Document:

BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                                     INDEX

                                                                          Page
                                                                          ----

Report of Independent Registered Public Accounting Firm                    F-2

Balance Sheets as of December 31, 2005 and 2004                            F-3

Statements of Operations and Other Comprehensive
   Income (Loss) for the Years Ended December 31, 2005 and 2004            F-4

Statements of Shareholders' Equity for the Years Ended
   December 31, 2005 and 2004                                              F-5

Statements of Cash Flows for the Years Ended December 31,
   2005 and 2004                                                           F-6

Notes to the Financial Statements                                     F-7-F-16

Balance Sheets as of March 31, 2006 and December 31, 2005                 F-17

Statements of Operations and Other Comprehensive Income (Loss)
   for the Three Months Ended March 31, 2006 and 2005                     F-18

Statements of Shareholders' Equity
   for the Three Months Ended March 31, 2006 and 2005                     F-19

Statements of Cash Flows
   for the Three Months Ended March 31, 2006 and 2005                     F-20

Notes to the Financial Statements                                    F-21-F-30

<PAGE>

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and
Stockholders of Beijing Broadcasting and Television Media, Ltd.

We have audited the accompanying balance sheets of Beijing Broadcasting and
Television Media Co., Ltd. as of December 31, 2005 and 2004, and the related
statements of operations and other comprehensive income (loss), stockholders'
equity, and cash flows for the years then ended. These financial statements are
the responsibility of the company's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. The company is not required to
have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the company's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Beijing Broadcasting and
Television Media Co., Ltd. as of December 31, 2005 and 2004, and the results of
its operations and its cash flows for the years then ended in conformity with
accounting principles general accepted in the United States of America.

/s/ Moore Stephens Wurth Frazer and Torbet, LLP
-----------------------------------------------

Walnut, California

May 19, 2006

                                      F-2
<PAGE>
<TABLE>
<CAPTION>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                                 BALANCE SHEETS
                        AS OF DECEMBER 31, 2005 AND 2004

                                     ASSETS

                                                                2005          2004
                                                             -----------   -----------
<S>                                                          <C>           <C>
CURRENT ASSETS:
    Cash                                                     $   135,816   $   114,063
    Accounts receivable, net of allowance for
      doubtful accounts of $3,900 and $0 as of
      December 31, 2005 and 2004, respectively                   891,565        30,797
    Accounts receivable - related party                          252,374            --
    Inventories - production cost                                 27,969            --
    Other receivables                                             40,709         1,694
    Other receivables - related parties                          296,412            --
    Other current assets                                          20,195         6,139
                                                             -----------   -----------
      Total current assets                                     1,665,040       152,693
                                                             -----------   -----------

EQUIPMENT, net                                                   790,970       912,843
                                                             -----------   -----------

         Total assets                                        $ 2,456,010   $ 1,065,536
                                                             ===========   ===========

                      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
    Accounts payable                                         $    62,496   $    18,150
    Accrued Liabilities                                           22,851        16,695
    Other payables                                                 3,596            --
    Taxes payable                                                304,062        15,378
    Deferred revenue                                             123,380            --
                                                             -----------   -----------
      Total current liabilities                                  516,385        50,223
                                                             -----------   -----------

SHAREHOLDERS' EQUITY:
    Paid-in-capital                                            1,597,200     1,234,200
    Retained earnings (deficits)                                 300,600      (218,887)
    Accumulated other comprehensive income                        41,825            --
                                                             -----------   -----------
      Total shareholders' equity                               1,939,625     1,015,313
                                                             -----------   -----------

         Total liabilities and shareholders' equity          $ 2,456,010   $ 1,065,536
                                                             ===========   ===========
</TABLE>
See report of independent registered public accounting firm.
The accompanying notes are an integral part of this statement.

                                       F-3

<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

         STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
                 FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004

                                                          2005          2004
                                                       ----------    ----------

SALES REVENUE                                          $1,277,659    $  645,154
SALES REVENUE - RELATED PARTY                             248,711            --
                                                       ----------    ----------
   Total revenues                                       1,526,370       645,154

COST OF SALES                                             446,955       344,382
                                                       ----------    ----------

GROSS PROFIT                                            1,079,415       300,772

SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES             310,606       282,556
                                                       ----------    ----------

INCOME FROM OPERATIONS                                    768,809        18,216

OTHER INCOME (EXPENSE), NET                                 1,151        (9,341)
                                                       ----------    ----------

INCOME BEFORE PROVISION FOR INCOME TAXES                  769,960         8,875

PROVISION FOR INCOME TAXES                                250,473        24,756
                                                       ----------    ----------

NET INCOME (LOSS)                                         519,487       (15,881)

OTHER COMPREHENSIVE INCOME:
    Foreign currency translation adjustment                41,825            --
                                                       ----------    ----------

COMPREHENSIVE INCOME (LOSS)                            $  561,312    $  (15,881)
                                                       ==========    ==========

See report of independent registered public accounting firm.
The accompanying notes are an integral part of this statement.

                                       F-4
<PAGE>
<TABLE>
<CAPTION>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                       STATEMENTS OF SHAREHOLDERS' EQUITY
                 FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004

                                                                             Accumulated other
                                          Paid-in             Retained         comprehensive
                                          capital       earnings (deficit)       income             Totals
                                         -----------    -----------------    -----------------   -----------
<S>                                      <C>            <C>                  <C>                 <C>
BALANCE, January 1, 2004                 $ 1,234,200    $        (203,006)   $              --   $ 1,031,194

     Net loss                                                     (15,881)                          (15,881)

                                         -----------    -----------------    -----------------   -----------
BALANCE, December 31, 2004               $ 1,234,200    $        (218,887)   $              --   $ 1,015,313

     Net income                                                   519,487                            519,487
     Capital Contribution                    363,000                                                 363,000
     Foreign currency translation gain                                                  41,825        41,825

                                         -----------    -----------------    -----------------   -----------
BALANCE, December 31, 2005               $ 1,597,200    $         300,600    $          41,825   $ 1,939,625
                                         ===========    =================    =================   ===========
</TABLE>

See report of independent registered public accounting firm.
The accompanying notes are an integral part of this statement.

                                       F-5
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                            STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004

                                                           2005          2004
                                                         ---------   -----------

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income (loss)                                    $ 519,487    $ (15,881)
    Adjustments to reconcile net income (loss) to cash
     provided by (used in) operating activities:
       Depreciation                                        142,408      139,931
     (Increase) decrease in assets:
       Accounts receivable                                (847,521)      79,484
       Accounts receivable - related party                (248,711)          --
       Other receivables                                   (38,407)      (1,539)
       Other receivables - related parties                (292,109)          --
       Inventories - production cost                       (27,563)          --
       Other current assets                                (13,702)      11,591
     Increase (decrease) in liabilities:
       Accounts payable                                     43,261      (54,451)
       Accrued liabilities                                   5,658        6,424
       Other payables                                        3,544       (2,742)
       Customer deposit                                    121,589           --
       Taxes payable                                       284,117       (3,942)
       Deferred revenue                                         --      (36,814)
                                                         ---------    ---------
         Net cash provided by operating activities        (347,949)     122,061
                                                         ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Additions to equipment                                      --      (52,838)
                                                         ---------    ---------
         Net cash used in investing activities                  --      (52,838)
                                                         ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Capital contributions from shareholders                366,600           --
                                                         ---------    ---------
         Net cash provided by financing activities         366,600           --
                                                         ---------    ---------

EFFECTS OF EXCHANGE RATE CHANGE IN CASH                      3,102           --
                                                         ---------    ---------

INCREASE IN CASH                                            21,753       69,223

CASH, beginning of year                                    114,063       44,840
                                                         ---------    ---------

CASH, end of year                                        $ 135,816    $ 114,063
                                                         =========    =========

See report of independent registered public accounting firm.
The accompanying notes are an integral part of this statement.

