Ku6 Media Reports Unaudited Financial Results for the Third Quarter of Fiscal Year 2013

Ku6 Media Reports Unaudited Financial Results for the Third Quarter of Fiscal
                                  Year 2013

PR Newswire

BEIJING, Dec. 19, 2013

BEIJING, Dec. 19, 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 third quarter of fiscal year 2013 ended September 30, 2013.

Third Quarter 2013 Highlights ^(1)

  oThe Company generates substantially all of its revenues from online
    advertising, primarily through an advertising agency agreement with
    Shengyue, an affiliate wholly owned by Shanda Interactive, pursuant to
    which Shengyue acts as the Company's exclusive advertising agency for
    standard media resources and as its non-exclusive advertising agency for
    highly interactive advertising resources.
  oGAAP net loss was US$3.44 million (RMB21.05 million), as compared to a net
    loss of US$2.54 million in the second quarter of 2013 and US$3.25 million
    in the third quarter of 2012. Non-GAAP net loss, which the Company defines
    as net loss excluding expenses (benefits) associated with share-based
    compensation, was US$3.14 million (RMB19.20 million) in the third quarter
    of 2013, as compared to non-GAAP net loss of US$2.38 million in the second
    quarter of 2013 and US$3.26 million in the third quarter of 2012.
  oBasic and diluted loss per ADS was US$0.07 (RMB0.43) in the third quarter
    of 2013, as compared to US$0.05 in the second quarter 2toof 2013 and
    US$0.07 in the third quarter of 2012.
  oCash and cash equivalents were US$6.09 million (RMB37.28 million) as of
    September 30, 2013.
  oNet cash used in operating activities was US$3.86 million (RMB23.63
    million) in the third quarter of 2013, as compared to US$0.93 million in
    the second quarter of 2013 and US$1.92 million in the third quarter of
    2012.

(1) 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=RMB6.1200, representing the noon buying rate as of September 30,
2013 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
September 30, 2013, or at any other rate.

"In the third quarter of 2013, the major tasks for the Company were to
establish a new strategy to strengthen our leading position in the UGC area in
China and to enhance the Company's brand to attract more quality advertisers
as well as talent," Mr. Fang Du, Chief Executive Officer of Ku6 Media,
commented. "The new strategy we've launched is to leverage influences of
events with unique themes, developments in the mobile market, and in-depth
collaboration with TV stations, to boost website traffic, promote the
Company's brand and more importantly to test an innovative business model for
the online video industry."

"In October, we launched The UGC Entertainment Awards, the very first TV
station and Internet simulcast program focusing on UGC content in China,"
continued Mr. Du. "The program aims to boost China's UGC industry by inspiring
people to record their memorable moments. More than that, it was also China's
very first program produced jointly by an online video company and a
traditional TV station. As of today, The UGC Entertainment Awards has become
one of the most popular TV programs nationally among all the TV programs aired
at the same time slot. We believe this is a good start for our TV station –
Internet collaboration business model."

"Going forward, we will keep focusing on our goals and exploring more
innovative business models under our core strategy – User Generated Content.
We strive to bring the best rewards to our supportive investors and
hard-working employees." 

Third Quarter 2013 Financial Results

Total revenues were US$3.40 million (RMB20.83 million) in the third quarter of
2013, representing a decrease of 0.4% from US$3.42 million in the second
quarter of 2013 and an increase of 11.4% from US$3.06 million in the third
quarter of 2012.

The Company generated 96.1% of total revenues in the third quarter of 2013
through this affiliated advertising agent, as compared to 89.9% of total
revenues in the second quarter of 2013.

Cost of revenues was US$3.69 million (RMB22.60 million) in the third quarter
of 2013, representing a decrease of 5.2% from US$3.90 million in the second
quarter of 2013 and an increase of 0.8% from US$3.66 million in the third
quarter of 2012.

Gross loss was US$0.29 million (RMB1.77 million) in the third quarter of 2013,
as compared to a gross loss of US$0.48 million in the second quarter of 2013
and a gross loss of US$0.61 million in the third quarter of 2012. Non-GAAP
gross loss, which is herein defined as a gross loss excluding expenses
(benefits) associated with share-based compensation, was US$0.25 million
(RMB1.51 million) in the third quarter of 2013, as compared to a non-GAAP
gross loss of US$0.44 million in the second quarter of 2013 and a non-GAAP
gross loss of US$0.58 million in the third quarter of 2012.

