Confidential Draft Embassy Row March 17, 2008 – Status Update.

Confidential Draft

Embassy Row

March 17, 2008 – Status Update

2

• $25.0MM up-front payment

• Up to $50.0 MM of potential earn-outs tied to exceeding EBITDA thresholds and generating recurring profits

– Tier 1 (First $15.0MM) – Once ER hits threshold EBITDA Davies receives 50% of incremental EBITDA up to a cap

– Tier 2 (Next $35MM) – Once Tier 1 earn-outs are achieved, if ER has generated a minimum amount of format profits in each year, Davies receives 40% of incremental EBITDA up to a cap. If minimum format profits are not achieved, Davies earns 15% of incremental EBITDA up to a cap

Last Sony Proposal

Max Total Consideration: $75.0 MM

PV(1) of Max Total Consideration: $53.8MM

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

(2) Syndication Profits + International Format Fees

Tier 1 FY09 FY10 FY11 FY12 FY13 Total

Earn-Out Cap $0.0 $3.0 $3.0 $4.0 $5.0 $15.0Threshold EBITDA $0.0 $6.0 $8.0 $9.0 $12.0 $35.0

Tier 2Earn-Out Cap $0.0 $7.0 $8.0 $9.0 $11.0 $35.0Threshold EBITDA $0.0 $12.0 $14.0 $17.0 $22.0 $65.0Format Profit Target $0.0 $12.0 $14.0 $17.0 $22.0 $65.0

3

Key Assumptions – Revised Model Assumptions

Low Case Base Case High Case

Model Adjustments

• Slate: Slate remains unchanged

• Power of 10: Excludes profits from

Power of 10 (format/syndication)

• Format Profits: Format profits are at

slightly below the industry average

($3.0M)

• Local Production: No local production

• Interactive Profit Growth Rate:

Unchanged at 0%

• Factual Profits from ER: Does not

include the profits from the Factual

portion of Embassy Row’s business

• Slate: Slate remains unchanged

• Power of 10: Includes profits from Power

of 10 (format/syndication)

• Format Profits: Format profits are at

slightly below the industry average

($3.0M)

• Local Production: Local production in

the UK +$3M (for Power of 10)


Increased to 5%

• Factual Profits from ER: Includes the

profits from the Factual portion of

Embassy Row’s business

– Factual Profit Growth Rate at 5% for

2011/2012

– Add +2 HC to manage production

• Slate: Slate includes a home run

network show that starts it run in FY09

• Power of 10: Includes profits from

Power of 10 (format/syndication)

• Format Profits: Above industry

average ($6.5M) for home run show,

but remains at $3.0M for others

• Local Production: Local production in

the UK +$3M for Pof10; UK + 3

additional territories at +$1M per for

“Home Run”


Increased to 10%

• Factual Profits from ER: Includes the

profits from the Factual portion of

Embassy Row’s business

– Factual Profit Growth Rate at 5%

for 2011/2012

– Add +2 HC to manage production

Model Adjustments Model Adjustments

4

Economic Impact of Last Sony Proposal


Acquired EBITDA (1): $0.8

Value of Exit (2): $7.3

Total Consideration: ($25.0)

Net Present Value: ($16.9)

Consideration / 2007 EBITDA (3): 7.1x

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




Net Present Value: $12.8







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 ($0.6) $0.0 $0.0 $0.0 $0.0

Incremental EBITDA $0.8 ($0.3) ($1.2) $0.8 $1.6

Total EBITDA $0.2 ($0.3) ($1.2) $0.8 $1.6

Amortization ($4.4) ($4.4) ($4.4) ($4.4) ($4.4)

EBIT b/f Earn-out ($4.2) ($4.7) ($5.6) ($3.6) ($2.8)

Total Earn-Out $0.0 $0.0 $0.0 $0.0 $0.0

EBIT ($4.2) ($4.7) ($5.6) ($3.6) ($2.8)

EO / EBIT b/f EO 0% 0% 0% 0% 0%


Recurring Profits $0.4 $1.1 $0.8 $3.8 $6.6



Incremental EBITDA $1.4 $1.4 $3.7 $5.8 $6.7

Total EBITDA $1.3 $4.3 $9.6 $15.5 $21.6

Amortization ($4.4) ($4.4) ($4.4) ($4.4) ($4.4)

