MEDIA & ENTERTAINMENT HOLDINGS, INC. (A DEVELOPMENT STAGE ENTERPRISE) TABLE OF CONTENTS ------------------------------------------------------------------------------------------------------------------- Page ---- Part I - Financial Information Item 1. - Financial Statements 2 Condensed Balance Sheets at March 31, 2006 and December 31, 2006 2 (Unaudited) Condensed Statements of Operations (Unaudited) for the three months ended 3 December 31, 2005 and 2006, the period July 8, 2005 (inception) through December 31, 2005, the period April 1, 2006 through December 31, 2006, and the period July 8, 2005 (inception) through December 31, 2006 Condensed Statements of Cash Flows (Unaudited) for the period July 8, 4 2005 (inception) through December 31, 2005, the period April 1, 2006 through December 31, 2006 and the period July 8, 2005 (inception) through December 31, 2006 Notes to Unaudited Condensed Financial Statements 5 Item 2. - Management's Discussion and Analysis of Financial Condition and Results 16 of Operations Item 3. - Quantitative and Qualitative Disclosures About Market Risk 17 Item 4. - Controls and Procedures 17 Part II - Other Information Item 1. - Legal Proceedings 19 Item 1A. - Risk Factors 19 Item 2. - Unregistered Sales of Securities and Use of Proceeds 19 Item 3. - Defaults upon Senior Securities 20 Item 4. - Submission of Matters to a Vote of Security Holders 20 Item 5. - Other Information 20 Item 6. - Exhibits 20 Signatures 22 Certification of Principal Executive Officer 23 Certification of Principal Financial Officer 25 Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 27 Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350 27UNITED STATES

PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS MEDIA & ENTERTAINMENT HOLDINGS, INC. (A DEVELOPMENT STAGE ENTERPRISE) CONDENSED BALANCE SHEETS ASSETS ------ March 31, 2006 December 31, 2006 (Unaudited) ----------------------------------- ASSETS ------ Current Assets - Cash $ 23,711 $ 4,753 Deferred offering costs 142,102 3,042,089 -------- ---------- TOTAL ASSETS $165,813 $3,046,842 ======== ========== LIABILITIES SECURITIES AND ~~STOCKHOLDERS'~~EXCHANGE EQUITY ------------------------------------ CURRENT LIABILITIES ------------------- Accrued expenses $ -- $ 589,990 Notes payable to stockholders 165,000 250,000 -------- ----------- Total Liabilities 165,000 839,990 -------- ----------- COMMITMENTS ----------- STOCKHOLDERS' EQUITY(1) ----------------------- Preferred stock, $.0001 par value; authorized 1,000,000 shares; none issued -- -- Common stock, $.0001 par value, authorized 70,000,000 450 450 shares; 4,500,000 issued and outstanding at March 31, 2006 and 4,500,000 issued and 2,700,000 outstanding at December 31, 2006 Additional paid-in capital 56,612 2,400,885 Deficit accumulated during the development stage (56,249) (194,303) -------- ---------- 813 2,207,032 Less: Cost of shares of common stock held in treasury, -0- shares at March 31, 2006 and 1,800,000 shares at December 31, 2006 -- (180) -------- ---------- TOTAL STOCKHOLDERS' EQUITY 813 2,206,852 -------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' $165,813 $3,046,842 ======== ========== EQUITY ------------------------------- (1) The 20% stock dividend declared on March 6, 2007 (see Note 2) has been retroactively reflected in stockholders equity. Additionally, the value of the stockholder shares has changed and has been retroactively reflected in Deferred Offering costs and additional paid-in capital. The accompanying notes are an integral part of these condensed financial statements (unaudited). 2COMMISSION

~~MEDIA & ENTERTAINMENT HOLDINGS~~WASHINGTON, D ~~INC~~C. (A DEVELOPMENT STAGE ENTERPRISE) CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) ---------------------------------------------------------------------------------------------------------------------------- For the Three For the Three For the For the For the Period Months Ended Months Ended Period From Period From From July 8, 2005 December 31, December 31, July 8, April 1, 2006 (Inception) 2005 2006 2005 Through Through (Inception) December 31, December 31, 2006 Through 2006 December 31, 2005 --------------------------------------------------------------------------------- Formation and operating costs $(19,311) $(27,687) $(35,346) $(138,054) $(194,303) ========= ========= ======== ========= ========= Net loss $(19,311) $(27,687) $(35,346) $(138,054) $(194,303) ========= ========= ======== ========= ========= Weighted average shares outstanding 4,500,000 2,700,000 4,500,000 3,009,273 3,670,142 - Basic and diluted(1) ========= ========= ========= ========= ========= Basic and diluted net loss per share(1) $(.00) $(.01) $(.01) $(.05) ====== ====== ===== ===== -------------------------- (1) The 20% stock dividend effective March 6, 2007 (see Note 2) has been retroactively reflected in all 2006 share and per-share data. The accompanying notes are an integral part of these condensed financial statements (unaudited). 20549

