Ku6 Media Reports Unaudited Financial Results for the Fourth Quarter and Full Year of Fiscal Year 2012

Ku6 Media Reports Unaudited Financial Results for the Fourth Quarter and Full
                           Year of Fiscal Year 2012

PR Newswire

BEIJING, March 15, 2013

BEIJING, March 15, 2013 /PRNewswire/ -- Ku6 Media Co., Ltd. ("Ku6 Media" or
the "Company," NASDAQ: KUTV), a leading internet video company focused on User
Generated Content ("UGC") in China, today announced unaudited financial
results for the fourth quarter and full year of fiscal year ended December 31,
2012.

Fourth Quarter 2012 Highlights^(1)

  oTotal revenues were US$3.35 million (RMB20.87 million) in the fourth
    quarter of 2012, representing an increase of 9.6% from US$3.06 million in
    the third quarter of 2012 and a decrease of 24.2% from US$4.42 million in
    the fourth quarter of 2011.
  oGAAP net loss was US$2.98 million (RMB18.57 million), as compared to a net
    loss of US$3.25 million in the third quarter of 2012 and US$3.94 million
    in the fourth quarter of 2011. Non-GAAP net loss, which the Company
    defines as net loss excluding share-based compensation expenses, was
    US$2.96 million (RMB18.45 million) in the fourth quarter of 2012, as
    compared to non-GAAP net loss of US$3.26 million in the third quarter of
    2012 and US$4.46 million in the fourth quarter of 2011.
  oBasic and diluted loss per ADS was US$0.06 (RMB0.39) in the fourth quarter
    of 2012, as compared to US$0.07 in the third quarter of 2012 and US$0.08
    in the fourth quarter of 2011.
  oCash and cash equivalents were US$13.07 million (RMB81.43 million) as of
    December 31, 2012.
  oNet cash used in operating activities was US$3.68 million (RMB22.95
    million) in the fourth quarter of 2012, as compared to US$1.92 million in
    the third quarter of 2012 and US$13.57 million in the fourth quarter of
    2011.

Fiscal Year 2012 Highlights^(1)

  oTotal revenues were US$14.12 million (RMB87.94 million) in 2012, as
    compared to US$19.22 million in 2011.
  oGAAP net loss was US$9.49 million (RMB59.13 million) in 2012, as compared
    to US$49.39 million in 2011. Non-GAAP net loss, which the Company defines
    as net loss excluding share-based compensation expenses, was US$9.03
    million (RMB56.24 million) in 2012, as compared to non-GAAP net loss of
    US$48.16 million in 2011.
  oBasic and diluted loss per ADS was US$0.19 (RMB1.21) in 2012, as compared
    to US$1.16 in 2011.
  oNet cash used in operating activities was US$8.09 million (RMB50.38
    million) in 2012, as compared to US$39.17 million in 2011.

    The reporting currency of the Company is the United States dollar ("U.S.
    dollar"), but solely for the convenience of the reader, the amounts of
    Renminbi ("RMB") presented throughout the release were calculated at the
    rate of US$1.00=RMB6.2301, representing the noon buying rate as of
(1) December 31, 2012 in the City of New York for cable transfers of RMB as
    certified for customs purposes by the Federal Reserve Bank of New York.
    This convenience translation is not intended to imply that the U.S. dollar
    amounts could have been, or could be, converted, realized or settled into
    RMB at that rate on December 31, 2012, or at any other rate.

"I am pleased to announce our fourth quarter and fiscal year 2012 earnings
release," Mr. Jeff Shi, Chief Executive Officer of Ku6 Media, commented, "2012
was an essential year to Ku6 Media, was the first full year since we switched
our strategy to UGC business model in the third quarter of 2011. In 2012, user
experience continued to be the top priority for our business. Keeping that in
mind, we upgraded the backend infrastructure for our video service, polished
our products by introducing major new features and established a loyal content
production team with over 20,000 users. We also expanded our mobile product
portfolio as 3G became more and more popular. Furthermore, we managed to
reduce our cost significantly through 2012 and kept our net loss at a
relatively low level of our industry. We believe with the progress we achieved
in 2012, 2013 will be an even faster growing year for Ku6 Media."

Fourth Quarter 2012 Financial Results

Total revenues were US$3.35 million (RMB20.87 million) in the fourth quarter
of 2012, representing an increase of 9.6% from US$3.06 million in the third
quarter of 2012 and a decrease of 24.2% from US$4.42 million in the fourth
quarter of 2011.