EBIT b/f Earn-out ($3.1) ($0.1) $5.2 $11.1 $17.3

Total Earn-Out $0.0 $0.0 ($0.8) ($3.2) ($4.8)

EBIT ($3.1) ($0.1) $4.4 $7.9 $12.4

EO / EBIT b/f EO 0% 0% 15% 29% 28%






Total EBITDA $1.3 $15.2 $23.5 $31.4 $39.4

Amortization ($4.4) ($4.4) ($4.4) ($4.4) ($4.4)

EBIT b/f Earn-out ($3.1) $10.8 $19.1 $27.1 $35.0

Total Earn-Out $0.0 ($3.5) ($4.4) ($9.8) ($12.0)

EBIT ($3.1) $7.3 $14.7 $17.3 $23.1

EO / EBIT b/f EO 0% 32% 23% 36% 34%



5

Michael Davies Counter Proposal

• $25.0MM initial consideration

• Earn-Out based on a multiple of “Profits”* as defined below, for applicable FY (4/1 – 3/31):

• For modeling purposes, we’ve adjusted their Fiscal Year definiton to be in-line with Sony’s

FY % of Profits* MultiplePayment Date

(a) FY09

(b) FY10 100% of average of 2008 & 2009 7 April 2010

(c) FY11 25% 7 April 2011

(d) FY12 50% 7 April 2012

(e) FY13 100% of average profits for 2010-12, less Advance and amounts already paid under (b) – (d), with a floor payment of an additional $15 million (on top of Advance) and a cap of $75 million (inclusive of Advance).

7 April 2013

*“Profits” defined under GAAP, prepared consistently with ER business plan of [date], and declared in audited and certified statement. "EBITDA" means, for any period, net income (or net losses) of ER determined exclusive of any extraordinary fees and expenses, plus (i) all interest expense in respect of ER's debt, (ii) the total expense of ER for depreciation and amortization, and (iii) provisions for all taxes of ER for such period, in each case calculated in accordance with GAAP.

6

Economic Impact of Michael Davies Counter Proposal


Net Present Value Net Present Value Net Present Value

EBIT EBIT EBIT

Recurring Profits Recurring Profits Recurring Profits

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








Incremental EBITDA $0.8 ($0.3) ($1.2) $0.8 $1.6

Total EBITDA $0.2 ($0.3) ($1.2) $0.8 $1.6

Amortization ($4.4) ($4.4) ($4.4) ($4.4) ($4.4)

EBIT b/f Earn-out ($4.2) ($4.7) ($5.6) ($3.6) ($2.8)

Total Earn-Out $0.0 $0.0 $0.0 ($2.8) ($15.0)

EBIT ($4.2) ($4.7) ($5.6) ($6.3) ($17.8)

EO / EBIT b/f EO 0% 0% 0% N/A N/A
















Total EBITDA $1.3 $4.3 $9.6 $15.5 $21.6

Amortization ($4.4) ($4.4) ($4.4) ($4.4) ($4.4)

EBIT b/f Earn-out ($3.1) ($0.1) $5.2 $11.1 $17.3

Total Earn-Out $0.0 ($19.6) ($16.8) ($13.5) $0.0

EBIT ($3.1) ($19.7) ($11.6) ($2.4) $17.3

EO / EBIT b/f EO 0% N/A N/A N/A 0%






Total EBITDA $1.3 $15.2 $23.5 $31.4 $39.4

Amortization ($4.4) ($4.4) ($4.4) ($4.4) ($4.4)

EBIT b/f Earn-out ($3.1) $10.8 $19.1 $27.1 $35.0

Total Earn-Out $0.0 ($50.0) $0.0 $0.0 $0.0

EBIT ($3.1) ($39.2) $19.1 $27.1 $35.0

EO / EBIT b/f EO 0% N/A 0% 0% 0%



7

Appendix (Detail for Revised Model as of 3/17/08)

8

Summary Slate: Base Case (Calendar Year Basis)

