**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

----

**FORM      10-KSB/A**

**(Amendment      No. 1 to 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, 2005**

|  ̈ | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

**For      the Transition Period From _____ to _____**

----

**SAVI      MEDIA GROUP, INC.**

| **Nevada**(State                or other jurisdiction of incorporation or organization) |   | **91-1766174**(IRS                Employer Identification No.) |
|-----------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|
|                                                                                    |   |                                                           |   |
| **9852                West Katella Ave., #363****Anaheim,                California**   |   | **92804**                                                      | **(714)                740-0601** |
| (Address                of principal executive office)                                  |   | (Postal                Code)                                   | (Issuer's                telephone number) |

----

**SAVI      MEDIA GROUP, INC.**

**FORM      10-KSB**

**For      the Fiscal Year Ended December 31, 2005**

|                                                                        |   |   |   |
|-----------------------------------------------------------------------------|--------|--------|--------|
| Part                I                                                       |   | Page   |   |
|                                                                        |   |   |   |
| Item                1. Description of Business.                             |   |   | 3      |   |
|                                                                        |   |   |        |   |
| Item                2. Description of Property.                             |   |   | 15     |   |
|                                                                        |   |   |        |   |
| Item                3. Legal Proceedings.                                   |   |   | 15     |   |
|                                                                        |   |   |        |   |
| Item                4. Submission of Matters to a Vote of Security Holders. |   |   | 15     |   |

| Part                ll                                                                                                      |   |   | Page |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|------|--------|
|                                                                                                                        |   |   |      |   |
| Item                5. Market for Common Equity and Related Stockholder                Matters.                             |   |   | 17   |   |
|                                                                                                                        |   |   |      |   |
| Item                6. Management's Discussion and Analysis or Plan of                Operation.                            |   |   | 19   |   |
|                                                                                                                        |   |   |      |   |
| Item                7. Financial Statements                                                                                 |   |   | F-1  |   |
|                                                                                                                        |   |   |      |   |
| Item                8. Changes In and Disagreements With Accountants on Accounting and                Financial Disclosure. |   |   | 24   |   |
|                                                                                                                        |   |   |      |   |
| Item                8A. Controls and Procedures.                                                                            |   |   | 24   |   |
|                                                                                                                        |   |   |      |   |
| Item                8B. Other Information.                                                                                  |   |   | 24   |   |

| Part                lll                                                                                                                                |   |   | Page |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------|--------|
|                                                                                                                                                   |   |   |      |   |
| Item                9. Directors, Executive Officers, Promoters and Control Persons;                Compliance with Section 16(a) of the Exchange Act. |   |   | 25   |   |
|                                                                                                                                                   |   |   |      |   |
| Item                10. Executive Compensation.                                                                                                        |   |   | 27   |   |
|                                                                                                                                                   |   |   |      |   |
| Item                11. Security Ownership of Certain Beneficial Owners and Management                and                Related Stockholder Matters   |   |   | 29   |   |
|                                                                                                                                                   |   |   |      |   |
| Item                12. Certain Relationships and Related Transactions.                                                                                |   |   | 32   |   |
|                                                                                                                                                   |   |   |      |   |
| Item                13. Exhibits.                                                                                                                      |   |   | 33   |   |
|                                                                                                                                                   |   |   |      |   |
| Item                14. Principal Accountant Fees and Services.                                                                                        |   |   | 35   |   |
|                                                                                                                                                   |   |   |      |   |
| Signatures.                                                                                                                                            |   |   | 36   |   |

----

**Explanatory      Note**

**PART      I**

**FORWARD-LOOKING      INFORMATION**

**ITEM      1. DESCRIPTION OF BUSINESS.**

**Overview**

**History**

**Automotive      Ventilation Systems**

----

**Our      Product**

** **

**Benefits      of the**
**Crankcase      Ventilation System**
**Technology**

|   | 1. | The                Crankcase Ventilation System can be applied to older cars,                  eliminating the need to wait for improved features or standards to                be                applied to new vehicles only. While the Crankcase Ventilation System                technology can be installed at the original equipment manufacturer                level,                on new vehicles, the Crankcase Ventilation System technology’s immediate                application will be in the retrofit market on vehicles   already on                the road |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 2. | New                technologies and upgrades can be applied at each scheduled service                replacement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 3. | Supplementary                technologies enable the collection and organized disposal of toxics,                as                supplementary technologies do not exclude periodic replacement or                service.                                                                                                                                                                                                                                                                                                                                                                       |
|   | 4. | The                Crankcase Ventilation System separates the formulation of emission                control                standards from the limitations of the make, year or purpose of the                device.                                                                                                                                                                                                                                                                                                                                                                              |

|   | 5. | The                Crankcase Ventilation System can be applied not only to cars but                also to                all types of vehicles that use gasoline or diesel internal combustion                engines - industrial, commercial, electrical generation equipment,                marine                engines, to name but a few examples.                                                 |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 6. | The                Crankcase Ventilation System can reduce emissions, even on new engines,                even those utilizing the most modern technologies, generally up to                40% and                occasionally up to 50%.                                                                                                                                                                  |
|   | 7. | The                Crankcase Ventilation System technology generally will increase the                miles                per gallon up to 20%, reduce the need for oil changes dramatically                (to as                much as every 50,000 miles, thereby reducing the need for used oil                processing), and increase horsepower generally up an additional                10-15%. |
|   | 8. | The                Crankcase Ventilation System is a patented technology for the U.S.,                Canada                and selected overseas markets.                                                                                                                                                                                                                                                  |

----

**Independent      Testing**

**Specific      Product Descriptions**

* *

**Internal      Combustion Engine Crankcase Ventilation System**

----

**Pricing**

**Marketing      Strategy**

|   | 1. | We                will continue to enhance our Crankcase Ventilation System                  prototypes and products and enhance expected capabilities and confirm                commercialization steps in three phases. These phases are outlined                below: |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Phase                I:   | Focus                on the continued development of the Crankcase Ventilation System                 and all related technologies so as to have a solution to be able                to                sell/market in all vertical markets before the end of 2006                .                                                                                                                                                                                                                                              |
|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Phase                II:  | To                have products ready for shipment by the end of the third quarter                of 2006                so as to be able to offer all strategic partners, customers, original                equipment manufacturers and end-users products in the first three                months                of year 2007.                                                                                                                                                                                                    |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Phase                III: | Thereafter,                continue the development of the vehicle emission reduction and engine                improvement technology by incorporating the use of additional                light-weight, powerful, state-of- the-art materials as well as enhanced                units that are based on designs currently in development to refine                products which will work with as many known existing gasoline and                diesel                engine systems as economically                practical. |

----

|   | 2. | We                will continue to demonstrate how the Crankcase Ventilation System                 technology can be retrofitted into various standard and commercial                vehicles. Starting in 1996, field-testing began on our Crankcase                Ventilation System technology and we continue to seek additional                parties                to do next generation pilots. We will continue the task of seeking                early-stage adopters of our Crankcase Ventilation System   technology                in applications and vehicles before the end of the second quarter                of year                2007. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The                Company intends to adopt a pull-through market strategy. Our strategy                evolves around developing and commercializing our Crankcase Ventilation                System technology and sub-components tailored to the specific application                needs of industry original equipment manufacturers and partners (e.g..,                fleet, transportation, automotive, trucks, etc.), while focusing                solely on                licensing the entire Crankcase Ventilation System   technology                eventually to an established party for full-scale market commercialization                (i.e.., automotive and/or truck manufacturer, automobile maker, automobile                retrofit supplier, etc.). We will work directly with end-users (who                could                pull-through our products to manufacturers) as well as original equipment                manufacturers and partners to establish emission reduction products                that                are based on specific requirements and on the manufacturing and internal                partners’ capabilities. Conversely, with respect to the entire Crankcase                Ventilation System, we will seek to form one or several manufacturing                joint ventures or licensee agreements. In this situation, we will                continue                to play a leading role in the development area, up to and including                the                production and testing of prototypes for technical and commercial                evaluations. In the long-term, we will continue to provide technical                support and research & development to the manufacturing and marketing                activities of our joint venture partners regarding the Crankcase                Ventilation System   technology. Accordingly, the strategy includes                three main components: |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Development                and licensing activities regarding the Crankcase Ventilation System                 technology; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------|
|   | b. | Direct                sales and manufacturing activities; and                                                                   |
|   | c. | Various                system manufacturing and/or sale                activities.                                              |

|   | 4. | Ultimately,                we will seek to expand our range of strategic partners and other                pilot                projects. As part of our business model to creating a joint venture                and/or                securing a licensing agreement with an established partner, our management                has undertaken preliminary discussions regarding partnering agreements                but                intends to pursue these continuously with the goal that pilot projects,                targeted at vehicle fleets, may begin in calendar year 2005. We are                able                to serve as the development arm of any original equipment manufacturers                and/or partners while also actively pursuing in contract development                and                pre production work. As part of our development role, we will continue                to                produce and test prototypes, for external customers and for joint                venture                partners. Fine tuning adjustments usually needed during the early                stages                of production will best be resolved by having the original equipment                manufacturers and joint venture partners available on site. Once                larger                production volumes are needed, production will be moved to original                equipment manufacturers and/or partners’ mass manufacturing plants, whose                design will benefit from the experience acquired during the ramp-up                phase.                We intend to contract with OEMs and client partners for the production                and                test of the samples we will need to implement our development                strategy. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | On                a longer term basis, we will focus on contract opportunities most                likely                to lead to licensing transactions. We desire that such opportunities                will                involve research areas in which we maintain a strong potential patent                position and customers, which have the necessary industrial resources                and                market presence to successfully commercialize the licensed                technologies. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Suppliers**

**Intellectual      Property**

**Competition**

**Employees**

**RISKS      RELATED TO BUSINESS**

----

**We      Have a History Of Losses Which May Continue, Which May Negatively Impact Our      Ability to Achieve Our Business Objectives.**

**If      We Are Unable to Obtain Additional Funding Our Business Operations Will be      Harmed and If We Do Obtain Additional Financing Our Then Existing Shareholders      May Suffer Substantial Dilution.**

**Our      Independent Auditors Have Expressed Substantial Doubt About Our Ability to      Continue As a Going Concern, Which May Hinder Our Ability to Obtain Future      Financing.**

**Many      of Our Competitors are Larger and Have Greater Financial and Other Resources      than We do and Those Advantages Could Make it Difficult for Us to Compete With      Them**

