Results of Operations

Three Months Ended June 30, 2008 Compared to Three Months Ended June 30, 2007

Revenues for the three months ended June 30, 2008 were $1,518,992, compared to $819,330 for the three months ended June 30, 2007. This represents an increase of $699,662 or 85.4% from the previous year. The company had one flat fee release plus one new release in addition to large reorders of its Winter Sports (Wii) title for the quarter.

There was a 58.6% or $ 259,452 increase in Gross profit for the three months ended June 30, 2008 which was $701,952, compared to $442,500 for the three months ended June 30, 2007. This is primarily the result of large reorders of Winter Sports (Wii).

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Conspiracy Entertainment - fiscal results for 3 months ended 06/30/2008

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