2007 EPS 2008 EPS 2009 EPS 2010 EPS 2011 EPS 2012 EPS 2013 EPS

WSOPC (CS1) 8 WSOPC (CS1) 10 WSOPC (CS1) 12 WSOPC (CS1) 12

Grand Slam (CS2) 8 Grand Slam (CS2) 8 Grand Slam (CS2) 10 Grand Slam (CS2) 10 Grand Slam (CS2) 12

Chain Reaction (CSS1) 130 Chain Reaction (CSS1) 65 Chain Reaction (CSS1) 65P10 (NS1) 8 P10 (NS1) 16 P10 (NS1) 16 P10 (NS1) 22 P10 (NS1) 26

P10 (FMT1) 40 P10 (FMT1) 40 P10 (FMT1) 40 P10 (FMT1) 40 P10 (FMT1) 40P10 (SYN1) 195 P10 (SYN1) 195 P10 (SYN1) 195 P10 (SYN1) 195 P10 (SYN1) 195

Network Series (Davies) 8Cable Series (Davies) 40

Net Series 2 (NS2) 8Cable Strip Series 1 (CSS1) 65Syn Series 1 130Acquired Net Pdt 1 (ANP1) 8

Net Series 3 (NS3) 8Net Series 4 (NS4) 8

Cable Strip Series 2 (CSS2) 65 Cable Strip Series 2 (CSS2) 130 Cable Strip Series 2 (CSS2) 130 Cable Strip Series 2 (CSS2) 130Cable Strip Series 2 (FMT2) 40 Cable Strip Series 2 (FMT2) 40

Acquired Cable Pdt 1 (ACP1) 13 Acquired Cable Pdt 1 (ACP1) 65 Acquired Cable Pdt 1 (ACP1) 65

Net Series 6 (NS6) 8 Net Series 6 (NS6) 26 Net Series 6 (NS6) 26Cable Series (CS4) 40 Cable Series (CS4) 40

Acquired Net Pdt 2 (ANP2) 13Net Series 6 (FMT2) 40Net Series 6 (SYN2) 195

Cable Strip Series 4 (CSS4) 65Acquired Cable Pdt 2 (ACP2) 10 Acquired Cable Pdt 2 (ACP2) 10

Net Series 10 (NS10) 8Cable Strip Series 5 (CSP5) 65

Acquired Net Pdt 3 (ANP3) 10

Net Pilot 1 (NP1) 1 Net Pilot 3 (NP3) 1 Net Pilot 5 (NP5) 1 Net Pilot 7 (NP7) 1 Net Pilot 9 (NP9) 1 Net Pilot 11 (NP11) 1Net Pilot 2 (NP2) 1 Net Pilot 4 (NP4) 1 Net Pilot 6 (NP6) 1 Net Pilot 8 (NP8) 1 Net Pilot 10 (NP10) 1 Net Pilot 12 (NP12) 1Spec Net Pilot 1 (SNP1) Spec Net Pilot 2 (SNP2) 1 Spec Net Pilot 3 (SNP3) 1

Cable Pilot 1 (CP1) 1 Cable Pilot 2 (CP2) 1 Cable Pilot 4 (CP4) 1 Cable Pilot 6 (CP6) 1 Cable Pilot 8 (CP8) 1 Cable Pilot 10 (CP10) 1Cable Pilot 3 (CP3) 1 Cable Pilot 5 (CP5) 1 Cable Pilot 7 (CP7) 1 Cable Pilot 9 (CP9) 1 Cable Pilot 11 (CP11) 1

Cable Strip Pilot 1 (CSP 1) 1 Cable Strip Pilot (CSP2) 1 Cable Strip Pilot 3 (CSP3) 1 Cable Strip Pilot 4 (CSP4) 1 Cable Strip Pilot 5 (CSP5) 1 Cable Strip Pilot 6 (CSP6) 1

SynPilot 1 1 SynPilot2 1 SynPilot 3 1 SynPilot 4 1 SynPilot 5 1 SynPilot 6 1

Acquired Net Pdt 1 (ANP1) 1 Acquired Cable Pdt 1 (ACP1) 1 Acquired Net Pdt 2 (ANP2) 1 Acquired Cable Pdt 2 (ACP2) 1 Acquired Net Pdt 3 (ANP3) 1 Acquired Cable Pdt 3 (ACP3) 1