Operating expenses were US$4.12 million (RMB25.18 million) in the third
quarter of 2013, representing an increase of 24.8% from US$3.30 million in the
second quarter of 2013 and an increase of 44.4% from US$2.85 million in the
third quarter of 2012. Non-GAAP operating expenses, which are herein defined
as operating expenses excluding expenses (benefits) associated with
share-based compensation, were US$3.86 million (RMB23.60 million) in the third
quarter of 2013, as compared to non-GAAP operating expenses of US$3.17 million
in the second quarter of 2013 and US$2.88 million in the third quarter of
2012. The increase in operating expenses as compared to the second quarter of
2013 was primarily due to (1) expenses for promotional campaigns and marketing
events held in the third quarter of 2013, (2) the effect of a gain on disposal
included in second quarter 2013 operating expenses relating to the sale of
network equipment, and (3) an increase in share-based compensation expenses
arising from stock option awards mostly granted to new-joined management and
talents.

Operating loss was US$4.40 million (RMB26.95 million) in the third quarter of
2013, representing an increase of 16.7% from US$3.77 million in the second
quarter of 2013 and an increase of 27.5% from US$3.46 million in the third
quarter of 2012. Non-GAAP operating loss, which reflects the exclusion of
expenses (benefits) associated with share-based compensation, was US$4.10
million (RMB25.11 million) in the third quarter of 2013, as compared to the
non-GAAP operating loss of US$3.61 million in the second quarter of 2013 and
US$3.46 million in the third quarter of 2012.

Net loss was US$3.44 million (RMB21.05 million) in the third quarter of 2013,
representing an increase of 35.3% from US$2.54 million in the second quarter
of 2013 and an increase of 5.8% from US$3.25 million in the third quarter of
2012. Non-GAAP net loss, which reflects the exclusion of expenses (benefits)
associated with share-based compensation, was US$3.14 million (RMB19.20
million) in the third quarter of 2013, as compared to US$2.38 million in the
second quarter of 2013 and US$3.26 million in the third quarter of 2012. The
increase in net loss as compared to the second quarter of 2013 was primarily
attributable to (1) an increase in expenses for promotional campaigns and
marketing events held in the third quarter of 2013, (2) the effect of a gain
on disposal included in second quarter 2013 operating expenses relating to the
sale of network equipment, and (3) an increase in share-based compensation
expenses arising from stock option awards mostly granted to new-joined
management and talents.

Net loss per basic and diluted ADS was US$0.07 (RMB0.43) in the third quarter
of 2013, as compared to US$0.05 in the second quarter of 2013 and US$0.07 in
the third quarter of 2012. Weighted average ADSs used to calculate basic and
diluted net loss per ADS were 47.3 million in the third quarter of 2013, 47.3
million in the second quarter of 2013 and 48.3 million in the third quarter of
2012.

Adjusted EBITDA loss, which is herein defined as net loss 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 (benefits), equity in loss of
affiliates and other non-operating items, was US$3.31 million (RMB20.23
million) in the third quarter of 2013, as compared to adjusted EBITDA loss of
US$2.69 million in the second quarter of 2013 and US$2.58 million in the third
quarter of 2012.

As of September 30, 2013, the Company had US$6.09 million (RMB37.28 million)
in cash and cash equivalents, compared to US$9.96 million as of June 30, 2013.
The decrease was primarily attributable to US$3.86 million (RMB23.63 million)
of net cash used in operating activities. Additionally, the balance of net
working capital (excess of current assets over current liabilities) declined
from December 31, 2012 to September 30, 2013.In the near term, the Company
expects to continue to incur net cash outflows associated with operating
activities for the fourth quarter.To alleviate near-term pressure on the
Company's liquidity and enhance financial flexibility, the Company is
currently exploring financing options.

Recent Business Developments

Ku6 Media Joins Hands with Zhejiang TV to Launch the UGC Entertainment Awards

The Company held a press conference inBeijingonOctober 12, announcing its
collaboration with Zhejiang TV, a top TV station inChina, to launch theUGC
EntertainmentAwards– the very first TV and Internet simulcast program
focusing on UGC content inChina.