In the second quarter of 2011, the Company started to generate advertising
revenues primarily from performance advertising services using a system called
Application Advertisement ("AA"). The performance advertising revenue was
realized through an affiliated advertising agent which is under common control
of Shanda Interactive Entertainment Limited, the Company's majority
shareholder. The Company generated 87.5% of total revenues in the fourth
quarter of 2012 through this affiliated advertising agent, as compared to
94.6% of total revenues in the third quarter of 2012.

Cost of revenues was US$3.75 million (RMB23.36 million) in the fourth quarter
of 2012, representing an increase of 2.4% from US$3.66 million in the third
quarter of 2012 and a decrease of 11.4% from US$4.23 million in the fourth
quarter of 2011.

Gross loss  was US$0.40 million (RMB2.49 million) in the fourth quarter of
2012, as compared to a gross loss of US$0.61 million in the third quarter of
2012 and a gross profit of US$0.19 million in the fourth quarter of 2011.
Non-GAAP gross loss,  which is herein defined as a gross loss excluding
share-based compensation expenses, was US$0.33 million (RMB2.07 million) in
the fourth quarter of 2012, as compared to a non-GAAP gross loss of US$0.58
million in the third quarter of 2012 and US$0.02 million in the fourth quarter
of 2011. The decrease in non-GAAP gross loss as compared to the third quarter
of 2012 was primarily attributable to the increase in revenues.

Operating expenses were US$3.17 million (RMB19.72 million) in the fourth
quarter of 2012, representing an increase of 11.1% from US$2.85 million in the
third quarter of 2012 and a decrease of 27.7% from US$4.38 million in the
fourth quarter of 2011. Non-GAAP operating expenses, which is herein defined
as operating expenses excluding share-based compensation expenses, were
US$3.21 million (RMB20.02 million) in the fourth quarter of 2012, as compared
to non-GAAP operating expenses of US$2.88 million in the third quarter of 2012
and US$4.69 million in the fourth quarter of 2011. The sequential increase was
mainly attributable to expenditures on marketing and branding promotion
activities held in the fourth quarter of 2012.

Operating loss was US$3.57 million (RMB22.21 million) in the fourth quarter of
2012, representing an increase of 3.2% from US$3.46 million in the third
quarter of 2012 and a decrease of 14.9% from US$4.19 million in the fourth
quarter of 2011. Non-GAAP operating loss, which reflects the exclusion of
share-based compensation expenses, was US$3.55 million (RMB22.09 million) in
the fourth quarter of 2012, as compared to the non-GAAP operating loss of
US$3.46 million in the third quarter of 2012 and US$4.71 million in the fourth
quarter of 2011.

Net loss was US$2.98 million (RMB18.57 million) in the fourth quarter of 2012,
representing a decrease of 8.3% from US$3.25 million in the third quarter of
2012 and a decrease of 24.3% from US$3.94 million in the fourth quarter of
2011. Non-GAAP net loss, which reflects the exclusion of share-based
compensation expenses, was US$2.96 million (RMB18.45 million) in the fourth
quarter of 2012, as compared to US$3.26 million in the third quarter of 2012
and US$4.46 million in the fourth quarter of 2011. The decrease in net loss as
compared to the third quarter of 2012 was primarily attributable to (1) a
US$0.29 million (RMB1.83 million) increase in revenues and (2) a US$0.27
million (RMB1.66 million) increase in government subsidy benefits, partially
offset by increased expenditures on marketing and branding promotion
activities held in the fourth quarter of 2012.

Net loss attributable to Ku6 Media was US$2.98 million (RMB18.57 million) in
the fourth quarter of 2012, as compared to US$3.25 million in the third
quarter of 2012 and US$3.94 million in the fourth quarter of 2011. Non-GAAP
net loss attributable to Ku6 Media, reflecting the exclusion of share- based
compensation expenses, was US$2.96 million (RMB18.45 million) in the fourth
quarter of 2012, as compared to the non-GAAP net loss attributable to Ku6
Media of US$3.26 million in the third quarter of 2012 and US$4.46 million in
the fourth quarter of 2011.

Net loss attributable to Ku6 Media per basic and diluted ADS was US$0.06
(RMB0.39) in the fourth quarter of 2012, as compared to US$0.07 in the third
quarter of 2012 and US$0.08 in the fourth quarter of 2011. Weighted average
ADSs used to calculate basic and diluted net loss per ADS were 47.4 million in
the fourth quarter of 2012, 48.3 million in the third quarter of 2012 and 50.2
million in the fourth quarter of 2011.

