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accompanying unaudited consolidated condensed financial statements have been prepared from the books and records of
Mediabistro in accordance with accounting principles generally accepted in the United States of America&amp;#160;and Rule 10-01
of Regulation S-X promulgated by the Securities and Exchange Commission (&amp;#147;SEC&amp;#148;). 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. The consolidated condensed statements of operations for the three and six months ended June
30, 2013 are not necessarily indicative of the results to be expected for the full year or any future interim
period. These unaudited consolidated condensed financial statements should be read in conjunction with the
consolidated condensed financial statements and notes thereto included in Mediabistro&amp;#146;s Annual Report on Form 10-K for
the year ended December&amp;#160;31, 2012. Certain reclassifications have been made to the prior year financial statements to
conform to the current year presentation.&amp;#160;&amp;#160;In the opinion of management, all adjustments considered necessary for a
fair presentation of the results for the interim periods presented have been reflected in such consolidated condensed
financial statements.&lt;/p&gt;

&lt;p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;The consolidated
condensed financial statements include the accounts of Mediabistro and its wholly-owned subsidiaries: Mediabistro.com Subsidiary
Inc., a Delaware corporation, and Inside Network, Inc., a California corporation.&amp;#160;&amp;#160;All significant intercompany balances
and transactions have been eliminated in consolidation.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for the business description and basis of presentation concepts.  Business description describes the nature and type of organization including but not limited to organizational structure as may be applicable to holding companies, parent and subsidiary relationships, business divisions, business units, business segments, affiliates and information about significant ownership of the reporting entity.  Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS).</ElementDefenition><ElementReferences>No definition available.</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>2. BASIS OF PRESENTATION</Label></Row></Rows><Footnotes /><IsEquityReport>false</IsEquityReport><ReportName>2. BASIS OF PRESENTATION</ReportName><MonetaryRoundingLevel>UnKnown</MonetaryRoundingLevel><SharesRoundingLevel>UnKnown</SharesRoundingLevel><PerShareRoundingLevel>UnKnown</PerShareRoundingLevel><ExchangeRateRoundingLevel>UnKnown</ExchangeRateRoundingLevel><HasCustomUnits>true</HasCustomUnits><IsEmbedReport>false</IsEmbedReport><IsMultiCurrency>false</IsMultiCurrency><ReportType>Sheet</ReportType><RoleURI>http://mediabistro.com/role/BasisOfPresentation</RoleURI><NumberOfCols>1</NumberOfCols><NumberOfRows>2</NumberOfRows></InstanceReport>