Ku6 Media Announces the Love-Theme UGC Video Campaign

The Company held a press conference on August 13, Chinese Valentine's Day, to
announce its love-theme UGC video campaign. The Company's new slogan "Short is
Cool" was first introduced at the press conference, representing the Company's
commitment to offer more quality short-form videos by leveraging the
prosperity of mobile devices and mobile platforms as well as through
promotional campaigns and marketing events.

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 September 30,
2013, the Company has repurchased 157,567 ADSs from open market under this
program.There were no share repurchases in the third quarter of 2013.

Conference Call Information

Ku6's management team will be hosting a corresponding conference call at 8:00
pm EST on Thursday, December 19, 2013 (9:00 am Beijing time on Friday,
December 20, 2013).

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:                          22629562

A replay will be available from 11:00 pm December 19, 2013 EST for 7 days.

International Dial-in Number:     +61 2 8199 0299
United States Toll Free Number:       18554525696
Mainland China Toll Free Number:      4006322162 / 8008700205
Hong Kong Toll Free Number:           800963117
Conference ID:                        22629562

A live and archived webcast of the conference call will also be available at
http://www.media-server.com/m/p/dhj8xijz 

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 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 and non-GAAP net
loss as the respective nearest comparable GAAP financial measure excluding
expenses (benefits) associated with share-based compensation. We define
adjusted EBITDA loss as net loss 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 (benefits), 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.

For further information, please contact:

Ms. Helen Zou
Investor Relations Director
Telephone +86 10 5758 6835
ir@ku6.com



Ku6 Media Co., Ltd.
Consolidated Balance Sheets
                                                   September30, September30,
                                      December31,
(Amounts in thousands,                             2013          2013
                                      2012
except for number of shares)                       US$           RMB
                                      US$
                                                   (Unaudited)   (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents             13,071       6,091         37,277
Accounts receivable, net              67           42            257
Accounts receivable due from related  4,399        5,543         33,923
parties
Prepaid expenses and other current    523          432           2,644
assets
Other receivables due from related    6,097        2,762         16,903
parties
Total current assets                  24,157       14,870        91,004
Non-current assets:
Deposits                              310          335           2,050
Property and equipment, net           2,918        1,681         10,288
Acquired intangible assets, net       22,552       21,383        130,864
Goodwill                              6,233        6,233         38,146
Total non-current assets              32,013       29,632        181,348
TOTAL ASSETS                          56,170       44,502        272,352
LIABILITIES AND SHAREHOLDERS'

EQUITY
Current liabilities:
Accounts payable                      4,645        4,505         27,571
Accounts payable due to related       -            384           2,350
parties
Accrued expenses and other current    9,353        8,976         54,933
liabilities
Other payables due to related parties 3,780        375           2,295
Total current liabilities             17,778       14,240        87,149
Non-current deferred tax liabilities  4,826        4,826         29,535
Total liabilities                     22,604       19,066        116,684
Shareholders' equity:
Ordinary shares (US$0.00005 par
value;

12,000,000,000 shares authorized;
4,732,446,560

shares and 4,727,148,360 shares       236          236           1,444
issued and

outstanding as of December 31, 2012
and

September 30, 2013, respectively)
Additional paid-in capital            177,183      176,947       1,082,916
Accumulated deficit                   (141,940)    (149,592)     (915,503)
Accumulated other comprehensive loss  (1,913)      (2,155)       (13,189)
Total Ku6 Media Co., Ltd.             33,566       25,436        155,668
shareholders' equity
Non-controlling interests             -            -             -
Total shareholders' equity            33,566       25,436        155, 668
TOTAL LIABILITIES AND
                                      56,170       44,502        272,352
SHAREHOLDERS' EQUITY