Adjusted EBITDA loss, which is herein defined as net loss attributable to Ku6
Media before interest income, interest expenses, income taxes, depreciation
and amortization (excluding amortization and write-down of licensed video
copyrights), further adjusted for share-based compensation expenses, equity in
loss of affiliates and other non-operating items, was US$2.60 million
(RMB16.19 million) in the fourth quarter of 2012, as compared to adjusted
EBITDA loss of US$2.58 million in the third quarter of 2012 and US$3.86
million in the fourth quarter of 2011.

As of December 31, 2012, the Company had US$13.07 million (RMB81.43 million)
in cash and cash equivalents, compared to US$12.55 million as of September 30,
2012. The slight increase was primarily due to a US$4.30 million (RMB26.79
million) repayment of loans owed to a related party, partially offset by the
net cash used in operating activities in the amount of US$3.68 million
(RMB22.95 million) in the fourth quarter of 2012.

Fiscal Year 2012 Financial Results

Total revenues were US$14.12 million (RMB87.94 million) in 2012, compared to
US$19.22 million in 2011.

Cost of revenues was US$14.60 million (RMB90.98 million) in 2012, representing
103.5% of total revenues, as compared to US$30.88 million, 160.7% of revenues
in 2011. The change of content strategy since the second quarter of 2011 from
long-form professional content to UGC is the main reason for the significant
decrease in cost of revenues.

Gross loss  was US$0.49 million (RMB3.04 million) in 2012, as compared to a
gross loss of US$11.66 million in 2011. Non-GAAP gross loss was US$0.33
million (RMB2.04 million) in 2012, as compared to a non-GAAP gross loss of
US$11.34 million in 2011.

Operating expenses were US$10.48 million (RMB65.30 million) in 2012 as
compared to US$37.91 million in 2011. Non-GAAP operating expenses were
US$10.18 million (RMB63.41 million) in 2012 as compared to non-GAAP operating
expenses of US$37.00 million in 2011. As the Company changed its business
strategy in the second quarter of 2011, operating expenses decreased in 2012
in terms of: (1) labor costs as a result of restructuring of sales department;
(2) sales and marketing expenses as a result of transition from branding
advertising to performance advertising; (3) bad debt expenses as a result of
collection of accounts receivable previously written down; (4) loss from
disposal of network equipments due to technological upgrade; (5) litigation
expenses for possible copyright lawsuits; and (6) impairment for intangible
assets.

Operating loss was US$10.97 million (RMB68.34 million) in 2012 as compared to
US$49.57 million in 2011. Non-GAAP operating loss was US$10.51 million
(RMB65.45 million) in 2012 as compared to the non-GAAP operating loss of
US$48.34 million in 2011.

Net loss was US$9.49 million (RMB59.13 million) in 2012 as compared to
US$49.39 million in 2011. Non-GAAP net loss was US$9.03 million (RMB56.24
million) in 2012 as compared to US$48.16 million in 2011.

Net loss attributable to Ku6 Media was US$9.49 million (RMB59.13 million) in
2012 as compared to US$49.34 million in 2011. Non-GAAP net loss attributable
to Ku6 Media was US$9.03 million (RMB56.24 million) in 2012 as compared to
US$48.11 million in 2011.

Net loss attributable to Ku6 Media per basic and diluted ADS was US$0.19
(RMB1.21) in 2012 as compared to US$1.16 in 2011. Weighted average ADSs used
to calculate basic and diluted net loss per ADS were 49.0 million in 2012 and
42.7 million in 2011.

Adjusted EBITDA loss  was US$7.01 million (RMB43.65 million) in 2012 as
compared to adjusted EBITDA loss of US$43.09 million in 2011.

Recent Business Developments

Ranked No.1 Among the Most Influential Video Websites in Terms of UGC by
KY-Research

In February 2013, the Company was ranked No.1 among the most influential video
websites in terms of user-generated content in China in a research report
published by KY-Research.com, a well-known market research institution in
China. According to KY-Research's report, the research was conducted based on
three major indexes: search results on search engine websites, content quoted
by seven major portal websites and content quoted by peer websites.

Share Repurchase Program of 2011

Pursuant to a share repurchase program announced on December 30, 2011, the
Company's Board of Directors have authorized the Company to repurchase up to
an aggregate of US$3.2 million of its outstanding ADSs from time to time
following the date thereof, based on market conditions. As of December 31,
2012, the Company has repurchased 99,585 ADSs from open market under this
program.

Conference Call Information

Ku6's management team will be hosting a corresponding conference call at
8:00am EDT on Friday, March 15, 2013 (8:00pm Beijing time on the same day).