                                       F-6

<PAGE>
               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

Note 1 - ORGANIZATION AND NATURE OF OPERATIONS

Background
----------

Beijing Broadcasting and Television Media Co. Ltd. ("Beijing Media" or the
"Company") is a media content production and distribution company located in the
People's Republic of China ("PRC"). Beijing Media generates revenues through
producing television serials and movies for the PRC market, TV syndicated
programming production and other medial and broadcasting production and
management services.

Beijing Broadcasting and Television Media Co., Ltd. was established on July 21,
2005 in Beijing, PRC. The Company has a 20 year term as a privately owned
Chinese limited liability company to carry out the broadcasting and television
media business in the PRC. The Company is owned 100% through direct and indirect
ownership by Beijing Ruixing Shiji Investment Co., Ltd (Ruixing) which is 100%
owned by Mr. and Mrs. Yang Wenquan. China law and regulations prohibit or
restrict a private company or an individual to own a Chinese company that
provides broadcasting and television media service. In order to comply with
Chinese law on May 18, 2001, Ruixing helped establish Beijing Broadcasting and
Culture United Media Co., ("United Media") which the legal shareholders of
United Media are five individuals and a state government agency. Ruxing, on
behalf of the shareholders and state agency owners of United Media, contributed
fixed assets and cash in the amount of RMB 10,200,000 (approximately,
US$1,234,200) as the contributed capital of United Media. In connection with
this contribution United Media entered into an exclusive management agreement
with Ruixing to turn over all of the management control and profits of United
Media to Ruixing. The arrangements with the shareholders of United Media had
been undertaken solely to satisfy PRC regulations. Mr. Yang serves as the
general manager of both Beijing Media and Untied Media.

During 2005 the PRC released the restriction that a private individual could not
own a Chinese company to provide broadcasting and television services. This was
done in order for the PRC to be in compliance with the World Trade Organization
or WTO. Due to the lifting of this restriction Beijing Ruixing Shiji Investment
Co., Ltd established Beijing Media on July 21, 2005. The purpose of establishing
of Beijing Media was to assume control of the business and management operations
of United Media and that United Media would eventually be dissolved. In January
2006, the shareholders of United Media entered an agreement to transfer all of
United Media's assets and liabilities and business contracts to Beijing Media
effective January 1, 2006 as repayment of the original capital contribution paid
by Ruixing. In connection with this transfer United Media was dissolved.

See report of independent registered public accounting firm

                                      F-7
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES

The reporting entity
--------------------

The Company's financial statements represent the activities of both Beijing
Media and United Media as one entity due to the following reasons:

     1)   Common management control over both Beijing Media and United Media
     2)   Beijing Media taking over and will continue the business operations
          United Media

The Company has treated the acquisition of Untied Media as if the transaction
happened January 1, 2004

Basis of Presentation
---------------------

All inter-company transactions have been eliminated in the consolidation.

The accompanying financial statements are prepared in accordance with generally
accepted accounting principles in the United States of America ("US GAAP"). This
basis of accounting differs from that used in the statutory accounts of the
Company, which are prepared in accordance with the "Accounting Standards for
Business Enterprises" and "Accounting system for Business Enterprises" in the
PRC ("PRC GAAP"). Certain US Generally Accepted Accounting Principles ("GAAP")
are not applicable in the PRC. The difference between PRC GAAP accounts of the
Company and its US GAAP financial statements is immaterial.

Accounting Method
-----------------

The Company uses the accrual method of accounting which recognizes revenues when
earned and expenses when incurred.

Cash and Cash Equivalents
-------------------------

All highly liquid investments with original maturities of three months or less
are considered cash equivalents.

Cash and Concentration of Risk
------------------------------

Cash includes cash on hand and demand deposits in accounts maintained with
state-owned banks within the People's Republic of China. Total cash in these
banks at December 31, 2005 and 2004, amounted to $132,191 and $212,223,
respectively, of which no deposits are covered by insurance. The Company has not
experienced any losses in such accounts and believes it is not exposed to any
significant risks on its cash in bank accounts.

See report of independent registered public accounting firm

                                      F-8
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES, (continued)

Accounts Receivable and Allowance for Doubtful Accounts
-------------------------------------------------------

The Company presents accounts receivable, net of allowance for doubtful
accounts. The allowance is calculated based on review of individual customer
accounts.

Use of Estimates
----------------

The preparation of financial statements in conformity with US GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenue and
expenses during the reporting period. Actual results, when ultimately realized
could differ from those estimates.

Revenue Recognition
-------------------

Revenue from the sales or licensing of proprietary content, third party
programming, imported TV and films, and sales and distribution of advertisement
programs are recognized upon meeting all recognition requirements of Statement
of Position (SOP) 00-2 "Accounting by Producers or Distributors of Films".

Revenue are recognized when all of the following have occurred: an agreement is
execute, the film is available for exhibition by the licensee, the license fee
is fixed or determinable, collectibility is reasonably assured and the cost of
each film is known or reasonably determinable.

Cash payments received are recorded as deferred revenue until all the conditions
of revenue recognition have been met.

Recently issued accounting pronouncements
-----------------------------------------

In December 2004, the FASB issued SFAS No. 153, "Exchanges of Nonmonetary Assets
- an amendment of APB Opinion No. 29" ("SFAS 153"). SFAS 153 replaces the
exception from fair value measurement in APB Opinion No. 29 for nonmonetary
exchanges of similar productive assets with a general exception from fair value
measurement for exchanges of nonmonetary assets that do not have commercial
substance. A nonmonetary exchange has commercial substance if the future cash
flows of the entity are expected to change significantly as a result of the
exchange. SFAS 153 is effective for all interim periods beginning after June 15,
2005. As such, the Company is required to adopt these provisions at the
beginning of the fiscal year ended December 31, 2005. The Company believes that
the impact of SFAS 153 on its consolidated financial statements is immaterial.

See report of independent registered public accounting firm

                                      F-9
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES, (continued)

Recently issued accounting pronouncements, (continued)
------------------------------------------------------

In March 2005, the Financial Accounting Standards Board ("FASB") published FASB
Interpretation No. 47, "Accounting for Conditional Asset Retirement
Obligations," which clarifies that the term, conditional asset retirement
obligations, as used in SFAS No. 143, "Accounting for Asset Retirement
Obligations," refers to a legal obligation to perform an asset retirement
activity in which the timing and (or) method of settlement are conditional on a
future event that may or may not be within the control of the entity.

The uncertainty about the timing and (or) method of settlement of a conditional
asset retirement obligation should be factored into the measurement of the
liability when sufficient information exists. The interpretation also clarifies
when an entity would have sufficient information to reasonably estimate the fair
value of an asset retirement obligation. This interpretation is effective no
later than the end of the Company's fiscal 2006. The adoption of this
Interpretation is not expected to have a material effect on the Company's
consolidated financial position or results of operations.

In June 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error
Corrections" ("SFAS No. 154"). SFAS No. 154 replaces APB No. 20 ("APB 20") and
SFAS No. 3, "Reporting Accounting Changes in Interim Financial Statements," and
applies to all voluntary changes in accounting principle, and changes the
requirements for accounting for and reporting of a change in accounting
principle. APB 20 previously required that most voluntary changes in accounting
principle be recognized by including in net income of the period of change a
cumulative effect of changing to the new accounting principle whereas SFAS No.
154 requires retrospective application to prior periods' financial statements of
a voluntary change in accounting principle, unless it is impracticable. SFAS No.
154 enhances the consistency of financial information between periods. SFAS No.
154 will be effective beginning with the Company's first quarter of fiscal year
2006. The Company does not expect that the adoption of SFAS No. 154 will have a
material impact on its results of operations, financial position or cash flows.