----

**We      Acquired Rights to Our Technology from One of the Founding Investors Without      a      Valuation Opinion or Arm’s Length Negotiations**

**Our      Inability to Raise Sufficient Funds to Build a Research and Development Lab      Could Result in the Loss of Our Rights to Our Technology**

**A      Manufacturer's Inability to Produce Our Goods on Time and to Our Specifications      Could Result in Lost Revenue and Net Losses**

**As      a Result of Our Industry, We Need to Maintain Substantial Insurance Coverage,      Which Could Become Very Expensive or Have Limited      Availability.**

**Any      Inability to Adequately Protect Our Proprietary Technology Could Harm Our      Ability to Compete**

----

**Our      Products may Infringe Upon the Intellectual Property Rights of Others and      Resulting Claims Against Us Could be Costly and Require Us to Enter Into      Disadvantageous License or Royalty Arrangements**

**If      We Are Unable to Retain the Services of Messrs. Procopio or Monros or Mrs.      Procopio or If We Are Unable to Successfully Recruit Qualified Personnel, We      May      Not Be Able to Continue Our Operations.**

**Risks      Relating to Our Current Financing Arrangement**
**:**

**There      Are a Large Number of Shares Underlying Our Convertible Debentures and Warrants      That May be Available for Future Sale and the Sale of These Shares May Depress      the Market Price of Our Common Stock.**

----

**The      Continuously Adjustable Conversion Price Feature of Our Convertible Debentures      Could Require Us to Issue a Substantially Greater Number of Shares, Which Will      Cause Dilution to Our Existing Stockholders.**

| %                  BelowMarket |   | Price                  PerShare |   | With                  Discountat                  20% |   | Numberof                    SharesIssuable |   | %                    ofOutstandingStock |        |
|--------------------------------|--------|---------------------------------|--------|-------------------------------------------------------|--------|--------------------------------------------|--------|-----------------------------------------|-------------|
|                           |   |                            |   |                                                  |   |                                       |   |                                    |        |
| 25%                            |   | $                               | .0225  |                                                  | $      | .018                                       |   |                                    | 300,555,556 |   |   | 50.71 | % |
| 50%                            |   | $                               | .015   |                                                  | $      | .012                                       |   |                                    | 453,333,334 |   |   | 60.81 | % |
| 75%                            |   | $                               | .0075  |                                                  | $      | .006                                       |   |                                    | 911,666,667 |   |   | 75.73 | % |

**The      Continuously Adjustable Conversion Price feature of our Convertible Debentures      May Encourage Investors to Make Short Sales in Our Common Stock, Which Could      Have a Depressive Effect on the Price of Our Common Stock.**

**The      Issuance of Shares Upon Conversion of the Convertible Debentures and Exercise      of      Outstanding Warrants May Cause Immediate and Substantial Dilution to Our      Existing Stockholders.**

----

**In      The Event That Our Stock Price Declines, The Shares Of Common Stock Allocated      For Conversion Of The Convertible Debentures and Registered Pursuant To a      Registraion Statement May Not Be Adequate And We May Be Required to File A      Subsequent Registration Statement Covering Additional Shares. If The Shares      We      Have Allocated And Registered Are Not Adequate And We Are Required To File      An      Additional Registration Statement, We May Incur Substantial Costs In Connection      Therewith.**

** **

**If      We Are Required for any Reason to Repay Our Outstanding Convertible Debentures,      We Would Be Required to Deplete Our Working Capital, If Available, Or Raise      Additional Funds. Our Failure to Repay the Convertible Debentures, If Required,      Could Result in Legal Action Against Us, Which Could Require the Sale of      Substantial Assets.**

**Risks      Relating to Our Common Stock**
**:**

**There      Are a Large Number of Shares Underlying Our Series A and C Convertible Preferred      Stock and the Issuance of Shares Upon Conversion of the Series A and C      Convertible Preferred Stock Would Cause Immediate and Substantial Dilution      to      Our Existing Stockholders.**

**Our      Officers And Directors Own a Controlling Interest in Our Voting Stock And      Investors Will Not Have Any Voice in Our Management.**

----

| ·   | election                of our board of directors; |
|--------------------|----------------------------------------------------|

| ·   | removal                of any of our directors; |
|--------------------|-------------------------------------------------|

| ·   | amendment                of our certificate of incorporation or bylaws;                and |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | adoption                of measures that could delay or prevent a change in control or impede                a                merger, takeover or other business combination involving                us. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**If      We Fail to Remain Current on Our Reporting Requirements, We Could be Removed      From the OTC Bulletin Board Which Would Limit the Ability of Broker-Dealers      to      Sell Our Securities and the Ability of Stockholders to Sell Their Securities      in      the Secondary Market.**

**Our      Common Stock is Subject to the "Penny Stock" Rules of the SEC and the Trading      Market in Our Securities is Limited, Which Makes Transactions in Our Stock      Cumbersome and May Reduce the Value of an Investment in Our      Stock.**

| ·   | that                a broker or dealer approve a person's account for transactions in                penny                stocks; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                broker or dealer receive from the investor a written agreement to                the                transaction, setting forth the identity and quantity of the penny                stock to                be purchased. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | obtain                financial information and investment experience objectives of the                person;                and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|
| ·   | make                a reasonable determination that the transactions in penny stocks                are                suitable for that person and the person has sufficient knowledge                and                experience in financial matters to be capable of evaluating the risks                of                transactions in penny stocks. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | sets                  forth the basis on which the broker or dealer made the suitability                  determination; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | that                  the broker or dealer received a signed, written agreement from                  the                  investor prior to the transaction. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      2. DESCRIPTION OF PROPERTY.**

**ITEM      3. LEGAL PROCEEDINGS.**
** **

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.**

----

----

**PART      II**

**ITEM      5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER      MATTERS.**

**MARKET      INFORMATION**
 

|                                |   |  High                ($) |   | Low                ($)  |   |
|-------------------------------------|--------|-------------------------------|--------|------------------------------|--------|
| **Fiscal                Year 2004** |   |                     |   |                         |   |
| First                Quarter        |   |                          | 0.02   |                         |   | 0.02 |   |
| Second                Quarter       |   |                          | 0.02   |                         |   | 0.02 |   |
| Third                Quarter (1)    |   |                          | 0.43   |                         |   | 0.02 |   |
| Fourth                Quarter (2)   |   |                          | 5.50   |                         |   | 0.13 |   |
|                                |   |                          |        |                         |   |   |   |
| **Fiscal                Year 2005** |   |                          |        |                         |   |   |   |
| First                Quarter        |   |                          | 0.40   |                         |   | 0.12 |   |
| Second                Quarter       |   |                          | 0.38   |                         |   | 0.03 |   |
| Third                Quarter        |   |                          | 0.06   |                         |   | 0.01 |   |
| Fourth                Quarter       |   |                          | 0.06   |                         |   | 0.01 |   |
|                                |   |                          |        |                         |   |   |   |
| **Fiscal                Year 2006** |   |                          |        |                         |   |   |   |
| First                Quarter        |   |                          | 0.04   |                         |   | 0.01 |   |
| Second                Quarter (3)   |   |                          | 0.03   |                         |   | 0.02 |   |

**HOLDERS**

**DIVIDENDS**

**RECENT      SALE OF UNREGISTERED SECURITIES**

----

----

**ITEM      6. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION.**

**Business      History**

**Business      Summary**

----

**Critical      Accounting Policies and Estimates**

**Results      of Operations**

----

**Plan      of Operation**

**$**

**Liquidity      and Capital Resources**

| ·   | further                  implement our business plan; |
|--------------------|-------------------------------------------------------|
| ·   | obtain                  additional financing or refinancing as may be required;                  and |
|--------------------|------------------------------------------------------------------------------------------------------|
| ·   | generate                  revenues. |
|--------------------|-------------------------------------|

| ·   | $50,000                  was disbursed to us on May 5, 2005; |
|--------------------|--------------------------------------------------------------|
| ·   | $50,000                  was disbursed on or about July 31, 2005 to various professionals                  for                  services provided to our company; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | $100,000                  was disbursed on or about July 31, 2005. |
|--------------------|--------------------------------------------------------------------|

----

|                            1. | The                conversion and exercise provisions of the securities provide that                at no                time may Golden Gate acquire ownership of more that 9.9% of our                outstanding common stock; and |
|------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            2. | If                at the time of a conversion/exercise, the conversion price would                be less                than $.20, then (a) Golden Gate is not obligated to convert any portion                of                the convertible debenture or exercise any portion of the warrant                for that                month or (b) we may opt to redeem the amount of principal that the                holder                presents for conversion at 150% of face value, either of which events                would reduce the aggregate purchases under the convertible debentures                and                warrants. |
|------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Off-Balance      Sheet Arrangements**

----

  

**ITEM      7. FINANCIAL STATEMENTS.**

|                                                                                                                                    |   | **Page(s)** |                         |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------------------------|
|                                                                                                                                    |   |        |                         |
| Report                of Registered Independent Public Accounting Firm                                                                  |   |        | F-2                          |   |
|                                                                                                                                    |   |        |                              |   |
| Consolidated                Balance Sheets at and December 31, 2005 and 2004                                                            |   |        | F-3                          |   |
|                                                                                                                                    |   |        |                              |   |
| Consolidated                Statements of Operations for the years ended December 31, 2005 and                2004,                     |   |        |                              |   |
| and                for the period from inception, August 13, 2002, to December 31,                2005                                  |   |        | F-4                          |   |
|                                                                                                                                    |   |        |                              |   |
| Consolidated                Statements of Stockholders' Deficit for the years ended December                31, 2005                and |   |        |                              |   |
| 2004,                and for the period from inception, August 13, 2002, to December 31,                2005                            |   |        | F-5                  to F-16 |   |
|                                                                                                                                    |   |        |                              |   |
| Consolidated                Statements of Cash Flows for the years ended December 31, 2005 and                2004,                and  |   |        |                              |   |
| for                the period from inception, August 13, 2002, to December 31,                2005                                      |   |        | F-17                         |   |
|                                                                                                                                    |   |        |                              |   |
| Notes                to Consolidated Financial Statements                                                                               |   |        | F-18                         |   |