Dial-in numbers:   

International Dial-in Number:       +65 67239381
United States Toll Free Number:         18665194004
Mainland China Toll Free Number:        4006208038 / 8008190121
Hong Kong Toll Free Number: 800930346
Conference ID:                          21965063

A replay will be available from 10:00am March 15, 2013 EDT for 7 days.

International Dial-in Number:     +61 2 8199 0299
United States Toll Free Number:       18554525696
Mainland China Toll Free Number:      4001200932 / 8008700205
Hong Kong Toll Free Number:           800963117
Conference ID:                        21965063

A live and archived webcast of the conference call will also be available at
http://www.media-server.com/m/p/v73ay88z.

About Ku6 Media Co., Ltd.

Ku6 Media Co., Ltd. (NASDAQ: KUTV) is a leading internet video company in
China focused on User Generated Content ("UGC"). Through its premier online
brand and online video website,www.ku6.com, Ku6 Media provides online video
uploading and sharing service, video reports, information and entertainment in
China. For more information about Ku6 Media, please visithttp://ir.ku6.com.

Forward-looking Statements

This news release contains statements of a forward-looking nature. These
statements are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. You can identify these
forward-looking statements by terminology such as "believes," "could,"
"expects," "may," "might," "should," "will," or "would," and by similar
statements. Forward-looking statements are not historical facts, but instead
represent only the Company's beliefs regarding future events, many of which,
by their nature, are inherently uncertain and outside of its control. It is
possible that the Company's actual results and financial condition may differ,
possibly materially, from the anticipated results and financial condition
indicated in these forward-looking statements. Some of the risks and important
factors that could affect the Company's future results and financial condition
include: continued competitive pressures in China's internet video portal
market; changes in technology and consumer demand in this market; the risk
that Ku6 Media may not be able to control its expenses in the future;
regulatory changes in China with respect to the operations of internet video
portal websites; the success of Ku6 Media's ability to sell advertising and
other services on its websites; and other risks outlined in the Company's
filings with the Securities and Exchange Commission,including the Company's
annual report on Form 20-F. Ku6 Media does not undertake any obligation to
update this forward-looking information, except as required under law.

About Non-GAAP Financial Measures

To supplement Ku6 Media's consolidated financial results presented in
accordance with United States Generally Accepted Accounting Principles
("GAAP"), Ku6 Media uses the following measures defined as non-GAAP financial
measures by the SEC in evaluating its business: non-GAAP gross profit or loss,
non-GAAP operating expenses, non-GAAP product development expenses, non-GAAP
sales and marketing expenses, non-GAAP general and administrative expenses,
non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss attributable to
Ku6 Media and adjusted EBITDA loss. We define non-GAAP gross profit or loss,
non-GAAP operating expenses, non-GAAP product development expenses, non-GAAP
sales and marketing expenses, non-GAAP general and administrative expenses,
non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss attributable
to Ku6 Media as the respective nearest comparable GAAP financial measure
excluding share-based compensation expenses. We define adjusted EBITDA loss as
net loss attributable to Ku6 Media before interest income, interest expenses,
income taxes, depreciation and amortization (excluding amortization and
write-down of licensed video copyrights), further adjusted for share-based
compensation expenses, equity in loss of affiliates and other non-operating
items. We present non-GAAP financial measures because they are used by our
management to evaluate our operating performance. We also believe that these
non-GAAP financial measures provide useful information to investors and others
in understanding and evaluating our consolidated results of operations in the
same manner as our management and in comparing financial results across
accounting periods and to those of our peer companies.A limitation of using
non-GAAP financial measures is that non-GAAP measures exclude share-based
compensation charges that have been and will continue to be significant
recurring expenses inKu6 Media's business for the foreseeable future.

The presentation of these non-GAAP financial measures is not intended to be
considered in isolation from, or as a substitute for, the financial
information prepared and presented in accordance with GAAP. For more
information on these non-GAAP financial measures, please see the table
captioned "Reconciliations of non-GAAP results of operations measures to the
nearest comparable GAAP financial measures" at the end of this release.