Ku6 Media Co., Ltd.
Consolidated Statements of Operations
                                  For the Three Months Ended                              For the Nine Months Ended
(Amountsinthousands,exceptfor               June         September     September     September    September    September
                                  September 30,
numberofsharesandADSandper  2012          30, 2013      30, 2013      30, 2013      30, 2012      30, 2013      30, 2013

share and per ADS data)           US$           US$           US$           RMB           US$           US$           RMB
                                  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Revenues:
Advertising
Third parties              161           344           134           820           1,214         607           3,715
Related parties            2,895         3,075         3,270         20,012        9,551         9,284         56,818
Total revenues                    3,056         3,419         3,404         20,832        10,765        9,891         60,533
Cost of revenues:
Advertising
Third parties              3,662         3,702         3,542         21,677        10,853        10,377        63,508
Related parties            -             193           151           924           -             344           2,105
Total cost of revenues            3,662         3,895         3,693         22,601        10,853        10,721        65,613
Gross profit (loss)               (606)         (476)         (289)         (1,769)       (88)          (830)         (5,080)
Operating expenses:
Product development        468           952           1,064         6,512         1,410         2,367         14,486
Sales and marketing        283           642           754           4,614         892           1,696         10,379
General and administrative 2,098         1,703         2,297         14,058        5,015         5,618         34,382
Total operating expenses          2,849         3,297         4,115         25,184        7,317         9,681         59,247
Operating loss                    (3,455)       (3,773)       (4,404)       (26,953)      (7,405)       (10,511)      (64,327)
Interest income                   129           16            56            343           462           102           624
Other income                      256           1,216         909           5,563         1,249         2,773         16,971
Interest expenses                 (114)         -             -             -             (564)         (16)          (98)
Equity in loss of affiliates      (66)          -             -             -             (252)         -             -
Loss before income tax expense    (3,250)       (2,541)       (3,439)       (21,047)      (6,510)       (7,652)       (46,830)
Income tax benefit                -             -             -             -             -             -             -
Net loss                          (3,250)       (2,541)       (3,439)       (21,047)      (6,510)       (7,652)       (46,830)
Loss per share - basic and
diluted
Net loss                          (US$0.00)     (US$0.00)     (US$0.00)     (RMB0.00)     (US$0.00)     (US$0.00)     (RMB0.01)
Loss per ADS - basic and diluted
Net loss                          (US$0.07)     (US$0.05)     (US$0.07)     (RMB0.43)     (US$0.13)     (US$0.16)     (RMB0.98)
Weighted average shares used in
per
                                  4,832,763,530 4,726,880,171 4,726,724,447 4,726,724,447 4,956,990,158 4,728,448,844 4,728,448,844
share calculation - basic and
diluted
Weighted average ADSs used in per
                                  48,327,635    47,268,802    47,267,244    47,267,244    49,569,902    47,284,488    47,284,488
ADS calculation - basic and
diluted



Ku6 Media Co., Ltd.
Consolidated Statements of Cash Flows
                                              For the Three Months Ended          For the Nine Months Ended
                                              September   June        September   September   September   September   September
(Amountsinthousands)
                                              30, 2012    30, 2013    30, 2013    30, 2013    30, 2012    30, 2013    30, 2013
                                              US$         US$         US$         RMB         US$         US$         RMB
                                              (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Cash flows from operating activities:
Net loss                                      (3,250)     (2,541)     (3,439)     (21,047)    (6,510)     (7,652)     (46,830)
Adjustmentstoreconcilenetlosstonetcash

used in operating activities:
Share-based compensation (reversal)           (5)         162         302         1,848       444         (183)       (1,120)
Depreciation and amortization                 877         917         796         4,872       2,553       2,650       16,218
Amortization and write-down of licensed                                        
                                                                                              1           -           -
video copyrights                           -           -           -           -
Bad debt reversal                             (187)       (176)       (66)        (404)       (2,202)     (339)       (2,075)
Reversal of legal provision                   -           -           -           -           (565)       -           -
Exchange gain                                 (93)        (128)       (61)        (373)       (101)       (235)       (1,438)
Equity in loss of affiliates                  66          -           -           -           252         -           -
Gain on disposal of property and equipment    -           (137)       -           -           (21)        (150)       (918)
Changes in assets and liabilities, net of

