<table>
 <tbody><tr style="FONT-SIZE:1PX">
 <td width="5%" valign="TOP">
 <p>&nbsp;</p>
 </td>
 <td width="5%" valign="TOP">
 <p>&nbsp;</p>
 </td>
 <td width="90%" valign="TOP">
 <p>&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="2">(1)</font></p>
 </td>
 <td colspan="2" valign="TOP">
 <p><font size="2"><u>Basis of Presentation</u></font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td colspan="2" valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td colspan="2" valign="TOP">
 <p><font size="2">The following unaudited interim condensed
 consolidated financial statements of ‘mktg, inc.’ (formerly CoActive
 Marketing Group, Inc.) (the “Company”) for the three and nine months ended
 December 31, 2008 and 2007 have been prepared pursuant to the rules and
 regulations of the Securities and Exchange Commission. Certain information and note disclosures
 normally included in annual financial statements prepared in accordance with
 generally accepted accounting principles have been condensed or omitted
 pursuant to GAAP for interim financial information and SEC rules and
 regulations, although the Company believes that the disclosures made are
 adequate to make the information not misleading. These consolidated financial statements should be read in
 conjunction with the consolidated financial statements and notes thereto
 included in the Company’s Amendment No. 2 to its Annual Report on Form 10-K/A
 for the year ended March 31, 2008. In
 the opinion of management, such consolidated financial statements reflect all
 adjustments, consisting of normal recurring adjustments, necessary to present
 fairly the Company’s results for the interim periods presented. The results
 of operations for the three and nine months ended December 31, 2008 are not necessarily indicative of the
 results for a full year.</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td colspan="2" valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="2">(2)</font></p>
 </td>
 <td colspan="2" valign="TOP">
 <p><font size="2"><u>Summary of Significant Accounting Policies</u></font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td colspan="2" valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">(a)</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2"><u>Principles of Consolidation</u></font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">The consolidated financial statements include the
 financial statements of the Company and its wholly-owned subsidiaries. All significant intercompany balances and
 transactions have been eliminated in consolidation.</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">(b)</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2"><u>Use of Estimates</u></font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">The preparation of the financial statements in
 conformity with accounting principles generally accepted in the United States
 of America requires management to make estimates and assumptions that affect
 the reported amounts of assets and liabilities and disclosure of the
 contingent assets and liabilities at the date of the financial statements and
 the reported amounts of revenues and expenses during the reporting
 period. Management bases its estimates
 on certain assumptions, which it believes are reasonable in the
 circumstances. Actual results could
 differ from those estimates.</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">The Company’s revenues are generated from projects
 subject to contracts requiring the Company to provide its services within
 specified time periods generally ranging up to twelve months. As a result, on any given date, the
 Company has projects in process at various stages of completion. Depending on the nature of the contract,
 revenue is recognized as follows: (i) on time and material service contracts,
 revenue is recognized as services are rendered and the costs are incurred;
 (ii) on fixed price retainer contracts, revenue is recognized on a
 straight-line basis over the term of the contract; (iii) on fixed price
 multiple services contracts, revenue is recognized over the term of the
 contract for the fair value of segments of the services rendered which
 qualify as separate activities or delivered units of service; to the extent
 multi-service arrangements are deemed inseparable, revenue on these contracts
 is recognized as the contracts are completed; (iv) on certain fixed price
 contracts, revenue is recognized on a percentage of completion basis, whereby
 the percentage of completion is determined by relating the actual cost of
 labor performed to date to the estimated total cost of labor for each
 contract; (v) on certain fixed price contracts, revenue is recognized on the
 basis of proportional performance as certain key milestones are
 delivered. Costs associated with the
 fulfillment of projects are accrued or deferred and recognized
 proportionately to the related revenue in order to ensure a matching of
 revenue and expenses in the proper period.
 Provisions for anticipated losses on uncompleted projects are made in
 the period in which such losses are determined.</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">In assessing the realizability of deferred tax
 assets, management considers whether it is more likely than not that some or
 all of such assets will be utilized in future periods. For financial reporting purposes, the
 Company has incurred losses for fiscal years 2004 through 2008 aggregating
 $5,961,000. The Company must generate
 approximately $11,581,000 of aggregate taxable income, exclusive of any
 reversals or timing differences, to fully utilize its net deferred tax
 asset. Based upon the available
 objective evidence, including the Company’s history of losses, management
 does not believe that it is more likely than not that the net deferred tax
 asset will be fully utilized.