Ku6 Media Co., Ltd
Consolidated Balance Sheets
(Amounts in thousands, except for number of shares)
                                        December31, December31, December31,

                                        2011         2012         2012

                                        US$          US$          RMB

                                                    (Unaudited)  (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents               26,751       13,071       81,434
Restricted cash                         3,600        -            -
Accounts receivable, net                777          67           418
Accounts receivable due from related    2,740        4,399        27,406
parties
Prepaid expenses and other current      884          523          3,258
assets
Other receivables due from related      19,539       6,097        37,985
parties
Total current assets                    54,291       24,157       150,501
Non-current assets:
Deposits                                307          310          1,931
Property and equipment, net             3,593        2,918        18,180
Acquired intangible assets, net         24,111       22,552       140,501
Investment in equity affiliate          255          -            -
Goodwill                                6,233        6,233        38,832
Total non-current assets                34,499       32,013       199,444
TOTAL ASSETS                            88,790       56,170       349,945
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings                   3,178        -            -
Accounts payable                        6,365        4,645        28,939
Accounts payable due to related parties -            -            -
Accrued expenses and other current      10,016       9,353        58,270
liabilities
Other payables due to related parties   13,552       3,780        23,550
Total current liabilities               33,111       17,778       110,759
Non-current deferred tax liabilities    4,826        4,826        30,066
Total liabilities                       37,937       22,604       140,825
Shareholders' equity:
Ordinary shares (US$0.00005 par value;
12,000,000,000 shares authorized;
5,019,786,036 shares and 4,732,446,560  251          236          1,470
shares issued and outstanding as of
December 31, 2011 and December 31,
2012, respectively)
Additional paid-in capital              184,874      177,183      1,103,868
Accumulated deficit                     (132,449)    (141,940)    (884,300)
Accumulated other comprehensive loss    (1,823)      (1,913)      (11,918)
Total Ku6 Media Co., Ltd. shareholders' 50,853       33,566       209,120
equity
Non-controlling interests               -            -            -
Total shareholders' equity              50,853       33,566       209,120
TOTAL LIABILITIES AND SHAREHOLDERS'     88,790       56,170       349,945
EQUITY

TABLE

Ku6 Media Co., Ltd.
Consolidated Statements of Operations
(Amountsinthousands,exceptfor number of shares and ADS and per share and per ADS data)
                For the Three Months Ended                              For the Twelve Months Ended
                December31,  September30, December31,  December31,  December31,  December 31,  December31,
                2011                        2012          2012                                      2012
                              2012                                      2011          2012
                US$           US$           US$           RMB           US$           US$           RMB
                (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)                 (Unaudited)   (Unaudited)
Revenues:
Advertising
Third parties   977           161           419           2,610         11,146        1,633         10,174
Related parties 3,444         2,895         2,931         18,261        8,076         12,482        77,764
Total revenues  4,421         3,056         3,350         20,871        19,222        14,115        87,938
Cost of
revenues:
Advertising
Third parties   4,233         3,662         3,750         23,363        30,501        14,603        90,978
Related parties -             -             -             -             380           -             -
Total cost of   4,233         3,662         3,750         23,363        30,881        14,603        90,978
revenues
Gross profit    188           (606)         (400)         (2,492)       (11,659)      (488)         (3,040)
(loss)
Operating
expenses:
Product         592           468           563           3,508         2,693         1,973         12,292
development
Sales and       16            283           797           4,965         11,815        1,689         10,523
marketing
General and     3,767         2,098         1,805         11,245        23,404        6,820         42,489
administrative
Total operating 4,375         2,849         3,165         19,718        37,912        10,482        65,304
expenses
Operating loss  (4,187)       (3,455)       (3,565)       (22,210)      (49,571)      (10,970)      (68,344)
Interest income 82            129           158           984           171           620           3,863
Other income    563           256           481           2,997         1,293         1,730         10,778
Interest        (333)         (114)         (55)          (343)         (1,119)       (619)         (3,857)
expenses
Equity in loss  (63)          (66)          -             -             (264)         (252)         (1,570)
of affiliates
Loss before
income tax      (3,938)       (3,250)       (2,981)       (18,572)      (49,490)      (9,491)       (59,130)
expense
Income tax      -             -             -             -             99            -             -
benefit
Net loss        (3,938)       (3,250)       (2,981)       (18,572)      (49,391)      (9,491)       (59,130)
Less: Net loss                                                       
attributable to -                                                                     -             -
non-controlling               -             -             -             47
interests
Net loss                                                             
attributable to (3,938)                                                               (9,491)       (59,130)
Ku6                           (3,250)       (2,981)       (18,572)      (49,344)
Media Co., Ltd.
Loss per share
- basic and
diluted
Net loss
attributable to                                                      
Ku6 Media       (US$0.00)                                                             (US$0.00)     (RMB0.01)
Co., Ltd.                     (US$0.00)     (US$0.00)     (RMB0.00)     (US$0.01)
ordinary
shareholders
Loss per ADS -
basic and
diluted
Net loss
attributable to                                                      
Ku6 Media       (US$0.08)                                                             (US$0.19)     (RMB1.21)
Co., Ltd.                     (US$0.07)     (US$0.06)     (RMB0.39)     (US$1.16)
ordinary
shareholders
Weighted
average shares                                                       
used in per     
share                                                                             4,901,279,176 4,901,279,176
calculation  -  5,019,786,036
basic and                     4,832,763,530 4,735,357,337 4,735,357,337 4,265,277,638
diluted
Weighted                                                             
average ADSs
used in per ADS 50,197,860                                                        49,012,792    49,012,792
calculation  - 
basic and                     48,327,635    47,353,573    47,353,573    42,652,776
diluted