In June 2005, the FASB's Emerging Issues Task Force ("EITF") reached a consensus
on Issue No. 05-06, "Determining the Amortization Period for Leasehold
Improvements" (EITF 05-06). EITF 05-06 provides guidance for determining the
amortization period used for leasehold improvements acquired in a business
combination or purchased after the inception of a lease, collectively referred
to as subsequently acquired leasehold improvements. EITF 05-06 provides that the
amortization period used for the subsequently acquired leasehold improvements to
be the lesser of (a) the subsequently acquired leasehold improvements' useful
lives, or (b) a period that reflects renewals that are reasonably assured upon
the acquisition or the purchase. EITF 05-06 is effective on a prospective basis
for subsequently acquired leasehold improvements purchased or acquired in
periods beginning after the date of the FASB's ratification, which was on June
29, 2005. The Company does not anticipate that EITF 05-06 will have a material
impact on its consolidated results of operations.

See report of independent registered public accounting firm

                                      F-10
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES, (continued)

Recently issued accounting pronouncements, (continued)
------------------------------------------------------

In July 2005, the FASB issued an Exposure Draft of a proposed Interpretation
"Accounting for Uncertain Tax Positions--an interpretation of FASB Statement No.
109." Under the proposed Interpretation, a company would recognize in its
financial statements its best estimate of the benefit of a tax position, only if
the tax position is considered probable of being sustained on audit based solely
on the technical merits of the tax position. In evaluating whether the probable
recognition threshold has been met, the proposed Interpretation would require
the presumption that the tax position will be evaluated during an audit by
taxing authorities. The proposed Interpretation would be effective as of the end
of the first fiscal year ending after December 15, 2005, with a cumulative
effect of a change in accounting principle to be recorded upon the initial
adoption. The proposed Interpretation would apply to all tax positions and only
benefits from tax positions that meet the probable recognition threshold at or
after the effective date would be recognized. The Company is currently analyzing
the proposed Interpretation and has not determined its potential impact on our
Consolidated Financial Statements. While we cannot predict with certainty the
rules in the final Interpretation, there is risk that the final Interpretation
could result in a cumulative effect charge to earnings upon adoption, increases
in future effective tax rates, and/or increases in future interperiod effective
tax rate volatility.

In October 2005, FASB Staff Position (FSP) FAS 13-1, "Accounting for Rental
Costs Incurred during a Construction Period" was issued. This FSP concluded that
rental costs associated with ground or building operating leases that are
incurred during a construction period should be expensed. The guidance in the
FSP is required to be applied to the first reporting period beginning after
December 15, 2005. The Company's adoption of this pronouncement is not expected
to have a material impact on the Company's financial position or results of
operations.

Concentration of Credit Risk
----------------------------

Financial instruments which subject the Company to concentrations of credit risk
consist principally of accounts receivable. Exposure to losses on receivables is
dependent on each customer's financial condition. The Company controls its
exposure to credit risk through a process of credit approvals, credit limits and
monitoring procedures, establishing allowances for anticipated losses.

See report of independent registered public accounting firm

                                      F-11
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES, (continued)

Fair Value of Financial Instruments
-----------------------------------

Statement of Financial Accounting Standards No. 107 ("SFAS 107"), "Disclosures
About Fair Value of Financial Instruments" requires disclosure of the fair value
of financial instruments held by the Company. SFAS 107 defines the fair value of
financial instruments as the amount at which the instrument could be exchanged
in a current transaction between willing parties.

The carrying amount of accounts receivable, accounts payable, and other items
included on the accompanying balance sheets approximate their fair value due to
their short-term nature.

Income Taxes
------------

The Company has adopted Statement of Financial Accounting Standards No. 109,
"Accounting for Income Taxes" (SFAS 109). SFAS 109 requires the recognition of
deferred income tax liabilities and assets for the expected future tax
consequences of temporary differences between income tax basis and financial
reporting basis of assets and liabilities. Provision for income taxes consist of
taxes currently due plus deferred taxes. There are no deferred taxes at December
31, 2005 and 2004.

The charge for taxation is based on the results for the year as adjusted for
items, which are non-assessable or disallowed. It is calculated using tax rates
that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in
respect of temporary differences arising from differences between the carrying
amount of assets and liabilities in the financial statements and the
corresponding tax basis used in the computation of assessable tax profit. In
principle, deferred tax liabilities are recognized for all taxable temporary
differences, and deferred tax assets are recognized to the extent that it is
probably that taxable profit will be available against which deductible
temporary differences can be utilized.

Deferred tax is calculated at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settles. Deferred tax is
charges or credited in the income statement, except when it related to items
credited or charged directly to equity, in which case the deferred tax is also
dealt with in equity. Deferred tax assets and liabilities are offset when they
related to income taxes levied by the same taxation authority and the Company
intends to settle its current tax assets and liabilities on a net basis.

See report of independent registered public accounting firm

                                      F-12
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES (continued)

Income Taxes, (continued)
-------------------------

Beijing Media is governed by the Income Tax Law of the People's Republic of
China (PRC) and various local income tax laws (the Income Tax Laws). Under the
local Income Tax laws, the Company generally are subject to an income tax at an
effective rate of 33% (3.3% state income taxes plus 0.33% local income taxes) on
income as reported in their statutory financial statements after appropriate tax
adjustments. Since the Company is engaged in broadcasting and media service
business, the Company is subject to an income tax at an effective rate of 33%
based upon 11% of the gross revenue.

Beijing Media is also subject to business taxes of 5% of its total gross sales.
The Company's business taxes are accounted-for-as a reduction of revenues.

The provision for income taxes for the year ended December 31 consisted of the
following:
                                                   2005             2004
                                                -----------      ------------
Provision for US income tax                     $        --      $         --
Provision for China income tax                      227,700            22,505
Provision for China local tax                        22,773             2,251
                                                -----------      ------------
Total provision for income taxes                $   250,473      $     24,756
                                                ===========      ============

The following table reconciles the U.S. statutory rates to the Company's
effective tax rate:

                                                   2005             2004
                                                -----------      ------------
U.S. Statutory rate                                   34.00%            34.00%
Foreign income not recognized in USA                 (34.00)           (34.00)
China income taxes                                     3.63              3.63
                                                -----------      ------------
Effective income tax rate                              3.63%             3.63%
                                                ===========      ============
Foreign Currency Translation
----------------------------

The reporting currency of the Company is US dollar. The Company uses their local
currency, Renminbi, as their functional currency. Results of operations and cash
flow are translated at average exchange rates during the period, and assets and
liabilities are translated at the unified exchange rate as quoted by the
People's Bank of China at the end of each reporting period. This quotation of
the exchange rates does not imply free convertibility of RMB to other foreign
currencies.

See report of independent registered public accounting firm

                                      F-13
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES (continued)

Foreign Currency Translation, (continued)
----------------------------------------

All foreign exchange transactions continue to take place either through the
People's Bank of China or other banks authorized to buy and sell foreign
currencies at the exchange rate quoted by the People's Bank of China. Approval
of foreign currency payments by the Bank of China or other institutions requires
submitting a payment application form together with invoices, shipping documents
and signed contracts.

Translation adjustments resulting from this process are included in accumulated
other comprehensive income (loss) in the consolidated statement of shareholders'
equity and amounted to $ 41,825 and $ 0 as of December 31, 2005 and 2004,
respectively. The balance sheet amounts with the exception of equity at December
31, 2005 were translated at 8.065 RMB to $1.00 USD as compared to 8.28 RMB at
December 31, 2004. The equity accounts were stated at their historical rate. The
average translation rate of 8.18 RMB for the year ended December 31, 2005 was
applied to income statement accounts.

Transaction gains and losses that arise from exchange rate fluctuations on
transactions denominated in a currency other than the functional currency are
included in the results of operations as incurred. These amounts are not
material to the consolidated financial statements.

