Watchit Media, Inc. Reports Financial Results

For the three months ended June 30, 2005 the Company reported revenues of $609,000, a 161% growth over the same period in 2004. During the June quarter, approximately 44% of revenue was derived from subscription fees the Company is paid under one year and two year renewable contracts with its clients. Gross profit for the same periods increased 207% to $377,000. As a percentage of revenue, gross margin increased from 53% for the same period in 2004 to 62% in 2005.

For the six months ended June 30, 2005, the Company reported revenues of $864,000, a 179% growth over the same period in 2004. During the six month period, approximately 59% of revenue was derived from subscription fees the Company is paid under one year and two year renewable contracts with its clients. Gross profit for the six month period increased 204% to $519,000. As a percentage of revenue, gross margin increased from 55% for six month period in 2004 to 60% in 2005.

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