~~MEDIA & ENTERTAINMENT HOLDINGS, INC. (A DEVELOPMENT STAGE ENTERPRISE) CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)~~ FORM 10------------------------------------------------------------------------------------------------------------------- For the Period For the Period For the Period From July 8, 2005 From April 1, 2006 From July 8, 2005 (Inception) Through (Inception) Through December 31, 2006 Through December 31, 2005 December 31, 2006 ------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES ------------------------------------ Net loss $ (35,346) $ (138,054) $ (194,303) Adjustments to reconcile net loss to net cash used in operating activities: Stock based compensation 18,691 79,106 111,168 Increase in accrued expenses 750 9,990 9,990 ------------ -------------- ------------- NET CASH USED IN OPERATING (15,905) (48,958) (73,145) ACTIVITIES ------------ -------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES ------------------------------------ Proceeds from notes payable - Stockholders 150,000 85,000 250,000 Proceeds from issuance of stock to initial 25,000 -- 25,000 stockholders Payment of offering costs (142,102) (55,000) (197,102) ------------ -------------- ------------- NET CASH PROVIDED BY 32,898 30,000 77,898 ------------ -------------- -------------- FINANCING ACTIVITIES NET INCREASE (DECREASE) IN CASH 16,993 (18,958) 4,753 CASH - Beginning -- 23,711 -- ---- --------------- -------------- --------------- CASH - Ending $ 16,993 $ 4,753 $ 4,753 ---- ========== ============== ============== SUPPLEMENTAL DISCLOSURES OF NON-CASH TRANSACTIONS: -------------------------------------------------- Accrual of Deferred Offering Costs: Deferred offering costs $ -- $ 580,000 $ 580,000 Accrued expenses payable -- (580,000) (580,000) -------------- ------------- -------------- $ -- $ -- $ -- ============= =============== =============== Transfer of Shares from Directors to Hearst Corporation for Purchase Commitment: Deferred offering costs(1) $ -- $ 2,264,987 $ 2,264,987 Additional paid-in-capital(1) -- (2,264,987) (2,264,987) -------------- ----------- ----------- $ -- $ -- $ -- ============= ================= ================= ---------------------- (1) The Deferred Offering costs and additional paid-in-capital have been adjusted to retroactively reflect a change in the value of the stockholder shares as a result of the 2007 stock dividend (see Note 2). The accompanying notes are an integral part of these condensed financial statements(unaudited). 4Q

~~Name~~[X] QUARTERLY REPORT ~~Number~~PURSUANT ofTO ~~Warrants~~SECTION ~~Relationship~~13 toOR Us15(d) ---- ------------------ ------------------ The Hearst Corporation 1,462,500 10% Stockholder Herbert A. Granath 309,375 Chairman of the Board and Chief Executive Officer Harvey M. Seslowsky 284,375 President, Chief Operating Officer and Director Robert C. Clauser 309,375 Executive Vice President and Chief Financial Officer Bruce Maggin 309,375 Executive Vice President and Secretary Transmedia Corporation 25,000 Affiliate of Harvey SeslowskyOF

THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended December 31, 2008

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission file number 001-33343

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	20-3178730
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
230 Park Avenue, Suite 1000, New York, New York	10169
(Address of principal executive offices)	(Zip Code)
Registrant's telephone number, including area code:	(212) 551-1498

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer [ ] Accelerated Filer [X] Non-Accelerated Filer [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [X] No [ ]

As of February 9, 2009, 15,120,000 shares of the issuer’s common stock, par value $.0001, were outstanding.

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

TABLE OF CONTENTS

		Page
Part I- Financial Information
	Item 1.- Financial Statements

	Condensed Balance Sheets as of December 31, 2008 (Unaudited) and March 31, 2008	2

	Condensed Statements of Income (Unaudited) for the three and nine months ended December 31, 2008 and 2007, and for the period from July 8, 2005 (inception) through December 31, 2008	3

	Condensed Statement of Changes in Stockholders’ Equity (Unaudited) for the period from July 8, 2005 (inception) through December 31, 2008	4-5

	Condensed Statements of Cash Flows (Unaudited) for the nine months ended December 31 2008 and 2007, and for the period from July 8, 2005 (inception) through December 31, 2008	6-7

	Notes to Condensed Financial Statements (Unaudited)	8-14

	Item 2.- Management's Discussion and Analysis of Financial Condition and Results of Operations	15-19

	Item 3.- Quantitative and Qualitative Disclosures About Market Risk	19

	Item 4.- Controls and Procedures	19-20

Part II- Other Information
	Item 1.- Legal Proceedings	21
	Item 1A.- Risk Factors	21
	Item 2.- Unregistered Sales of Equity Securities and Use of Proceeds	21
	Item 3.- Defaults upon Senior Securities	21
	Item 4.- Submission of Matters to Vote of Security Holders	21
	Item 5.- Other Information	21
	Item 6.- Exhibits	21

Signatures		22

PART 1. FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

CONDENSED BALANCE SHEETS

ASSETS

	December 31, 2008		March 31, 2008
	Unaudited
CURRENT ASSETS
Cash	$	753,477	$	1,107,519
Cash held in trust account, interest and dividend income available
for working capital and taxes		7,410		1,103,685
Trust account, restricted (including $175,912 of tax refunds due)		98,202,512		--
Prepaid expenses		9,672		22,097
TOTAL CURRENT ASSETS		98,973,071		2,233,301

TRUST ACCOUNT, RESTRICTED
Cash held in trust account, restricted		--		97,300,150
Tax refunds due to trust account		--		300,100
		--		97,600,250

TOTAL ASSETS	$	98,973,071	$	99,833,551

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable and accrued expenses	$	107,361		$	128,690
Income taxes payable		--			1,076,063
Common stock – subject to redemption		98,202,512			--
TOTAL CURRENT LIABILITIES		98,309,873			1,204,753

COMMON STOCK - subject to possible conversion, 2,483,999 shares at conversion value		--			19,520,042

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY
Preferred stock, $.0001 par value; authorized 1,000,000 shares; none issued		--			--
Common stock, $.0001 par value, authorized 70,000,000 shares; 16,920,000 (less 2,483,999 subject to possible conversion) issued and outstanding		1,444			1,444
Additional paid-in capital		152,239			77,216,430
Income accumulated during the development stage		509,695			1,891,062
		663,378			79,108,936
Less: Shares of common stock held in treasury, 1,800,000 shares		(180	)		(180	)

TOTAL STOCKHOLDERS’ EQUITY		663,198			79,108,756

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	98,973,071		$	99,833,551

The accompanying notes are an integral part of these condensed financial statements.