Equipment
---------

Equipment is carried at cost less accumulated depreciation. The costs of repairs
and maintenance are expensed as incurred; major replacements and improvements
are capitalized.

When assets are retired or disposed of, the cost and accumulated depreciation
are removed from the accounts, and any resulting gains or losses are included in
the income statement in the year of disposition. Depreciation is calculated on a
straight-line basis over the estimated useful life of the assets. Estimated
useful lives of the assets are as follows:

                                                         Estimated
                                                        Useful life
                                                        -----------
Machinery and equipment                                   5 years
Office equipment                                          5 years

See report of independent registered public accounting firm

                                      F-14
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES (continued)

Valuation of Long-Lived assets
------------------------------

The Company annually analyzes its long-lived assets for potential impairment,
assessing the appropriateness of lives and recoverability of unamortized
balances through measurement of undiscounted operating cash flows on a basis
consistent with US GAAP. The Company also re-evaluates the periods of
amortization to determine whether subsequent events and circumstances warrant
revised estimates of useful lives. As of December 31, 2005, the Company expects
these assets to be fully recoverable.

Earnings (Loss) Per Share
-------------------------

The Company was incorporated in PRC and required to register capital. The
registered capital was denominated in monetary amounts. Units of ownership are
not represented by common stocks or any other similar instruments. As a result,
no earnings per share were calculated for the years ended December 31, 2005 and
2004.

Note 3 - SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

No payments for interest expense were made during the years ended December 31,
2005 and 2004, respectively. Income tax payments amounted to $ 26,942 and
$34,900 for the years ended December 31, 2005 and 2004, respectively.

Note 4 - ACCOUNTS RECEIVABLE

Accounts receivable consist of the following at December 31:

                                                   2005             2004
                                                -----------      ------------
Accounts receivable                             $   895,465      $     30,797
Less:  allowance for doubtful accounts                3,900                --
                                                -----------      ------------
Total                                           $   891,565      $     30,797
                                                ===========      ============

Note 5 - ACCOUNTS RECEIVABLE AND SALES - RELATED PARTY

Accounts receivable - related party represents the receivable from the Company's
shareholder, who had used the Company's equipment rental services. Total
sales-related party amounted to $248,711 for the year ended December 31, 2005
and related party receivable amounted to $252,374 as of December 31, 2005

See report of independent registered public accounting firm

                                      F-15
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

 Note 6 - EQUIPMENT

Equipment consists of the following at December 31:

                                                   2005             2004
                                                -----------      ------------
Machinery and equipment                         $ 1,408,963      $  1,374,875
Office equipment                                      1,252             1,222
                                                -----------      ------------
   Total equipment                                1,410,215         1,376,097
Less:  accumulated depreciation                     619,245           463,254
                                                -----------      ------------
   Equipment, net                               $   790,970      $    912,843
                                                ===========      ============

Depreciation expense for the years ended December 31, 2005 and 2004 was $142,408
and $139,931, respectively.

Note 7 - SUBSEQUENT EVENT

On March 11, 2006, the Company entered into an Agreement with the shareholders
of Navstar Media Holdings, Inc. ("Navstar") in which Navstar was to acquire
operational control of Beijing Media. Operational control allows Navstar to
exercise full authority over the operations, governance and employees of Beijing
Media. Pursuant to the Agreement, Navstar agreed to issue up to 2,400,000 shares
of its common stock to existing shareholders of Beijing Media and to invest an
unspecified amount of funds into the operations of Beijing Media. Upon
completion of the share issuance and investment, Navstar will have acquired a
70% ownership interest in Beijing Media.

Of the 2,400,000 shares to be issued, 900,000 shares are to be held in escrow,
contingent upon Beijing Media securing the license to produce a mini-series
featuring top Chinese athletes, to be aired during the period leading up to the
2008 Beijing Olympic Games. The 900,000 shares shall be returned to Navstar and
cancelled if the right to produce the show cannot be secured.

See report of independent registered public accounting firm

                                      F-16
<PAGE>

<TABLE>
<CAPTION>
               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                                 BALANCE SHEETS
                   AS OF MARCH 31, 2006 AND DECEMBER 31, 2005

                                     ASSETS
                                                            March 31,  December 31,
                                                              2006        2005
                                                           ----------   ---------
                                                            Unaudited    Audited
                                                           ----------   ----------
<S>                                                        <C>          <C>
CURRENT ASSETS:
    Cash                                                   $  201,329   $  135,816
    Accounts receivable, net of allowance for doubtful
      accounts of $3,900 and $3,900 as of March 31, 2006
      and December 31, 2005, respectively                     907,757      891,565
    Accounts receivable - related party                       254,002      252,374
    Inventories - production cost                                  --       27,969
    Other receivables                                          16,012       40,709
    Other receivables - related parties                        70,839      296,412
    Other current assets                                        8,665       20,195
                                                           ----------   ----------
      Total current assets                                  1,458,604    1,665,040
                                                           ----------   ----------

EQUIPMENT, net                                              1,263,150      790,970
                                                           ----------   ----------

         Total assets                                      $2,721,754   $2,456,010
                                                           ==========   ==========

          LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
    Accounts payable  and accrued liabilities              $  115,773   $   85,347
    Other payables                                             12,375        3,596
    Other payables - related party                            202,320           --
    Taxes payable                                             319,565      304,062
    Customer deposit                                           64,147      123,380
                                                           ----------   ----------
      Total current liabilities                               714,180      516,385
                                                           ----------   ----------

SHAREHOLDERS' EQUITY:
    Paid-in-capital                                         1,597,200    1,597,200
    Retained earnings                                         355,804      300,600
    Accumulated other comprehensive income                     54,570       41,825
                                                           ----------   ----------
      Total shareholders' equity                            2,007,574    1,939,625
                                                           ----------   ----------

         Total liabilities and shareholders' equity        $2,721,754   $2,456,010
                                                           ==========   ==========
</TABLE>

The accompanying notes are an integral part of this statement.

                                       F-17

<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

         STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
               FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005

                                                           2006          2005
                                                         ---------    ---------
                                                         Unaudited    Unaudited
                                                         ---------    ---------

SALES REVENUE                                            $ 302,877    $ 129,126

COST OF SALES                                              193,157      131,690
                                                         ---------    ---------

GROSS PROFIT                                               109,720       (2,564)

SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES               42,923       68,869
                                                         ---------    ---------

INCOME (LOSS) FROM OPERATIONS                               66,797      (71,433)

OTHER INCOME (EXPENSE), NET                                     47       (6,748)
                                                         ---------    ---------

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES             66,844      (78,181)

PROVISION FOR INCOME TAXES                                  11,640        4,263
                                                         ---------    ---------

NET INCOME (LOSS)                                           55,204      (82,444)

OTHER COMPREHENSIVE INCOME:
    Foreign currency translation adjustment                 12,745           --
                                                         ---------    ---------

COMPREHENSIVE INCOME (LOSS)                              $  67,949    $ (82,444)
                                                         =========    =========

The accompanying notes are an integral part of this statement.

                                       F-18
<PAGE>
<TABLE>
<CAPTION>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                       STATEMENTS OF SHAREHOLDERS' EQUITY
               FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005

                                                          Retained  Accumulated other
                                          Paid-in         earnings   comprehensive
                                          capital        (deficits)     income         Totals
                                         -----------    ------------  ------------   -----------
<S>                                      <C>            <C>           <C>            <C>
BALANCE, December 31, 2004               $ 1,234,200    $  (218,887)  $         --   $ 1,015,313

     Net income                                             (82,444)                     (82,444)
                                         -----------    -----------   -----------   ------------

BALANCE, March 31, 2005 (unaudited)        1,234,200       (301,331)            --       932,869

     Net income                                             601,931                      601,931
     Capital Contribution                    363,000                                     363,000
     Foreign currency translation gain                                      41,825        41,825

                                         -----------    -----------   -----------   ------------
BALANCE, December 31, 2005               $ 1,597,200    $   300,600    $    41,825   $ 1,939,625

     Net income                                              55,204                       55,204
     Foreign currency translation gain                                     12,745         12,745

                                         -----------    -----------   -----------   ------------
BALANCE, March 31, 2006 (unaudited)      $ 1,597,200    $   355,804   $    54,570   $  2,007,574
                                         ===========    ===========   ===========   ============

</TABLE>

The accompanying notes are an integral part of this statement.

