The Company's primary source of revenue comes from the sale of DubLi Credits through its Business Associates and from customers purchasing Credits. Consumers bid on DubLi Xpress or DubLi Unique Bid auctions by purchasing DubLi Credits either directly on DubLi.com or from DubLi Business Associates who are members of the DubLi Marketing Network. When a Business Associate introduces the auctions to a regular customer and that customer purchases credits, the credits purchased come out of the Business Associates credit inventory and, as a result, receive the income generated from that purchase. The more customers a Business Associate has the faster their credit inventory will be depleted requiring the Business Associate to purchase another package, thus, resulting in a recurring revenue stream. If the Business Associate does not have sufficient credits in its inventory to support the sale to a customer they relinquish that sale and the income to the Company.

Revenue from BSP Rewards is earned principally from loyalty point revenue rebates (commissions) earned from merchants participating in its online shopping malls, gift card sales from each rewards mall program and, web design/maintenance/hosting it earns for building and hosting its private-branded online mall platform for outside organizations.

DubLi Entertainment is so much more than just a music website, MEDG has a wealth of revenue generating opportunities. These include:

• Advertising:
  • Banner ads Banner ads will be inserted on MyDubLi Entertainment pages of the website and will be sourced by networks and internal sales.
  • Audio pre-rolls Audio pre-rolls will be inserted between songs at an acceptable frequency.
  • Video pre-rolls Video pre-rolls will be inserted into video searches at an acceptable frequency and at the beginning of the user's 1st audio session of the day.
  • Mobile audio ads Audio ads will be inserted between songs, at an acceptable frequency.
• Revenue Sharing:
  • Ring tones When a MEDG user purchases a ringtone subscription from a partner, MEDG will earn a revenue share.
  • Downloads When a MEDG user purchases a music download from a partner or directly from the Label, MEDG will earn a revenue share.
• Subscriptions:
  • MEDG Premium Web Service
  • MEDG Mobile subscriptions - to be launched in Q1, 2011

DubLi Credits are purchased for use on DubLi.com and/or to keep in inventory for customers that may be brought in by DubLi Business Associates. They are DubLi's own form of currency and are unrelated to MediaNet's status as a public-entity where stock is traded. If you are interested in participating in the future growth of MediaNet Group by purchasing shares, please contact your stockbroker, bank or send a support ticket to the Company for more information.

The key difference between a reverse auction and a traditional auction is that the price for an item in a traditional auction is continually driven up from bids placed by potential buyers, whereas in a reverse auction the price for an item is continually driven down. The primary objective of DubLi's reverse auction and fun shopping model is to provide equal opportunities for buyers on the web to profit from downward purchase pricing.

DubLi.com's reverse auction and fun shopping portal hosts only high quality inventory (brand new, newest model, full warranty) from the world's leading manufacturers. The success behind DubLi reverse auction and fun shopping model lies in the formula of being able to drive down prices incrementally with single bids placed by the consumers until the price reaches a point where it provides good value to the buyer. DubLi includes a best price guarantee, assuring customers that they are buying products at a lower price than they could obtain from other name brand retail sellers.  

DubLi has two types of auctions, Xpress and Unique Bid. Each auction is conducted by the customer's buying credits, each of which can be purchased for US $0.80 (EUR $0.50) and using the credits both to view the current bid price for an item ("Xpress"), or to place a bid ("Unique Bid").

In the Xpress auction, all articles are displayed with one starting price (which is the best market price) that is valid at the start of the auction. The actual price is concealed until the customer places a Credit. With each Credit placed, the price decreases by US $0.25 (EUR $0.20), so that the actual price is always less than the starting price, which is often a considerable savings. A customer may purchase the product at anytime at the price displayed.

In the Unique Bid auction, all auctions are presented for a limited time only. Customers can bid using any number of US $0.20 increments. The user who has placed the sole lowest bid at the end of the auction acquires the item.

For example, DubLi may auction a Mercedes automobile or a Harley-Davidson. These items, when successfully bid upon and purchased, are most always purchased for a price much lower than any available retail market purchase. DubLi receives not only the payment for the item by the successful bidder, but also receives payment for all of the Credits paid by its customers during the auction. In most instances, a bidder will go through the bidding process a multiple of times, as well as countless other bidders. Accordingly, in a successful auction, DubLi realizes more than the price which it paid for an item.

DubLi operates a program for individuals who join the DubLi Network as independent business associates, which it refers to as "BA's" or "Business Associates." Business Associates have a global potential for earning significant income with the DubLi business model. To start, an applicant must register with the DubLi Network by filling out an online Business Associate Application and Agreement and purchase an e-Biz kit for US $175.00. The e-Biz kit is the only purchase required to become a DubLi Network Business Associate. All other purchases are optional. DubLi sells Credits to its Business Associates.

