Sony Pictures Digital Sony Pictures Digital ProductionsProductions

Fiscal Year 2010 BudgetFiscal Year 2010 BudgetFebruary 18, 2009February 18, 2009

AgendaAgenda

Page Number

• FY09 Q4 Forecast Update 2 - 4

• FY10 Budget Assumptions 5 - 8

• FY10 Budget Overview 9 - 20

• Appendix 21 - 26

3

FY09 Q4 ForecastFY09 Q4 Forecast

UpdateUpdate

4

FY09 Q4 Financial SummaryFY09 Q4 Financial Summary($ In Thousands)($ In Thousands)

EBIT Variance:• Q4 Forecast on target with Q3 Forecast. • Unfavorable Budget variance of ($25M) due to:

• ($35.3M) - reduced VFX work and timing of Animation’s Cloudy and Hotel Transylvania work to FY10.•$10.3M – favorable timing of Cloudy pre-release marketing spend to FY10 and timing of Open Season 2 home entertainment revenue flows

Q4 Risk:• Imageworks ($1M) revenue timing risk for G-Force and Alice in Wonderland

FY09 Q4FORECAST

FY09 Q3 FORECAST

VAR TO FORECAST

FY09 BUDGET VAR TO BUDGET

NET REVENUEImageworks 140,148$ 142,103$ (1,955)$ 223,398$ (83,250)$ Animation 103,383 97,394 5,989 79,817 23,566TOTAL NET REVENUE 243,531 239,497 4,034 303,215 (59,684)

EBITImageworks (35,092) (33,092) (2,000) 248 (35,340)Animation 13,840 11,840 2,000 3,500 10,340TOTAL EBIT (21,252)$ (21,252)$ -$ 3,748$ (25,000)$

NET CASH FLOW (98,874)$ (102,064)$ 3,190$ (100,245)$ 1,371$

$0 $0

5

FY09 Q4 Highlights to FY09 BudgetFY09 Q4 Highlights to FY09 Budget

• Original Budget Challenge (SG&A) of $700k– Achieved savings of $1.3M – [To add]

• Immediate reductions per Michael & Amy’s memo– Eliminated overtime for non-billable employees – Reduced T&E in line with new SPE policy

• Broader cost reduction initiatives implemented beginning in March 2008:– Organizational

… Reduced billable and non-billable headcount proportionate with shows in production reduction Migrated all new artist hires to run of production status

– Compensation… Reduced average compensation levels by hiring a proportionate younger workforce through

the IPAX program, benchmarking compensation against industry averages and establishing narrower salary bands

… Reduced fringe rates by redesigning employee benefits, including reducing non-contractual salary increases and bonus plans

– Efficiency… Improved utilization by creation and implementation of Production Portal… Gained production efficiencies through use of proprietary software in production… Reduced employee overtime

– Facility & CAPEX… Increased density of existing office space, accelerating termination of building leases… Eliminated underutilized equipment and licenses… Reduced capital and maintenance expenses, including third party software spend for

production

WIP

6

FY10 Budget OverviewFY10 Budget Overview

7

• Prioritize Imageworks around needs of SPA & Columbia, using excess capacity to service third parties

• Reduce facility size and execute on cost reduction initiatives at Imageworks

• Manage visual effects business on a break-even basis, only charging internal productions “at cost” (no profit)

• Increase SPE’s participation and success in family features market

– CG animated films at the high end ($100MM+) and mid-tier ($25-50MM)

– Animation/live action hybrids– DTV sequels

• Shepherd Aardman relationship for SPE

• Expand digital marketing services beyond SPE to third parties via Imageworks Interactive

Focus on High Margin, Growth

Businesses

Strategic ObjectivesStrategic Objectives

8

FY10 Budget HighlightsWIP

• Cloudy release September 2009:– Modeled at a $85M DBO with a 1.5 IBO multiple and breakeven at ___– (Marketing savings contribute ___ based on adjustment of __% due to general market conditions)