                                       F-19

<PAGE>
<TABLE>
<CAPTION>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                            STATEMENTS OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005

                                                                  2006         2005
                                                               ----------   ----------
                                                                Unaudited   Unaudited
                                                               ----------   ----------
<S>                                                            <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income (loss)                                          $  55,204    $ (82,444)
    Adjustments to reconcile net income (loss) to cash
     provided by (used in) operating activities:
       Depreciation                                               33,026       68,804
     (Increase) decrease in assets:
       Accounts receivable                                       (10,396)          --
       Other receivables                                          24,856          605
       Other receivables - related parties                       226,538           --
       Inventories - production cost                              28,032           --
       Other current assets                                       11,612      (15,621)
     Increase (decrease) in liabilities:
       Accounts payable                                           52,715           --
       Accrued liabilities                                       (22,964)          --
       Other payables                                              8,719        7,263
       Other payables - related parties                          201,477           --
       Customer deposit                                          (59,779)         605
       Taxes payable                                              13,486       (7,425)
                                                               ---------    ---------
         Net cash provided by (used in) operating activities     562,526      (28,213)
                                                               ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Additions to equipment                                      (498,158)          --
                                                               ---------    ---------
         Net cash used in investing activities                  (498,158)          --
                                                               ---------    ---------

EFFECTS OF EXCHANGE RATE CHANGE IN CASH                            1,145           --
                                                               ---------    ---------

INCREASE (DECREASE) IN CASH                                       65,513      (28,213)

CASH, beginning of period                                        135,816      114,063
                                                               ---------    ---------

CASH, end of year                                              $ 201,329    $  85,850
                                                               =========    =========
</TABLE>

The accompanying notes are an integral part of this statement.

                                       F-20

<PAGE>
               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                        NOTES TO THE FINANCIAL STATEMENTS

Note 1 - ORGANIZATION AND NATURE OF OPERATIONS

Background
----------

Beijing Broadcasting and Television Media Co. Ltd. ("Beijing Media" or the
"Company") is a media content production and distribution company located in the
People's Republic of China ("PRC"). Beijing Media generates revenues through
producing television serials and movies for the PRC market, TV syndicated
programming production and other medial and broadcasting production and
management services.

Beijing Broadcasting and Television Media Co., Ltd. was established on July 21,
2005 in Beijing, PRC. The Company has a 20 year term as a privately owned
Chinese limited liability company to carry out the broadcasting and television
media business in the PRC. The Company is owned 100% through direct and indirect
ownership by Beijing Ruixing Shiji Investment Co., Ltd (Ruixing) which is 100%
owned by Mr. and Mrs. Yang Wenquan.

China law and regulations prohibit or restrict a private company or an
individual to own a Chinese company that provides broadcasting and television
media service. In order to comply with Chinese law on May 18, 2001, Ruixing
helped establish Beijing Broadcasting and Culture United Media Co., ("United
Media") which the legal shareholders of United Media are five individuals and a
state government agency. Ruxing, on behalf of the shareholders and state agency
owners of United Media, contributed fixed assets and cash in the amount of RMB
10,200,000 (approximately, US$1,234,200) as the contributed capital of United
Media. In connection with this contribution United Media entered into an
exclusive management agreement with Ruixing to turn over all of the management
control and profits of United Media to Ruixing. The arrangements with the
shareholders of United Media had been undertaken solely to satisfy PRC
regulations. Mr. Yang serves as the general manager of both Beijing Media and
Untied Media.

During 2005 the PRC released the restriction that a private individual could not
own a Chinese company to provide broadcasting and television services. This was
done in order for the PRC to be in compliance with the World Trade Organization
or WTO. Due to the lifting of this restriction Beijing Ruixing Shiji Investment
Co., Ltd established Beijing Media on July 21, 2005. The purpose of establishing
of Beijing Media was to assume control of the business and management operations
of United Media and that United Media would eventually be dissolved. In January
2006, the shareholders of United Media entered an agreement to transfer all of
United Media's assets and liabilities and business contracts to Beijing Media
effective January 1, 2006 as repayment of the original capital contribution paid
by Ruixing. In connection with this transfer United Media was dissolved.

                                      F-21
<PAGE>
               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES

The reporting entity
--------------------

The Company's financial statements represent the activities of both Beijing
Media and United Media as one entity due to the following reasons:

     1)   Common management control over both Beijing Media and United Media
     2)   Beijing Media taking over and will continue the business operations
          United Media
     3)   The Company has treated the acquisition of Untied Media as if the
          transaction happened January 1, 2004

Basis of Presentation
---------------------

All inter-company transactions have been eliminated in the consolidation.

The accompanying financial statements are prepared in accordance with generally
accepted accounting principles in the United States of America ("US GAAP"). This
basis of accounting differs from that used in the statutory accounts of the
Company, which are prepared in accordance with the "Accounting Standards for
Business Enterprises" and "Accounting system for Business Enterprises" in the
PRC ("PRC GAAP").

Certain US Generally Accepted Accounting Principles ("GAAP") are not applicable
in the PRC. The difference between PRC GAAP accounts of the Company and its US
GAAP financial statements is immaterial.

Accounting Method
-----------------

The Company uses the accrual method of accounting which recognizes revenues when
earned and expenses when incurred.

Cash and Cash Equivalents
-------------------------

All highly liquid investments with original maturities of three months or less
are considered cash equivalents.

Cash and Concentration of Risk
------------------------------

Cash includes cash on hand and demand deposits in accounts maintained with
state-owned banks within the People's Republic of China. Total cash in these
banks at March 31, 2006 and December 31, 2005, amounted to $ 38,613 and
$132,191, respectively, of which no deposits are covered by insurance. The
Company has not experienced any losses in such accounts and believes it is not
exposed to any significant risks on its cash in bank accounts.

                                      F-22
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES, (continued)

Accounts Receivable and Allowance for Doubtful Accounts
-------------------------------------------------------

The Company presents accounts receivable, net of allowance for doubtful
accounts. The allowance is calculated based on review of individual customer
accounts.

Use of Estimates
----------------

The preparation of financial statements in conformity with US GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenue and
expenses during the reporting period. Actual results, when ultimately realized
could differ from those estimates.

Revenue Recognition
-------------------

Revenue from the sales or licensing of proprietary content, third party
programming, imported TV and films, and sales and distribution of advertisement
programs are recognized upon meeting all recognition requirements of Statement
of Position (SOP) 00-2 "Accounting by Producers or Distributors of Films".

Revenue are recognized when all of the following have occurred: an agreement is
execute, the film is available for exhibition by the licensee, the license fee
is fixed or determinable, collectibility is reasonably assured and the cost of
each film is known or reasonably determinable.

Cash payments received are recorded as deferred revenue until all the conditions
of revenue recognition have been met.

