board ("FASB") issued
          SFAS No. 141, "Business Combinations" and No. 142, "Goodwill and Other
          Intangible Assets". SFAS 141 requires all business combinations
          initiated after June 30, 2001 to be accounted for using the purchase
          method. Under SFAS 142, goodwill and intangible assets with indefinite
          lives are no longer amortized but are reviewed annually (or more
          frequently if impairment indicators arise) for impairment. Separable
          intangible assets that are not deemed to have indefinite lives will
          continue to be amortized over their useful lives (but with no maximum
          life). Prior to the adoption of SFAS 142, the excess of cost over the
          net assets of acquired businesses was amortized on a straight-line
          basis over periods of up to forty years.

          Goodwill relates to the acquisition of Joongang Movie Entertainment
          Co., Ltd. (as described in note 8). The Company adopted SFAS 142
          effective January 1, 2003 and, as a result, has not recorded an
          amortization charge for goodwill since that time. Goodwill is derived
          by using the discounted cash flows based on signed contracts at the
          time of acquisition.

     d)   Revenue Recognition

          The Company recognizes revenues when services are performed on a
          percentage of completion method when collection is reasonably
          ascertained.

     e)   Use of Estimates

          The preparation of financial statements in conformity with U.S.
          generally accepted accounting principles, requires management to make
          estimates and assumptions that affect the reported amounts of assets
          and liabilities and disclosure of contingent assets and liabilities at
          the date of the financial statements and the reported amounts of
          revenues and expenses during the reporting period. Actual results
          could differ from those estimates.

     f)   Concentration of Credit Risk

          SFAS No. 105, "Disclosure of Information About Financial Instruments
          with Off-Balance Sheet Risk and Financial Instruments with
          Concentration of Credit Risk", requires disclosure of any significant
          off-balance risk and credit risk concentration. The Company does not
          have significant off-balance sheet risk or credit concentration.

                                     - 8 -

<PAGE>
<TABLE>
<CAPTION>


CYPER MEDIA, INC.
Notes to Consolidated Financial Statements
December 31, 2003 and 2002



2.   Summary of Significant Accounting Policies (cont'd)

     g)   Financial Instruments

          Fair values of cash equivalents, short-term and long-term investments
          and short-term debt approximate cost. The estimated fair values of
          other financial instruments, including debt, equity and risk
          management instruments, have been determined using market information
          and valuation methodologies, primarily discounted cash flow analysis.
          These estimates require considerable judgment in interpreting market
          data, and changes in assumptions or estimation methods could
          significantly affect the fair value estimates.

     h)   Impact of Recently Issued Accounting Standards

          The FASB recently issued SFAS No. 144, "Accounting for the Impairment
          or Disposal of Long-Lived Assets," that is applicable to financial
          statements issued for fiscal years beginning after December 15, 2001.
          SFAS No. 144 addresses the financial accounting and reporting for the
          impairment or disposal of long-lived assets. The Company adopted SFAS
          No. 144 and the statement is not expected to have a material effect on
          the Company's financial position or operating results.


3.   Loan to a Director

     The loan to a director who owns approximately 10% of the Company is
     non-interest bearing, unsecured and due on demand.


4.   Equipment

     Equipment is comprised as follows:
                                                      2003                          2002
                                               Accumulated                   Accumulated
                                     Cost     Depreciation         Cost     Depreciation
                               ----------       ----------   ----------       ----------
<S>                            <C>              <C>          <C>              <C>
Machinery and equipment        $  452,578       $  197,985   $  790,091       $  203,639
Vehicles                           28,482           19,938       28,578           14,289
Furniture and fixtures            203,793          139,000      204,474           98,571
                               ----------       ----------   ----------       ----------

                               $  684,853       $  356,923   $1,023,143       $  316,499
                               ----------       ----------   ----------       ----------

Net carrying amount                  --         $  327,930         --         $  706,644
                               ----------       ----------   ----------       ----------

                                         - 9 -
</TABLE>

<PAGE>


CYPER MEDIA, INC.
Notes to Consolidated Financial Statements
December 31, 2003 and 2002



5.   Bank Loans

                                                      2003                2002

     Industrial Bank                                $189,569            $ 29,400
     KOTEC                                           184,804                --
     Hanna Bank # 1                                     --                42,000
     Hanna Bank # 2                                     --               252,000
                                                    --------            --------

                                                    $374,373            $323,400
                                                    ========            ========


     Industrial Bank

     The loan bears interest at 10.2% per annum, repayable monthly interest
     only, and is due on demand. The loan is secured by a personal guarantee of
     the controlling shareholder. The Company has not made any payments on the
     loan subsequent to July 2003.