The DubLi Network business model was built to funnel traffic to our auction portal by utilizing one the best known forms of advertising: word-of-mouth advertising. Our business strategy was designed based on the concept that by rewarding people for their recommendation through referral based commissions, we could potentially attract a large numbers of customers from around the world to our auction portal.

A Credit is DubLi's form of currency. Credits can be purchased by DubLi's Business Associates, by retail customers, and by participants in DubLi's Partner Program. Credits are required to participate in DubLi's auctions. The actual cost of a DubLi Credit is $0.80; however, if a consumer purchases an item for $300 less than the starting auction price, the same Credit would be worth $299.20. The reverse auction concept includes an inherent value just by the nature of the prices going and offsets traditional rules of supply and demand.

Customers are derived primarily from three sources, consumers from the general public who are interested in the reverse auction concept, consumers driven to our reverse auctions through our Partner Program and by Business Associates who use word of mouth direct marketing to drive new customers to the auctions. Sometimes there is overlap among the three categories. Our customers and Business Associates are based all over the world.

MEDG technology has been already developed and is proven, reliable and scalable. As such, MEDG will continue to add features to the DubLi.com, the MyDubLi flash media widget and MyDubLi Mobile application. These include:

• Targeted artist news, features, events and releases. All delivered in real-time
• User generated wiki - user provided content on artists and songs
• User descriptive tagging - users will tag songs with descriptive words and phrase. This will enhance the results generated by the recommendation engine and deliver more precise and targeted songs.
• "Follow Me" - real-time updates from artist websites, blogs, MySpace, Facebook, Twitter...
• "MyDubLi Gossip Gab" - real-time content indexed from tabloid sources
• In addition, MEDG will incorporate an improved music recommendation engine that compares and contextualizes actual searches (instead of song elements) to match a user with content. This will include:
  • Introduce new artists and songs
  • Recommends artists based on comparison of playlists from users
  • Recommends "Radio stations" based on genre or songs in user's current playlist
  • Daily featured "Radio stations" based on genre
  • MEDG will provide streaming music on mobile devices. Using genre and descriptive searches mobile users will be able to enjoy an unlimited supply of music without all of the storage constraints.

The simple answer is NO. To mitigate any unnecessary concern regarding this subject, the Company requisitioned a legal opinion from an expert attorney on the subject of gambling. In the attorney's expert opinion, DubLi did not fall under the legally accepted definitions of gambling. The Company confirms that its auction programs do not amount to gambling or lotteries under US state or Federal Law.

Our corporate headquarters are located in Boca Raton, Florida, which houses our corporate staff and US operations. We also have an office in Berlin, Germany where the European operations are directed.

In Boca Raton, we currently have a growing staff of 22. In Berlin, we currently employ 25.

MediaNet Group Technologies is currently listed on the Over-the-Counter Bulletin Board (OTCBB) under the ticker symbol: MEDG.

A transfer agent and registrar for a publicly-held company keep records of every outstanding stock certificate and the name of the person to whom it is registered. When stock changes hands, the transfer agent updates the record of ownership of the stock. The registrar reconciles all transfer records and makes sure that the number of shares debited is equal to the number of shares credited. The transfer agent does not maintain records of shares bought and sold through brokerage accounts and held in "street name". Those records are maintained by the specific brokerages where the shares are bought and sold. MediaNet Group's transfer agent is:

Olde Monmouth Stock Transfer Co., Inc.
200 Memorial Parkway
Atlantic Highlands, NJ 07716
Phone: 732-872-2727
Fax: 732-872-2728

The Company's policy is to retain earnings to provide funds for the operation and expansion of our business and not to pay dividends.

As a small company filer, in accordance with SEC rules, MediaNet Group has 45 days following the end of a quarter (December 31, March 31, June 30) and 90 days following its fiscal year-end (September 30).

MediaNet's fiscal year-end is September 30.

Lake & Associates LLC

To reach our investor relations department, you may send an email to investorrelations@medianetgroup.com

The Company has not had any stock splits since inception.

The CUSIP number is 58447E 10 8.

MediaNet Group is incorporated in the state of Nevada and headquartered in Florida. For more information regarding the organization and tax requirements of the Company's subsidiaries, please visit the Company's most recent quarterly filing on Form 10-Q with the Securities and Exchange Commission by visiting either www.sec.gov or www.otcbb.com.

Edwards Angell Palmer & Dodge LLP
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