9

Summary Slate: High Case (Calendar Year Basis)

2007 EPS 2008 EPS 2009 EPS 2010 EPS 2011 EPS 2012 EPS 2013 EPS

WSOPC (CS1) 8 WSOPC (CS1) 10 WSOPC (CS1) 12 WSOPC (CS1) 12

Grand Slam (CS2) 8 Grand Slam (CS2) 8 Grand Slam (CS2) 10 Grand Slam (CS2) 10 Grand Slam (CS2) 12

Chain Reaction (CSS1) 130 Chain Reaction (CSS1) 65 Chain Reaction (CSS1) 65P10 (NS1) 8 P10 (NS1) 16 P10 (NS1) 16 P10 (NS1) 22 P10 (NS1) 26

P10 (FMT1) 40 P10 (FMT1) 40 P10 (FMT1) 40 P10 (FMT1) 40 P10 (FMT1) 40P10 (SYN1) 195 P10 (SYN1) 195 P10 (SYN1) 195 P10 (SYN1) 195 P10 (SYN1) 195

Network Series (Davies) 8Cable Series (Davies) 40

Net Series 2 (NS2) 8 Net Series 2 (NS2) 8 Net Series 2 (NS2) 8 Net Series 2 (NS2) 8 Net Series 2 (NS2) 8Cable Strip Series 1 (CSS1) 65 Net Series 2 (FMT2) 40 Net Series 2 (FMT2) 40 Net Series 2 (FMT2) 40Syn Series 1 130 Net Series 2 (SYN2) 195 Net Series 2 (SYN2) 195 Net Series 2 (SYN2) 195Acquired Net Pdt 1 (ANP1) 8

Net Series 3 (NS3) 8


Cable Strip Series 2 (CSS2) 65 Cable Strip Series 2 (CSS2) 130 Cable Strip Series 2 (CSS2) 130 Cable Strip Series 2 (CSS2) 130

Cable Strip Series 2 (FMT2) 40 Cable Strip Series 2 (FMT2) 40

Acquired Cable Pdt 1 (ACP1) 13 Acquired Cable Pdt 1 (ACP1) 65 Acquired Cable Pdt 1 (ACP1) 65

Net Series 6 (NS6) 8 Net Series 6 (NS6) 26 Net Series 6 (NS6) 26

Cable Series (CS4) 40 Cable Series (CS4) 40


Net Series 6 (FMT2) 40Net Series 6 (SYN2) 195

Cable Strip Series 4 (CSS4) 65

Acquired Cable Pdt 2 (ACP2) 10 Acquired Cable Pdt 2 (ACP2) 10


Cable Strip Series 5 (CSP5) 65


Net Pilot 1 (NP1) 1 Net Pilot 3 (NP3) 1 Net Pilot 5 (NP5) 1 Net Pilot 7 (NP7) 1 Net Pilot 9 (NP9) 1 Net Pilot 11 (NP11) 1

Net Pilot 2 (NP2) 1 Net Pilot 4 (NP4) 1 Net Pilot 6 (NP6) 1 Net Pilot 8 (NP8) 1 Net Pilot 10 (NP10) 1 Net Pilot 12 (NP12) 1

Spec Net Pilot 1 (SNP1) Spec Net Pilot 2 (SNP2) 1 Spec Net Pilot 3 (SNP3) 1

Cable Pilot 1 (CP1) 1 Cable Pilot 2 (CP2) 1 Cable Pilot 4 (CP4) 1 Cable Pilot 6 (CP6) 1 Cable Pilot 8 (CP8) 1 Cable Pilot 10 (CP10) 1

Cable Pilot 3 (CP3) 1 Cable Pilot 5 (CP5) 1 Cable Pilot 7 (CP7) 1 Cable Pilot 9 (CP9) 1 Cable Pilot 11 (CP11) 1

Cable Strip Pilot 1 (CSP 1) 1 Cable Strip Pilot (CSP2) 1 Cable Strip Pilot 3 (CSP3) 1 Cable Strip Pilot 4 (CSP4) 1 Cable Strip Pilot 5 (CSP5) 1 Cable Strip Pilot 6 (CSP6) 1