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

CONDENSED STATEMENTS OF INCOME

(UNAUDITED)

	For the three months ended December 31, 2008			For the three months ended December 31, 2007			For the nine months ended December 31, 2008			For the nine months ended December 31, 2007			For the period from July 8, 2005 (inception) through December 31, 2008

Revenue	$	-		$	-		$	-		$	-		$	-

Formation and operating costs		101,917			155,356			484,441			526,403			1,544,417

Loss from operations		(101,917	)		(155,356	)		(484,441	)		(526,403	)		(1,544,417	)

Interest and dividend income		165,475			952,081			787,029			3,109,799			4,836,254
Income before provision for income taxes		63,558			796,725			302,588			2,583,396			3,291,837

Provision for income taxes		22,079			369,901			100,419			1,224,649			1,198,606

Net income		41,479			426,824			202,169			1,358,747			2,093,231

Accretion of trust account income relating to common stock subject to possible conversion		(23,231	)		54,876			(120,452	)		(49,959	)		(316,742	)

Net income attributable to other common stockholders	$	18,248		$	481,700		$	81,717		$	1,308,788		$	1,776,489

Weighted average shares outstanding – basic and diluted		12,636,001			12,636,001			12,636,001			12,636,001

Basic and diluted net income per share attributable to other common stockholders	$	.00		$	.04		$	.01		$	.10

The accompanying notes are an integral part of these condensed financial statements.

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

FROM JULY 8, 2005 (INCEPTION) THROUGH DECEMBER 31, 2008

(UNAUDITED)

	Common Stock					Additional Paid-in			(Deficit) Income Accumulated During Development			Treasury Stock					Total Stockholders’
	Shares		Amount			Capital			Stage			Shares		Amount			Equity

BALANCE - July 8, 2005 (Inception)		--	$	--		$	--		$	--			--	$	--		$	--

Issuance of stock to initial stockholders		4,500,000		450			24,550			--			--		--			25,000

Amortization of stock based compensation		--		--			32,062			--			--		--			32,062

Net loss from July 8, 2005 (inception) through March 31, 2006		--		--			--			(56,249	)		--		--			(56,249	)

BALANCE - March 31, 2006		4,500,000		450			56,612			(56,249	)		--		--			813

Treasury stock		--		--			180			--			1,800,000		(180	)		--

Amortization of stock based compensation		--		--			99,950			--			--		--			99,950

Sale of 10,800,000 units, net of underwriters’ discount and offering expenses of $4,979,553 (includes 2,159,999 shares subject to possible conversion)		10,800,000		1,080			81,369,367			--			--		--			81,370,447

Sale of 1,620,000 units net of underwriting discount and offering expenses of $583,200 (includes 324,000 shares subject to possible conversion)		1,620,000		162			12,376,638			--			--		--			12,376,800

Proceeds subject to possible conversion of 2,483,999 shares		--		(248	)		(19,323,504	)		--			--		--			(19,323,752	)

Proceeds from issuance of options		--		--			100			--			--		--			100

Proceeds from private sale of warrants		--		--			2,700,000			--			--		--			2,700,000

Net loss for the year ended March 31, 2007		--		--			--			(26,249	)		--		--			( 26,249	)

BALANCE – March 31, 2007		16,920,000		1,444			77,279,343			(82,498	)		1,800,000		(180	)		77,198,109

Amortization of stock based compensation		--		--			83,377			--			--		--			83,377

Reduction of accrued offering expenses		--		--			50,000			--			--		--			50,000

Accretion of trust account income relating to common stock subject to possible conversion		--		--			(196,290	)		--			--		--			(196,290	)

Net income for the year ended March 31, 2008		--		--			--			1,973,560			--		--			1,973,560

The accompanying notes are an integral part of these condensed financial statements.

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

FROM JULY 8, 2005 (INCEPTION) THROUGH DECEMBER 31, 2008

(UNAUDITED)

CONTINUED

	Common Stock				Additional Paid-in			(Deficit) Income Accumulated During Development			Treasury Stock					Total Stockholders’
	Shares		Amount		Capital			Stage			Shares		Amount			Equity

BALANCE–March 31, 2008		16,920,000	$	1,444	$	77,216,430		$	1,891,062			1,800,000	$	(180	)	$	79,108,756

Amortization of stock based compensation		--		--		34,743			--			--		--			34,743

Accretion of trust account income relating to common stock subject to possible conversion		--		--		(120,452	)		--			--		--			(120,452	)

Net income for the nine months ended December 31, 2008		--		--		--			202,169			--		--			202,169

Reclassification of interest earned on trust account since inception, net of taxes to additional paid-in capital		--		--		1,583,536			(1,583,536	)		--		--			--

Reclassification of common stock value subject to redemption to current liability		--		--		(78,562,018	)		--			--		--			(78,562,018	)

BALANCE-December 31, 2008 (UNAUDITED)		16,920,000	$	1,444	$	152,239		$	509,695			1,800,000	$	(180	)	$	663,198

The accompanying notes are an integral part of these condensed financial statements.

