Confidential Draft

Embassy Row Acquisition OverviewAPPENDIX

February 2008

BACK-UP DETAIL FOR STRINGER

2

• $20.0MM up-front payment

• Up to $28.0 MM of earn-outs tied to exceeding EBITDA thresholds and generating recurring profits

– Available earn-out = (EBITDA Above Threshold) x 66%; subject to a cap each year

– 50% of available earn-out paid regardless of earnings quality

– 50% of available earn-out multiplied by: (recurring profits (2) /target)

• 4 year employment contract, after which:

– If Davies chooses not to stay; he is subject to a 2 year non-compete

– If Davies wants to stay; SPT may retain him for 2 years

– If Davies wants to stay and SPT doesn’t retain him; he is not subject to a 2 year non-compete

Current Deal Structure

Max Total Consideration: $48.0 MM

PV(1) of Max Total Consideration: $35.7MM

Note: (1) PV of up-front payment and maximum earn-outs at 16.5% discount rate

(2) Syndication Profits + International Format Fees

FY09 FY10 FY11 FY12 FY13 Total

Maximum Earn-Out Cap $0.0 $4.0 $6.0 $8.0 $10.0 $28.0

Threshold EBITDA $0.0 $5.0 $7.0 $10.0 $15.0 $37.0

Minimum EBITDA to Fully Earn-out $0.0 $11.1 $16.1 $22.1 $30.2 $79.4

Recurring Profit Target N/A $5.0 $10.0 $15.0 $25.0

3

Additional Earn-outs May be Required to Close the Deal

Max Total Consideration: $98.0MM

PV(1) of Max Total Consideration: $63.2MM

Note: (1) PV of up-front payment and maximum earn-outs at 16.5% discount rate

• $20.0MM upfront payment (per current deal structure on p.4)

• $28.0MM earn-outs (per current deal structure on p.4)

• $50.0MM of additional earn-outs tied to exceeding “Upside EBITDA Threshold”

– Available earn-out = (EBITDA Above Threshold) x 25%; subject to a cap each year

Maximum “Upside” Earn-Out $0.0 $5.0 $10.0 $15.0 $20.0 $50.0

Upside EBITDA Threshold $0.0 $11.1 $16.1 $22.1 $30.2 $79.4

Minimum EBITDA to Fully Earn-out $0.0 $31.1 $56.1 $82.1 $110.2 $279.4

FY09 FY10 FY11 FY12 FY13 Total

Any additional earn-outs would be tied to significant EBITDA upside

4

FY09 FY10 FY11 FY12 FY13 Total

EBIT (after earn-out) ($2.4) $0.5 $2.7 $7.4 $12.9 $21.1

Earn-out $0.0 $0.0 $0.0 $1.6 $2.4 $4.0

SPE NPV (1)

$1.5

FY09 FY10 FY11 FY12 FY13 Total

EBIT (after earn-out) ($2.4) $0.5 $2.8 $7.5 $13.0 $21.4

Earn-out $0.0 $0.0 $0.0 $1.7 $2.6 $4.3

SPE NPV (1)

$3.3

FY09 FY10 FY11 FY12 FY13 Total

EBIT (after earn-out) ($2.0) $1.3 $3.6 Chars $13.8 $16.7

Earn-out $0.0 $0.0 $0.2 $2.7 $3.9 $6.8

SPE NPV (1)

$15.0

Note: (1) NPV at 16.5% = PV of Acquired EBITDA + PV of Exit at 10x – PV of Consideration

Current Deal Structure Maximum Earn-out

Low

Medium

High

Maximum Earn-outs Require Davies to Create Greater Value for SPE

FY09 FY10 FY11 FY12 FY13 Total

EBIT (after earn-out) ($3.5) $3.6 $6.6 $10.6 $16.7 $34.0

Earn-out $0.0 $4.0 $6.0 $8.0 $10.0 $28.0

SPE NPV (1)