SynPilot 1 1 SynPilot2 1 SynPilot 3 1 SynPilot 4 1 SynPilot 5 1 SynPilot 6 1

Acquired Net Pdt 1 (ANP1) 1 Acquired Cable Pdt 1 (ACP1) 1 Acquired Net Pdt 2 (ANP2) 1 Acquired Cable Pdt 2 (ACP2) 1 Acquired Net Pdt 3 (ANP3) 1 Acquired Cable Pdt 3 (ACP3) 1

10

Detailed P&L: Low-Case

Embassy Row Power of 10 (with Benefit of Davies Buyout)Fiscal Year Fiscal Year

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013Revenue - - - - - Embassy Row Product in Development - - - - -

Budget 21,463.72 22,276.86 23,881.22 18,012.12 - EP Fee 2,192.25 2,237.92 2,298.06 1,762.38 - Charge Backs 1,164.31 1,200.75 1,240.34 895.42 -

Newly Developed Product - - - - - Network 5,776.00 7,220.00 10,108.00 9,272.00 21,464.00 First Run 4,280.25 12,840.75 - - 6,420.38 Cable 1,460.92 2,053.19 2,936.39 6,172.80 7,657.56 Acquired Net 1,444.00 4,332.00 2,346.50 7,039.50 2,346.50 Acquired Cable - 102.66 848.29 2,268.66 2,483.47

EP Fee - - - - - Network 727.60 872.00 1,160.80 1,077.20 2,296.40 First Run - - - - - Cable 202.34 280.32 368.64 692.28 840.76 Acquired Net 144.40 433.20 234.65 703.95 234.65 Acquired Cable - 10.27 84.83 226.87 248.35

Charge Backs - - - - - Network - - - - - First Run - - - - - Cable - - - - - Acquired Net - - - - - Acquired Cable - - - - -

- - - - - Formats - - 756.25 3,781.25 6,050.00 Power of 10 Revenues - - - - -

- - - - - Total Revenue 38,855.80 53,859.92 46,263.96 51,904.42 50,042.06 Combined Revenue 38,855.80 53,859.92 46,263.96 51,904.42 50,042.06

CostsEmbassy Row Product in Development - - - - -

ER Production Costs 21,463.72 22,276.86 23,881.22 18,012.12 - Pilots/Acquisition Costs - - - - -

Network 450.00 450.00 337.50 - - First Run 1,800.00 1,800.00 1,800.00 1,800.00 1,800.00 Cable - - - - - Acquired Net 72.20 216.60 117.33 351.98 117.33 Acquired Cable - 5.13 42.41 113.43 124.17


Embassy Row Overhead 1,204.96 1,221.01 1,508.30 1,657.74 1,740.63 ER Headcount 2,191.84 2,630.94 2,720.95 2,823.96 2,950.67 P10 Costs (before ER Acq.) - - - - -

Incremental Headcount 154.35 687.96 1,028.96 1,434.64 1,506.38 - Davies Participation - - - - - Incremental Overhead 38.59 171.99 257.24 358.66 376.59 + Davies OH Deal 600.00 Acquisition Budget 187.50 812.50 1,062.50 1,312.50 1,562.50 Post Deal Cost 600.00 - - - -

Total Costs 40,144.09 55,680.85 48,995.59 52,617.99 49,979.80 Combined Costs 40,744.09 55,680.85 48,995.59 52,617.99 49,979.80

+ New Media Profits 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 Power of 10 EBITDA (600.00) - - - - + Factual Profits - - - - - + Foreign Production Profit - - - - -

Operating Income/Loss 211.72 (320.92) (1,231.64) 786.42 1,562.26 Combined OI/EBITDA (388.28) (320.92) (1,231.64) 786.42 1,562.26

11

Detailed P&L: Mid-Case





EP Fee - - - - - Network 727.60 872.00 1,160.80 1,077.20 2,296.40 First Run - - - - - Cable 202.34 280.32 368.64 692.28 840.76 Acquired Net 144.40 433.20 234.65 703.95 234.65 Acquired Cable - 10.27 84.83 226.87 248.35