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the nine months ended December 31, 2008			For the nine months ended December 31, 2007			For the period from July 8, 2005 (inception) through December 31, 2008

CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	202,169		$	1,358,747		$	2,093,231
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Stock based compensation		34,742			62,532			250,131
Changes in operating assets and liabilities:
Prepaid expenses		12,425			40,215			(9,672	)
Accounts payable and accrued expenses		(21,329	)		(179,570	)		22,809
Income taxes payable		(1,076,063	)		1,177,425			--

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES		(848,056	)		2,459,349			2,356,499

CASH FLOWS FROM INVESTING ACTIVITIES
Cash held in trust account, restricted		(602,261	)		(249,796	)		(98,202,512	)
Cash held in trust account, interest and dividend income available for working capital and taxes		1,096,275			(996,085	)		(7,410	)

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		494,014			(1,245,881	)		(98,209,922	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable – stockholders		--			--			300,000
Proceeds from private sale of warrants		--			--			2,700,000
Repayment of notes payable - stockholders		--			--			(300,000	)
Proceeds from sale of option		--			--			100
Proceeds from issuance of stock to initial stockholders		--			--			25,000
Gross proceeds from initial public offering		--			--			86,400,000
Payment of offering expenses from initial public offering		--			--			(4,895,000	)
Gross proceeds from over-allotment		--			--			12,960,000
Payment of offering expenses from over-allotment		--			--			(583,200	)

NET CASH PROVIDED BY FINANCING ACTIVITIES		--			--			96,606,900

NET (DECREASE) INCREASE IN CASH		(354,042	)		1,213,468			753,477

CASH - Beginning of period		1,107,519			13,693			--

CASH – End of period	$	753,477		$	1,227,161		$	753,477

The accompanying notes are an integral part of these condensed financial statements.

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

CONDENSED STATEMENTS OF CASH FLOWS (CONTINUED)

(UNAUDITED)

	For the nine months ended December 31, 2008		For the nine months ended December 31, 2007			For the period from July 8, 2005 (inception) through December 31, 2008

SUPPLEMENTAL DISCLOSURES OF NON-CASH TRANSACTIONS:

Reclassification of common stock to current liability	$	78,562,018	$	--		$	78,562,018

Reclassification of common stock subject to conversion liability	$	19,640,494	$	--		$	19,640,494

Transfer of shares from directors to Hearst
Corporation for purchase commitment:
Deferred offering expenses	$	--	$	--		$	2,264,987
Additional paid-in-capital		--		--			(2,264,987	)
	$	--	$	--		$	--


Accrual of offering expenses:
Offering expenses	$	--	$	25,000		$	84,553
Accrued expenses		--		(25,000	)		(84,553	)
	$	--	$	--		$	--

Cash paid for income taxes:	$	1,052,295	$	47,224		$	1,374,519

The accompanying notes are an integral part of these condensed financial statements.

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – Interim Financial Information, Organization, Business Operations, Significant Accounting

Policies and Going Concern Consideration

These unaudited condensed financial statements as of December 31, 2008, for the three and nine months ended December 31, 2008 and 2007, and for the period from July 8, 2005 (inception) through December 31, 2008 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for any other interim period or for the full year.

These unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended March 31, 2008 included in Media & Entertainment Holdings, Inc.’s (the “Company”) Form 10-K for the fiscal year ended March 31, 2008, filed on June 16, 2008. The accounting policies used in preparing these unaudited condensed financial statements are consistent with those described in the March 31, 2008 financial statements.

The Company was incorporated in the State of Delaware on July 8, 2005 as a blank check company whose objective is to acquire an operating business in the entertainment, media and communications industries. The Company has selected March 31 as its fiscal year-end.

All activity from July 8, 2005 (inception) through March 14, 2007 relates to the Company’s formation, the initial public offering (“the Offering”) and the exercise of the underwriter’s over–allotment options as described in the Form 10-K for the fiscal year ended March 31, 2008 dated June 16, 2008. Since March 15, 2007, the Company has been searching for a target business to acquire.

Recent Events:

In December 2008, the Company and its board of directors informally approved a plan to distribute the amount held in the trust account established at the time of the Offering (the “Trust Account”) to the holders of shares of common stock acquired in the Offering (the “IPO Shares”) and to adopt a plan to continue the Company's corporate existence. On January 14, 2009, the Company filed a preliminary proxy statement in order to obtain stockholder approval for such distribution. As a result of the Company’s intent to return the proceeds held in the Trust Account to the holders of IPO Shares, approximately $78.6 million was reclassifed from additional paid-in-capital and approximately $19.6 million was reclassifed from common stock subject to possible conversion to common stock - subject to redemption in the amount of $98,202,512 or approximately $7.91 per share.

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – Interim Financial Information, Organization, Business Operations, Significant Accounting

Policies and Going Concern Consideration (Continued)

Going Concern, Management’s Plan and Intentions and Subsequent Event:

As of December 31, 2008, the Company had working capital of $663,198. The Company’s only source of income to enable it to continue to fund its search for an acquisition candidate is the interest and dividend it earns on its operating cash.

On July 8, 2008 the Company executed a letter of intent for the Company’s initial business combination “Business Combination” with a potential target. Consequently, the Company had until January 14, 2009 (22 months from the date of the Offering) to file a proxy statement relating to the Business Combination and until March 14, 2009 (24 months from the date of the Offering) to consummate a Business Combination. The letter of intent was terminated on October 16, 2008.

On October 2, 2008 the Company executed a letter of intent for a Business Combination with a potential target. Consequently, the Company had until March 14, 2009 (24 months from the date of the offering) to consummate a Business Combination. The letter of intent was terminated on November 30, 2008.

