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*) Amount of new first time registered subscribers. This includes basic subscribers (those who get free access to limited content) and paying premium subscribers.
**) Share of new subscribers who pay for either a 1-day or 30-day subscription. It shall be noted that different trial periods is offered depending on geographical market.
***) Including 1-day and 30-day subscriptions. Note that subscribers can have purchased more than one-day pass during the period. The number includes both new and recurring subscribers. Subsequent reconciliation of sales through mobile operators API's are made quarterly.

During the period the number of new subscribers increased more then in previous periods due to ongoing campaigns in Kuwait and United Arab Emirates (UAE) targeting users consuming content through their mobile phones****. The huge success of this campaign brought a lot of subscribers in UAE as evidenced by the numbers and this also included those who unsubscribed after trying the service for the 3-day free period, resulting in a relative decrease in paying users among new subscribers. In August and September the paying user percentage amongst new subscribers was higher as most of the new subscribers came from our Kuwait campaigns where we do not offer the 3-day free trial. This percentage will continue to fluctuate as we tailor our service to whatever best suits the tastes of subscribers in different countries.

Mavshack's next launch is planned for the Kingdom of Saudi Arabia. This was forecasted to start in the beginning of this quarter but due to unforeseen technical refinement procedures on the part of the telecommunications partner, the launch has been postponed. In parallel Mavshack is in dialog with another major global telecom conglomerate holding leading positions in the markets of Qatar, Kuwait and Oman where the Filipino diaspora are present in large numbers and very active. Mavshack has also initiated discussions with operators outside the Middle East in order to explore business opportunities presented by similar Telco integrations where the Filipino diaspora are present at size

****) The introduction of daily subscriptions through application-programming interface ("API") with regional mobile operators allows the user to subscribe and unsubscribe on a daily basis using their mobile phone subscription or pre-paid phone number for payments. This has proven to be extremely successful as the Filipino Diaspora favors a low amount before a low price (day pass vs. monthly subscription) for their consumption. The flexibility of being able to turn a subscription on and off on a daily basis seems to be appreciated by the subscriber in such way that he is willing to pay a premium for such convenience compared to the price of a monthly subscription. Depending on which market a subscription is sold 6-9 one-day subscriptions equals the price of a monthly subscription.