• Open Season 2 – Non-projected IBO of $___M through opportunistic partnership with home video in special

markets (Russia, Croatia)– Strong home video performance of $__M, including unprecedented sales volume for SPE family

title at Walmart

• Surf’s Up tail risk– [COMMENT]

• SPI third party work absorbs gap costs from release – Hotel T timing …. – Arthur Christmas timing …

• Cost reduction Initiatives– Ongoing organizational, compensation, efficiency, and facility & CAPEX initiatives begun in FY 09

provide further cost reduction of $__M– Organizational review and subsequent headcount reductions from eliminating redundancies

create $___M in savings– Further efficiency gains result from improved utilization of workforce and production pipeline

through production portal – Increased individual departmental accountability provided further overhead savings

9

FY10 Budget Highlights

• Satellite production•Imageworks New Mexico provides $__M in savings realized through tax rebate as facility expands to 105 headcount•Imageworks India creates $____M savings by participating in animation pipeline

WIP

10

FY10 Budget Revenue & EBIT FY10 Budget Revenue & EBIT SummarySummary

($ in Thousands)

BUDGET OCT 08 MRP VAR TO MRPFY09 Q4

FORECASTVAR TO

FORECASTNET REVENUE

Imageworks 155,500$ 150,500$ 5,000$ 140,148 15,352Animation 208,396 191,508 16,888 103,383 105,013TOTAL NET REVENUE 363,896 342,008 21,888 243,531 120,365

(243,531)EBIT

Imageworks 1,335 135 1,200 (35,092) 36,427Animation (29,700) (30,700) 1,000 13,840 (43,540)TOTAL EBIT (28,365)$ (30,565)$ 2,200$ ($21,252) ($7,113)

(77,622)

11

MRP EBIT Reconciliation to FY10 MRP EBIT Reconciliation to FY10 BudgetBudget

($ in Thousands)

12

FY09 Q4 EBIT Reconciliation to FY10 FY09 Q4 EBIT Reconciliation to FY10 BudgetBudget

($ in Thousands)

EBIT PER FY09 Q4 FORECAST ($21,252)

ImageworksVariances• Increased revenue - additional $10M VFX and $5M CG 15,299 • Allocations to SPA films 15,000 • Reduced salaries & other overhead expenses due to restructuring 14,310 • Increased cost of sales to support work (9,157) • Other 975

Sub-total Imageworks 36,427 36,427

AnimationVariances• Cloudy release in FY10 (32,528) • Open Season (4th year in release) (12,490) • Surf's Up (3rd year in release) (5,432) • Open Season 2 (domestic street in FY09) (2,639) • Smurfs - pre-release marketing expense (represents 50% share with Columbia) (1,100) • Development reserve 1,783 • Overhead - capitalized in FY10 8,866

Sub-total SPA (43,540) (43,540)

TOTAL VARIANCE (7,113)

EBIT PER BUDGET ($28,365)00

SPI 975SPA 0

13

Budget EBIT Risk & OpportunitiesBudget EBIT Risk & Opportunities($ in Thousands)

Imageworks

•Timing of awarded work - $10M shift, assume 40% EBIT impact ($4,000) ($4,000)•Additional work - $15M, assume 10% EBIT impact 1,500 1,500 •Production execution risk - additional overtime/resources needed to deliver G-Force and Alice in Wonderland (2,000) (2,000) •Real estate consolidation - opportunity if Smith is vacated before 3/31/10 500 500 •Albuquerque rebate - risk if NM recruitment falls short of target (50 vs 105) (1,000) (1,000) •Increased SPI facility load to SPA films 5,000 5,000

Subtotal Imageworks (7,000) 7,000 -

Animation•Cloudy FY10 EBIT impact from additional $7.5M SPI Facility load (4,000) (4,000) •Timing of Smurfs pre-release marketing spend FY10 est total $2.2M 500 500

Subtotal Animation (4,000) 500 (3,500)

TOTAL ($11,000) $7,500 ($3,500)

Risks Opportunities Net R&O

14

Budget Receipts & Cash Flow Budget Receipts & Cash Flow SummarySummary

($ in Thousands)