Pursuant to its Certificate of Incorporation, if the Company was unable to file a proxy statement relating to a business combination with a potential target (a “Business Combination) by January 14, 2009 or consummate a Business Combination by March 14, 2009, the Company would have to liquidate pursuant to a dissolution plan and return the funds held in an interest bearing Trust Account to the holders of IPO Shares, as previously described in the Form 10-K for the fiscal year ended March 31, 2008. On January 14, 2009, the Company filed a preliminary proxy statement in order to obtain the approval of stockholders to: (i) distribute to the holders of IPO Shares all amounts in the Trust Account, except for a reserve for possible tax liabilities which it will distribute after the board has determined there are no further liabilities; and (ii) continue the Company’s corporate existence after the distribution of the Trust Account, rather than dissolve as required by the certificate of incorporation. Since a dissolution is likely to occur if the stockholders do not approve such distribution and the continuation of the Company’s corporate existence, the unaudited condensed interim financial statements reflect the adjustments that might result from the outcome of the pending liquidation of the Trust Account. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – Interim Financial Information, Organization, Business Operations, Significant Accounting

Policies and Going Concern Consideration (Continued)

Going Concern, Management’s Plan and Intentions and Subsequent Event (Continued):

Concentrations of Credit Risk:

Statement of Financial Accounting Standards (“SFAS”) No. 105, “Disclosure of Information about Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with Concentration of Credit Risk”, requires disclosure of significant concentrations of credit risk regardless of the degree of risk. At December 31, 2008, financial instruments that potentially expose the Company to credit risk consist of cash and cash equivalents held in trust. The Company maintains its cash balances in two different financial institutions. At December 31, 2008, the Federal Deposit Insurance Corporation insured balances in bank accounts up to $250,000 and the Securities Investor Protection Corporation insured balances up to $500,000 in brokerage accounts. At December 31, 2008, the uninsured balances in the bank brokerage accounts amounted to approximately $97.4 million. Management believes the risk of loss to be minimal since it invests in or through major financial institutions.

Income (Loss) Per Share:

The Company follows the provisions of SFAS No. 128, “Earnings Per Share”. In accordance with SFAS No. 128, earnings per common share amounts (“Basic EPS”) is computed by dividing earnings by the weighted average number of common shares outstanding for the period. As of December 31, 2008 and 2007 common shares subject to possible conversion of 12,420,000 and 2,483,999, respectively, have been excluded from the calculation of basic earnings per share since such shares, if redeemed, only participate in their pro rata shares of the trust earnings. Earnings per common share amounts, assuming dilution (“Diluted EPS”), gives effect to dilutive options, warrants, and other potential common stock outstanding during the period. SFAS No. 128 requires the presentation of both Basic EPS and Diluted EPS on the face of the statements of operations. The effect of the 16,500,000 outstanding Options and Warrants issued in connection with the Public Offering and the Private Placement for the nine months ended December 31, 2008 and 2007 described in Note 2 has not been considered in the diluted earnings per share calculation since the conversion of the outstanding Options and Warrants are contingent upon the occurrence of future events, and therefore, is not includable in the calculation of diluted earnings per share in accordance with SFAS No. 128.

Due to the planned distribution to common stockholders and the inclusion therein of $1,583,536 of interest retained in the Trust Account (net of taxes) as of December 31, 2008 the amounts disclosed as

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – Interim Financial Information, Organization, Business Operations, Significant Accounting

Policies and Going Concern Consideration (Continued)

Income (Loss) Per Share (Continued):

earnings per share on the statements of income are not representative of the actual per share earnings of the shares issued to common stockholders through the Public Offering (12,420,000 shares). Those stockholders have earned $.13 net income per share of common stock on the money placed in the Trust Account pursuant to the Public Offering and $.05 net income per share of common stock (based on net income since inception of $509,695) as their share of the earnings outside of the Trust Account since inception (based on 9,768,652 weighted average shares since inception).

Fair Value of Financial Instruments:

The fair values of the Company’s assets and liabilities that qualify as financial instruments under SFAS No. 107 approximate their carrying amounts presented in the accompanying condensed balance sheets at December 31, 2008 and March 31, 2008.

In September 2006, the FASB issued FASB Statement No. 157, Fair Value Measurements “SFAS No. 157”), which defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements. SFAS No. 157 applies to other accounting pronouncements that require or permit fair value measurements. The new guidance is effective for financial statements issued for fiscal years beginning after November 15, 2007, and for interim periods within those fiscal years. The Company adopted SFAS No. 157 during the quarter ended June 30, 2008 which had no impact on its financial position, results of operations and cash flows.

In February 2008, the FASB issued FASB Staff Positions (“FSP”) No. 157-1 and No. 157-2, which respectively, remove leasing transactions from the scope of SFAS No. 157 and defer its effective date for one year relative to certain nonfinancial assets and liabilities. As a result, the application of the definition of fair value and related disclosures of SFAS No. 157 (as impacted by these two FSP’s) was effective for the Company beginning April 1, 2008 on a prospective basis with respect to fair value measurements of (a) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company’s financial statements on a recurring basis (at least annually) and (b) all financial assets and liabilities. This adoption did not have a material impact on the Company’s results of operations or financial condition. The remaining aspects of SFAS No. 157 for which the effective date was deferred under FSP No. 157-2 are currently being evaluated by the company. Areas impacted by the deferral relate to nonfinancial assets and liabilities that are measured at fair value, but are recognized or disclosed at fair value on a nonrecurring basis. This deferral applies to such items as nonfinancial assets and liabilities initially measured at fair value in a business combination (but not measured at fair value in subsequent periods) or nonfinancial long-lived asset groups measured at fair value for an impairment assessment. The effects of these remaining aspects of SFAS No. 157 are to be applied to fair value measurements prospectively beginning April 1, 2009. The Company does not expect them to have a material impact on the Company’s results

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – Interim Financial Information, Organization, Business Operations, Significant Accounting

Policies and Going Concern Consideration (Continued)

Fair Value of Financial Instruments (Continued):

of operations or financial condition. In October 2008, the FASB issued FSP No. 157-3, “Determining the Fair Value of a Financial Asset When the Market for That Asset is Not Active” (FSP 157-3). FSP 157-3 clarifies the application of SFAS 157, which the Company adopted as of April 1, 2008, in cases where a market is not active. The Company has considered FSP 157-3 in its determination of estimated fair values as of December 31, 2008, and the impact was not material.

