<table>

<tbody><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">(1)</font></td>

    <td colspan="2" style="text-decoration: underline; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Basis

    of Presentation</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td colspan="2" style="text-align: justify; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">The condensed

    consolidated financial statements of ‘mktg, inc.’ (the “Company”) 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 (“GAAP”) 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 condensed consolidated financial

    statements should be read in conjunction with the consolidated financial statements and notes thereto, included in the Company’s

    Annual Report on Form 10-K for the year ended March 31, 2013.</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td colspan="2" style="text-align: justify; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">In the

    opinion of management, such condensed 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 six months ended September 30, 2013 are not necessarily indicative of the results for the full fiscal year

    or any future periods.</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">(2)</font></td>

    <td colspan="2" style="text-decoration: underline; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Summary

    of Significant Accounting Policies</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">(a)</font></td>

    <td style="text-decoration: underline; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Principles

    of Consolidation</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="text-align: justify; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">The condensed consolidated

    financial statements include the financial statements of the Company and its wholly-owned subsidiaries Inmark Services LLC,

    Optimum Group LLC, U.S. Concepts LLC, Digital Intelligence Group LLC, mktg retail LLC and Mktg, inc. UK Ltd. All significant

    intercompany balances and transactions have been eliminated in consolidation.</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">(b)</font></td>

    <td style="text-decoration: underline; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Use of Estimates</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="text-align: justify; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">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. Significant estimates include the allowance for doubtful accounts, valuation of stock options

    and equity transactions, and revenue recognition. Management bases its estimates on certain assumptions, which it believes

    are reasonable in the circumstances. Actual results could differ from those estimates.</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">(c)</font></td>

    <td style="text-decoration: underline; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Goodwill</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="text-align: justify; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Goodwill consists

    of the cost in excess of the fair value of the acquired net assets of the Company’s subsidiaries. Goodwill is subject

    to annual impairment tests which require the Company to first assess qualitative factors to determine whether it is necessary

    to perform a two-step quantitative goodwill impairment test. The Company is not required to calculate the fair value of a

    reporting unit unless it determines, based on a qualitative assessment, that it is more likely than not that its fair value

    is less than its carrying amount. The Company assesses the potential impairment of goodwill annually and on an interim basis

    whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Upon completion of such

    annual review, if impairment is found to have occurred, a corresponding charge will be recorded. The Company has determined

    that it has one reporting unit, and that a two-step quantitative goodwill impairment test was not necessary. There were no

    events or changes in circumstances during the six months ended September 30, 2013 that indicated to management that the carrying

    value of goodwill may not be recoverable.</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">(d)</font></td>

    <td style="text-decoration: underline; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Long-term Investments</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td></tr>

<tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">&nbsp;</font></td>

    <td style="text-align: justify; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Companies in which

    the Company has made an investment (referred to as “investee companies”) which are not accounted for under the

    consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method,

    the Company’s share of the earnings or losses of the investee company is not included in the Consolidated Balance Sheet

    or Statement of Operations. However, impairment charges, if deemed necessary, are recognized in the Consolidated Statement

    of Operations. If circumstances suggest that the value of the investee company has subsequently recovered, such recovery is

    not recorded. See <a href="#mktga013_v1">Note 3</a> for additional information.</font></td></tr>

</tbody></table>
<table>
<tbody><tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font>(1)</font></td>
<td><font>Basis

    of Presentation</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font>The condensed

    consolidated financial statements of ‘mktg, inc.’ (the “Company”) 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 (“GAAP”) 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 condensed consolidated financial

    statements should be read in conjunction with the consolidated financial statements and notes thereto, included in the Company’s

    Annual Report on Form 10-K for the year ended March 31, 2013.</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font>In the

    opinion of management, such condensed 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 six months ended September 30, 2013 are not necessarily indicative of the results for the full fiscal year

    or any future periods.</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font>(2)</font></td>
<td><font>Summary

    of Significant Accounting Policies</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font>(a)</font></td>
<td><font>Principles

    of Consolidation</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font>The condensed consolidated

    financial statements include the financial statements of the Company and its wholly-owned subsidiaries Inmark Services LLC,

    Optimum Group LLC, U.S. Concepts LLC, Digital Intelligence Group LLC, mktg retail LLC and Mktg, inc. UK Ltd. All significant

    intercompany balances and transactions have been eliminated in consolidation.</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font>(b)</font></td>
<td><font>Use of Estimates</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><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. Significant estimates include the allowance for doubtful accounts, valuation of stock options

    and equity transactions, and revenue recognition. Management bases its estimates on certain assumptions, which it believes

    are reasonable in the circumstances. Actual results could differ from those estimates.</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font>(c)</font></td>
<td><font>Goodwill</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font>Goodwill consists

    of the cost in excess of the fair value of the acquired net assets of the Company’s subsidiaries. Goodwill is subject

    to annual impairment tests which require the Company to first assess qualitative factors to determine whether it is necessary

    to perform a two-step quantitative goodwill impairment test. The Company is not required to calculate the fair value of a

    reporting unit unless it determines, based on a qualitative assessment, that it is more likely than not that its fair value

    is less than its carrying amount. The Company assesses the potential impairment of goodwill annually and on an interim basis

    whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Upon completion of such

    annual review, if impairment is found to have occurred, a corresponding charge will be recorded. The Company has determined

    that it has one reporting unit, and that a two-step quantitative goodwill impairment test was not necessary. There were no

    events or changes in circumstances during the six months ended September 30, 2013 that indicated to management that the carrying

    value of goodwill may not be recoverable.</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font>(d)</font></td>
<td><font>Long-term Investments</font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td>
<td><font> </font></td>
<td><font>Companies in which

    the Company has made an investment (referred to as “investee companies”) which are not accounted for under the

    consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method,

    the Company’s share of the earnings or losses of the investee company is not included in the Consolidated Balance Sheet

    or Statement of Operations. However, impairment charges, if deemed necessary, are recognized in the Consolidated Statement

    of Operations. If circumstances suggest that the value of the investee company has subsequently recovered, such recovery is

    not recorded. See Note 3 for additional information.</font></td></tr>
</tbody></table>