acquisitions and dispositions:
Accounts receivable                           188         113         67          410         2,969       332         2,032
Prepaidexpensesandothercurrentassets     (290)       133         (203)       (1,242)     145         91          557
Amount due from related parties               232         1,923       (1,817)     (11,120)    (603)       (1,109)     (6,787)
Deposits and other non-current assets         -           (25)        -           -           -           (25)        (153)
Accounts payable                              658         (260)       (171)       (1,047)     (1,381)     (66)        (404)
Accrued expenses and other current                                             
                                                                                              508         (377)       (2,307)
liabilities                                (171)       (950)       575         3,519
Amount due to related parties                 54          39          156         955         107         1           6
Net cash used in operating activities         (1,921)     (930)       (3,861)     (23,629)    (4,404)     (7,062)     (43,219)
Cash flows from investing activities:
Purchases of property and equipment           (1,092)     -           (21)        (129)       (1,272)     (62)        (379)
Proceeds from disposal of property and                                         
                                                                                              23          142         869
equipment                                  -           142         -           -
Payments for licensed video copyrights        (88)        (74)        -           -           (236)       (74)        (453)
Restricted cash for pledge of bank loans      3,600       -           -           -           3,600       -           -
Loans to related parties under common control
                                              -           -           -           -           (470)       -           -
by Shanda
Repayment of loans to related parties under                                    
common control                                                                                9,700       3,300       20,196
                                              -           -           -           -
by Shanda
Net cash provided by (used in) investing                                       
                                                                                              11,345      3,306       20,233
activities                                 2,420       68          (21)        (129)
Cash flows from financing activities:
Repurchase of ordinary shares                 (8,083)     (17)        -           -           (8,083)     (58)        (355)
Proceeds from exercise of stock options       -           -           6           37          -           6           37
Repayment for loans from bank                 (3,148)     -           -           -           (3,148)     -           -
Repayment of loans from related parties under                                                                   

common control of Shanda                   -           -           -           -           (9,904)     (3,210)     (19,645)
Net cash provided by (used in) financing                                                                        

activities                                 (11,231)    (17)        6           37          (21,135)    (3,262)     (19,963)
Effect of exchange rate changes on cash and                                                                     

cash equivalents                           (5)         26          9           55          (12)        38          232
Net increase (decrease) in cash and cash                                                                        

equivalents                                (10,737)    (853)       (3,867)     (23,666)    (14,206)    (6,980)     (42,717)
Cash and cash equivalents, beginning of                                                                         

period                                     23,282      10,811      9,958       60,943      26,751      13,071      79,994
Cash and cash equivalents, end of period      12,545      9,958       6,091       37,277      12,545      6,091       37,277

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                    FortheNineMonthsEnded
                 September  June      September  September  September  September  September

                 30, 2012    30,2013  30, 2013    30, 2013    30, 2012    30, 2013    30, 2013
                 US$         US$       US$         RMB         US$         US$         RMB
Gross profit     (606)       (476)     (289)       (1,769)     (88)        (830)       (5,080)
(loss)
Add back:
expenses
(benefits)

associated    28          39        43          263         92          (115)       (704)
with
share-based

compensation
Non-GAAP gross   (578)       (437)     (246)       (1,506)     4           (945)       (5,784)
profit (loss)



2. Non-GAAP Operating Expenses
                 FortheThreeMonthsEnded                    FortheNineMonthsEnded
                 September  June      September  September  September  September  September

                 30, 2012    30,2013  30, 2013    30, 2013    30, 2012    30, 2013    30, 2013
                 US$         US$       US$         RMB         US$         US$         RMB
Operating        2,849       3,297     4,115       25,184      7,317       9,681       59,248
expenses
Deduct:
expenses
(benefits)

associated    (33)        123       259         1,585       352         (68)        (416)
with
share-based

compensation
Non-GAAP
operating        2,882       3,174     3,856       23,599      6,965       9,749       59,664
expenses



3. Non-GAAP Product Development Expenses
                 FortheThreeMonthsEnded                    FortheNineMonthsEnded
                 September  June      September  September  September  September  September

                 30, 2012    30,2013  30, 2013    30, 2013    30, 2012    30, 2013    30, 2013
                 US$         US$       US$         RMB         US$         US$         RMB
Product
development      468         952       1,064       6,512       1,410       2,367       14,486
expenses
Deduct:
expenses
(benefits)

associated    22          19        35          214         41          (107)       (655)
with
share-based

compensation
Non-GAAP
product
development      446         933       1,029       6,298       1,369       2,474       15,141

expenses



4. Non-GAAP Sales and Marketing Expenses
                 FortheThreeMonthsEnded                    FortheNineMonthsEnded
                 September  June      September  September  September  September  September