Recently Issued Accounting Pronouncements:

In April 2008, the Financial Accounting Standard Board (“FASB”) issued Financial Standard Pronouncement (“FSP”) Financial Accounting Standard (“SFAS”) No. 142-3, which amends the factors that must be considered in developing renewal or extension assumptions used to determine the useful life over which to amortize the cost of a recognized intangible asset under FAS No. 142, “Goodwill and Other Intangible Assets.” The FSP requires an entity to consider its own assumptions about renewal or extension of the term of the arrangement, consistent with its expected use of the asset, and is an attempt to improve consistency between the useful life of a recognized intangible asset under SFAS No. 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS No. 141, “Business Combinations.” The FSP is effective for fiscal years beginning after December 15, 2008, and the guidance for determining the useful life of a recognized intangible asset must be applied prospectively to intangible assets acquired after the effective date. The FSP is not expected to have a significant impact on the Company’s financial condition and results of operations.

In June 2008, the FASB issued FSP Emerging Issues Task Force (EITF) No. 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities.” Under the FSP, unvested share-based payment awards that contain rights to receive nonforfeitable dividends (whether paid or unpaid) are participating securities, and should be included in the two-class method of computing EPS. The FSP is effective for fiscal years beginning after December 15, 2008, and interim periods within those years, and is not expected to have a significant impact on the Company’s financial condition and results of operations.

In October 2008, the FASB issued FSP No. 157-3, “Determining the Fair Value of a Financial Asset When the Market for That Asset is Not Active” (FSP 157-3). FSP 157-3 clarifies the application of SFAS 157, which the Company adopted as of January 1, 2008, in cases where a market is not active. The Company has considered FSP 157-3 in its determination of estimated fair values as of December 31, 2008, and the impact was not material.

MEDIA & ENTERTAINMENT HOLDINGS, INC.

(a development stage enterprise)

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – Interim Financial Information, Organization, Business Operations, Significant Accounting

Policies and Going Concern Consideration (Continued)

Recently Issued Accounting Pronouncements (Continued):

In December 2008, the FASB issued FSP SFAS No. 140-4 and FASB Interpretation Number (FIN) No. 46R-8, “Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities” (FSP SFAS No. 140-4 and FIN No. 46R-8). This statement increases the disclosure requirements regarding continuing involvement with financial assets that have been transferred, as well as the company’s involvement with variable interest entities. The FSP is effective for financial statements issued for interim periods ending after Dec. 15, 2008. Accordingly, The Company had adopted FSP SFAS 140-4 and FIN No. 46R-8. The adoption of this pronouncement is not expected to have a significant effect on its financial statements.

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying unaudited interim condensed financial statements.

NOTE 2 – Commitments and Contingencies

The Company entered into an agreement with the underwriters of the Offering (the “Underwriting Agreement”). The Underwriting Agreement required the Company to pay 4.5% of the gross proceeds of the Offering as an underwriting discount plus an additional 2.5% of the gross proceeds only upon consummation of a Business Combination. The Company paid an underwriting discount of 4.5% of the gross proceeds ($3,888,000) in connection with the consummation of the Offering and has placed 2.5% of the gross proceeds ($2,160,000) in the Trust Account. The underwriters have waived their right to receive payment of the 2.5% of the gross proceeds upon the Company’s liquidation if it is unable to complete a Business Combination.

On March 4, 2008, the Company entered into a one year agreement for financial advisory services in connection with acquisition of a target. If the Company consummates a transaction during the term the fee will be equal to .5% of the consideration paid in connection with the acquisition.

NOTE 3 – Subsequent Event

As discussed in Note 1, the Company has filed a preliminary proxy statement in order to obtain the approval of stockholders to: (i) distribute to the holders of IPO Shares all amounts in the Trust Account, except for a reserve of $1,100,00 for possible tax liabilities, which it will distribute after the board has determined there are no further liabilities (however, the Company believes that it has paid all required taxes and it is more likely than not that no further taxes will be owed); and (ii) continue the Company’s corporate existence after the distribution of the Trust Account, rather than dissolve as required by the certificate of incorporation.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our condensed financial statements and footnotes thereto contained in this report.

Forward Looking Statements

All statements other than statements of historical fact included in this Form 10-Q including, without limitation, statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding our financial position, business strategy and the plans and objectives of management for future operations, are forward looking statements. When used in this Form 10-Q, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or our management, identify forward looking statements. Such forward looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially from those contemplated by the forward looking statements as a result of certain factors detailed in our filings with the Securities and Exchange Commission. All subsequent written or oral forward looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph.

Overview

The Company is a blank check company organized under the laws of the State of Delaware on July 8, 2005. We were formed to effect a merger, capital stock exchange, asset acquisition or other similar business combination with an operating business limited to the entertainment, media and communications industries. On March 14, 2007, the Company completed its initial public offering of 10,800,000 units (which consist of one share of our common stock and one redeemable common stock purchase warrant) at a price of $8.00 per unit. The Company received total net proceeds of $81,420,447 from its initial public offering, taking into account $4,979,553 of underwriting fees and other offering expenses. Simultaneously with the consummation of the initial public offering, the Company privately sold an aggregate of 2,700,000 warrants to Messrs. Granath, Seslowsky, Maggin and Clauser and The Hearst Corporation and one of their affiliates, Transmedia Corporation (together, the “existing stockholders”) at a price of $1.00 per warrant, for an aggregate purchase price of $2,700,000.