BUDGET OCT 08 MRP VAR TO MRP

NET RECEIPTSImageworks 176,899$ 172,621$ 4,278$ Animation 0 0 0TOTAL NET RECEIPTS 176,899 172,621 4,278

CASH FLOWImageworks 5,334 373 4,961Animation (122,417) (143,996) 21,579SPDP Exec Mgmt & Mktg 494 540 (46)TOTAL CASH FLOW (116,589)$ (143,083)$ 26,494$

15

Budget Cash Risk & OpportunitiesBudget Cash Risk & Opportunities($ in Thousands)

Imageworks

•Timing of awarded work ($4,000) ($4,000)•Additional work - $15M, assume 10% impact 1,500 1,500•Production execution risk - additional overtime/resources needed to deliver G-Force and Alice in Wonderland (2,000) (2,000)•Real estate consolidation - risk if Gary & Smith not vacated on 11/30/09 500 500•Albuquerque rebate - risk if NM recruitment falls short of target (50 vs 85) (1,000) (1,000)•Increased SPI facility load to SPA films 5,000 5,000

Subtotal Imageworks (7,000) 7,000 0

Animation•Timing of Development spending 1,000 1,000•Increased SPI facility load to SPA films (5,000) (5,000)

Subtotal Animation (5,000) 1,000 (4,000)

TOTAL ($12,000) $8,000 ($4,000)

Risks Opportunities Net R&O

16

Cloudy with a Chance of MeatballsCloudy with a Chance of Meatballs Ultimate Ultimate($ in Thousands)($ in Thousands)

RISK BUDGET GP BREAK MRP (BE @ $68.6M) VAR

RETENTION RATE 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% - 52% 0%

DOMESTIC BOX OFFICE $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $78,000 $80,000 $85,000 $90,000 $100,000 $78,000 - $75,000 $5,000

INTERNATIONAL BOX OFFICE 75,000 83,000 90,000 98,000 105,000 113,000 117,000 120,000 128,000 135,000 150,000 117,000 - 126,000 (6,000)

INTERNATIONAL PRINTS 4,600 4,690 4,740 4,830 4,890 4,960 5,010 5,030 5,090 5,160 5,290 5,010 - 4,870 160

DVD UNITS 6,730 7,120 7,500 7,860 8,220 8,570 8,780 8,920 9,250 9,580 10,260 8,780 - 8,570 350

DOMESTIC RENTALS 26,000 28,600 31,200 33,800 36,400 39,000 40,560 41,600 44,200 46,800 52,000 40,560 39,000 2,600

DOMESTIC ADVERTISING 0

BASIC (10,000) (10,000) (10,000) (10,000) (10,080) (10,150) (10,200) (10,230) (10,300) (10,380) (10,530) (10,200) - (10,230) 0

PRE-OPEN MEDIA (27,700) (27,700) (27,700) (27,700) (27,700) (27,700) (27,700) (27,700) (27,700) (27,700) (27,700) (27,700) - (29,000) 1,300

SUPPORT MEDIA (2,250) (2,630) (3,000) (3,380) (4,130) (4,880) (5,330) (5,630) (5,910) (5,910) (5,910) (5,330) - (5,750) 120

TOTAL DOMESTIC ADVERTISING (39,950) (40,330) (40,700) (41,080) (41,910) (42,730) (43,230) (43,560) (43,910) (43,990) (44,140) (43,230) (44,980) 1,420

DOMESTIC PRINTS (5,725) (5,725) (5,725) (5,725) (5,725) (5,725) (5,725) (5,725) (5,725) (5,725) (5,725) (5,725) - (5,725) 0

DOMESTIC 3D GLASSES (5,130) (5,620) (6,100) (6,580) (7,070) (7,550) (7,840) (8,040) (8,520) (9,000) (9,970) (7,840) 0 (8,040)

