Subaye, Inc. (NASDAQ:SBAY) Subaye, Inc. ("Subaye" or the "Company"), is a leading video advertising and entertainment media provider in China. Subaye's platform includes production, upload, storage, sharing and publishing onto video sharing websites. Subaye also offers SaaS business solutions and is in the process of developing what Subaye believes is the first online shopping mall in the world that will utilize 3D imaging throughout the online customer interface. Subaye's video sharing services, SaaS solutions and its online shopping mall will be fully integrated in 2010. Subaye's members will use Subaye's SaaS online content management software to manage their online video and graphic showcases, maintain customer data and to manage operations within their webshops at the online shopping mall. These showcases offer a cost-effective venue for small to mid-size enterprises ("SMEs") to advertise their products and services and establish and enhance their corporate brands.

The visitors of Subaye's websites, namely http://www.subaye.com , view the video showcases for Subaye's members in order to select products or services they wish to purchase. Additional services such as general education and basic online media promotions are provided through the Company's websites or through licensing arrangements.

As of February 28, 2010, Subaye had approximately 76,000 total members. Paying members pay a fee to the Company of approximately $120 a month. Nonpaying members were offered services at http://www.subaye.com for free for varying amounts of time. The Company speaks with these members as frequently as possible and is attempting to convert these members to paying members during 2010.