MyStarU.com, Inc. Announces Quarterly Financial Results; Form 10-QSB Filed August 21

MyStarU.com, Inc. Announces Quarterly Financial Results; Form 10-QSB Filed August 21

August 31, 2007

    BEIJING, Aug. 31 /Xinhua-PRNewswire-FirstCall/ --
MyStarU.com, Inc. (OTC Bulletin Board: MYST), announced
today that the Company has filed Form 10-QSB on August 21
to report its financial results for the 3rd quarter ended
June 30, 2007.

    The detailed report is available at the following URL:
http://www.sec.gov/Archives/edgar/data/1139570/000114420407045550/v085631_10qsb.htm

    Key 3rd Quarter Results

    Revenues increased by $4,614,790 due primarily to: 

    Revenues recorded at $7,394,480 for the three months
ended June 30, 2007, compared to $2,779,690 for the same
period ended June 30, 2006. The increase of $4,614,790 is
due primarily to the enormous increase in the royalty
income from the movie copyrights segment and the import and
export trading segment, although there was a decrease in the
integrated communications network solutions segment. We now
have 3 new segments of income compared to the same period
ended June 30, 2007. The import and export trading
generated $3,035,780, the royalty income from the movie
copyrights generated $3,069,921 and the provision of
Internet corporate video services generated $928,779. 
  
    Costs of Sales increased by $3,768,339 due primarily
to: 

    Costs of sales were $4,689,552 for the three months
ended June 30, 2007, compared to $921,213 for the same
period ended June 30, 2006. Costs of sales include cost of
goods in trading, depreciation and other cost of sales.
Cost of trading included all the costs that Panyu M&M
incurred in their import and export trading activities in
the amount of $2,979,725. Depreciation represents the
depreciation and amortization of software, websites and
copyright of movies that relate to the revenue of the
Company, which amounted to $1,496,760. Other costs of sales
were the purchase of various contents and other later-stage
production from raw contents and costs associated with the
performance of our communication services totaling
$213,067. 
  
    Operating Expenses increased by $1,366,517 due
primarily to: 

    For the three months ended June 30, 2007, we incurred
operating expenses of $1,544,529 as compared to $178,012
for the same period ended June 30, 2006. The $1,544,529
incurred as of June 30, 2007, included general operating
expenses of $684,976, salaries of $239,950 and allowance of
bad debts of $237,587. Stock-Based Compensation Expense had
a net increase of $355,209 for the three months ended June
30, 2007. 

    Key Nine Months Results

    Revenues increased $5,912,354 due primarily to: 

    Revenues were recorded at $16,791,961 for the nine
months ended June 30, 2007, compared to $10,879,607 for the
same period ended June 30, 2006. The increase of $5,912,354
is due primarily to the increase in sales and number of
subsidiaries in different segments of income. Currently, we
have 3 new segments of income compared for the same period
ended June 30, 2006. Import and export trading generated
$6,744,760, royalty income from movie copyrights generated
$3,862,310 and the provision of Internet corporate video
services generated $4,285,791. The new segment of business
brings significant increase of income to the Company. 

    Costs of Sales increased $7,872,003 due primarily to: 

    Costs of sales were $10,766,897 for the nine months
ended June 30, 2007, compared to $2,906,894 for the same
period ended June 30, 2006. Costs of Sales included
purchase of various contents and other later-stage
production from raw contents and costs associated with the
performance of our communication services. The increase of
$7,872,003 was due primarily to the increase in the number
of our subsidiaries, of which $6,620,945 was used for our
import and export trading segment. 

    We classify the depreciation of software relating to
the revenue of the Company, to the cost of sales. Other
depreciation expenses related to motor vehicles and office
equipment and are stated in Selling, General and
Administration Expenses. This had no impact on our prior
earnings reported. 

    Operating Expenses increased $4,246,855 due primarily
to: 

    For the nine months ended June 30, 2007, we incurred
operating expenses of $7,659,738, as compared to $3,412,883
for the same period ended June 30, 2006. Operating Expenses
included allowance of bad debts of $3,267,636, salaries of
$575,735 and stock-based compensation expense of
$2,062,363. 

    Stock-Based Compensation Expense had a net decrease of
$613,642 for the nine months ended June 30, 2007, due to
expiration of some consulting contracts. 

    Other income increased $25,302 due primarily to: 

    The other income was $27,843 for the nine months ended
June 30, 2007, compared to $2,541 for the same period ended
June 30, 2006. $27,843 includes interest income of $3,763
and other income of $24,080. 

    About MyStarU.com, Inc. 

    Mystaru.com, Inc. (MYST) is a Total Solutions Provider
that offers Integrated Communications Network Solutions and
Internet Content Service in universal voice, video, data web
and mobile communications for interactive media
applications, technology and content leaders in interactive
multimedia communications. It develops, markets and sells a
universal media software solution for enterprise-wide
deployment of integrated voice, video, data web and mobile
communications and media applications. Mystaru.com, Inc.
does business in Asia via its wholly-owned subsidiaries,
Mystaru Ltd. (formerly known as IC Star MMS, Ltd.
http://www.mystaru.com , http://www.skyestar.com,
http://www.goongreen.org , http://www.icurls.com )
Guangzhou TCOM Computer Technology Limited and majority
owned subsidiary Subaye.com, Inc. (http://www.subaye.com). 

    Safe Harbor 

    The statements made in this release constitute
"forward-looking" statements, usually containing
the words "believe," "estimate,"
"project," "expect," or similar
expressions. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements inherently
involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking
statements. Factors that would cause or contribute to such
differences include, but are not limited to, changing
economic conditions, interest rates trends, continued
acceptance of the Company's products in the marketplace,
competitive factors and other risks detailed in the
Company's periodic report Filings with the Securities and
Exchange Commission. By making these forward-looking
statements, the Company undertakes no obligation to update
these statements for revisions or changes after the date of
this release. 

    For more information, please contact: 

     Ms. Shirley Li
     Mystaru.com, Inc. 
     Email: [e-mail]