$61.8

FY09 FY10 FY11 FY12 FY13 Total

EBIT (after earn-out) ($3.5) $18.6 $36.6 $55.6 $76.7 $183.9

Earn-out $0.0 $9.0 $16.0 $23.0 $30.0 $78.0

SPE NPV (1)

$517.0

Current Proposal

Potential “Upside” Proposal

5

Assumptions

• Earn-out Cap: $10.0M

• Threshold EBITDA: $15.0M

• EBITDA Achieved: $19.1M

• Recurring Profit Target: $25.0M

• Recurring Profit Achieved: $22.3M

Example Earn-out Calculation (Mid-case FY13)

Calculation

• EBITDA Above Threshold = ($19.1-$15=$4.1)

• Available Earn-out = (66% x $4.1 = $2.7)

–50% of Available Earn-out paid

automatically = (50% x $2.7 = $1.35)

–50% of Available Earn-out subject to

Ratio = (89% x $1.35 = $1.2)

(Ratio = $22.3/$25.0 = 89%)

Total Earn-out Paid $2.55M

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Key Assumptions – Current Deal Structure

Low Case Mid Case High Case

Model Assumptions

• Chargeback: 0%

• Interactive Growth: 0%

• Chargeback: 0%

• Interactive Growth: 5%

• Chargeback: 5%

• Interactive Growth: 10%

Model Assumptions Model Assumptions

Acquired EBITDA (1): $5.3

Value of Exit (2): $18.2

Total Consideration: ($21.9)

Net Present Value: $1.5

Consideration / 2007 EBITDA (3): 6.3x

Notes: Assumes a risk adjusted discount rate of 16.5% for all NPV calculations (1) Includes value of new shows and excludes value of shows created under current contract (i.e., excludes P10 from incremental value calculation) (2) Includes exit at 10x multiple in 2013 (3) Assumes $3.5M in EBITDA for 2007

Acquired EBITDA (1): $5.7

Value of Exit (2): $19.7

Total Consideration: ($22.1)

Net Present Value: $3.3

Consideration / 2007 EBITDA (3): 6.3x

Acquired EBITDA (1): $9.1

Value of Exit (2): $29.3

Total Consideration: ($23.4)

Net Present Value: $15.0

Consideration / 2007 EBITDA (3): 6.7x

Net Present Value Net Present Value Net Present Value

EBIT EBIT EBIT

Recurring Profits Recurring Profits Recurring Profits

FY09 FY10 FY11 FY12 FY13

Status Quo - P10 EBITDA ($0.1) $2.9 $5.9 $9.6 $14.9

Incremental EBITDA $1.2 $1.1 $0.3 $2.8 $3.9

Total EBITDA $1.1 $4.0 $6.2 $12.5 $18.8

Amortization ($3.5) ($3.5) ($3.5) ($3.5) ($3.5)

EBIT b/f Earn-out ($2.4) $0.5 $2.7 $9.0 $15.3

Total Earn-Out $0.0 $0.0 $0.0 ($1.6) ($2.4)

EBIT ($2.4) $0.5 $2.7 $7.4 $12.9

EO / EBIT b/f EO 0% 0% 0% 17% 15%

FY09 FY10 FY11 FY12 FY13

Recurring Profits $0.9 $4.0 $6.8 $13.9 $22.3

FY09 FY10 FY11 FY12 FY13

Status Quo - P10 EBITDA ($0.1) $2.9 $5.9 $9.6 $14.9

Incremental EBITDA $1.2 $1.1 $0.4 $3.1 $4.2

Total EBITDA $1.1 $4.0 $6.3 $12.7 $19.1

Amortization ($3.5) ($3.5) ($3.5) ($3.5) ($3.5)

EBIT b/f Earn-out ($2.4) $0.5 $2.8 $9.2 $15.6

Total Earn-Out $0.0 $0.0 $0.0 ($1.7) ($2.6)