On March 23, 2007, the Company completed the sale of an additional 1,620,000 units that were granted to the underwriters as an over-allotment option at a price of $8.00 per unit. The initial public offering, including the exercise of the over-allotment option generated total gross proceeds of $99,360,000 to the Company, excluding the proceeds from the offering of the 2,700,000 warrants on a private basis to the existing stockholders.

The aggregate net proceeds of the initial public offering, the exercise of the over-allotment option, and the sale of warrants on a private basis to the Company’s existing stockholders of $96,618,800 were placed in a trust account (the “trust account”).

Overview (continued)

Upon the closing of our initial public offering, on March 14, 2007, the Company sold and issued an option, for $100 to the representatives of the underwriters, to purchase up to 540,000 units, at an exercise price of $10.00 per unit.

The Company intended to utilize cash derived from the proceeds of our recently completed initial public offering, our capital stock, debt or a combination of cash, capital stock and debt, to effect a business combination.

Business Combination with Potential Target

On July 8, 2008 the Company executed a letter of intent for a business combination with a potential target. The letter was terminated on October 16, 2008.

On October 2, 2008 the Company executed a second letter of intent for a business combination with a potential target. The letter was terminated on November 30, 2008.

On January 14, 2009, the Company filed a preliminary proxy statement in order to obtain the approval of stockholders to: (i) distribute to the holders of IPO Shares all amounts in the Trust Account, except for a reserve for possible contingent tax-related liabilities which it will distribute after the board has determined there are no further liabilities; and (ii) continue the Company’s corporate existence after the distribution of the Trust Account, rather than dissolve as required by the certificate of incorporation (see Note 1 above).

Results of Operations

For the three months ended December 31, 2008, we had net income of $41,479 after provision for income taxes of $22,079, as compared to the prior year’s net income of $426,824, after provision for income taxes of $369,901. The difference is primarily due to the interest rate, which was 4.23% as of December 2007, and .66% as of December 31, 2008 which caused the interest and dividend income to decrease to $165,475 for the three months ended December 31, 2008 from $952,081 for the three months ended December 31, 2007. For the three months ended December 31, 2008 and 2007, respectively, the Company’s interest and dividend income was offset by $0 and $20,844 of stock based compensation, $74,602 and $55,591 of expenses related to filing requirements as a public entity, $20,639 and $64,902 of costs of searching for an acquisition target, and $6,676 and $14,019 of general and administrative expenses, aggregating $101,917 and $155,356 respectively.

Results of Operations (continued)

For the nine months ended December 31, 2008, we had a net income of $202,169 after provision for income taxes of $100,419, as compared to the prior periods net income of $1,358,747 after provision for income taxes of $1,224,649. The difference is primarily due to the decrease in the interest rate, which was 4.23% as of December 31, 2007, and .66% as of December 31, 2008. For the nine months ended December 31, 2007, the Company’s net income of $1,358,747 consisted of $3,109,799 of interest and dividend income offset by

$62,532 of stock based compensation, $325,706 of expenses related to filing requirements as a public entity, $87,774 of costs of searching for an acquisition target, and $50,391 of general and administrative expenses, aggregating $526,403 in formation and operating costs. During the nine months ending December 31, 2008, the Company earned interest and dividend income of $787,029 and incurred expenses related to the Company’s filing requirements as a public entity of $321,338, costs of searching for an acquisition target of $84,109, stock based compensation of $34,743, as well as general and administrative expenses of $44,251, aggregating $484,441 in formation and operating costs.

Net income from July 8, 2005 (inception) through December 31, 2008 was $2,093,231, after a provision for income taxes of $1,198,606. This was due to the interest and dividends earned of $4,836,254 on the proceeds from the initial public offering and the operating account offset by the stock based compensation of $250,131, expenses related to the filing requirements as a public entity of $953,908, costs of searching for an acquisition target of $217,776, as well as general and administrative expenses of $122,602, aggregating, $1,544,417 of formation and operating costs.

The Company’s entire activity from July 8, 2005 (inception) through March 14, 2007 had been to prepare for our initial public offering, and from March 15, 2007 through December 31, 2008 our entire activity has been to identify an acquisition candidate.

Off-Balance Sheet Arrangements

The Company has not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or entered into any options on non-financial assets.

Contractual Obligations

The Company does not have any long-term debt, capital lease obligations, operating lease obligations, purchase obligations or other long-term liabilities.

Critical Accounting Policies

The Company's significant accounting policies are more fully described in Note 1 to the condensed interim financial statements contained herein and Note 2 of the Company’s Form 10-K for the fiscal year ended March 31, 2008, which was filed on June 16, 2008, which is referenced herewith. However, certain accounting policies are particularly important to the portrayal of financial position and results of operations and require the application of significant judgments by management. As a result, the condensed interim financial statements are subject to an inherent degree of uncertainty. In applying those policies, management uses its judgment to determine the appropriate assumptions to be used in the determination of

Critical Accounting Policies (continued)

certain estimates. These estimates are based on the Company's historical experience, terms of existing contracts, observance of trends in the industry and information available from outside sources, as appropriate. The Company’s significant accounting policies have remained unchanged from those used during its fiscal year ended March 31, 2008.

