The Next-Generation Independent Music & Media Company

Integrates Essential Links in Music Value Chain Currently Fulfilled by Separate Parties

Traditional “Bricks & Mortar” Record Label Operations

Live Performance Venues

Digital Distribution Channel

An Exceptional Combination of Artists, Producers, Business Executives & Technologists

Competitive Advantage

More Attractive to Artists

New Economic Model

Broader Services

Commitment to Artist Development

More Attractive to Consumers

Direct connectivity from Consumer to Artists

Music Whenever, Wherever, & However

Integrated Approach

Direct Consumer Connectivity

Greater Profitability &

Shareholder Value

Music Industry - Best Point of Entry

Traditional business practices under pressure to change

Digital technology has created new distribution opportunity

Artist Network, as start-up, in best position to take advantage

The Future

Once Model Is Proven, Other Digital Media (Including Film) Follow

Designing Business Practices & Digital Platform From Day-one

Establishing Alliances With Digital Film Initiatives Including Ealing Digital

The People

Quincy Jones, Chairman & Co-founder

Michael Philipp, Vice Chairman

Dave Stewart, Director & Co-founder

Russell Kleinknecht, President , CEO, & Co-founder

John Preston, Director

Quincy Jones, Chairman & Co-founder

Over 50 years of highly successful & diverse experience

A Legendary Career • Composer, Artist, Instrumentalist,

Arranger, Conductor• Record producer• Film & TV producer• Record company executive• Multi-media entrepreneur• Founder of a broadcasting company &

magazine

Extensive experience in every aspect of the industry

Michael Philipp, Vice Chairman

19 highly successful years in the financial industry

Chairman & CEO of Deutsche Asset Management

June 2000 - Appointed to Deutsche Bank Group Board of Managing Directors

Dave Stewart, Director & Co-founder

Award Winning Musician & Producer• 4 Best Producer awards - 4 Best Songwriter awards

• British Music Lifetime Achievement Award

• Prestigious Silver Clef award

Formed Eurythmics with Annie Lennox in 1981• Sold nearly 50 million albums

President of the Internet Society, Trinity College (Dublin)

Creative Director of the Hospital Project with Microsoft’s Paul Allen

Russell Kleinknecht, President, CEO & Co-founder, Director

20 Highly Successful Years As a Technology Visionary

Past President of IPC Information Systems, Inc., The Dominant Global Provider of Voice Trading Systems to Financial Institutions

Accomplished Musician, Singer, & Songwriter

John Preston, Director

25 Years Experience in the Music Business

Chairman of BMG Entertainment International UK & Ireland and British Phonographic Industry (BPI) from 1989 - 1998

Board of the International Federation of the Phonographic Industry (IFPI)

Worked for EMI and Polygram (Managing Director of Polydor Records)

Organization Chart

ContentContent

Chief Financial OfficerChief Financial Officer VP of Business AffairsVP of Business Affairs

VenuesVenues DigitalDigital

ClubsClubsClubsClubs

ConcertsConcertsConcertsConcerts

RetailRetailRetailRetail

TicketingTicketingTicketingTicketing

Product DevelopmentProduct DevelopmentProduct DevelopmentProduct Development

ArchiveArchiveArchiveArchive

Customer Relationship MgmtCustomer Relationship MgmtCustomer Relationship MgmtCustomer Relationship Mgmt

DistributionDistributionDistributionDistribution

Board of DirectorsBoard of Directors

Chief Executive OfficerChief Executive Officer

Owned LabelsOwned LabelsOwned LabelsOwned Labels

PartnersPartnersPartnersPartners

Direct ArtistDirect ArtistDirect ArtistDirect Artist

DistributionDistributionDistributionDistribution

The Strategies

Record Label Strategy

Venue Strategy

Digital Strategy

Record Label Strategy

Venue

StrategyDigital

Strategy

Record Label Strategy

Start-Up new label unencumbered by legacy legal agreements

Utilize relationship with major global provider of traditional distribution services

Institute new contract model with artists

LLC Partnership

Profit Split

Manage P&L at LLC Level

Consolidate efforts within single staff

Record Label Strategy

Launch Initial Artists & Heavily Promote their Success from New Model

Aggregate A&R Sources through Integrated Approach• Venues• Digital Platform• Traditional

Build Consumer Brand Recognition

Cultivate Worldwide Philosophy

Venue StrategyOperate Local Venues as part of Worldwide Network

Owned in Strategic Markets - Affiliated in Other Regions

Promote Artist & Brand at Most Fundamental Level

Build & Exploit Direct Consumer Relationship

Create Opportunity for Cultural Exchange

Live Performance Museum

Retail Digital Cinema

Gallery Production Facilities

Digital StrategyOwn & Operate the Most Direct Connection to the Consumer by Implementing a Digital Distribution Platform (DDP) with Interfaces for:

Internet

Wireless Networks

Venues

Retail

Other Consumer Destinations (ITV, Private, etc.)

Monetize Content

Build & Populate Consumer Database

Digital Strategy

Offer Membership and Multi-Tiered Subscriber Services

Use DDP to generate revenue from subscription and sales of:

CDs, DVDs

Downloads

Tickets & Merchandise

Build Profile Capability & Perform highly personalized targeted marketing of existing and new product to the Consumer base.

Differentiation

No Other Company

Summary Income Statement2001 2002 2003 2004 2005 2006

REVENUES

Digital - 3,286 18,192 64,794 149,792 340,897

Content - 13,567 57,109 112,968 167,837 230,973

Venues - 16,112 101,778 153,619 177,249 184,286

- 32,965 177,079 331,381 494,878 756,156

EBITDA

Digital (4,670) (35,028) (36,837) (9,554) 39,641 148,767

Content (1,465) (8,795) 4,729 7,443 13,370 28,127

Venues (98) (296) 11,619 19,243 22,995 24,280

Operating Overhead (1,853) (11,594) (14,345) (15,022) (16,205) (17,881)

(8,086) (55,713) (34,834) 2,110 59,801 183,293

-169% -20% 1% 12% 24%

Depreciation / Amortization 7 2,461 8,395 12,558 10,150 6,902

EBIT (8,093) (58,174) (43,229) (10,448) 49,651 176,391

Initiatives

Create Multicultural Exchange

Programs• “World Music Experience”• Ambassadors of Good Will

Not limited to AN Artists

Initiatives“World Music Experience” Program

• Quincy Jones - World Music Ambassador• Live Shows & Festivals• College Tours & Promotions• Record Releases• Inter-venue Broadcasts• On-line (Internet, Mobile Phone, PDA, etc.)• Pre-cinema Shorts at AN Digital Screens• Philanthropy

Summary

Exit ProgramMain Menu Exec Brief Company People Financials Summary Exit ProgramMain Menu Exec Brief Company People Financials SummaryStrategy