EBIT ($2.4) $0.5 $2.8 $7.5 $13.0

EO / EBIT b/f EO 0% 0% 0% 19% 16%

FY09 FY10 FY11 FY12 FY13

Recurring Profits $0.9 $4.0 $6.8 $13.9 $22.3

FY09 FY10 FY11 FY12 FY13

Status Quo - P10 EBITDA ($0.1) $2.9 $5.9 $9.6 $14.9

Incremental EBITDA $1.6 $1.9 $1.4 $4.6 $6.3

Total EBITDA $1.5 $4.8 $7.3 $14.2 $21.2

Amortization ($3.5) ($3.5) ($3.5) ($3.5) ($3.5)

EBIT b/f Earn-out ($2.0) $1.3 $3.8 $10.7 $17.7

Total Earn-Out $0.0 $0.0 ($0.2) ($2.7) ($3.9)

EBIT ($2.0) $1.3 $3.6 $8.0 $13.8

EO / EBIT b/f EO 0% 0% 5% 25% 22%

FY09 FY10 FY11 FY12 FY13

Recurring Profits $0.9 $4.0 $6.8 $13.9 $22.3

7

Current Structure: Max Earn-out

Model Assumptions

• EBITDA fixed at Format target

levels

Notes: Assumes a risk adjusted discount rate of 16.5% for all NPV calculations (1) Includes value of new shows and excludes value of shows created under current contract (i.e., excludes P10 from incremental value calculation) (2) Includes exit at 10x multiple in 2013 (3) Assumes $3.5M in EBITDA for 2007

Potential Structure: Max Earn-out

Model Assumptions

• EBITDA fixed at Format target

levels

Acquired EBITDA (1): $136.3

Value of Exit (2): $443.9

Total Consideration: ($63.2)

Net Present Value: $517.0

Consideration / 2007 EBITDA (3): 18.1x

Net Present Value Net Present Value

EBIT EBIT

Recurring Profits Recurring Profits

Comparison of Max Earn-out Cases

Acquired EBITDA (1): $26.4

Value of Exit (2): $71.1

Total Consideration: ($35.7)

Net Present Value: $61.8

Consideration / 2007 EBITDA (3): 10.2x

FY09 FY10 FY11 FY12 FY13

Status Quo - P10 EBITDA ($0.1) $2.9 $5.9 $9.6 $14.9

Incremental EBITDA $0.1 $8.2 $10.2 $12.5 $15.3

Total EBITDA $0.0 $11.1 $16.1 $22.1 $30.2

Amortization ($3.5) ($3.5) ($3.5) ($3.5) ($3.5)

EBIT b/f Earn-out ($3.5) $7.6 $12.6 $18.6 $26.7

Total Earn-Out $0.0 ($4.0) ($6.0) ($8.0) ($10.0)

EBIT ($3.5) $3.6 $6.6 $10.6 $16.7

EO / EBIT b/f EO 0% 53% 48% 43% 38%

FY09 FY10 FY11 FY12 FY13

Recurring Profits N/A $5.0 $10.0 $15.0 $25.0

FY09 FY10 FY11 FY12 FY13

Status Quo - P10 EBITDA ($0.1) $2.9 $5.9 $9.6 $14.9

Incremental EBITDA $0.1 $28.2 $50.2 $72.5 $95.3

Total EBITDA $0.0 $31.1 $56.1 $82.1 $110.2

Amortization ($3.5) ($3.5) ($3.5) ($3.5) ($3.5)

EBIT b/f Earn-out ($3.5) $27.6 $52.6 $78.6 $106.7

Total Earn-Out $0.0 ($9.0) ($16.0) ($23.0) ($30.0)

EBIT ($3.5) $18.6 $36.6 $55.6 $76.7

EO / EBIT b/f EO 0% 33% 30% 29% 28%

FY09 FY10 FY11 FY12 FY13

Recurring Profits N/A $5.0 $10.0 $15.0 $25.0

8(1) Source: Jeffries

Comparable M&A Multiples Support Proposed Valuation

Median Multiple

ER Figures

(MM)

Implied Value (MM)

Sales 1.6x $28.6 $45.8

EBITDA 11.7x $3.4 $39.8

EBIT 12.9x $3.4 $43.9

Average Implied Value (MM)