----

**Report      of Independent Registered Public Accounting Firm**

*/s/      Ham, Langston & Brezina, L.L.P.*

----

| **SAVI                MEDIA GROUP, INC.**                 |
|-----------------------------------------------------------|
| **A                Corporation in the Development Stage** |
| **CONSOLIDATED                BALANCE SHEET**             |
| ***December                31, 2005 and 2004***           |

|                                                                     |   | **2005**     |         | **2004**     |   |
|--------------------------------------------------------------------------|--------|--------------|--------------|--------------|--------|
|                                                                     |   |    |         |    |   |
| **ASSETS**                                                               |   |    |         |    |   |
|                                                                     |   |    |         |    |   |
| Current                assets:                                           |   |    |         |    |   |
| Cash                and cash equivalents                                 |   | $            | 336          |         | $      | 3,835 |   |
|                                                                     |   |         |              |         |   |  |   |
| Total                current assets                                      |   |         | 336          |         |   | 3,835 |   |
|                                                                     |   |         |              |         |   |  |   |
| Equipment,                net                                            |   |         | 5,208        |         |   |  |   |
| Intangible                assets - patents                               |   |         | 38,500       |         |   | 38,500 |   |
|                                                                     |   |         |              |         |   |  |   |
| Total                assets                                              |   | $            | 44,044       |         | $      | 42,335 |   |
|                                                                     |   |         |              |         |   |  |   |
| **LIABILITIES                AND STOCKHOLDERS' DEFICIT**                 |   |         |              |         |   |  |   |
|                                                                     |   |         |              |         |   |  |   |
| Current                liabilities:                                      |   |         |              |         |   |  |   |
| Note                payable                                              |   | $            | 142,500      |         | $      | - |   |
| Convertible                debt, net                                     |   |         | 6,519        |         |   | - |   |
| Derivative                liability-compound embedded derivatives        |   |         | 707,024      |         |   |   |   |
| Derivative                liability-warrants                             |   |         | 475          |         |   |   |   |
| Accounts                payable and accrued liabilities                  |   |         | 31,448       |         |   | 10,000 |   |
| Deposit                for warrant exercise                              |   |         | 23,805       |         |   | - |   |
| Accounts                payable assumed in recapitalization              |   |         | 159,295      |         |   | 159,295 |   |
|                                                                     |   |         |              |         |   |  |   |
| Total                current liabilities                                 |   |         | 1,071,066    |         |   | 169,295 |   |
|                                                                     |   |         |              |         |   |  |   |
| Commitments                and contingencies                             |   |         |              |         |   |  |   |
|                                                                     |   |         |              |         |   |  |   |
| Stockholders'                deficit:                                    |   |         |              |         |   |  |   |
| Series                A convertible preferred stock; $0.001 par value,   |   |         |              |         |   |  |   |
| 10,000,000                shares authorized, issued and outstanding      |   |         | 10,000       |         |   | 10,000 |   |
| Series                B convertible preferred stock; $0.001 par value,   |   |         |              |         |   |  |   |
| 10,000,000                shares authorized, none issued and outstanding |   |         | -            |         |   | - |   |
| Series                C convertible preferred stock; $0.001 par value,   |   |         |              |         |   |  |   |
| 10,000,000                shares authorized, 6,060,000 issued and        |   |         |              |         |   |  |   |
| outstanding                at December 31, 2005                          |   |         | 6,060        |         |   | - |   |
| Common                stock: $0.001 par value, 6,000,000,000 shares      |   |         |              |         |   |  |   |
| authorized,                209,109,976 and 86,947,767 shares issued and  |   |         |              |         |   |  |   |
| 187,919,976                and 86,947,767 shares outstanding             |   |         |              |         |   |  |   |
| at                December 31, 2005 and 2004, respectively               |   |         | 209,110      |         |   | 86,947 |   |
| Additional                paid-in capital                                |   |         | 247,147,631  |         |   | 109,749,828 |   |
| Losses                accumulated during the development stage           |   |         | (248,399,823 | )            |   | (109,973,735 | ) |
|                                                                     |   |         |              |         |   |  |   |
| Total                stockholders' deficit                               |   |         | (1,027,022   | )            |   | (126,960 | ) |
|                                                                     |   |         |              |         |   |  |   |
| Total                liabilities and stockholders' deficit               |   | $            | 44,044       |         | $      | 42,335 |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENTS OF OPERATIONS**                                              |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                                    |   | **2005**     |         | **2004**     |   | **Inception                to**December                31, 2005 |   |
|-------------------------------------------------------------------------|--------|--------------|--------------|--------------|--------|-----------------------------------------------------------------|--------|
|                                                                    |   |    |         |    |   |                                                       |   |
| Operating                costs and expenses:                            |   |         |         |         |   |                                                            |   |
| General                and administrative expenses,                     |   |    |         |         |   |                                                            |   |
| except                stock based compensation                          |   | $            | 606,965      |         | $      | 316,216                                                         |   | $ | 1,240,502 |   |
| Stock-based                compensation                                 |   |         | 136,790,718  |         |   | 106,233,015                                                     |   |   | 245,426,939 |   |
| Research                and development                                 |   |         | 299,943      |         |   | -                                                               |   |   | 299,943 |   |
|                                                                    |   |         |              |         |   |                                                                 |   |   |  |   |
| Loss                from operations                                     |   |         | (137,697,626 | )            |   | (106,549,231                                                    | )      |   | (246,967,384 | ) |
|                                                                    |   |         |              |         |   |                                                                 |   |   |  |   |
| Other                income and (expenses)                              |   |         |              |         |   |                                                                 |   |   |  |   |
| Interest                Income                                          |   |         | 1            |         |   | 5                                                               |   |   | 18 |   |
| Gain                on settlement                                       |   |         | -            |         |   | 197,033                                                         |   |   | 197,033 |   |
| Cost                of rescission                                       |   |         | -            |         |   | (43,074                                                         | )      |   | (43,074 | ) |
| Cost                of recapitalization                                 |   |         | -            |         |   | -                                                               |   |   | (273,987 | ) |
| Goodwill                impairment                                      |   |         | -            |         |   | -                                                               |   |   | (541,101 | ) |
| Change                in fair value of derivative financial instruments |   |         | 189,539      |         |   |                                                            |   |   | 189,539 |   |
| Interest                expense                                         |   |         | (918,002     | )            |   | (22,707                                                         | )      |   | (960,867 | ) |
|                                                                    |   |         |              |         |   |                                                                 |   |   |  |   |
| Total                other income and expenses, net                     |   |         | (728,462     | )            |   | 131,257                                                         |   |   | (1,432,439 | ) |
|                                                                    |   |         |              |         |   |                                                                 |   |   |  |   |
| Net                loss                                                 |   | $            | (138,426,088 | )            | $      | (106,417,974                                                    | )      | $ | (248,399,823 | ) |
|                                                                    |   |         |              |         |   |                                                                 |   |   |  |   |
| Weighted                average shares outstanding                      |   |         | 121,294,340  |         |   | 3,244,449                                                       |   |   |  |   |
|                                                                    |   |         |              |         |   |                                                                 |   |   |  |   |
| Net                loss per common share - basic and dilutive           |   | $            | (1.14        | )            | $      | (32.80                                                          | )      |   |  |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENT OF STOCKHOLDERS' DEFICIT**                                    |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                    |   | **Series                A Preferred Stock** |   | **Series                B Preferred Stock** |   |
|---------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------------------------|--------|
|                                                    |   | **Shares**                                  |   | **Amount**                                  |   | **Shares** |   | **Amount** |   |
|                                                    |   |                                   |   |                                   |   |    |   |    |   |
| Balance                at inception, August 13, 2002    |   |                                        | -      |                                        | $      | - |   |   | - |   | $ | - |   |
|                                                    |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Initial                contribution to establish Energy |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Resource                Management, Inc.                |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                    |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Recapitalization                on August 26, 2002      |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                    |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued in exchange          |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| for                consulting services                  |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                    |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Net                Loss                                 |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                    |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Balance                at December 31, 2002             |   |                                        | -      |                                        | $      | - |   |   | - |   | $ | - |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENT OF STOCKHOLDERS' DEFICIT**                                    |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                    |   | **Preferred                Stock** |   | **Common                Stock** |   |
|---------------------------------------------------------|--------|------------------------------------|--------|---------------------------------|--------|
|                                                    |   | **Shares**                         |   | **Amount**                      |   | **Shares** |   | **Amount** |   |
|                                                    |   |                          |   |                       |   |    |   |    |   |
| Balance                at inception, August 13, 2002    |   |                               | -      |                            | $      | - |   |   | - |   | $ | - |   |
|                                                    |   |                               |        |                            |   |  |   |   |  |   |   |  |   |
| Initial                contribution to establish Energy |   |                               |        |                            |   |  |   |   |  |   |   |  |   |
| Resource                Management, Inc.                |   |                               | -      |                            |   | - |   |   | - |   |   | - |   |
|                                                    |   |                               |        |                            |   |  |   |   |  |   |   |  |   |
| Recapitalization                on August 26, 2002      |   |                               | -      |                            |   | - |   |   | 5,335 |   |   | 5 |   |
|                                                    |   |                               |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued in exchange          |   |                               |        |                            |   |  |   |   |  |   |   |  |   |
| for                consulting services                  |   |                               | -      |                            |   | - |   |   | 1,086 |   |   | 1 |   |
|                                                    |   |                               |        |                            |   |  |   |   |  |   |   |  |   |
| Net                Loss                                 |   |                               | -      |                            |   | - |   |   | - |   |   | - |   |
|                                                    |   |                               |        |                            |   |  |   |   |  |   |   |  |   |
| Balance                at December 31, 2002             |   |                               | -      |                            | $      | - |   |   | 6,421 |   | $ | 6 |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENT OF STOCKHOLDERS' DEFICIT**                                    |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005 ***       |