- - - - - Formats - - 756.25 3,781.25 6,050.00 Power of 10 Revenues 7,170.38 29,004.88 30,950.00 35,825.00 42,325.00






Embassy Row Overhead 1,204.96 1,221.01 1,508.30 1,657.74 1,740.63 ER Headcount 2,251.69 2,870.34 2,960.35 3,063.36 3,190.07 P10 Costs (before ER Acq.) 6,037.50 26,100.00 25,042.50 26,212.50 27,431.25

Incremental Headcount 154.35 687.96 1,028.96 1,434.64 1,506.38 - Davies Participation 337.50 1,350.00 1,350.00 1,350.00 1,350.00 Incremental Overhead 38.59 171.99 257.24 358.66 376.59 + Davies OH Deal 600.00 Acquisition Budget 187.50 812.50 1,062.50 1,312.50 1,562.50 Post Deal Cost 6,300.00 24,750.00 23,692.50 24,862.50 26,081.25


+ New Media Profits 1,500.00 1,575.00 1,653.75 1,736.44 1,823.26 Power of 10 EBITDA 870.37 4,254.88 7,257.50 10,962.50 16,243.75 + Factual Profits 277.21 544.41 679.40 713.37 749.04 + Foreign Production Profit - - 3,000.00 3,000.00 3,000.00

Operating Income/Loss 429.07 59.09 2,362.11 4,496.83 5,395.16 Combined OI/EBITDA 1,299.45 4,313.96 9,619.61 15,459.33 21,638.91

12

Detailed P&L: High-Case




Newly Developed Product - - - - - Network 5,776.00 8,740.00 16,268.00 15,752.00 28,268.00 First Run 4,280.25 12,840.75 6,420.38 26,004.88 34,370.38 Cable 1,460.92 2,053.19 2,936.39 6,172.80 7,657.56 Acquired Net 1,444.00 4,332.00 2,346.50 7,039.50 2,346.50 Acquired Cable - 102.66 848.29 2,268.66 2,483.47

EP Fee - - - - - Network 727.60 1,024.00 1,776.80 1,725.20 2,976.80 First Run - - - - - Cable 202.34 280.32 368.64 692.28 840.76 Acquired Net 144.40 433.20 234.65 703.95 234.65 Acquired Cable - 10.27 84.83 226.87 248.35


- - - - - Formats - 1,625.00 7,250.00 10,250.00 12,500.00 Power of 10 Revenues 7,170.38 29,004.88 30,950.00 35,825.00 42,325.00





Newly Developed Product - - - - - Network 5,776.00 8,740.00 16,268.00 15,752.00 28,268.00 First Run 3,900.00 11,700.00 5,850.00 23,400.00 29,542.50 Cable 1,460.92 2,053.19 2,936.39 6,172.80 7,657.56 Acquired Net 1,444.00 4,332.00 2,346.50 7,039.50 2,346.50 Acquired Cable - 102.66 848.29 2,268.66 2,483.47

Embassy Row Overhead 1,204.96 1,221.01 1,508.30 1,657.74 1,740.63 ER Headcount 2,251.69 2,870.34 2,960.35 3,063.36 3,190.07 P10 Costs (before ER Acq.) 6,037.50 26,100.00 25,042.50 26,212.50 27,431.25

Incremental Headcount 154.35 687.96 1,028.96 1,434.64 1,506.38 - Davies Participation 337.50 1,350.00 1,350.00 1,350.00 1,350.00 Incremental Overhead 38.59 171.99 257.24 358.66 376.59 + Davies OH Deal 600.00 Acquisition Budget 187.50 812.50 1,062.50 1,312.50 1,562.50 Post Deal Cost 6,300.00 24,750.00 23,692.50 24,862.50 26,081.25


+ New Media Profits 1,500.00 1,650.00 1,815.00 1,996.50 2,196.15 Power of 10 EBITDA 870.37 4,254.88 7,257.50 10,962.50 16,243.75 + Factual Profits 277.21 544.41 679.40 713.37 749.04 + Foreign Production Profit - 9,000.00 9,000.00 9,000.00 9,000.00