Recently issued accounting pronouncements
-----------------------------------------

In December 2004, the FASB issued SFAS No. 153, "Exchanges of Nonmonetary Assets
- an amendment of APB Opinion No. 29" ("SFAS 153"). SFAS 153 replaces the
exception from fair value measurement in APB Opinion No. 29 for nonmonetary
exchanges of similar productive assets with a general exception from fair value
measurement for exchanges of nonmonetary assets that do not have commercial
substance. A nonmonetary exchange has commercial substance if the future cash
flows of the entity are expected to change significantly as a result of the
exchange. SFAS 153 is effective for all interim periods beginning after June 15,
2005. As such, the Company is required to adopt these provisions at the
beginning of the fiscal year ended December 31, 2005. The Company believes that
the impact of SFAS 153 on its consolidated financial statements is immaterial.

                                      F-23
<PAGE>
               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES, (continued)

Recently issued accounting pronouncements, (continued)
------------------------------------------------------

In March 2005, the Financial Accounting Standards Board ("FASB") published FASB
Interpretation No. 47, "Accounting for Conditional Asset Retirement
Obligations," which clarifies that the term, conditional asset retirement
obligations, as used in SFAS No. 143, "Accounting for Asset Retirement
Obligations," refers to a legal obligation to perform an asset retirement
activity in which the timing and (or) method of settlement are conditional on a
future event that may or may not be within the control of the entity.

The uncertainty about the timing and (or) method of settlement of a conditional
asset retirement obligation should be factored into the measurement of the
liability when sufficient information exists. The interpretation also clarifies
when an entity would have sufficient information to reasonably estimate the fair
value of an asset retirement obligation. This interpretation is effective no
later than the end of the Company's fiscal 2006. The adoption of this
Interpretation is not expected to have a material effect on the Company's
consolidated financial position or results of operations.

In June 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error
Corrections" ("SFAS No. 154"). SFAS No. 154 replaces APB No. 20 ("APB 20") and
SFAS No. 3, "Reporting Accounting Changes in Interim Financial Statements," and
applies to all voluntary changes in accounting principle, and changes the
requirements for accounting for and reporting of a change in accounting
principle. APB 20 previously required that most voluntary changes in accounting
principle be recognized by including in net income of the period of change a
cumulative effect of changing to the new accounting principle whereas SFAS No.
154 requires retrospective application to prior periods' financial statements of
a voluntary change in accounting principle, unless it is impracticable. SFAS No.
154 enhances the consistency of financial information between periods. SFAS No.
154 will be effective beginning with the Company's first quarter of fiscal year
2006. The Company does not expect that the adoption of SFAS No. 154 will have a
material impact on its results of operations, financial position or cash flows.

In June 2005, the FASB's Emerging Issues Task Force ("EITF") reached a consensus
on Issue No. 05-06, "Determining the Amortization Period for Leasehold
Improvements" (EITF 05-06). EITF 05-06 provides guidance for determining the
amortization period used for leasehold improvements acquired in a business
combination or purchased after the inception of a lease, collectively referred
to as subsequently acquired leasehold improvements. EITF 05-06 provides that the
amortization period used for the subsequently acquired leasehold improvements to
be the lesser of (a) the subsequently acquired leasehold improvements' useful
lives, or (b) a period that reflects renewals that are reasonably assured upon
the acquisition or the purchase. EITF 05-06 is effective on a prospective basis
for subsequently acquired leasehold improvements purchased or acquired in
periods beginning after the date of the FASB's ratification, which was on June
29, 2005. The Company does not anticipate that EITF 05-06 will have a material
impact on its consolidated results of operations.

                                      F-24
<PAGE>
               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES, (continued)

Recently issued accounting pronouncements, (continued)
------------------------------------------------------

In July 2005, the FASB issued an Exposure Draft of a proposed Interpretation
"Accounting for Uncertain Tax Positions--an interpretation of FASB Statement No.
109." Under the proposed Interpretation, a company would recognize in its
financial statements its best estimate of the benefit of a tax position, only if
the tax position is considered probable of being sustained on audit based solely
on the technical merits of the tax position. In evaluating whether the probable
recognition threshold has been met, the proposed Interpretation would require
the presumption that the tax position will be evaluated during an audit by
taxing authorities. The proposed Interpretation would be effective as of the end
of the first fiscal year ending after December 15, 2005, with a cumulative
effect of a change in accounting principle to be recorded upon the initial
adoption. The proposed Interpretation would apply to all tax positions and only
benefits from tax positions that meet the probable recognition threshold at or
after the effective date would be recognized. The Company is currently analyzing
the proposed Interpretation and has not determined its potential impact on our
Consolidated Financial Statements. While we cannot predict with certainty the
rules in the final Interpretation, there is risk that the final Interpretation
could result in a cumulative effect charge to earnings upon adoption, increases
in future effective tax rates, and/or increases in future interperiod effective
tax rate volatility.

In October 2005, FASB Staff Position (FSP) FAS 13-1, "Accounting for Rental
Costs Incurred during a Construction Period" was issued. This FSP concluded that
rental costs associated with ground or building operating leases that are
incurred during a construction period should be expensed. The guidance in the
FSP is required to be applied to the first reporting period beginning after
December 15, 2005. The Company's adoption of this pronouncement is not expected
to have a material impact on the Company's financial position or results of
operations.

Concentration of Credit Risk
----------------------------

Financial instruments which subject the Company to concentrations of credit risk
consist principally of accounts receivable. Exposure to losses on receivables is
dependent on each customer's financial condition. The Company controls its
exposure to credit risk through a process of credit approvals, credit limits and
monitoring procedures, establishing allowances for anticipated losses.

                                      F-25
<PAGE>
               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES, (continued)

Fair Value of Financial Instruments
-----------------------------------

Statement of Financial Accounting Standards No. 107 ("SFAS 107"), "Disclosures
About Fair Value of Financial Instruments" requires disclosure of the fair value
of financial instruments held by the Company. SFAS 107 defines the fair value of
financial instruments as the amount at which the instrument could be exchanged
in a current transaction between willing parties.

The carrying amount of accounts receivable, accounts payable, and other items
included on the accompanying balance sheets approximate their fair value due to
their short-term nature.

Income Taxes
------------

The Company has adopted Statement of Financial Accounting Standards No. 109,
"Accounting for Income Taxes" (SFAS 109). SFAS 109 requires the recognition of
deferred income tax liabilities and assets for the expected future tax
consequences of temporary differences between income tax basis and financial
reporting basis of assets and liabilities. Provision for income taxes consist of
taxes currently due plus deferred taxes. There are no deferred taxes as of March
31, 2006 and December 31, 2005.

The charge for taxation is based on the results for the year as adjusted for
items, which are non-assessable or disallowed. It is calculated using tax rates
that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in
respect of temporary differences arising from differences between the carrying
amount of assets and liabilities in the financial statements and the
corresponding tax basis used in the computation of assessable tax profit. In
principle, deferred tax liabilities are recognized for all taxable temporary
differences, and deferred tax assets are recognized to the extent that it is
probably that taxable profit will be available against which deductible
temporary differences can be utilized.

Deferred tax is calculated at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settles. Deferred tax is
charges or credited in the income statement, except when it related to items
credited or charged directly to equity, in which case the deferred tax is also
dealt with in equity.

Deferred tax assets and liabilities are offset when they related to income taxes
levied by the same taxation authority and the Company intends to settle its
current tax assets and liabilities on a net basis.

                                      F-26
<PAGE>
               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES (continued)

Income Taxes, (continued)
-------------------------

Beijing Media is governed by the Income Tax Law of the People's Republic of
China (PRC) and various local income tax laws (the Income Tax Laws). Under the
local Income Tax laws, the Company generally are subject to an income tax at an
effective rate of 33% (3.3% state income taxes plus 0.33% local income taxes) on
income as reported in their statutory financial statements after appropriate tax
adjustments. Since the Company is engaged in broadcasting and media service
business, the Company is subject to an income tax at an effective rate of 33%
based upon 11% of the gross revenue.

Beijing Media is also subject to business taxes of 5% of its total gross sales.
The Company's business taxes are accounted-for-as a reduction of revenues.