|                                                    |   | **Additional****Paid-In****Capital** |      | **Deferred****Compensation** |   | **Losses****Accumulated****During                        the****Development****Stage** |   | **Total**    |       |
|---------------------------------------------------------|--------|--------------------------------------|-----------|------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------------|------------|
|                                                    |   |                            |      |                    |   |                                                                              |   |    |       |
| Balance                at inception, August 13, 2002    |   | $                                    | -         |                         | $      | -                                                                                      |   | $            | -          |   | $ | - |   |
|                                                    |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Initial                contribution to establish Energy |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Resource                Management, Inc.                |   |                                 | 1,020     |                         |   | -                                                                                      |   |         | -          |   |   | 1,020 |   |
|                                                    |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Recapitalization                on August 26, 2002      |   |                                 | (5        | )                            |   | -                                                                                      |   |         | -          |   |   | - |   |
|                                                    |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Common                stock issued in exchange          |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| for                consulting services                  |   |                                 | 2,233,149 |                         |   | (1,030,917                                                                             | )      |         |            |   |   | 1,202,232 |   |
|                                                    |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Net                Loss                                 |   |                                 | -         |                         |   | -                                                                                      |   |         | (1,555,838 | ) |   | (1,555,838 | ) |
|                                                    |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Balance                at December 31, 2002             |   | $                                    | 2,234,164 |                         | $      | (1,030,917                                                                             | )      | $            | (1,555,838 | ) | $ | (352,586 | ) |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENT OF STOCKHOLDERS' DEFICIT**                                    |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                               |   | **Series                A Preferred Stock** |   | **Series                B Preferred Stock** |   |
|--------------------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------------------------|--------|
|                                                               |   | **Shares**                                  |   | **Amount**                                  |   | **Shares** |   | **Amount** |   |
|                                                               |   |                                   |   |                                   |   |    |   |    |   |
| Balance                at December 31, 2002                        |   |                                        | -      |                                        | $      | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Recognition                of deferred compensation                |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| under                consulting agreements                         |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued for cash under                  |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Regulation                D offering                               |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued in exchange                     |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| for                consulting services and                         |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| employee                compensation                               |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued in exchange                     |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| for                extension of acquisition                        |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| agreement                                                          |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued as a contribution               |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| to                a                related charitable organization |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued to escrow for                   |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| acquisition                of DreamCity                            |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Interest                recognition on loan from                   |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| stockholder                                                        |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Net                loss                                            |   |                                        | -      |                                        |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                                        |   |  |   |   |  |   |   |  |   |
| Balance                at December 31, 2003                        |   |                                        | -      |                                        | $      | - |   |   | - |   | $ | - |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENT OF STOCKHOLDERS' DEFICIT**                                    |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                               |   | **Series                C Preferred Stock** |   | **Common                Stock** |   |
|--------------------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------------|--------|
|                                                               |   | **Shares**                                  |   | **Amount**                      |   | **Shares** |   | **Amount** |   |
|                                                               |   |                                   |   |                       |   |    |   |    |   |
| Balance                at December 31, 2002                        |   |                                        | -      |                            | $      | - |   |   | 6,421 |   | $ | 6 |   |
|                                                               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Recognition                of deferred compensation                |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| under                consulting agreements                         |   |                                        | -      |                            |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued for cash under                  |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Regulation                D offering                               |   |                                        | -      |                            |   | - |   |   | 4,180 |   |   | 4 |   |
|                                                               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued in exchange                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| for                consulting services and                         |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| employee                compensation                               |   |                                        | -      |                            |   | - |   |   | 1,200 |   |   | 1 |   |
|                                                               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued in exchange                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| for                extension of acquisition                        |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| agreement                                                          |   |                                        | -      |                            |   | - |   |   | 110 |   |   | - |   |
|                                                               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued as a contribution               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| to                a                related charitable organization |   |                                        | -      |                            |   | - |   |   | 2,280 |   |   | 3 |   |
|                                                               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued to escrow for                   |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| acquisition                of DreamCity                            |   |                                        | -      |                            |   | - |   |   | 8,000 |   |   | 8 |   |
|                                                               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Interest                recognition on loan from                   |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| stockholder                                                        |   |                                        | -      |                            |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Net                loss                                            |   |                                        | -      |                            |   | - |   |   | - |   |   | - |   |
|                                                               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Balance                at December 31, 2003                        |   |                                        | -      |                            | $      | - |   |   | 22,191 |   | $ | 22 |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENT OF STOCKHOLDERS' DEFICIT**                                    |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                               |   | **Additional****Paid-In****Capital** |      | **Deferred****Compensation** |   | **Losses****Accumulated****During                        the****Development****Stage** |   | **Total**    |       |
|--------------------------------------------------------------------|--------|--------------------------------------|-----------|------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------------|------------|
|                                                               |   |                            |      |                    |   |                                                                              |   |    |       |
| Balance                at December 31, 2002                        |   | $                                    | 2,234,164 |                         | $      | (1,030,917                                                                             | )      | $            | (1,555,838 | ) | $ | (352,585 | ) |
|                                                               |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Recognition                of deferred compensation                |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| under                consulting agreements                         |   |                                 | -         |                         |   | 1,030,917                                                                              |   |         | -          |   |   | 1,030,917 |   |
|                                                               |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Common                stock issued for cash under                  |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Regulation                D offering                               |   |                                 | 154,996   |                         |   | -                                                                                      |   |         | -          |   |   | 155,000 |   |
|                                                               |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Common                stock issued in exchange                     |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| for                consulting services and                         |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| employee                compensation                               |   |                                 | 170,055   |                         |   | -                                                                                      |   |         | -          |   |   | 170,056 |   |
|                                                               |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Common                stock issued in exchange                     |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| for                extension of acquisition                        |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| agreement                                                          |   |                                 | 4,400     |                         |   | -                                                                                      |   |         | -          |   |   | 4,400 |   |
|                                                               |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Common                stock issued as a contribution               |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| to                a                related charitable organization |   |                                 | 91,197    |                         |   | -                                                                                      |   |         | -          |   |   | 91,200 |   |
|                                                               |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Common                stock issued to escrow for                   |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| acquisition                of DreamCity                            |   |                                 | 359,992   |                         |   | -                                                                                      |   |         | -          |   |   | 360,000 |   |
|                                                               |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Interest                recognition on loan from                   |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| stockholder                                                        |   |                                 | 6,209     |                         |   | -                                                                                      |   |         | -          |   |   | 6,209 |   |
|                                                               |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Net                loss                                            |   |                                 | -         |                         |   | -                                                                                      |   |         | (1,999,913 | ) |   | (1,999,913 | ) |
|                                                               |   |                                 |           |                         |   |                                                                                        |   |         |            |   |   |  |   |
| Balance                at December 31, 2003                        |   | $                                    | 3,021,013 |                         | $      | -                                                                                      |   | $            | (3,555,751 | ) | $ | (534,716 | ) |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENT OF STOCKHOLDERS' DEFICIT**                                    |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                     |   | **Series                A Preferred Stock** |       | **Series                B Preferred Stock** |   |
|----------------------------------------------------------|--------|---------------------------------------------|------------|---------------------------------------------|--------|
|                                                     |   | **Shares**                                  |       | **Amount**                                  |   | **Shares** |   | **Amount** |   |
|                                                     |   |                                   |       |                                   |   |    |   |    |   |
| Balance                at December 31, 2003              |   |                                        | -          |                                        | $      | - |   |   | - |   | $ | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                Stock issued for acquisition of    |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| patent                rights                             |   |                                        | 5,000,000  |                                        |   | 5,000 |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued for cash under        |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Regulation                D offering                     |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued in payment of         |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| legal                fees                                |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Special                dividend to certain major         |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| stockholders                in Gene-Cell, Inc.           |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued in exchange           |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| for                consulting services and               |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| employee                compensation                     |   |                                        | 5,000,000  |                                        |   | 5,000 |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued to repay              |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| debt                                                     |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued to round stock splits |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Net                loss                                  |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Balance                at December 31, 2004              |   |                                        | 10,000,000 |                                        | $      | 10,000 |   |   | - |   | $ | - |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENT OF STOCKHOLDERS' DEFICIT**                                    |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                     |   | **Series                C Preferred Stock** |   | **Common                Stock** |   |
|----------------------------------------------------------|--------|---------------------------------------------|--------|---------------------------------|--------|
|                                                     |   | **Shares**                                  |   | **Amount**                      |   | **Shares** |   | **Amount** |   |
|                                                     |   |                                   |   |                       |   |    |   |    |   |
| Balance                at December 31, 2003              |   |                                        | -      |                            | $      | - |   |   | 22,191 |   | $ | 22 |   |
|                                                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                Stock issued for acquisition of    |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| patent                rights                             |   |                                        | -      |                            |   | - |   |   | 5,100,000 |   |   | 5,100 |   |
|                                                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued for cash under        |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Regulation                D offering                     |   |                                        | -      |                            |   | - |   |   | 39,600,000 |   |   | 39,600 |   |
|                                                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued in payment of         |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| legal                fees                                |   |                                        | -      |                            |   | - |   |   | 252,000 |   |   | 252 |   |
|                                                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Special                dividend to certain major         |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| stockholders                in Gene-Cell, Inc.           |   |                                        | -      |                            |   | - |   |   | 5,000,000 |   |   | 5,000 |   |
|                                                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued in exchange           |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| for                consulting services and               |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| employee                compensation                     |   |                                        | -      |                            |   | - |   |   | 31,926,240 |   |   | 31,926 |   |
|                                                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued to repay              |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| debt                                                     |   |                                        | -      |                            |   | - |   |   | 5,002,000 |   |   | 5,002 |   |
|                                                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued to round stock splits |   |                                        | -      |                            |   | - |   |   | 45,336 |   |   | 45 |   |
|                                                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Net                loss                                  |   |                                        | -      |                            |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |        |                            |   |  |   |   |  |   |   |  |   |
| Balance                at December 31, 2004              |   |                                        | -      |                            | $      | - |   |   | 86,947,767 |   | $ | 86,947 |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENT OF STOCKHOLDERS' DEFICIT**                                    |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                     |   | **Additional****Paid-In****Capital** |        | **Deferred****Compensation** |   | **Losses****Accumulated****During                        the****Development****Stage** |   | **Total** |         |
|----------------------------------------------------------|--------|--------------------------------------|-------------|------------------------------|--------|----------------------------------------------------------------------------------------|--------|-----------|--------------|
| Balance                at December 31, 2003              |   | $                                    | 3,021,013   |                         | $      | -                                                                                      |   | $         | (3,555,751   | ) | $ | (534,716 | ) |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                Stock issued for acquisition of    |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| patent                rights                             |   |                                 | (10,100     | )                            |   | -                                                                                      |   |      | -            |   |   | - |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                stock issued for cash under        |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Regulation                D offering                     |   |                                 | 403,125     |                         |   | -                                                                                      |   |      | -            |   |   | 442,725 |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                stock issued in payment of         |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| legal                fees                                |   |                                 | 49,748      |                         |   | -                                                                                      |   |      | -            |   |   | 50,000 |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Special                dividend to certain major         |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| stockholders                in Gene-Cell, Inc.           |   |                                 | (5,000      | )                            |   | -                                                                                      |   |      | -            |   |   | - |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                stock issued in exchange           |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| for                consulting services and               |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| employee                compensation                     |   |                                 | 106,196,089 |                         |   | -                                                                                      |   |      | -            |   |   | 106,233,015 |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                stock issued to repay              |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| debt                                                     |   |                                 | 94,998      |                         |   | -                                                                                      |   |      | -            |   |   | 100,000 |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                stock issued to round stock splits |   |                                 | (45         | )                            |   | -                                                                                      |   |      | -            |   |   | - |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Net                loss                                  |   |                                 | -           |                         |   | -                                                                                      |   |      | (106,417,974 | ) |   | (106,417,974 | ) |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Balance                at December 31, 2004              |   | $                                    | 109,749,828 |                         | $      | -                                                                                      |   | $         | (109,973,725 | ) | $ | (126,950 | ) |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **UNAUDITED                CONSOLIDATED STATEMENT OF STOCKHOLERS' DEFICIT**                           |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                     |   | **Series                A Preferred Stock** |       | **Series                B Preferred Stock** |   |
|----------------------------------------------------------|--------|---------------------------------------------|------------|---------------------------------------------|--------|
|                                                     |   | **Shares**                                  |       | **Amount**                                  |   | **Shares** |   | **Amount** |   |
|                                                     |   |                                   |       |                                   |   |    |   |    |   |
| Balance                at December 31, 2004              |   |                                        | 10,000,000 |                                        | $      | 10,000 |   |   | - |   | $ | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued for cash under        |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Regulation                D offering                     |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                and preferred stock issued in      |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| exchange                for consulting services and      |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| employee                compensation                     |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued upon exercise of      |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| stock                warrants                            |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued for conversion of     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| notes                payable                             |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Return                and cancellation of shares         |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Common                stock issued to escrow for debt    |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| conversions                and warrant exercises         |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Issuance                of compensatory stock options to |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Chief                Executive Officer                   |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Net                Loss                                  |   |                                        | -          |                                        |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |            |                                        |   |  |   |   |  |   |   |  |   |
| Balance                at December 31, 2005              |   |                                        | 10,000,000 |                                        | $      | 10,000 |   |   | - |   | $ | - |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **UNAUDITED                CONSOLIDATED STATEMENT OF STOCKHOLERS' DEFICIT**                           |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                     |   | **Series                C Preferred Stock** |      | **Common                Stock** |   |
|----------------------------------------------------------|--------|---------------------------------------------|-----------|---------------------------------|--------|
|                                                     |   | **Shares**                                  |      | **Amount**                      |   | **Shares** |   | **Amount** |   |
|                                                     |   |                                   |      |                       |   |    |   |    |   |
| Balance                at December 31, 2004              |   |                                        | -         |                            | $      | - |   |   | 86,947,767 |   | $ | 86,947 |   |
|                                                     |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued for cash under        |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Regulation                D offering                     |   |                                        | -         |                            |   | - |   |   | 22,150,950 |   |   | 22,151 |   |
|                                                     |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Common                and preferred stock issued in      |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| exchange                for consulting services and      |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| employee                compensation                     |   |                                        | 6,060,000 |                            |   | 6,060 |   |   | 42,828,835 |   |   | 42,829 |   |
|                                                     |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued upon exercise of      |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| stock                warrants                            |   |                                        | -         |                            |   | - |   |   | 244,763 |   |   | 245 |   |
|                                                     |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued for conversion of     |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| notes                payable                             |   |                                        | -         |                            |   | - |   |   | 42,215,361 |   |   | 42,215 |   |
|                                                     |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Return                and cancellation of shares         |   |                                        | -         |                            |   | - |   |   | (6,466,700 | ) |   | (6,467 | ) |
|                                                     |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Common                stock issued to escrow for debt    |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| conversions                and warrant exercises         |   |                                        | -         |                            |   | - |   |   | 21,190,000 |   |   | 21,190 |   |
|                                                     |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Issuance                of compensatory stock options to |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Chief                Executive Officer                   |   |                                        | -         |                            |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Net                Loss                                  |   |                                        | -         |                            |   | - |   |   | - |   |   | - |   |
|                                                     |   |                                        |           |                            |   |  |   |   |  |   |   |  |   |
| Balance                at December 31, 2005              |   |                                        | 6,060,000 |                            | $      | 6,060 |   |   | 209,110,976 |   | $ | 209,110 |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENT OF STOCKHOLERS' DEFICIT**                                     |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                     |   | **Additional****Paid-In****Capital** |        | **Deferred****Compensation** |   | **Losses****Accumulated****During                        the****Development****Stage** |   | **Total** |         |
|----------------------------------------------------------|--------|--------------------------------------|-------------|------------------------------|--------|----------------------------------------------------------------------------------------|--------|-----------|--------------|
| Balance                at December 31, 2004              |   | $                                    | 109,749,828 |                         | $      | -                                                                                      |   | $         | (109,973,735 | ) | $ | (126,960 | ) |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                stock issued for cash under        |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Regulation                D offering                     |   |                                 | 374,409     |                         |   | -                                                                                      |   |      | -            |   |   | 396,560 |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                and preferred stock issued in      |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| exchange                for consulting services and      |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| employee                compensation                     |   |                                 | 105,491,829 |                         |   | -                                                                                      |   |      | -            |   |   | 105,540,718 |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                stock issued upon exercise of      |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| stock                warrants                            |   |                                 | 268,935     |                         |   | -                                                                                      |   |      | -            |   |   | 269,180 |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                stock issued for conversion of     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| notes                payable                             |   |                                 | 27,353      |                         |   | -                                                                                      |   |      | -            |   |   | 69,568 |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Return                and cancellation of shares         |   |                                 | 6,467       |                         |   | -                                                                                      |   |      | -            |   |   | - |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Common                stock issued to escrow for debt    |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| conversions                and warrant exercises         |   |                                 | (21,190     | )                            |   | -                                                                                      |   |      | -            |   |   | - |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Issuance                of compensatory stock options to |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Chief                Executive Officer                   |   |                                 | 31,250,000  |                         |   | -                                                                                      |   |      | -            |   |   | 31,250,000 |   |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Net                Loss                                  |   |                                 | -           |                         |   | -                                                                                      |   |      | (138,426,088 | ) |   | (138,426,088 | ) |
|                                                     |   |                                 |        |                         |   |                                                                                   |   |      |         |   |   |   |   |
| Balance                at December 31, 2005              |   | $                                    | 247,147,631 |                         | $      | -                                                                                      |   | $         | (248,399,823 | ) | $ | (1,027,022 | ) |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS**                                              |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