 Accordingly, the Company has provided for a full valuation allowance against
 its net deferred tax asset.</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 </tr>
 <tr>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="1">&nbsp;</font></p>
 </td>
 <td valign="TOP">
 <p><font size="2">In October 2008, the Company exercised its option to
 terminate its sublease for office space (see Note 6). As such, management revised its estimate
 for the remaining life of its leasehold improvements.</font></p>
 </td>
 </tr>
</tbody></table>
<table>
<tbody><tr>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p><font>(1)</font></p>
</td>
<td>
<p><font><u>Basis of Presentation</u></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>The following unaudited interim condensed
 consolidated financial statements of ‘mktg, inc.’ (formerly CoActive
 Marketing Group, Inc.) (the “Company”) for the three and nine months ended
 December 31, 2008 and 2007 have been prepared pursuant to the rules and
 regulations of the Securities and Exchange Commission. Certain information and note disclosures
 normally included in annual financial statements prepared in accordance with
 generally accepted accounting principles have been condensed or omitted
 pursuant to GAAP for interim financial information and SEC rules and
 regulations, although the Company believes that the disclosures made are
 adequate to make the information not misleading. These consolidated financial statements should be read in
 conjunction with the consolidated financial statements and notes thereto
 included in the Company’s Amendment No. 2 to its Annual Report on Form 10-K/A
 for the year ended March 31, 2008. In
 the opinion of management, such consolidated financial statements reflect all
 adjustments, consisting of normal recurring adjustments, necessary to present
 fairly the Company’s results for the interim periods presented. The results
 of operations for the three and nine months ended December 31, 2008 are not necessarily indicative of the
 results for a full year.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font>(2)</font></p>
</td>
<td>
<p><font><u>Summary of Significant Accounting Policies</u></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>(a)</font></p>
</td>
<td>
<p><font><u>Principles of Consolidation</u></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>The consolidated financial statements include the
 financial statements of the Company and its wholly-owned subsidiaries. All significant intercompany balances and
 transactions have been eliminated in consolidation.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>(b)</font></p>
</td>
<td>
<p><font><u>Use of Estimates</u></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>The preparation of the financial statements in
 conformity with accounting principles generally accepted in the United States
 of America requires management to make estimates and assumptions that affect
 the reported amounts of assets and liabilities and disclosure of the
 contingent assets and liabilities at the date of the financial statements and
 the reported amounts of revenues and expenses during the reporting
 period. Management bases its estimates
 on certain assumptions, which it believes are reasonable in the
 circumstances. Actual results could
 differ from those estimates.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>The Company’s revenues are generated from projects
 subject to contracts requiring the Company to provide its services within
 specified time periods generally ranging up to twelve months. As a result, on any given date, the
 Company has projects in process at various stages of completion. Depending on the nature of the contract,
 revenue is recognized as follows: (i) on time and material service contracts,
 revenue is recognized as services are rendered and the costs are incurred;
 (ii) on fixed price retainer contracts, revenue is recognized on a
 straight-line basis over the term of the contract; (iii) on fixed price
 multiple services contracts, revenue is recognized over the term of the
 contract for the fair value of segments of the services rendered which
 qualify as separate activities or delivered units of service; to the extent
 multi-service arrangements are deemed inseparable, revenue on these contracts
 is recognized as the contracts are completed; (iv) on certain fixed price
 contracts, revenue is recognized on a percentage of completion basis, whereby
 the percentage of completion is determined by relating the actual cost of
 labor performed to date to the estimated total cost of labor for each
 contract; (v) on certain fixed price contracts, revenue is recognized on the
 basis of proportional performance as certain key milestones are
 delivered. Costs associated with the
 fulfillment of projects are accrued or deferred and recognized
 proportionately to the related revenue in order to ensure a matching of
 revenue and expenses in the proper period.
 Provisions for anticipated losses on uncompleted projects are made in
 the period in which such losses are determined.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In assessing the realizability of deferred tax
 assets, management considers whether it is more likely than not that some or
 all of such assets will be utilized in future periods. For financial reporting purposes, the
 Company has incurred losses for fiscal years 2004 through 2008 aggregating
 $5,961,000. The Company must generate
 approximately $11,581,000 of aggregate taxable income, exclusive of any
 reversals or timing differences, to fully utilize its net deferred tax
 asset. Based upon the available
 objective evidence, including the Company’s history of losses, management
 does not believe that it is more likely than not that the net deferred tax
 asset will be fully utilized.
 Accordingly, the Company has provided for a full valuation allowance against
 its net deferred tax asset.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In October 2008, the Company exercised its option to
 terminate its sublease for office space (see Note 6). As such, management revised its estimate
 for the remaining life of its leasehold improvements.</font></p>
</td>
</tr>
</tbody></table>