Operating Income/Loss 429.07 10,911.09 16,203.49 20,478.52 23,155.95 Combined OI/EBITDA 1,299.45 15,165.96 23,460.99 31,441.02 39,399.70

13

Model AssumptionsSPE Assumptions

Source Embassy Row Pof10 Embassy Row SPE Embassy Row

($ in 000) Network First-Run CableAcquired Network Acquired Cable

Cost per Pilot/Sales Material $750 $1,800 $250Cost per Pilot/Sales Material % paid $0 $1,800 $0Episodes (est.) 26 195 65 26 65Fee per ep, for acquisitions / Yr 1 $36 $1.6Fee per ep, for acquisitions / Yr 2 $38 $1.7Fee per ep, for acquisitions / Yr 3 $40 $1.8Fee per ep, for acquisitions / Yr 4 $42 $1.8Fee per ep, for acquisitions / Yr 5 $44 $1.9

Lic / ep Yr 1 $722 $67 $32 $722 $32Lic / ep Yr 2 $760 $73 $33 $760 $33Lic / ep Yr 3 $800 $93 $35 $800 $35Lic / ep Yr 4 $840 $133 $37 $840 $37Lic / ep Yr 5 $882 $147 $39 $882 $39

Ads / ep Yr 1 $0 $65 $0 $0 $0Ads / ep Yr 2 $0 $65 $0 $0 $0Ads / ep Yr 3 $0 $65 $0 $0 $0Ads / ep Yr 4 $0 $65 $0 $0 $0Ads / ep Yr 5 $0 $65 $0 $0 $0

EP / ep Yr 1 $72 $0 $3 $72 $3EP / ep Yr 2 $76 $0 $3 $76 $3EP / ep Yr 3 $80 $0 $4 $80 $4EP / ep Yr 4 $84 $0 $4 $84 $4EP / ep Yr 5 $88 $0 $4 $88 $4

Chargeback Fee / ep Yr 1 $0 $0 $0 $0 $0Chargeback Fee / ep Yr 2 $0 $0 $0 $0 $0Chargeback Fee / ep Yr 3 $0 $0 $0 $0 $0Chargeback Fee / ep Yr 4 $0 $0 $0 $0 $0Chargeback Fee / ep Yr 5 $0 $0 $0 $0 $0

All Prod/Mkting/Distr Costs / ep Yr 1 $722 $120 $32 $722 $32All Prod/Mkting/Distr Costs / ep Yr 2 $760 $120 $33 $760 $33All Prod/Mkting/Distr Costs / ep Yr 3 $800 $126 $35 $800 $35All Prod/Mkting/Distr Costs / ep Yr 4 $840 $132 $37 $840 $37All Prod/Mkting/Distr Costs / ep Yr 5 $882 $139 $39 $882 $39

Other Low Mid HighEpisodes per Territory 50 50.0 50.0 50.0Territories 15 15.0 15.0 20.0Fee Per Ep $4 4.0 4.6 4.8

G&A Expenses as a % of Headcount 25%Acquisition Budget $750Acq. Fee per ep / as a % of Prod. Cost 5%Growth in ER Overhead Expense & HC 5%EP Fee 10%Chargeback Fee 0%

14

Format Assumptions

MillionaireTier 1 Tier 2 Tier 3 Tier 4 Total

Territories 10 10 10 9 39Fees $13,540 $3,843 $1,828 $547 $5,841Eps 61 52 47 52 50Profit $8,286,472 $1,985,148 $860,977 $257,149 $11,389,746

ER Low Case and Base CaseTerritory 60% 50% 40% 0%Fees 52% 18% 11% 0%Eps 82% 82% 82% 0%

Tier 1 Tier 2 Tier 3 Tier 4 TotalTerritories 6 5 4 0 15Fees $7,000 $2,500 $1,500 $0 $4,033Eps 50 50 50 0 50Profit $2,100,000 $625,000 $300,000 $0 $3,025,000

ER Upside CaseTerritory 60% 50% 40% 0%Fees 63% 18% 11% 0%Eps 82% 82% 82% 0%

Tier 1 Tier 2 Tier 3 Tier 4 TotalTerritories 6 5 4 0 15Fees $8,500 $2,500 $1,500 $0 $4,633Eps 50 50 50 0 50Profit $2,550,000 $625,000 $300,000 $0 $3,475,000

