Hurray! News

Hurray! Reports Third Quarter 2007 Unaudited Financial Results

BEIJING, November, 19, 2007 /Xinhua-PRNewswire/ -- Hurray! Holding Co., Ltd. (Nasdaq: HRAY - News), a leader in artist development, music production and wireless music distribution and other wireless value-added service in China, today announced its unaudited financial results for the third quarter ended September 30, 2007.

FINANCIAL HIGHLIGHTS:

Highlights for Third Quarter 2007
 ●Total revenues: $13.6 million, a decline of 6.5% quarter-over-quarter and 23.9% year-over-year, and below our previous guidance of $15.5-16.5 million
 ●Wireless value-added services revenues: $11.4 million, a decline of 10.7% quarter-over-quarter and 30.6% year-over-year
 ●Recorded music revenues, which are from our record label businesses: $2.2 million, a growth of 22.8% quarter-over-quarter and 47.8% year-over-year
 ●Software and system integration services revenues: $4,000
 ●Net loss: $11.5 million
 ●Net loss included a goodwill impairment charge of $9.6 million on our wireless business and a disposal gain of $0.03 million on selling the software and system integration services business.
 ●Adjusted EBITDA (a non-GAAP measure which is defined as earnings before interest, tax, depreciation, amortization and stock-based compensation): $-11.0 million
 ●Diluted loss per ADS: $0.53
 ●Excluding the goodwill impairment charge and the disposal gain on the sale of the software and system integration business, non-GAAP fully diluted loss per ADS: $0.09

Commenting on the third quarter results, QD Wang, Chairman and CEO of Hurray! stated:
"Q3 was extremely challenging for us because the operating environment continued to deteriorate and we missed our revenue guidance. China Unicom’s new revenue confirmation policy had a major impact on our business with them and the recent changes in policies by regulatory authorities and operators affecting particularly wireless applications for TV programs as well as WAP portal services have further limited our ability to generate profitable WVAS business. In light of these recent changes, we took an impairment charge of $9.6 million in this quarter. However, our efforts in carrying out our content strategy made further progress as our music business produced growth of 22.8% quarter over quarter and 47.8% year over year generating revenues of $2.2 million. We are confident about the prospect of transforming Hurray! into a leading entertainment production and distribution house in China."

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