Liquidity and Capital Resources

$96,618,800 of the net proceeds of our initial public offering, over-allotment exercise, private sale of warrants, and a portion of the underwriters’ discounts and expense allowance were deposited in the trust account, with the remaining net proceeds being placed in our operating account. We planned to use the interest and dividend income earned on the trust proceeds (up to a maximum of $1,800,000 which we have received as of December 31, 2008) to identify, evaluate and negotiate with prospective acquisition candidates as well as cover our ongoing operating expenses until a transaction was approved by our stockholders or the monies in the trust accounts are returned to them. We intended to utilize our cash, including the funds held in the trust account, capital stock, debt or a combination of the foregoing to effect a business combination.

To the extent that our capital stock or debt securities were used in whole or in part as consideration to effect a business combination, the proceeds held in the trust account as well as any other available cash would have been used to finance the operations of the target business. At December 31, 2008, we had cash outside of the trust account of $753,477, trust account, restricted of $98,202,512, other current assets of $9,672 and total liabilities of $98,309,873, including $98,202,512 of common stock subject to redemption. The Company has $7,410 of interest and dividend income available for the payment of taxes which has been classified as cash held in trust account, interest and dividend income available for working capital and income taxes on the unaudited interim condensed balance sheet.

Given our limited sources of working capital and income there exists the possibility that we would not have sufficient capital to sustain us until a business combination could be consummated. In addition there was no assurance that the Company would enter into a business combination and would therefore need to liquidate as described below. These factors raise substantial doubt as to our ability to continue as a going concern.

Our certificate of incorporation requires that we take all actions necessary to liquidate in the event that we do not consummate a business combination within 24 months from the consummation of our initial public offering or March 14, 2009. On January 14, 2009, the Company filed a preliminary proxy statement in order to obtain the approval of stockholders to: (i) distribute to the holders of IPO Shares all amounts in the Trust Account, except for a reserve for possible contingent tax-related liabilities which it will distribute after the board has determined there are no further liabilities; and (ii) continue the Company’s corporate existence after the distribution of the Trust Account, rather than dissolve as required by the certificate of incorporation (see Note 1 above). Since a dissolution is likely to occur if the stockholders do not approve such distribution and the continuation of the Company’s corporate existence, the unaudited condensed interim financial statements reflect the adjustments that might result from the outcome of the pending liquidation of the Trust Account. In the event of a dissolution, it is likely that the per share value of the residual assets remaining available for distribution (including assets deposited in the Trust Account) will be less than the offering price per unit in our initial public offering and over-allotment option due to costs related to the initial public offering and since no value would be attributed to the warrants contained in the units sold.

Liquidity and Capital Resources (continued)

As of December 31, 2008, we had total cash of $98,787,486, of which $98,202,512 (including $175,912 of tax refunds due) is restricted cash held in the trust account. Until the initial public offering, our only source of liquidity was loans made by our four members of management. Those loans were all repaid out of the proceeds of the initial public offering. Our other liabilities are all relate to costs associated with our initial public offering, income taxes due, and other administrative items.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is a broad term for the risk of economic loss due to adverse changes in the fair value of a financial instrument. These changes may be the result of various factors, including interest rates, foreign exchange rates, commodity prices and/or equity prices. Our exposure to market risk is limited to interest income sensitivity with respect to the funds placed in the trust account. However, the funds held in our trust account have been invested in only U.S. “government securities” defined as any Treasury Bill issued by the United States having a maturity of one hundred and eighty days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act of 1940, so we are not deemed to be an investment company under the Investment Company Act. Thus, we are subject to market risk primarily through the effect of changes in interest rates on government securities. The effect of other changes, such as foreign exchange rates, commodity prices and/or equity prices, does not pose significant market risk to us.

The Company was investing at an effective annual interest rate of approximately .66% as of December 31, 2008. If the effective interest rate were to decrease to 0%, the Company’s potential earnings would drop approximately $54,000 per month.

The Company was not engaged in any hedging transactions as of December 31, 2008.

ITEM 4. CONTROLS AND PROCEDURES.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in company reports filed or submitted under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our chief executive officer and treasurer, as appropriate to allow timely decisions regarding required disclosure.

As required by Rules 13a-15 and 15d-15 under the Exchange Act, our principal executive officer and principal financial and accounting officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2008. Based upon their evaluation, they concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective.

Our internal control over financial reporting is a process designed by, or under the supervision of, our president and chief financial and accounting officer and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our financial statements for external purposes in accordance with generally accepted accounting principles (United States).

Internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; provide reasonable assurance that transactions are recorded as necessary to permit preparation of our financial statements in accordance with generally accepted accounting principles (United States), and that our receipts and expenditures are being made only in accordance with the authorization of our board of directors and management; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting in connection with the evaluation required by Rule 13a-15(d) under the Exchange Act that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II

OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

We are not a party to any pending legal proceedings.

ITEM 1A: RISK FACTORS

There have been no material changes to the risk factors previously disclosed in our registration statement on Form S-1 (File No. 333-128218) filed in connection with our initial public offering.

ITEM 2:

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3: DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable.

ITEM 5: OTHER INFORMATION

Not applicable.

ITEM 6: EXHIBITS

(a) Exhibits:

31.1 – Certification by Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 – Certification by Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 – Certification by Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: February 13, 2009

MEDIA & ENTERTAINMENT HOLDINGS, INC.

By: /s/ Herbert A. Granath

Herbert A Granath

Chairman of the Board and Chief Executive Officer

(Principal Executive Officer)

By: /s/ Robert C. Clauser, Jr.

Robert C. Clauser, Jr.

Executive Vice President and

Chief Financial Officer

(Principal Financial Officer)

Filing Compare · Media & Entertainment Holdings, Inc.