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<p><font size="2"><b><a href="#cm001_v1"><u>PART I - FINANCIAL INFORMATION</u></a></b> </font></p>
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<p><font size="2"><b>Item 1.</b></font></p>
</td>
<td colspan="3" valign="BOTTOM">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT"><font size="2">Condensed Consolidated
 Financial Statements of CoActive Marketing Group, Inc. and Subsidiaries<br>
 (Unaudited)</font></p>
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<p><font size="2"><a href="#cm002_v1">Balance
 Sheets – June 30, 2008 and March 31, 2008 (Audited)</a></font></p>
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<p align="RIGHT"><font size="2">3</font></p>
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<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT"><font size="2"><a href="#cm003_v1">Statements of Operations – Three months ended
June
 30, 2008 and 2007</a></font></p>
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<p align="RIGHT"><font size="2">4</font></p>
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<p align="RIGHT"><font size="1">&nbsp;</font></p>
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<p><font size="1">&nbsp;</font></p>
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<p><font size="1">&nbsp;</font></p>
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<p><font size="1">&nbsp;</font></p>
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<p><font size="1">&nbsp;</font></p>
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<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT"><font size="2"><a href="#cm004_v1">Statements of Cash Flows – Three months ended
June
 30, 2008 and 2007</a></font></p>
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<p align="RIGHT"><font size="2">5</font></p>
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<p><font size="1">&nbsp;</font></p>
</td>
<td colspan="2" valign="BOTTOM">
<p><font size="2"><a href="#cm005_v1">Notes
 to Unaudited Condensed Consolidated Financial Statements</a></font></p>
</td>
<td valign="BOTTOM">
<p align="RIGHT"><font size="2">6</font></p>
</td>
<td valign="BOTTOM">
<p align="RIGHT"><font size="1">&nbsp;</font></p>
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<p align="RIGHT"><font size="1">&nbsp;</font></p>
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<p><font size="2"><b><a href="#cm006_v1">Item 2.</a></b></font></p>
</td>
<td colspan="2" valign="BOTTOM">
<p><font size="2"><a href="#cm006_v1">Management’s
 Discussion and Analysis of Financial Condition and Results of Operations</a></font></p>
</td>
<td valign="BOTTOM">
<p align="RIGHT"><font size="2">13</font></p>
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<p><font size="2"><b><a href="#cm007_v1">Item 4.</a></b></font></p>
</td>
<td colspan="2" valign="BOTTOM">
<p><font size="2"><a href="#cm007_v1">Controls
 and Procedures</a></font></p>
</td>
<td valign="BOTTOM">
<p align="RIGHT"><font size="2">17</font></p>
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<td colspan="3" valign="BOTTOM">
<p><font size="2"><b><u><a href="#cm008_v1">PART II - OTHER INFORMATION</a></u></b></font></p>
</td>
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<p><font size="1">&nbsp;</font></p>
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<td colspan="3" valign="BOTTOM">
<p><font size="2"><a href="#cm009_v1"><b>Items 1, 1A, 2, 3, 4 and 5.</b>
 Not Applicable</a></font></p>
</td>
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<td valign="BOTTOM">
<p><font size="2"><b><a href="#cm010_v1">Item 6.</a></b></font></p>
</td>
<td colspan="2" valign="BOTTOM">
<p><font size="2"><a href="#cm010_v1">Exhibits</a></font></p>
</td>
<td valign="BOTTOM">
<p align="RIGHT"><font size="2">18</font></p>
</td>
<td valign="BOTTOM">
<p align="RIGHT"><font size="1">&nbsp;</font></p>
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<p><font size="1">&nbsp;</font></p>
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<td colspan="2" valign="BOTTOM">
<p><font size="1">&nbsp;</font></p>
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<td valign="BOTTOM">
<p align="RIGHT"><font size="1">&nbsp;</font></p>
</td>
<td valign="BOTTOM">
<p align="RIGHT"><font size="1">&nbsp;</font></p>
</td>
</tr>
<tr>
<td colspan="3" valign="BOTTOM">
<p><font size="2"><b><u><a href="#cm011_v1">SIGNATURES</a></u></b></font></p>
</td>
<td valign="BOTTOM">
<p align="RIGHT"><font size="2">19</font></p>
</td>
<td valign="BOTTOM">
<p align="RIGHT"><font size="1">&nbsp;</font></p>
</td>
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</tbody></table>
<table>
<tbody><tr>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font><b>Page</b></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<hr/>
</td>
</tr>
<tr>
<td>
<p><font><b><u>PART I - FINANCIAL INFORMATION</u></b> </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> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font><b>Item 1.</b></font></p>
</td>
<td>
<p><font>Condensed Consolidated
 Financial Statements of CoActive Marketing Group, Inc. and Subsidiaries<br/>
 (Unaudited)</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> </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>Balance
 Sheets – June 30, 2008 and March 31, 2008 (Audited)</font></p>
</td>
<td>
<p><font>3</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> </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>Statements of Operations – Three months ended
June
 30, 2008 and 2007</font></p>
</td>
<td>
<p><font>4</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> </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>Statements of Cash Flows – Three months ended
June
 30, 2008 and 2007</font></p>
</td>
<td>
<p><font>5</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> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>Notes
 to Unaudited Condensed Consolidated Financial Statements</font></p>
</td>
<td>
<p><font>6</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> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font><b>Item 2.</b></font></p>
</td>
<td>
<p><font>Management’s
 Discussion and Analysis of Financial Condition and Results of Operations</font></p>
</td>
<td>
<p><font>13</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> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font><b>Item 4.</b></font></p>
</td>
<td>
<p><font>Controls
 and Procedures</font></p>
</td>
<td>
<p><font>17</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> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font><b><u>PART II - OTHER INFORMATION</u></b></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> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font><b>Items 1, 1A, 2, 3, 4 and 5.</b>
 Not Applicable</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> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font><b>Item 6.</b></font></p>
</td>
<td>
<p><font>Exhibits</font></p>
</td>
<td>
<p><font>18</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> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font><b><u>SIGNATURES</u></b></font></p>
</td>
<td>
<p><font>19</font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
</tbody></table>