|                                                                |   | **2005**     |         | **2004**     |   | **Inception                to**December                31, 2005 |   |
|---------------------------------------------------------------------|--------|--------------|--------------|--------------|--------|-----------------------------------------------------------------|--------|
| Cash                flows from operating activities:                |   |    |         |    |   |                                                       |   |
| Net                loss                                             |   | $            | (138,426,088 | )            | $      | (106,417,974                                                    | )      | $ | (248,399,823 | ) |
| Adjustments                to reconcile net income to net           |   |         |              |         |   |                                                                 |   |   |  |   |
| cash                used by operating activities:                   |   |         |              |         |   |                                                                 |   |   |  |   |
| Gain                on settlement                                   |   |         | -            |         |   | (197,033                                                        | )      |   | (197,033 | ) |
| Impairment                of goodwill                               |   |         | -            |         |   | -                                                               |   |   | 541,101 |   |
| Cost                of recapitalization                             |   |         | -            |         |   | -                                                               |   |   | 273,987 |   |
| Amortization                of deferred compensation                |   |         | -            |         |   | -                                                               |   |   | 2,233,150 |   |
| Compensatory                common and preferred                    |   |         |              |         |   |                                                                 |   |   |  |   |
| stock                issuances                                      |   |         | 105,540,718  |         |   | 106,233,015                                                     |   |   | 211,943,789 |   |
| Compensatory                option issuances                        |   |         | 31,250,000   |         |   | -                                                               |   |   | 31,250,000 |   |
| Interest                imputed on non-interest bearing note        |   |         |              |         |   |                                                                 |   |   |  |   |
| from                a stockholder                                   |   |         | -            |         |   | 1,045                                                           |   |   | 7,254 |   |
| Interest                expense recognized on issuance and through  |   |         |              |         |   |                                                                 |   |   |  |   |
| accretion                of discount on long-term debt              |   |         | 925,713      |         |   | 16,543                                                          |   |   | 946,045 |   |
| Change                in fair value of derivatives                  |   |         | (189,539     | )            |   | -                                                               |   |   | (189,539 | ) |
| Common                stock issued for rescission agreement         |   |         | -            |         |   | 43,074                                                          |   |   | 43,074 |   |
| Common                stock issued in payment of accounts payable   |   |         | -            |         |   | 50,000                                                          |   |   | 50,000 |   |
| Depreciation                expense                                 |   |         | 1,042        |         |   | -                                                               |   |   | 1,042 |   |
| Changes                in accounts payable and accrued liabilities  |   |         | 21,448       |         |   | (76,033                                                         | )      |   | 77,145 |   |
|                                                                |   |         |              |         |   |                                                                 |   |   |  |   |
| Net                cash used by operating activities                |   |         | (876,706     | )            |   | (347,363                                                        | )      |   | (1,419,788 | ) |
|                                                                |   |         |              |         |   |                                                                 |   |   |  |   |
| Cash                flows from investing activities:                |   |         |              |         |   |                                                                 |   |   |  |   |
| Acquisition                of equipment                             |   |         | (6,250       | )            |   | -                                                               |   |   | (6,250 | ) |
| Acquisition                of patents                               |   |         | -            |         |   | (38,500                                                         | )      |   | (38,500 | ) |
|                                                                |   |         |              |         |   |                                                                 |   |   |  |   |
| Net                cash used in investing activities                |   |         | (6,250       | )            |   | (38,500                                                         | )      |   | (44,750 | ) |
|                                                                |   |         |              |         |   |                                                                 |   |   |  |   |
| Cash                flows from financing activities:                |   |         |              |         |   |                                                                 |   |   |  |   |
| Proceeds                from stockholder advances                   |   |         | -            |         |   | -                                                               |   |   | 49,672 |   |
| Proceeds                from convertible debt                       |   |         | 50,000       |         |   | -                                                               |   |   | 50,000 |   |
| Proceeds                from note payable                           |   |         | 142,500      |         |   | -                                                               |   |   | 142,500 |   |
| Proceeds                from warrant exercise and deposit for       |   |         |              |         |   |                                                                 |   |   |  |   |
| warrant                exercise                                     |   |         | 290,397      |         |   | -                                                               |   |   | 290,397 |   |
| Payments                on notes payable                            |   |         | -            |         |   | (60,000                                                         | )      |   | (63,000 | ) |
| Proceeds                from sale of common stock                   |   |         | 396,560      |         |   | 442,725                                                         |   |   | 995,205 |   |
|                                                                |   |         |              |         |   |                                                                 |   |   |  |   |
| Net                cash provided by financing activities            |   |         | 879,457      |         |   | 382,725                                                         |   |   | 1,464,874 |   |
|                                                                |   |         |              |         |   |                                                                 |   |   |  |   |
| Net                increase (decrease) in cash and cash equivalents |   |         | (3,499       | )            |   | (3,138                                                          | )      |   | 336 |   |
|                                                                |   |         |              |         |   |                                                                 |   |   |  |   |
| Cash                and cash equivalents at beginning of year       |   |         | 3,835        |         |   | 6,973                                                           |   |   | - |   |
|                                                                |   |         |              |         |   |                                                                 |   |   |  |   |
| Cash                and cash equivalents at end of year             |   | $            | 336          |         | $      | 3,835                                                           |   | $ | 336 |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **1.** | **Organization                and Significant Accounting                Policies** |
|--------|------------------------------------------------------------------------------------|

