Editorial Summary

Hurray! Holding Co., Ltd. (Nasdaq: HRAY) announced 2007 full year revenue of US$61.4 million, down 10.7 percent year-on-year, after market close on Thursday. Including impairment charges totaling $41.3 million, Hurray! recorded a net loss of US$41.7 million in the one year period, compared to net gains of US$5.8 million in 2006. In the fourth quarter, net revenue was $16.7 million, up 23 percent quarter-on-quarter, while the company recorded a net loss of $31.3 million, including a $29.2 million wireless business goodwill impairment charge and a $1.9 million impairment on acquired assets. Revenue from wireless value-added services made up US$11.9 million of total revenue in the fourth quarter for a sequential increase of 4.2 percent. Recorded music revenue representing revenue from Hurray!-controlled companies Freeland Music, Huayi Brothers Music and Hurray! Secular Bird grew 117.8 percent quarter-on-quarter to $4.9 million. Hurray! expects first quarter 2008 total consolidated revenues between $13.5 million and $14.5 million.

Along with earnings, Hurray! announced that it has agreed with Enlight Media to terminate their merger agreement citing "a divergence in business strategies" and a realization that it "would not be in their mutual interests." The two companies announced their intended merger last November. Hurray also agreed with Shanghai Magma to reduce its final payment on an equity interest in the company from $6 million to $1 million on February 25, 2008.