                 30, 2012    30,2013  30, 2013    30, 2013    30, 2012    30, 2013    30, 2013
                 US$         US$       US$         RMB         US$         US$         RMB
Sales and
marketing        283         642       754         4,614       892         1,696       10,379
expenses
Deduct:
expenses
(benefits)

associated    8           10        11          67          20          (39)        (238)
with
share-based

compensation
Non-GAAP sales
and marketing    275         632       743         4,547       872         1,735       10,617

expenses



5. Non-GAAP General and Administrative Expenses
                 FortheThreeMonthsEnded                    FortheNineMonthsEnded
                 September  June      September  September  September  September  September

                 30, 2012    30,2013  30, 2013    30, 2013    30, 2012    30, 2013    30, 2013
                 US$         US$       US$         RMB         US$         US$         RMB
General and
administrative   2,098       1,703     2,297       14,058      5,015       5,618       34,382
expenses
Deduct:
expenses
(benefits)

associated    (63)        94        213         1,304       291         78          477
with
share-based

compensation
Non-GAAP
general and
administrative   2,161       1,609     2,084       12,754      4,724       5,540       33,905

expenses



6. Non-GAAP Operating Loss
                 FortheThreeMonthsEnded                    FortheNineMonthsEnded
                 September  June      September  September  September  September  September

                 30, 2012    30,2013  30, 2013    30, 2013    30, 2012    30, 2013    30, 2013
                 US$         US$       US$         RMB         US$         US$         RMB
Operating loss   (3,455)     (3,773)   (4,404)     (26,953)    (7,405)     (10,511)    (64,327)
Add back:
expenses
(benefits)

associated    (5)         162       302         1,848       444         (183)       (1,120)
with
share-based

compensation
Non-GAAP         (3,460)     (3,611)   (4,102)     (25,105)    (6,961)     (10,694)    (65,447)
operating loss



7. Non-GAAP Net Loss
                 FortheThreeMonthsEnded                    FortheNineMonthsEnded
                 September  June      September  September  September  September  September

                 30, 2012    30,2013  30, 2013    30, 2013    30, 2012    30, 2013    30, 2013
                 US$         US$       US$         RMB         US$         US$         RMB
Net loss         (3,250)     (2,541)   (3,439)     (21,047)    (6,510)     (7,652)     (46,830)
Add back:
expenses
(benefits)

associated    (5)         162       302         1,848       444         (183)       (1,120)
with
share-based

compensation
Non-GAAP net     (3,255)     (2,379)   (3,137)     (19,199)    (6,066)     (7,835)     (47,950)
loss



8. Adjusted EBITDA Loss
                               For the Three Months Ended                  For the Nine Months Ended
                               September  June     September  September  September  September  September

                               30, 2012    30,2013  30, 2013   30, 2013  30, 2012    30, 2013  30, 2013
                               US$         US$       US$        RMB        US$         US$        RMB
Net loss                       (3,250)     (2,541)   (3,439)    (21,047)   (6,510)     (7,652)    (46,830)
Addback(deduct):
Interest income             (129)       (16)      (56)       (343)      (462)       (102)      (624)
Interestexpenses           114         -         -          -          564         16         98
Incometaxbenefit          -           -         -          -          -           -          -
Depreciationandamortization

(excluding amortization
and                            877         917       796        4,872      2,553       2,650      16,218

write-down of licensed

video copyrights)
EBITDA loss                    (2,388)     (1,640)   (2,699)    (16,518)   (3,855)     (5,088)    (31,138)
Adjustments:
Share-based compensation    (5)         162       302        1,848      444         (183)      (1,120)
Equity in loss of           66          -         -          -          252         -          -
affiliates
Other income                (256)       (1,216)   (909)      (5,563)    (1,249)     (2,773)    (16,971)
Adjusted EBITDA loss           (2,583)     (2,694)   (3,306)    (20,233)   (4,408)     (8,044)    (49,229)



* 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://ir.ku6.com
Website: http://www.media-server.com/m/p/dhj8xijz
Website: http://www.ku6.com