**Significant      Estimates**

**Principles      of Consolidation**

**Cash      and Cash Equivalents**

**Income      Taxes**

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

**Stock-Based      Compensation**

**Valuation      of Derivatives**

**Loss      Per Share**

**Fair      Value of Financial Instruments**

**New      Accounting Pronouncements**

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **2.** | **Going                Concern Considerations** |
|--------|-------------------------------------------------|

| ·   | The                Company's ability to obtain adequate sources of funding to sustain                it                during the development stage. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                ability of the Company to successfully produce and market its gasoline                and                diesel engine emission reduction device in a manner that will allow                it to                ultimately achieve adequate profitability and positive cash flows                to                sustain its operations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.** | **Agreement                for Acquisition of Patent Rights** ** ** |
|--------|-------------------------------------------------------------------------------|

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **3.** | **Agreement                for Acquisition of Patent Rights,                continued** |
|--------|-----------------------------------------------------------------------------------------|

| · | 5,000,000                  shares of Series A preferred stock to both Serge Monros, who owned                  the                  patents, and Mario Procopio, the Company's founder and Chief Executive                  Officer. The Series A preferred stock is convertible to and holds                  voting                  rights of 100 to 1 of those attributable to common stock. These                  shares are                  to remain in escrow for three years, and, accordingly, they will                  not be                  converted to common stock during that                  period. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 5,000,000                  shares of common stock to both Serge Monros and Mario                  Procopio. |
|--------|-------------------------------------------------------------------------------------------------------------|

| · | Three-year                  stock options to acquire 125,000,000 shares of the Company's common                  stock                  at $0.00025 per share to both Serge Monros and Mario Procopio.                  This                  provision of the agreement was reached in April 2005. The options                  to Serge                  Monros are considered part of the cost of the patent rights under                  the                  Agreement. The Options to Mario Procopio will be recognized as                  compensation expense of $31,250,000 in the second quarter of                  2005. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | Serge                Monros and Mario Procopio each are to receive monthly compensation                of                $10,000 per month, depending on revenues and the raising of capital,                but                not less than $3,000 per month. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Contingent                consideration to Serge Monros of $75,000,000 in cash or in the form                of                stock options the exercise of which will provide net proceeds to                Serge                Monros of $75,000,000 over the next ten years. If options are issued,                they                will bear an exercise price of $0.00025 per share. This provision                of the                agreement is specifically tied to the performance of the Company                and its                ability to pay either in cash or stock                options. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **4.** | **Acquisition                of DreamCity                Entertainment** |
|--------|--------------------------------------------------------------------------|

| **5.** | **Rescission                of Energy Resource Management                Agreement** |
|--------|--------------------------------------------------------------------------------------|

| **6.** | **Accounts                Payable Assumed in                Recapitalization** |
|--------|--------------------------------------------------------------------------------|

| **7.** | **Restatements                for Convertible Debt** |
|--------|------------------------------------------------------|

|                                                    |   | ** ** **Warrant** **Payments  ** |     | **Convertible****Debt** |   |
|---------------------------------------------------------|--------|-----------------------------------------------------------|----------|-------------------------|--------|
|                                                    |   |                                                      |     |                    |   |
| Cash                paid                                |   | $                                                         | 290,597  |                    | $      | 50,000 |   |
| Warrants                exercised with debt conversions |   |                                                      | (266,792 | )                       |   | (2,448 | ) |
|                                                    |   |                                                      |          |                    |   |  |   |
| Ending                balance                           |   | $                                                         | 23,805   |                    | $      | 47,552 |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **7.** | **Restatement                for Convertible Debt,                continued** |
|--------|-------------------------------------------------------------------------------|

| Contractual                    balance                |   | $      | 50,000   |   |
|-------------------------------------------------------|--------|--------|----------|--------|
| Less                    compound embedded derivatives |   |   | (872,362 | )      |
| Less:                    warrant liability            |   |   | (84,234  | )      |
| Plus                    interest expense              |   |   | 906,596  |   |
| Net                    convertible debt               |   | $      | -        |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **7.** | **Restatement                for Convertible Debt,                continued** |
|--------|-------------------------------------------------------------------------------|

| Contractual                balance           |   | $      | 50,000  |   |
|----------------------------------------------|--------|--------|---------|--------|
| Less:                conversions             |   |   | (2,448  | )      |
|                                         |   |   |         |   |
| Convertible                debt gross amount |   | $      | 47,552  |   |
| Unamortized                Discount          |   |   | (41,033 | )      |
|                                         |   |   |    |   |
| Net                Convertible Debenture     |   |   | 6,519   |   |

| **INCOMESTATEMENT**                                                                                    |   |   |         |
|--------------------------------------------------------------------------------------------------------|--------|--------|--------------|
| Net                loss, as previously reported previously                reported                     |   | $      | (137,702,414 | ) |
| Income                from change in value of derivative financial instruments                         |   |   | 189,539      |   |
| Change                in interest expense as a result of accretion of debt discount                and |   |   |         |   |
| Initial                valuation                                                                       |   |   | (913,213     | ) |
|                                                                                                   |   |   |         |   |
| Net                income (loss) as restated                                                           |   | $      | (138,426,088 | ) |
|                                                                                                   |   |   |         |   |

| Net                change - income (loss)                  |   | $      | (723,674    | )      |
|------------------------------------------------------------|--------|--------|-------------|--------|
|                                                       |   |   |        |   |
| Weighted                average shares - basic and diluted |   |   | 121,294,340 |   |
|                                                       |   |   |        |   |
| Net                loss per share, as previously reported  |   | $      | (1.14       | )      |
|                                                       |   |   |        |   |
| Net                loss per share, as restated             |   | $      | (1.14       | )      |
|                                                       |   |   |        |   |

| **BALANCE                SHEET**                                           |   |   |       |   |
|----------------------------------------------------------------------------|--------|--------|------------|--------|
| Total                liabilities, as previously reported                   |   | $      | $404,600   |   |
| Change                to properly state convertible debt                   |   |   | (41,033    | )      |
| Increase                to properly state derivative financial instruments |   |   | 707,499    |   |
|                                                                       |   |   |       |   |
| Total                liabilities as restated                               |   | $      | 1,071,066  |   |
|                                                                       |   |   |       |   |
| Total                stockholders' equity (deficit) as previously reported |   | $      | (360,556   | )      |
| Change                                                                     |   |   | (666,466   | )      |
|                                                                       |   |   |       |   |
| Total                stockholders' equity (deficit), as restated           |   | $      | (1,027,022 | )      |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **8.** | **Long-Term                Debt** |
|--------|-----------------------------------|

| Contractual                  balance                                       |   | $      | 150,000 |   |
|----------------------------------------------------------------------------|--------|--------|---------|--------|
| Less                  unamortized portion of beneficial conversion feature |   |   | (7,500  | )      |
|                                                                       |   |   |         |   |
| Long-term                  debt                                            |   | $      | 142,500 |   |

| **9.** | **Income                Taxes** |
|--------|---------------------------------|

|                                                           |   | **2005** |       | **2004** |   |
|----------------------------------------------------------------|--------|----------|------------|----------|--------|
|                                                           |   |     |       |     |   |
| Benefit                from carryforward of net operating loss |   | $        | 1,470,727  |     | $      | 1,165,000 |   |
| Less                valuation allowance                        |   |     | (1,470,727 | )        |   | (1,165,000 | ) |
|                                                           |   |     |            |     |   |  |   |
| Net                deferred tax asset                          |   | $        | -          |     | $      | - |   |

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **9.** | **Income                Taxes, continued** |
|--------|--------------------------------------------|

|                                             |   | **2005**     |        | **2004**    |   |
|--------------------------------------------------|--------|--------------|-------------|-------------|--------|
|                                             |   | **Amount**   |        | **Percent** |   | **Amount** |   | **Percent** |   |
|                                             |   |    |        |        |   |    |   |   |   |
| Benefit                  for income tax at       |   | $            | 47,064,870  |        |   | 34.0 | % | $ | 36,182,111 |   |   | 34.0 | % |
| federal                  statutory rate          |   |         |             |        |   |  |   |   |  |   |   |  |   |
| Non-deductible                  compensation     |   |         | (46,508,844 | )           |   | (33.6 | ) |   | (46,513,094 | ) |   | (33.9 | ) |
| Non-deductible                  interest and     |   |         |        |        |   |   |   |   |   |   |   |   |   |
| change                  in value of derivative   |   |         |        |        |   |   |   |   |   |   |   |   |   |
| financial                  instruments           |   |         | 250,299     |        |   | (0.2 | ) |   | - |   |   | - |   |
| Non-taxable                  gain                |   |         | -           |        |   | - |   |   | 66,991 |   |   | - |   |
| Increase                  in valuation allowance |   |         | (305,727    | )           |   | 0.1 |   |   | (305,727 | ) |   | (0.1 | ) |
|                                             |   |         |             |        |   |  |   |   |  |   |   |  |   |
|                                                  |   |  $      | -      |        |   | - | % | $ | - |   |   | - | % |

| **10.** | **Lease                Commitments** |
|---------|--------------------------------------|

| **11.** | **Stockholders'                Equity** |
|---------|-----------------------------------------|