     KOTEC (Korea Technology Credit Guarantee Fund)

     The loan bears interest at 9.55% per annum, repayable monthly interest
     only, and is due on demand. The loan is secured by a personal guarantee of
     the controlling shareholder. The Company has not made any payments on the
     loan subsequent to July 2003.

     Hanna Bank #1 and #2

     During the year, the Company defaulted on the debt covenants of the loan.
     As a result, the controlling shareholder paid the remaining balances of
     these loans.

                                     - 10 -

<PAGE>


CYPER MEDIA, INC.
Notes to Consolidated Financial Statements
December 31, 2003 and 2002


6.   Loans from Shareholders and Directors

     The loans from the shareholders and directors are non-interest bearing and
     due on demand.


7.   Convertible Bond

     During the year, the Company defaulted on the debt covenants of the bond.
     As a result, the controlling shareholder paid approximately $660,000 in
     lieu of their personal guarantees and the remaining balance of
     approximately $163,000 was refinanced by a bank loan and is included in the
     balance owing to the Industrial Bank as disclosed in note 5.


8.   Capital Stock

          Authorized
            100,000,000 common shares, par value $0.001
                                                              2003        2002
          Issued
            38,120,500  common shares (2002 - 9,920,500)    $ 38,120    $  9,920
                                                            ========    ========


     In July 2003, the Company issued 10,000,000 common shares, equivalent to
     20,000,000 after the 1 to 2 forward stock split, in exchange for all the
     outstanding common shares of Cyper Korea as described in note 1.

     In July 2003, the Company authorized a 1 for 2 forward stock split of its
     common shares. This split has retroactively been taken into consideration
     in the consolidated financial statements and the calculation of earnings
     per share.

     In October 2003, the Company issued 4,000,000 common shares in exchange for
     all the outstanding common shares of Joongang Movie Entertainment Co., Ltd.
     The company was valued at $132,000.

     In December 2003, the Company issued 4,200,000 common shares for $210,000
     of consulting services with regard to the reverse takeover transaction as
     described in note 1.


9.   Lease Commitments

     The Company is committed to lease obligations on its office spaces until
     February 21, 2005. Future minimum annual payments exclusive of taxes and
     insurance under the leases are as follows:


                             2004                      $  26,000
                             2005                          5,000
                                                       ---------

                                                       $  31,000

                                     - 11 -

<PAGE>
CYPER MEDIA, INC.
Notes to Consolidated Financial Statements
December 31, 2003 and 2002


10.  Income Taxes

     The Company accounts for income taxes in accordance with SFAS No. 109,
     "Accounting for Income Taxes". This Standard prescribes the use of the
     liability method whereby deferred tax asset and liability account balances
     are determined based on differences between the financial reporting and tax
     basis of assets and liabilities, and are measured using the enacted tax law
     when the effects of future changes in tax laws or rates are not
     anticipated.

     The Company's income tax rates in 2002 and 2003 are 16.5% for the first
     $84,000 (100,000,000 Won) taxable income and 29.7% of the excess.

     The Company has no deferred income tax liabilities.

     The Company's only deferred income tax asset is from tax losses carried
     forward, for which a valuation allowance has been provided because it is
     not presently more likely than not that they will be realized.

     Deferred Income Tax Assets

                                                       2003            2002

     Non-capital losses carried forward            $  481,000      $  336,000
     Valuation allowance                             (481,000)       (336,000)
                                                   ----------      ----------

     Net future tax assets                         $     --        $     --
                                                   ==========      ==========


     The Company has non-capital tax losses of approximately $3,006,000
     available to offset future taxable income. The tax losses expire as
     follows:

                           2005               $    494,000
                           2006                    401,000
                           2007                    317,000
                           2008                  1,794,000
                                              ------------

                                              $  3,006,000
                                              ------------

                                     - 12 -

<PAGE>


CYPER MEDIA, INC.
Notes to Consolidated Financial Statements
December 31, 2003 and 2002


11.  Subsequent Events

     a)   In February 2004, the Company issued 50,000,000 common shares held in
          escrow as security for a proposed convertible debt financing
          arrangement of $1,000,000. The common shares will be issued to the
          debt holder from escrow as it exercises its conversion rights.

     b)   In February 2004, the Company issued 350,000 common shares valued at
          $17,500 for consulting services relating to the proposed financing
          arrangement.

     c)   Effective December 17, 2003, the Company entered into a contract to
          produce 36 episodes of animated video series for approximately
          $1,500,000 over three years. The production began in February 2004.

                                     - 13 -