Lifestyle Medical Network Inc. (fka LMNK)

[serfdom]

Organization
---------------------

Emerging Media Holdings, Inc was incorporated in the State of Nevada on
September 3, 2003. The Company directs its operations through its subsidiaries,
Media Alianta S.R.L. ("Media Alianta"), formerly Cabavarum S.R.L., and Analytic
Media Group, S.A. ("AMG"). Both subsidiaries' operations and assets are located
in the Republic of Moldova. Through its subsidiaries, the Company's primary
activities are in radio and television broadcasting. The Company earns its
revenue primarily through advertisement sales. The Company also derives revenues
from the sale of concrete mixes. This segment is currently in its initial
stages. Revenue and net earnings from this segment represent less then 1% of
total revenues and net earnings for the three months ended March 31, 2007 and
2006. The segment is immaterial to the consolidated statements and no segment
information is provided.


Basis of Presentation
---------------------

In July 2006, EMH entered into a share exchange agreement with Cabavarum S.R.L.
("Cabavarum"), a Moldavia company, with primary activities in radio and
television broadcasting. In connection with the share exchange, the Company
acquired the assets and assumed the liabilities of Cabavarum. For accounting
purposes, the share exchange has been treated as a recapitalization of
Cabavarum.

As provided for in the share exchange agreement, the stockholders of Cabavarum
received 5,251,000 shares of newly issued EMH common stock in exchange for the
outstanding shares of Cabavarum they held, which was accounted for as a
recapitalization. The financial statements prior to July 2006, are those of
Cabavarum and reflect the assets and liabilities of Cabavarum and AMG at
historical carrying amounts. In addition, certain shareholders of EMH
transferred 6,726,400 shares to associates of Cabavarum. The associates provided
consulting services to the shareholders of Cabavarum in connection with the
merger with EMH, marketing activities, relations within the Russian media
market, computer programming and acquisitions.

Immediately following the share exchange, EMH had a total of 15,053,000 common
shares issued and outstanding, of which the shareholders and associates of
Cabavarum controlled 80% of the outstanding common stock.

The financial statements of EMH have been revised to retroactively reflect the
share exchange.

In addition, the resignation of the former officer and directors of EMH took
effect upon the close of the share acquisition exchange. The Cabavarum Board of
Directors became the Board of Directors of EMH and Chiril Luchinsky became
president and Chief Executive Officer.


Principles of Consolidation
---------------------------

The consolidated financial statements of the Company include the Company and its
wholly-owned subsidiaries. All material intercompany balances and transactions
have been eliminated.


Economic and Political Risks
----------------------------

The Company faces a number of risks and challenges since its operations are in
the Republic of Moldova and its primary market is in Moldova. The financial
statements have been prepared assuming the Company will continue as a going
concern. 100% of the consolidated assets are located in Moldova and 100% of the
consolidated revenue is earned in Moldova.

http://www.sec.gov/Archives/edgar/data/1307140/000121465907001147/f5147210qsb.txt