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **11.** | **Stockholders'                Equity, continued** |
|---------|----------------------------------------------------|

**Common      Stock**

**Year      Ended December 31, 2005**

**Year      Ended December 31, 2004**

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **11.** | **Stockholders'                Equity, continued** |
|---------|----------------------------------------------------|

**Common      Stock, continued**

**Stock      Options**

**Incentive      Stock Plan**

**Stock      Warrants**

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **11.** | **Stockholders'                Equity, continued** |
|---------|----------------------------------------------------|

**Preferred      Stock**

| **12.** | **Related                Party Transactions** |
|---------|-----------------------------------------------|

| **13.** | **Non-Cash                Investing and Financing Transactions and Supplemental Disclosure                of Cash                Flow Information** |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **SAVI                MEDIA GROUP, INC.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **A                Corporation in the Development Stage**                                             |
| **NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                         |
| ***For                the Years Ended December 31, 2005 and 2004 and for the                Period*** |
| ***From                Inception, August 13, 2002, to December 31,                2005***             |

| **13.** | **Non-Cash                Investing and Financing Transactions and Supplemental Disclosure                of Cash                Flow Information,                continued** |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ITEM      8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE.**

**ITEM      8A - CONTROLS AND PROCEDURES**

| **a)  ** | **Evaluation                of Disclosure Controls and Procedures**                .                As of December 31, 2005, the Company’s management carried out an                evaluation, under the supervision of the Company’s Chief Executive Officer                and Chief Financial Officer of the effectiveness of the design and                operation of the Company’s system of disclosure controls and procedures                pursuant to the Securities and Exchange Act, Rule 13a-15(e) and 15d-15(e)                under the Exchange Act).  Based upon that evaluation, the Chief                Executive Officer and Chief Financial Officer concluded that the                Company’s                disclosure controls and procedures were effective, as of the date                of their                evaluation, for the purposes of recording, processing, summarizing                and                timely reporting material information required to be disclosed in                reports                filed by the Company under the Securities Exchange Act of                1934. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **b)  ** | **Changes                in internal controls**                .                There were no changes in internal controls over financial reporting                that                occurred during the period covered by this report that has materially                affected, or is likely to materially effect, the Company’s internal                control over financial reporting. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      8B - OTHER INFORMATION**

** **

----

**ITEM      9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL      PERSONS.**

| NAME                           |   | AGE    |   | POSITION |   |
|--------------------------------|--------|--------|--------|----------|--------|
|                           |   |   |   |     |   |
| Mario                Procopio  |   |   | 44     |     |   | Chief                Executive Officer, President and Chairman of the Board of                Directors |   |
| George                Hukriede |   |   | 62     |     |   | Chief                Financial Officer |   |
| Kathy                Procopio  |   |   | 47     |     |   | Secretary,                Treasurer and Director |   |
| Serge                Monros    |   |   | 54     |     |   | Chief                Technology Officer and Director |   |
| Phil                Pisanelli  |   |   | 57     |     |   | Vice                President for Marking and Director |   |
| Rudy                Rodriguez  |   |   | 54     |     |   | Chief                Operating Officer and Director |   |

**Mr.      Mario Procopio**

**George      Hukriede**

**Mrs.      Kathy Procopio**

**Mr.      Serge Monros**

**Mr.      Rudy Rodriguez**

----

**Mr.      Phil Pisanelli**

**Audit      Committee**

**Code      of Ethics**

**COMPLIANCE      WITH SECTION 16(A) OF THE SECURITIES EXCHANGE ACT OF 1934**

----

**ITEM      10. EXECUTIVE COMPENSATION.**

| Name                  & PrincipalPosition |   | Year   |   | Salary($) |   | Bonus($) |   | AnnualCompen-sation                    ($) |   | RestrictedStockAwards($) |   | OptionsSARs(#) |   | OtherLTIPPayouts($) |    | All                  OtherCompensation |   |
|-----------------------------------------------|--------|--------|--------|-----------|--------|----------|--------|--------------------------------------------|--------|--------------------------|--------|----------------|--------|---------------------|---------|----------------------------------------|--------|
| Mario                Procopio                 |   |   | 2005   |      |   | 32,000   |   |                                       | 0      |                     |   | -              |   |                | -       |                                   |   | - |   |   | - |   |   | - |   |
|   Chief                Executive    |   |   | 2004   |      |   | 38,840   |   |                                       | 0      |                     |   | -              |   |                | 100,000 |                                   |   | - |   |   | - |   |   | - |   |
|   Officer                           |   |   | 2003   |      |   | 9,625    |   |                                       | 0      |                     |   | -              |   |                | -       |                                   |   | - |   |   | - |   |   | - |   |
| Kathy                Procopio                 |   |   | 2005   |      |   | 0        |   |                                       | 0      |                     |   | -              |   | $                   | 40,000  |                                   |   | - |   |   | - |   |   | - |   |
|   Chief                Financial    |   |   | 2004   |      |   | 0        |   |                                       | 0      |                     |   | -              |   | $                   | 460,000 |                                   |   | - |   |   | - |   |   | - |   |
|   Officer                           |   |   | 2003   |      |   | 0        |   |                                       | 0      |                     |   | -              |   |                | -       |                                   |   | - |   |   | - |   |   | - |   |

**Employment      Agreements**

**Remuneration      of Directors**

**Stock      Option Plans**

*2005      Incentive Stock Plan*

----

**Option/Stock      Appreciation Right Grants in 2005**

**Aggregate      Option/SAR Exercises in 2005 and December 31, 2005 Option      Values**

**Equity      Compensation Plan Information**

|                                                                        |   | **Number                  of****securities to be****issued                  upon****exercise                  of****outstanding****options, warrants****and                  rights****(a)** |       | **Weighted-****average exercise****price                  of****outstanding****options,****warrants                  and****rights****(b)** |   | **Number                  of****securities****remaining****available for future****issuance                  under****equity****compensation****plans                  (excluding****securities                  reflected****in                  column (a))****(c)** |   |
|-----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity                  compensation plans approved by security holders     |   |                                                                                                                                                                                                        | 25,000,000 |                                                                                                                                             | $      | 0                                                                                                                                                                                                                                                                                |   |   | 25,000,000 |   |
| Equity                  compensation plans not approved by security holders |   |                                                                                                                                                                                                        | 0          |                                                                                                                                             |   | 0                                                                                                                                                                                                                                                                                |   |   | 0 |   |
| Total                                                                       |   |                                                                                                                                                                                                        | 25,000,000 |                                                                                                                                             | $      | 0                                                                                                                                                                                                                                                                                |   |   | 25,000,000 |   |

----

**ITEM      11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED      STOCKHOLDER MATTERS.**

| ·   | all                directors and nominees, naming them, |
|--------------------|---------------------------------------------------------|
| ·   | our                executive officers, |
|--------------------|----------------------------------------|
| ·   | our                directors and executive officers as a group, without naming them,                and |
|--------------------|---------------------------------------------------------------------------------------------------------|
| ·   | persons                or groups known by us to own beneficially 5% or more of our common                stock: |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| NAME                  AND ADDRESSOF                  OWNER |   | TITLE                  OF CLASS |                        | NUMBER                      OFSHARESBENEFICIALLYOWNED(1) |   | PERCENTAGE                  OFCLASS                  (2) |       |
|------------------------------------------------------------|--------|---------------------------------|-----------------------------|----------------------------------------------------------|--------|----------------------------------------------------------|------------|
|                                                       |   |                            |                        |                                                     |   |                                                     |       |
| Mario                Procopio                              |   |                            | Common                Stock |                                                     |   | 125,100,000                                              |  (3)  |   | 29.99 | % |
| 2530                S. Birch Street, #A                    |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Santa                Ana, California 92707                 |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Kathy                Procopio                              |   |                            | Common                Stock |                                                     |   | 658,548,300                                              |  (4)  |   | 69.90 | % |
| 2530                S. Birch Street, #A                    |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Santa                Ana, California 92707                 |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| George                Hukriede                             |   |                            | Common                Stock |                                                     |   | 500,000                                                  |       |   | * |   |
| 2530                S. Birch Street, #A                    |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Santa                Ana, California 92707                 |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Serge                Monros                                |   |                            | Common                Stock |                                                     |   | 782,102,300                                              |  (5)  |   | 73.29 | % |
| 2530                S. Birch Street, #A                    |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Santa                Ana, California 92707                 |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Phil                Pisanell                               |   |                            | Common                Stock |                                                     |   | 1,000,000                                                |       |   | * |   |
| 2530                S. Birch Street, #A                    |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Santa                Ana, California 92707                 |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Ben                Lofstedt                                |   |                            | Common                Stock |                                                     |   | 2,000,000                                                |       |   | 1.05 | % |
| 2530                S. Birch Street, #A                    |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Santa                Ana, California 92707                 |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| All                Officers and Directors                  |   |                            | Common                Stock |                                                     |   | 1,569,250,600                                            |  (6)  |   | 85.19 | % |
| As                a                Group (6 persons)       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Alexander                M. Haig Jr.                       |   |                            | Common                Stock |                                                     |   | 50,000,000                                               |  (7)  |   | 14.62 | % |
| 2530                S. Birch Street, #A                    |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Santa                Ana, California 92707                 |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Alexander                P. Haig                           |   |                            | Common                Stock |                                                     |   | 50,000,000                                               |  (7)  |   | 14.62 | % |
| 2530                S. Birch Street, #A                    |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Santa                Ana, California 92707                 |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Steve                Botkin                                |   |                            | Common                Stock |                                                     |   | 102,000,000                                              |  (8)  |   | 25.88 | % |
| 405                S. Fann Street                          |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Anaheim,                California 92804                   |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Cyrus                Project Incorporated                  |   |                            | Common                Stock |                                                     |   | 39,527,500                                               |  (9)  |   | 11.92 | % |
| PO                Box 1969                                 |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Huntington                Beach, CA 92647-1969             |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| G                & K Automotive Conversion             |   |                            | Common                Stock |                                                     |   | 100,000,000                                              |  (10) |   | 25.50 | % |
| Inc.                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| 2530                Birch St                               |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Santa                Ana, Ca 92707                         |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| His                Devine Vehicle                          |   |                            | Common                Stock |                                                     |   | 656,548,300                                              |  (11) |   | 69.69 | % |
| 11001                E. Valley Mall, Suite 301C            |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| El                Monte, California 91731                  |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| New                Creation Outreach, Inc.                 |   |                            | Common                Stock |                                                     |   | 656,548,300                                              |  (12) |   | 69.69 | % |
| 2530                S. Birch Street, #A                    |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Santa                Ana, California 92707                 |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| His                Devine Vehicle                          |   |                            | Preferred                A  |                                                     |   | 5,000,000                                                |       |   | 50 | % |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| New                Creation Outreach, Inc.                 |   |                            | Preferred                A  |                                                     |   | 5,000,000                                                |       |   | 50 | % |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| His                Devine Vehicle                          |   |                            | Preferred                C  |                                                     |   | 1,500,000                                                |       |   | 23.24 | % |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| New                Creation Outreach, Inc.                 |   |                            | Preferred                C  |                                                     |   | 1,500,000                                                |       |   | 23.24 | % |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Alexander                M. Haig Jr.                       |   |                            | Preferred                C  |                                                     |   | 500,000                                                  |       |   | 7.75 | % |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Alexander                P. Haig                           |   |                            | Preferred                C  |                                                     |   | 500,000                                                  |       |   | 7.75 | % |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Steve                Botkin                                |   |                            | Preferred                C  |                                                     |   | 1,020,000                                                |       |   | 15.80 | % |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| Cyrus                Project Incorporated                  |   |                            | Preferred                C  |                                                     |   | 395,275                                                  |       |   | 6.12 | % |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |
| G                & K Automotive Conversion             |   |                            | Preferred                C  |                                                     |   | 1,000,000                                                |       |   | 15.49 | % |
|                                                       |   |                            |                        |                                                     |   |                                                     |       |   |   |   |