$43.1

na14.8x3.0x£351ITV12 Yard ProductionsDec-07

18.8xna0.4x£31.4SchibstedMetronome Film & Television Sep-07

na8.6x1.9x£18.0Shed MediaTwenty TwentyProductionsSep-07

nana1.8x£175.0NBC UniversalSparrowhawk MediaAug-07

8.6x8.5xna£20.0ShinePrincess ProductionsJan-0721.2x19.2x3.0x€3,396.8Investor group incl. John de Mol EndemolMay-07

nana3.6x€250.0De AgostiniMarathon GroupJul-07

na7.3x3.8x£111.532waytrafficWWTBAM & CelladorDec-06

nmna2.7x£3.0DCD MediaWest Park PicturesJul-07

nana2.2x£50.02All3MediaObjective ProductionsAug-07

3.9xna0.9x£7.1DCD MediaProspect PicturesJul-0712.9xna1.2x£9.1DCD MediaSeptember HoldingsJul-07

nana2.6x€450.0Endemol NVEndemol FranceJan-07

11.3x11.0xna£35.0ShineKudosDec-0612.3x11.5x1.4x£320.0Secondary buy-out (Permira)All3MediaAug-06

nana1.0x£20.03IMG MediaDarlow Smithson ProductionsApr-06

15.1x12.1x0.4x£27.03IMG Media Tiger Aspect HoldingsMay-06

4.5x4.3x0.4x£15.64GFP VermögensverwaltungsOdeon Film Apr-06nananaNaSpützHurricane Mar-06

14.1xna2.0x£30.03ShedRicochet Nov-05

12.9x11.7x1.6xMedian

12.9x12.3x1.7xAverage

19.5x17.5x0.8x£14.03RDF IWCDec-05

na21.2x0.6x£27.7Tinopolis TV Corp Oct-05

na11.9x0.9x£4.2RDFTouchpaper TelevisionAug-05

Transaction Value /

Last FY

Sales

Last FY

EBITDA

Last FY

EBIT

Transaction Value (m)

(100%)AcquirorTargetDate

na14.8x3.0x£351ITV12 Yard ProductionsDec-07

18.8xna0.4x£31.4SchibstedMetronome Film & Television Sep-07

na8.6x1.9x£18.0Shed MediaTwenty TwentyProductionsSep-07

nana1.8x£175.0NBC UniversalSparrowhawk MediaAug-07

8.6x8.5xna£20.0ShinePrincess ProductionsJan-0721.2x19.2x3.0x€3,396.8Investor group incl. John de Mol EndemolMay-07

nana3.6x€250.0De AgostiniMarathon GroupJul-07

na7.3x3.8x£111.532waytrafficWWTBAM & CelladorDec-06

nmna2.7x£3.0DCD MediaWest Park PicturesJul-07

nana2.2x£50.02All3MediaObjective ProductionsAug-07

3.9xna0.9x£7.1DCD MediaProspect PicturesJul-0712.9xna1.2x£9.1DCD MediaSeptember HoldingsJul-07

nana2.6x€450.0Endemol NVEndemol FranceJan-07

11.3x11.0xna£35.0ShineKudosDec-0612.3x11.5x1.4x£320.0Secondary buy-out (Permira)All3MediaAug-06

nana1.0x£20.03IMG MediaDarlow Smithson ProductionsApr-06

15.1x12.1x0.4x£27.03IMG Media Tiger Aspect HoldingsMay-06

4.5x4.3x0.4x£15.64GFP VermögensverwaltungsOdeon Film Apr-06nananaNaSpützHurricane Mar-06

14.1xna2.0x£30.03ShedRicochet Nov-05

12.9x11.7x1.6xMedian

12.9x12.3x1.7xAverage

19.5x17.5x0.8x£14.03RDF IWCDec-05

na21.2x0.6x£27.7Tinopolis TV Corp Oct-05

na11.9x0.9x£4.2RDFTouchpaper TelevisionAug-05

Transaction Value /

Last FY

Sales

Last FY

EBITDA

Last FY

EBIT

Transaction Value (m)

(100%)AcquirorTargetDate