TABLE

Ku6 Media Co., Ltd.
Consolidated Statements of Cash Flows
                                                           For the Three Months Ended                     For the Twelve Months Ended
                                                           December31, September30, December31, December31, December31, December31, December31,
(Amounts in thousands)                                     2011                       2012         2012         2011         2012         2012
                                                                        2012
                                                           US$          US$           US$          RMB          US$          US$          RMB
                                                           (Unaudited)   (Unaudited) (Unaudited)  (Unaudited)               (Unaudited)  (Unaudited)
Cashflowsfromoperatingactivities:
Net loss                                                   (3,938)      (3,250)       (2,981)      (18,572)     (49,391)     (9,491)      (59,130)
Adjustmentstoreconcilenetlosstonetcashusedin
operating activities:
Share-based compensation (reversal)                        (522)        (5)           20           125          1,232        464          2,891
Share-based compensation cost in relation to disposition                                                     
of Yisheng                                                 -                                                                 -            -
                                                                        -             -            -            522
Depreciation and amortization                              851          877           947          5,900        5,198        3,500        21,805
                                                                                                             
Amortization and write-down of licensed video copyrights   294                                                               1            6
                                                                        -             -            -            3,723
Impairment of intangible assets                            -            -             -            -            1,365        -            -
Bad debt provision (reversal)                              (63)         (187)         (53)         (330)        3,459        (2,255)      (14,049)
Reversal of legal provision                                -            -             -            -            -            (565)        (3,520)
Exchange loss (gain)                                       (25)         (93)          (59)         (368)        292          (160)        (997)
Equity in loss of affiliates                               63           66            -            -            264          252          1,570
Loss (gain) on disposalofpropertyandequipments         -            -             49           305          2,978        28           175
Changesinassetsandliabilities,netofacquisitionsand
dispositions:
Accounts receivable                                        1,600        188           (23)         (143)        3,817        2,946        18,354
Prepaid expenses and other current assets                  (319)        (290)         215          1,339        (1,519)      360          2,243
Amount due from related parties                            (174)        232           (1,144)      (7,127)      (3,912)      (1,747)      (10,884)
Deposits and other non-current assets                      (23)         -             -            -            (308)        -            -
Inventories                                                -            -             -            -            31           -            -
Accounts payable                                           (8,768)      658           (104)        (648)        (7,906)      (1,485)      (9,252)
Accrued expenses and other current liabilities             (2,617)      (171)         (605)        (3,769)      620          (97)         (604)
Amount due to related parties                              76           54            55           343          461          162          1,009
Income tax payable                                         -            -             -            -            (99)         -            -
Net cash used in operating activities                      (13,565)     (1,921)       (3,683)      (22,945)     (39,173)     (8,087)      (50,383)
Cash flows from investing activities:
Purchases of property and equipment                        (1,144)      (1,092)       (5)          (31)         (2,364)      (1,277)      (7,956)
Proceeds from disposal of property and equipments          -            -             1            5            -            24           150
Payments for licensed video copyrights                     (153)        (88)          -            -            (5,529)      (236)        (1,470)
Cash-out from disposal of subsidiaries, net of cash                                                          
disposed                                                   -                                                                 -            -
                                                                        -             -            -            (112)
Restricted cash for pledge of bank loans                   2,066        3,600         -            -            (3,600)      3,600        22,428
                                                                                                                                    