----

| (1) | Beneficial                Ownership is determined in accordance with the rules of the Securities                and                Exchange Commission and generally includes voting or investment power                with                respect to securities. Shares of common stock subject to options                or                warrants currently exercisable or convertible, or exercisable or                convertible within 60 days of April 16, 2006 are deemed outstanding                for                computing the percentage of the person holding such option or warrant                but                are not deemed outstanding for computing the percentage of any other                person. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | For                purposes of calculating the percentage beneficially                  owned, the number of shares of each class of stock deemed outstanding                includes 292,106,564 common shares; 10,000,000                  Preferred "A" Shares and 6,455,275 Preferred "C" Shares outstanding                as of                April 14, 2006. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes                125,000,000 shares of common stock underlying                options. |
|-----|-----------------------------------------------------------------------------------------------|

| (4) | Includes                6,548,300 shares of common stock, 500,000,000 shares of common stock                underlying series A convertible preferred stock and 150,000,000 shares                of                common stock underlying series C convertible preferred stock owned                by New                Creation Outreach, Inc., of which Mrs. Procopio is the Chief Executive                Officer. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes                450,000 shares owned by Mr. Monros’ minor children and 125,000,000 shares                of common stock underlying options. Also includes 6,548,300 shares                of                common stock, 500,000,000 shares of common stock underlying series                A                convertible preferred stock and 150,000,000 shares of common stock                underlying series C convertible preferred stock owned by His Divine                Vehicle, Inc., of which Mr. Monros is the Chief Executive                Officer. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (6) | Includes                250,000,000 shares of common stock underlying options, 1,000,000,000                shares of common stock underlying series A convertible preferred                stock and                300,000,000 shares of common stock underlying series C convertible                preferred stock. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Includes                50,000,000 shares of common stock underlying series C convertible                preferred stock |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (8) | Includes                102,000,000 shares of common stock underlying series C convertible                preferred stock |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (9) | Includes                39,527,500 shares of common stock underlying series C convertible                preferred stock |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (10) | Includes                102,000,000 shares of common stock underlying series C convertible                preferred stock |
|------|---------------------------------------------------------------------------------------------------------------------------|

| (11) | Includes                500,000,000 shares of common stock underlying series A convertible                preferred stock and 150,000,000 shares of common stock underlying                series C                convertible preferred stock. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Series      A and C Voting Rights**

----

**ITEM      12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.**

----

**ITEM      13. EXHIBITS.**

| Exhibit                No. |   | Description                                                                                                                                                                                                                                                                                                                                                            |
|----------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 3.1                        |   | Amended                and Restated Articles of Incorporation, filed March 1, 2005, filed                as an                exhibit to the registration statement on Form SB-2 filed with the                Securities and Exchange Commission (the “Commission”) on June 27, 2005 and                incorporated herein by reference. ** **      |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 3.2                        |   | Amendment                to the Articles of Incorporation, as amended and restated, filed                April 22,                2005, filed as an exhibit to the registration statement on Form SB-2                filed                with the Commission on June 27, 2005 and incorporated herein by                reference.                                   |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 3.3                        |   | Certificate                of Designation of Series A Preferred Stock, filed as an exhibit to                the                registration statement on Form SB-2 filed with the Commission on                June 27,                2005 and incorporated herein by reference.                                                                                     |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 3.4                        |   | Certificate                of Designation of Series B Preferred Stock, filed as an exhibit to                the                registration statement on Form SB-2 filed with the Commission on                June 27,                2005 and incorporated herein by reference.                                                                                     |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 3.5                        |   | Certificate                of Designation of Series C Preferred Stock, filed as an exhibit to                the                registration statement on Form SB-2 filed with the Commission on                June 27,                2005 and incorporated herein by reference.                                                                                     |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 3.6                        |   | By-laws,                filed as an exhibit to the registration statement on Form SB-2 filed                with                the Commission on June 27, 2005 and incorporated herein by                reference.                                                                                                                                                   |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 4.1                        |   | Securities                Purchase Agreement dated May 5, 2005 entered between the Company                and                Golden Gate Investors, Inc.                                                                                                                                                                                                               |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 4.2                        |   | Amendment                No. 1 to the Securities Purchase Agreement dated May 5, 2005 entered                between the Company and Golden Gate Investors, Inc.                                                                                                                                                                                                       |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 4.3                        |   | Convertible                Debenture dated May 2005 entered between the Company and Golden Gate                Investors, Inc.                                                                                                                                                                                                                                         |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 4.4                        |   | Warrant                to Purchase Common Stock dated May 2005 issued to Golden Gate Investors,                Inc.                                                                                                                                                                                                                                                    |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 4.5                        |   | Registration                Rights Agreement dated May 2005 entered between Golden Gate Investors,                Inc. and the Company .                                                                                                                                                                                                                               |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1                       |   | Agreement,                dated as of April 6, 2005, by and between the Company and His Devine                Vehicle, Inc., filed as an exhibit to the registration statement                on Form                SB-2 filed with the Commission on June 27, 2005 and incorporated                herein by                reference.                               |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2                       |   | Agreement,                dated as of June 17, 2005, amending the April 6, 2005 agreement between                the Company and His Devine Vehicle, Inc., filed as an exhibit to                the                registration statement on Form SB-2 filed with the Commission on                June 27,                2005 and incorporated herein by reference. |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                   |
| 31.1                       |   | Certification                of Chief Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a),                promulgated under the Securities and Exchange Act of 1934, as                amended                                                                                                                                                                |

----

|   |   |                                                                                                                                                                                                         |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.2   |   | Certification                of Chief Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a),                promulgated under the Securities and Exchange Act of 1934, as                amended      |
|   |   |                                                                                                                                                                                                         |
| 32.1   |   | Certification                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 (Chief Executive                Officer) |
|   |   |                                                                                                                                                                                                         |
| 32.2   |   | Certification                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 (Chief Financial                Officer) |

----

**ITEM      14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.**

**Audit      Fees**

**Audit      Related**

**Tax      Fees**

**All      Other Fees**

----

**SIGNATURES**

|                               |                                                                                                                                                                                     |                                 |
|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|                               | **SAVI              MEDIA              GROUP, INC.**                                                                                                                                     |
|                          |                                                                                                                                                                                |                            |
| Date:              August 21, 2006 | By:                                                                                                                                                                            | /s/ MARIO              PROCOPIO |
|                               | Mario                Procopio President,                  Chief Executive Officer (Principal Executive Officer) and                  Chairman of the Board of                  Directors |

|                                 |                                                                                                                                                    |                                  |
|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|
|                            |                                                                                                                                               |                             |
| Date:                August 21, 2006 | By:                                                                                                                                           | /s/ GEORGE              HUKRIEDE |
|                                 | George                Hukriede Chief                  Financial Officer (Principal Financial Officer and Principal                  Accounting Officer) |

| Name                                                             |   | Position |                                                                                                                                                 | Date   |   |
|------------------------------------------------------------------|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                             |   |     |                                                                                                                                                 |   |   |
|                                                             |   |     |                                                                                                                                                 |   |   |
| /s/                MARIO PROCOPIOMario                Procopio   |   |     | President,                Chief Executive Officer (Principal Executive Officer) and Chairman                of the                Board of Directors |   |   | August                21, 2006 |   |
|                                                             |   |     |                                                                                                                                                 |   |   |   |   |
|                                                             |   |     |                                                                                                                                                      |   |   |   |   |
| /s/                GEORGE HUKRIEDEGeorge                Hukriede |   |     | Chief                Financial Officer (Principal Financial Officer and Principal Accounting                Officer)                                 |   |   | August                21, 2006 |   |
|                                                             |   |     |                                                                                                                                                 |   |   |   |   |
|                                                             |   |     |                                                                                                                                                      |   |   |   |   |
| /s/                KATHY PROCOPIOKathy                Procopio   |   |     | Secretary,                Treasurer and Director                                                                                                     |   |   | August                21, 2006 |   |
|                                                             |   |     |                                                                                                                                                 |   |   |   |   |
|                                                             |   |     |                                                                                                                                                      |   |   |   |   |
| /s/                SERGE MONROSSerge                Monros       |   |     | Chief                Technology Officer and Director                                                                                                 |   |   | August                21, 2006 |   |
|                                                             |   |     |                                                                                                                                                 |   |   |   |   |
|                                                             |   |     |                                                                                                                                                      |   |   |   |   |
| /s/                PHIL PISANELLIPhil                Pisanelli   |   |     | Vice                President for Marketing and Director                                                                                             |   |   | August                21, 2006 |   |
|                                                             |   |     |                                                                                                                                                 |   |   |   |   |
|                                                             |   |     |                                                                                                                                                      |   |   |   |   |
| /s/                RUDY RODRIGUEZRudy                Rodriguez   |   |     | Director                                                                                                                                             |   |   | August                21, 2006 |   |

----