The provision for income taxes for the three months ended March 31, 2006 and
2005 consisted of the following:
                                                   2006             2005
                                                -----------      ------------
                                                 Unaudited         Audited
                                                -----------      ------------
Provision for US income tax                     $        --      $         --
Provision for China income tax                       10,582             3,875
Provision for China local tax                         1,058               388
                                                -----------      ------------
Total provision for income taxes                $    11,640      $      4,263
                                                ===========      ============

The following table reconciles the U.S. statutory rates to the Company's
effective tax rate for the three months ended March 31, 2006 and 2005:

                                                   2006             2005
                                                -----------      ------------
                                                 Unaudited         Audited
                                                -----------      ------------
U.S. Statutory rate                                   34.00%            34.00%
Foreign income not recognized in USA                 (34.00)           (34.00)
China income taxes                                     3.63              3.63
                                                -----------      ------------
Effective income tax rate                              3.63%             3.63%
                                                ===========      ============

Foreign Currency Translation
----------------------------

The reporting currency of the Company is US dollar. The Company uses their local
currency, Renminbi, as their functional currency. Results of operations and cash
flow are translated at average exchange rates during the period, and assets and
liabilities are translated at the unified exchange rate as quoted by the
People's Bank of China at the end of each reporting period. This quotation of
the exchange rates does not imply free convertibility of RMB to other foreign
currencies.

                                      F-27
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES (continued)

Foreign Currency Translation, (continued)
-----------------------------------------

All foreign exchange transactions continue to take place either through the
People's Bank of China or other banks authorized to buy and sell foreign
currencies at the exchange rate quoted by the People's Bank of China. Approval
of foreign currency payments by the Bank of China or other institutions requires
submitting a payment application form together with invoices, shipping documents
and signed contracts.

Translation adjustments resulting from this process are included in accumulated
other comprehensive income (loss) in the consolidated statement of shareholders'
equity and amounted to $ 54,570 and $ 41,825 as of March 31, 2006 and December
31, 2005, respectively. The balance sheet amounts with the exception of equity
at March 31, 2006 were translated at 8.012 RMB to $1.00 USD as compared to 8.06
RMB at December 31, 2005. The equity accounts were stated at their historical
rate. The average translation rate of 8.046 RMB and 8.264 RMB for the three
months ended March 31, 2006 and 2005 was applied to income statement accounts.

Transaction gains and losses that arise from exchange rate fluctuations on
transactions denominated in a currency other than the functional currency are
included in the results of operations as incurred. These amounts are not
material to the consolidated financial statements.

Equipment
---------

Equipment is carried at cost less accumulated depreciation. The costs of repairs
and maintenance are expensed as incurred; major replacements and improvements
are capitalized.

When assets are retired or disposed of, the cost and accumulated depreciation
are removed from the accounts, and any resulting gains or losses are included in
the income statement in the year of disposition.

Depreciation is calculated on a straight-line basis over the estimated useful
life of the assets. Estimated useful lives of the assets are as follows:

                                                         Estimated
                                                        Useful life
                                                        -----------
Machinery and equipment                                   5 years
Office equipment                                          5 years

                                      F-28
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                        NOTES TO THE FINANCIAL STATEMENTS

Note 2 - SIGNIFICANT ACCOUNTING POLICIES (continued)

Valuation of Long-Lived assets
------------------------------

The Company annually analyzes its long-lived assets for potential impairment,
assessing the appropriateness of lives and recoverability of unamortized
balances through measurement of undiscounted operating cash flows on a basis
consistent with US GAAP. The Company also re-evaluates the periods of
amortization to determine whether subsequent events and circumstances warrant
revised estimates of useful lives. As of March 31, 2006, the Company expects
these assets to be fully recoverable.

Earnings (Loss) Per Share
-------------------------

The Company was incorporated in PRC and required to register capital. The
registered capital was denominated in monetary amounts. Units of ownership are
not represented by common stocks or any other similar instruments. As a result,
no earnings per share were calculated for the three months ended March 31, 2006
and 2005.

Note 3 - SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

No payments for interest expense were made for the three months ended March 31,
2006 and 2005, respectively. Income tax payments amounted to $ 27,116 and $0 for
the three months ended March 31, 2006 and 2005, respectively.

Note 4 - ACCOUNTS RECEIVABLE

Accounts receivable consist of the following :

                                                 March 31,       December 31,
                                                   2006             2005
                                                -----------      ------------
                                                 Unaudited         Audited
                                                -----------      ------------
Accounts receivable                             $   911,657      $    895,465
Less:  allowance for doubtful accounts                3,900             3,900
                                                -----------      ------------
Total                                           $   907,757      $    891,565
                                                ===========      ============

Note 5 - ACCOUNTS RECEIVABLE - RELATED PARTY

Accounts receivable - related party represents the receivable from the Company's
shareholder, who had used the Company's equipment rental services. As of March
31, 2006 and December 31, 2005, accounts receivable - related party amounted to
$254,002 and $252,374, respectively.

                                      F-29
<PAGE>

               BEIJING BROADCASTING AND TELEVISION MEDIA CO., LTD.

                        NOTES TO THE FINANCIAL STATEMENTS

Note 6 - EQUIPMENT

Equipment consists of the following:
                                                 March 31,       December 31,
                                                   2006             2005
                                                -----------      ------------
                                                 Unaudited         Audited
                                                -----------      ------------
Machinery and equipment                         $ 1,408,963      $  1,374,875
Office equipment                                      1,252             1,222
                                                -----------      ------------
   Total equipment                                1,410,215         1,376,097
Less:  accumulated depreciation                     619,245           463,254
                                                -----------      ------------
   Equipment, net                               $   790,970      $    912,843
                                                ===========      ============

Depreciation expense for the three months ended March 31, 2006 and 2005 was
$33,026 and $68,804, respectively.

Note 7 - Business combination

On March 11, 2006, the Company entered into an Agreement with the shareholders
of Navstar Media Holdings, Inc. ("Navstar") in which Navstar was to acquire
operational control of Beijing Media. Operational control allows Navstar to
exercise full authority over the operations, governance and employees of Beijing
Media. Pursuant to the Agreement, Navstar agreed to issue up to 2,400,000 shares
of its common stock to existing shareholders of Beijing Media and to invest an
unspecified amount of funds into the operations of Beijing Media. Upon
completion of the share issuance and investment, Navstar will have acquired a
70% ownership interest in Beijing Media.

Of the 2,400,000 shares to be issued, 900,000 shares are to be held in escrow,
contingent upon Beijing Media securing the license to produce a mini-series
featuring top Chinese athletes, to be aired during the period leading up to the
2008 Beijing Olympic Games. The 900,000 shares shall be returned to Navstar and
cancelled if the right to produce the show cannot be secured.

                                      F-30
<PAGE>EX-10.10
                      DEMAND PROMISSORY NOTE

                          WORLD AM, INC.
                       DEMAND PROMISSORY NOTE

Up to $100,000.00                                          May 18, 2006

     FOR VALUE RECEIVED, World Am, Inc., a Nevada corporation, its
assigns and successors (the "Company"), hereby promises to pay to SUTI
Holdings, LP, or its successors or assigns (the "Holder"), in
immediately available funds, the total principal sum of up to One
Hundred Thousand Dollars ($100,000.00), in accordance with the terms
of this Note.  The principal hereof and any unpaid accrued interest
thereon shall be due and payable upon demand by Holder in accordance
with Section 1, below (unless such payment date is accelerated as
provided in Section 4 hereof).  Payment of all amounts due hereunder
shall be made at the address of the Holder provided for in Section 5
hereof.  Interest shall accrue at the rate of ten percent (10%) per
annum on the unpaid principal balance of this Note from the date
listed above and shall continue to accrue until all unpaid principal
and interest is paid in full.