LoanstorelatedpartiesundercommoncontrolbyShanda
                                                           -            -             -            -            (14,108)     (470)        (2,928)
Repayment of loans to related parties under common control                                                  
by Shanda                                                                                                                    14,000       87,221
                                                           -            -             4,300        26,789       -
Net cash provided by (used in) investing activities        769          2,420         4,296        26,763       (25,713)     15,641       97,445
Cash flows from financing activities:
Proceeds from exercise of stock options                    -            -             -            -            4            -            -
Proceeds from issuance of common shares to Shanda          -            -             -            -            50,000       -            -
Proceeds from issuance of convertible bonds to Shanda      -            -             -            -            50,000       -            -
Cash paid for redemption of convertible bonds to Shanda    -            -             -            -            (50,000)     -            -
Repurchase of ordinary shares                              -            (8,083)       (87)         (542)        -            (8,170)      (50,900)
Borrowings from bank                                       1,084        -             -            -            3,177        -            -
Repayment for loans from bank                              -            (3,148)       -            -            -            (3,148)      (19,612)
Borrowings from related parties under common control by                                                                             
Shanda
                                                           -            -             -            -            13,336       -            -
Repayment of loans from related parties under common                                                                                
control of Shanda
                                                           (3,178)      -             -            -            (3,190)      (9,904)      (61,703)
Net cash provided by (used in) financing activities        (2,094)      (11,231)      (87)         (542)        63,327       (21,222)     (132,215)
Effect of exchange rate changes on cash and cash                                                                                    
equivalents
                                                           12           (5)           -            1            1,015        (12)         (75)
Netincrease(decrease)incashandcashequivalents       (14,878)     (10,737)      526          3,277        (544)        (13,680)     (85,228)
Cash and cash equivalents, beginning of period             41,629       23,282        12,545       78,157       27,295       26,751       166,662
Cash and cash equivalents, end of period                   26,751       12,545        13,071       81,434       26,751       13,071       81,434