ER HighTerritory 80% 70% 50% 0%Fees 74% 22% 11% 0%Eps 82% 82% 82% 0%

Tier 1 Tier 2 Tier 3 Tier 4 TotalTerritories 8 7 5 0 20Fees $10,000 $3,000 $1,500 $0 $6,500Eps 50 50 50 0 50Profit $4,000,000 $1,050,000 $375,000 $0 $6,500,000

15

Summary Format Benchmarks

(1) Includes 2004 and 2005 figures to substitute for 2007 & 2008 figures.(2) Based on ultimates provided by King World.

Program Territories 2007 2008

Millionaire (1) 39 $13,465,278 $13,894,097Wheel of Fortune (2) N/A $2,000,000 $2,000,000Jeopardy (2) N/A $500,000 $500,000Turn Back Your Body Clock 5 $314,566 $229,332Brainiest 7 $1,108,194 $1,207,125You Are What You Eat 23 $2,331,200 $516,507

Average $3,286,540 $3,057,843

16

Headcount Assumptions

(US$ 000s) CY 07 CY 08 CY 09 CY 10 CY 11 CY 12 CY 13

SalariesAustraliaSales 150$ - - - - - - - Acquisition 150$ - - - - 1 1 1 Development 150$ - - - - 1 1 1 Admin 40$ - - - - 1 1 1

- - - - 3 3 3 UKSales 150$ - - - - - - - Acquisition 150$ - - 1 1 1 1 1 Development 150$ - - 1 1 1 1 1 Admin 40$ - - 1 1 1 1 1

- - 3 3 3 3 3 Latin AmericaSales 150$ - - - - - - - Acquisition 150$ - - 1 1 1 1 1 Development 150$ - - - 1 1 1 1 Admin 40$ - - - 1 1 1 1

- - 1 3 3 3 3

SPE TOTAL ADDTL. PERSONNEL 4 6 9 9 9

Salary ExpenseGrowth 5% 5% 5% 5%

Total Salary Expenses $490.0 $714.0 $1,124.6 $1,180.8 $1,239.8Markup 26% $127.4 $185.6 $292.4 $307.0 $322.4

Total Headcount Cost $617.4 $899.6 $1,416.9 $1,487.8 $1,562.2Average Cost Per Head $154.4 $149.9 $157.4 $165.3 $173.6

EMBASSY ROW PERSONNEL 15 18 18 18 18 18 18 Total Headcount Cost $1,300.6 $2,052.8 $2,319.1 $2,407.2 $2,502.9 $2,628.0 $2,759.4Average Cost Per Head $86.7 $114.0 $128.8 $133.7 $139.0 $146.0 $153.3

ADDTL EMBASSY ROW PERSONNEL - - 3 3 3 3 3 Average Cost Per Converseion Head (+3) $0.0 $0.0 $96.6 $96.6 $96.6 $96.6 $96.6Average Cost Per Factual Head (+5) $0.0 $0.0 $105.8 $105.8 $105.8 $105.8 $105.8Total Headcount Cost $0.0 $0.0 $289.8 $289.8 $289.8 $289.8 $289.8

TOTAL EMBASSY ROW PERSONNEL 15 18 21 21 21 21 21 Total Headcount Cost $1,300.6 $2,052.8 $2,608.9 $2,697.0 $2,792.7 $2,917.8 $3,049.2

17

2waytraffic’s Previous Offer for ER

• 7x multiple on 2007 Net Profit, plus

• 7x multiple on difference between average of 2009 – 2011 Net Profit and 2007 Net Profit

• Approximate value = $54.0M

2007 2008 2009 2010 2011Annual Net Profit $3,402,803 $5,202,292 $6,467,225 $7,850,153 $8,838,756

Average Profit $7,718,7112007 Profit $3,402,803Difference $4,315,908

7.0x Multiple 7.0xInitial Consideration $23,819,622 Earn-out $30,211,355

$54,030,977

Confidential Draft Embassy Row March 17, 2008 – Status Update.

Documents

Transcript of Confidential Draft Embassy Row March 17, 2008 – Status Update.