1.  DEMAND LOAN.  At such times as the Company and Holder shall
agree, and in amounts  as the Company and Holder shall agree, Holder
will loan the Company up to $100,000 for its operating expenses.  Each
such loan by the Holder to the Company shall be referred to as a "Loan
Advance."  The date and amount of each Loan Advance, and the total of
all Loan Advances, will be recorded and updated on Exhibit A, which is
attached hereto and incorporated herein.  Both the Company and the
Holder must initial each Loan Advance for it to become an obligation
of the Company, and any loans or other advances made by Holder to the
Company which are not recorded in Exhibit A will not be considered a
part of this Note.  Holder may demand repayment of all amounts loaned
to the Company through the date of its repayment request, plus
interest, at any time upon thirty (30) days written notice to the
Company. This Note does not obligate the Holder to loan any money to
the Company, but is meant to govern the terms of any money the Holder
does loan the Company.

2.  PREPAYMENT.  The Company may, at its option, at any time and from
time to time, prepay all or any part of the principal balance of this
Note, without penalty or premium, provided that concurrently with each
such prepayment the Company shall pay accrued interest on the
principal, if any, so prepaid to the date of such prepayment.

3.  TRANSFERABILITY.  This Note shall not be transferred, pledged,
hypothecated, or assigned by the Company without the express written
consent of the Holder.  In the event any third party acquires a
controlling interest in the Company or acquires substantially all of
the assets of the Company (a "Reorganization Event"), this Note will
survive and become an obligation of the party that acquires such
controlling interest or assets.  In the event of a Reorganization
Event the Company agrees to make the party that acquires such
controlling interest or assets, aware of the terms of this Section and
this Note.  This Note may be transferred, pledged, hypothecated, or
assigned by the Holder in its sole discretion.

4.  DEFAULT.  The occurrence of any one of the following events shall
constitute an Event of Default:

(a)  The non-payment, when due, of any principal or interest
pursuant to this Note;

(b)  The material breach of any representation or warranty in
this Note.  In the event the Holder becomes aware of a breach of
this Section 4(b), the Holder shall notify the Company in writing
of such breach and the Company shall have five business days
after notice to cure such breach;

(c) The breach of any covenant or undertaking, not otherwise
provided for in this Section 4;

(d)  The commencement by the Company of any voluntary proceeding
under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, receivership, dissolution, or liquidation
law or statute of any jurisdiction, whether now or hereafter in
effect; or the adjudication of the Company as insolvent or
bankrupt by a decree of a court of competent jurisdiction; or the
petition or application by the Company for, acquiescence in, or
consent by the Company to, the appointment of any receiver or
trustee for the Company or for all or a substantial part of the
property of the Company; or the assignment by the Company for the
benefit of creditors; or the written admission of the Company of
its inability to pay its debts as they mature; or

(e)  The commencement against the Company of any proceeding
relating to the Company under any bankruptcy, reorganization,
arrangement, insolvency, adjustment of debt, receivership,
dissolution or liquidation law or statute of any jurisdiction,
whether now or hereafter in effect, provided, however, that the
commencement of such a proceeding shall not constitute an Event of
Default unless the Company consents to the same or admits in
writing the material allegations of same, or said proceeding shall
remain undismissed for 20 days; or the issuance of any order,
judgment or decree for the appointment of a receiver or trustee
for the Company or for all or a substantial part of the property
of the Company, which order, judgment or decree remains
undismissed for 20 days; or a warrant of attachment, execution, or
similar process shall be issued against any substantial part of
the property of the Company.

Upon the occurrence of any Default or Event of Default, the
Holder, may, by written notice to the Company, declare all or any
portion of the unpaid principal amount due to Holder, together with all
accrued interest thereon, immediately due and payable (the thirty (30)
day notice period in Section 1, above, will not be applicable in the
case of an Event of Default), in which event it shall immediately be
and become due and payable; provided that upon the occurrence of an
Event of Default as set forth in paragraph (d) or paragraph (e) hereof,
all or any portion of the unpaid principal amount due to Holder,
together with all accrued interest thereon, shall immediately become
due and payable without any such notice.

5.  NOTICES.  Notices to be given hereunder shall be in writing and
shall be deemed to have been sufficiently given if delivered
personally or sent by overnight courier, or by facsimile transmission.
Notice shall be deemed to have been received on the date and time of
personal or overnight delivery or facsimile transmission, if received
during normal business hours of the recipient; if not, then on the
next business day.

Notices to the Company shall be sent to:

World Am, Inc.
4040 MacArthur Boulevard, Suite
240, Newport Beach, CA 92660
Attn:  Robert A. Hovee
Facsimile (949) 955-2739

Notices to the Holder shall be sent to:

SUTI Holdings, LP
4040 MacArthur Boulevard, Suite 240
Newport Beach, CA  92660
Attn:  Fred Rogers
Facsimile (949) 955-2739

6.  REPRESENTATIONS AND WARRANTIES.  The Company hereby makes the
following representations and warranties to the Holder:

(a)  Organization, Good Standing and Power.  The Company is a
corporation duly incorporated, validly existing and in good
standing under the laws of the State of Nevada and has the
requisite corporate power to own, lease and operate its
properties and assets and to conduct its business as it is now
being conducted.

(b)  Authorization; Enforcement.  The Company has the requisite
corporate power and authority to enter into and perform this Note
and to issue and sell this Note.  The execution, delivery and
performance of this Note by the Company, and the consummation by
it of the Transactions contemplated hereby, have been duly and
validly authorized by all necessary corporate action.  This Note,
when executed and delivered, will constitute a valid and binding
obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation, conservatorship, receivership or similar
laws relating to, or affecting generally the enforcement of,
creditor's rights and remedies or by other equitable principles
of general application.

(c)  Disclosure.  Neither this Note nor any other document,
certificate or instrument furnished to the Holder by or on behalf
of the Company in connection with the transactions contemplated
by this Note contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the
statements made herein or therein, in the light of the
circumstances under which they were made herein or therein, not
misleading.

7.  CONSENT TO JURISDICTION AND SERVICE OF PROCESS.  The Company
consents to the jurisdiction of the courts of the State of California
and of any state and federal court located in Orange County, California.

8.  GOVERNING LAW.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY THEREIN,
WITHOUT GIVING EFFECT TO THE RULES OR PRINCIPLES OF CONFLICTS OF LAW.

9.  ATTORNEYS FEES.  In the event the Holder hereof shall refer this
Note to an attorney to enforce the terms hereof, the Company agrees to
pay all the costs and expenses incurred in attempting or effecting the
enforcement of the Holder's rights, including reasonable attorney's
fees, whether or not suit is instituted.

10.  CONFORMITY WITH LAW.  It is the intention of the Company and of
the Holder to conform strictly to applicable usury and similar laws.
Accordingly, notwithstanding anything to the contrary in this Note, it
is agreed that the aggregate of all charges which constitute interest
under applicable usury and similar laws that are contracted for,
chargeable or receivable under or in respect of this Note, shall under
no circumstances exceed the maximum amount of interest permitted by
such laws, and any excess, whether occasioned by acceleration or
maturity of this Note or otherwise, shall be cancelled automatically,
and if theretofore paid, shall be either refunded to the Company or
credited on the principal amount of this Note.

     IN WITNESS WHEREOF, the below parties signed and sealed this Note
as of date written above.

"Company"                                           "Holder"

World Am, Inc.,                                      SUTI Holdings, LP
a Nevada corporation
                                                     By:  Select University
                                                          Technologies, Inc.
/s/  Robert A. Hovee                                 Its:  General Partner
By:  Robert A. Hovee
Its:  Chairman

                                                     /s/  Frederick T. Rogers
                                                     By:  Frederick T. Rogers
                                                     Its:  President

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