Reconciliations of Non-GAAP results of operations measures to the nearest comparable GAAP financial measures (*)
(Amounts in thousands of United States dollars ("US$") and Renminbi ("RMB"), unaudited)
1.Non-GAAP Gross Profit (Loss)
                                                 FortheThreeMonthsEnded                                FortheTwelveMonthsEnded
                                                 December31,  September30,   December31,  December31,  December31,  December31,  December31,
                                                 2011          2012            2012          2012          2011          2012          2012
                                                 US$           US$             US$           RMB           US$           US$           RMB
Grossprofit(loss)                              188           (606)           (400)         (2,492)       (11,659)      (488)         (3,040)
Addback(deduct):        (211)         28              68            424           320           160           997
share-basedcompensation
Non-GAAPgrossprofit(loss)                     (23)          (578)           (332)         (2,068)       (11,339)      (328)         (2,043)
2. Non-GAAP Operating Expenses
                                                 FortheThreeMonthsEnded                                FortheTwelveMonthsEnded
                                                 December31,  September30,   December31,  December31,  December31,  December31,  December31,
                                                 2011          2012            2012          2012          2011          2012          2012
                                                 US$           US$             US$           RMB           US$           US$           RMB
Operatingexpenses                               4,375         2,849           3,165         19,718        37,912        10,482        65,304
Deduct(addback):     (311)         (33)            (48)          (299)         912           304           1,894
share-basedcompensation
Non-GAAP operating expenses                      4,686         2,882           3,213         20,017        37,000        10,178        63,410
3.Non-GAAP Product Development Expenses
                                                 FortheThreeMonthsEnded                                FortheTwelveMonthsEnded
                                                 December31,  September30,   December31,  December31,  December31,  December31,  December31,
                                                 2011          2012            2012          2012          2011          2012          2012
                                                 US$           US$             US$           RMB           US$           US$           RMB
Product development expenses                     592           468             563           3,508         2,693         1,973         12,292
Deduct(addback):  (85)          22              40            250           260           81            505
share-basedcompensation
Non-GAAP product development                     677           446             523           3,258         2,433         1,892         11,787
expenses
4.Non-GAAP Sales and Marketing Expenses
                                                 FortheThreeMonthsEnded                                FortheTwelveMonthsEnded
                                                 December31,  September30,   December31,  December31,  December31,  December31,  December31,
                                                 2011          2012            2012          2012          2011          2012          2012
                                                 US$           US$             US$           RMB           US$           US$           RMB
Sales and marketing expenses                     16            283             797           4,965         11,815        1,689         10,523
Deduct(addback):            (452)         8               20            124           (8)           40            249
share-basedcompensation
Non-GAAP sales and                               468           275             777           4,841         11,823        1,649         10,274
marketing expenses
5.Non-GAAP General and Administrative Expenses
                                                 FortheThreeMonthsEnded                                FortheTwelveMonthsEnded
                                                 December31,  September30,   December31,  December31,  December31,  December31,  December31,
                                                 2011          2012            2012          2012          2011          2012          2012
                                                 US$           US$             US$           RMB           US$           US$           RMB
Generalandadministrative                       3,767         2,098           1,805         11,245        23,404        6,820         42,489
expenses
Deduct (add back):                              226           (63)            (108)         (673)         660           183           1,140
share-based compensation
Non-GAAP general and                             3,541         2,161           1,913         11,918        22,744        6,637         41,349
administrativeexpenses
6.Non-GAAP Operating Loss
                                                 FortheThreeMonthsEnded                                FortheTwelveMonthsEnded
                                                 December31,  September30,   December31,  December31,  December31,  December31,  December31,
                                                 2011          2012            2012          2012          2011          2012          2012
                                                 US$           US$             US$           RMB           US$           US$           RMB
Operatingloss            (4,187)       (3,455)         (3,565)       (22,210)      (49,571)      (10,970)      (68,344)
Add back (deduct):                               (522)         (5)             20            125           1,232         464           2,891
share-basedcompensation
Non-GAAPoperatingloss                          (4,709)       (3,460)         (3,545)       (22,085)      (48,339)      (10,506)      (65,453)
7.Non-GAAP Net Loss
                                                 FortheThreeMonthsEnded                                FortheTwelveMonthsEnded
                                                 December31,  September30,   December31,  December31,  December31,  December31,  December31,
                                                 2011          2012            2012          2012          2011          2012          2012
                                                 US$           US$             US$           RMB           US$           US$           RMB
Netloss          (3,938)       (3,250)         (2,981)       (18,572)      (49,391)      (9,491)       (59,130)
Add back (deduct):                               (522)         (5)             20            125           1,232         464           2,891
share-based compensation
Non-GAAP net loss                                (4,460)       (3,255)         (2,961)       (18,447)      (48,159)      (9,027)       (56,239)
8.Non-GAAP Net Loss Attributable to Ku6 Media Co., Ltd.
                                                 FortheThreeMonthsEnded                                FortheTwelveMonthsEnded
                                                 December31,  September30,   December31,  December31,  December31,  December31,  December31,
                                                 2011          2012            2012          2012          2011          2012          2012
                                                 US$           US$             US$           RMB           US$           US$           RMB
Net loss attributable to                        (3,938)       (3,250)         (2,981)       (18,572)      (49,344)      (9,491)       (59,130)
Ku6MediaCo.,Ltd.
Add back (deduct):                               (522)         (5)             20            125           1,232         464           2,891
share-based compensation
Non-GAAP net loss attributableto                (4,460)       (3,255)         (2,961)       (18,447)      (48,112)      (9,027)       (56,239)
Ku6MediaCo.,Ltd.
9.Adjusted EBITDA Loss
                                                 FortheThreeMonthsEnded                                FortheTwelveMonthsEnded
                                                 December31,  September30,   December31,  December31,  December31,  December31,  December31,
                                                 2011          2012            2012          2012          2011          2012          2012
                                                 US$           US$             US$           RMB           US$           US$           RMB
Net loss attributable to                         (3,938)       (3,250)         (2,981)       (18,572)      (49,344)      (9,491)       (59,130)
Ku6 Media Co., Ltd.
Add back (deduct):
Interestincome           (82)          (129)           (158)         (984)         (171)         (620)         (3,863)
Interest expenses                                333           114             55            343           1,119         619           3,857)
Income tax benefit                               -                           - -             -             (99)          -             -
Depreciation and amortization
(excluding amortization and                      851           877             947           5,900         5,198         3,500         21,805
write-down of licensed video
copyrights)
EBITDA loss                                      (2,836)       (2,388)         (2,137)       (13,313)      (43,297)      (5,992)       (37,331)
Adjustments:
Share-based compensation                         (522)         (5)             20            125           1,232         464           2,891
Equity in loss of affiliates                     63            66              -             -             264           252           1,570
Other income                                     (563)         (256)           (481)         (2,997)       (1,293)       (1,730)       (10,778)
Adjusted EBITDA loss                             (3,858)       (2,583)         (2,598)       (16,185)      (43,094)      (7,006)       (43,648)
*For more information on the Non-GAAP financial measures, please see the section captioned "About Non-GAAP Financial Measures" in the earnings
release.



SOURCE Ku6 Media Co., Ltd.

Website: http://www.ku6.com
Website: http://www.media-server.com/m/p/v73ay88z
Website: http://ir.ku6.com
Contact: Ms. Helen Zou, Investor Relations Director, +86 10 5758 6835,
ir@ku6.com
 
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