OTHER COSTS (1,930) (2,090) (2,240) (2,390) (2,540) (2,690) (2,770) (2,840) (2,980) (3,130) (3,420) (2,770) - (2,870) 30

DOMESTIC THEATRICAL NET (21,605) (19,545) (17,465) (15,395) (13,775) (12,145) (11,165) (10,525) (8,415) (6,045) (1,285) (11,165) (14,575) (3,990)

INT'L RENTALS 31,000 35,000 37,000 41,000 44,000 47,000 49,000 50,000 53,000 56,000 62,000 49,000 - 52,000 (2,000)

INT'L ADVERTISING (25,060) (25,770) (26,130) (26,830) (27,360) (27,890) (28,240) (28,410) (28,910) (29,390) (30,320) (28,240) - (30,100) 1,690

INT'L PRINTS (10,850) (11,000) (11,090) (11,240) (11,350) (11,460) (11,550) (11,580) (11,690) (11,810) (12,030) (11,550) - (11,660) 80

INT'L 3D GLASSES (2,790) (3,060) (3,290) (3,560) (3,790) (4,060) (4,190) (4,290) (4,560) (4,790) (5,290) (4,190) - 0 (4,290)

OTHER COSTS (2,200) (2,500) (2,600) (2,850) (3,030) (3,220) (3,340) (3,400) (3,580) (3,770) (4,130) (3,340) - (3,510) 110

INT'L THEATRICAL NET (9,900) (7,330) (6,110) (3,480) (1,530) 370 1,680 2,320 4,260 6,240 10,230 1,680 6,730 (4,410)

DOM. HOME VIDEO REVENUE 80,330 84,870 89,270 93,550 97,720 101,780 104,180 105,760 109,650 113,460 120,870 104,265 - 101,780 3,980

DOM. HOME VIDEO COSTS (28,400) (29,920) (31,400) (32,850) (34,280) (35,680) (36,520) (37,070) (38,430) (39,780) (42,550) (36,520) - (32,480) (4,590)

DOMESTIC HOME VIDEO NET 51,930 54,950 57,870 60,700 63,440 66,100 67,660 68,690 71,220 73,680 78,320 67,745 69,300 (610)

INT'L HOME VIDEO REVENUE 33,570 36,490 37,970 40,970 43,250 45,550 47,100 47,880 50,170 52,490 57,180 47,100 - 49,410 (1,530)

INT'L HOME VIDEO COSTS (12,170) (13,230) (13,770) (14,860) (15,680) (16,520) (17,080) (17,360) (18,200) (19,030) (20,740) (17,080) - (17,920) 560

INT'L HOME VIDEO NET 21,400 23,260 24,200 26,110 27,570 29,030 30,020 30,520 31,970 33,460 36,440 30,020 31,490 (970)

PAY TELEVISION 11,130 11,830 12,530 13,210 13,740 14,270 14,590 14,800 15,330 15,860 16,920 14,590 - 14,270 530

NETWORK TV 3,500 3,850 4,200 4,550 4,900 5,250 5,460 5,600 5,950 6,300 7,000 5,460 - 5,250 350

DOMESTIC SYNDICATION 270 300 330 350 380 410 420 430 460 490 540 420 - 410 20

INTERNATIONAL TELEVISION 35,250 38,100 39,500 42,260 44,280 46,260 47,560 48,200 50,110 51,980 55,610 47,560 - 49,480 (1,280)

PAY PER VIEW 1,350 1,490 1,620 1,760 1,890 2,030 2,110 2,160 2,300 2,430 2,700 2,110 - 2,030 130

TV COSTS (500) (500) (500) (500) (500) (500) (500) (500) (500) (500) (500) (500) - (500) 0

TOTAL TELEVISION NET 51,000 55,070 57,680 61,630 64,690 67,720 69,640 70,690 73,650 76,560 82,270 69,640 70,940 (250)

AIRLINE / NON-THEATRICAL 880 960 1,040 1,140 1,230 1,320 1,380 1,410 1,500 1,600 1,790 1,380 - 1,320 90

MERCH, MUSIC & OTHER REVENUE 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 - 2,000 (400)

CONSUMER PRODUCTS COSTS (910) (910) (910) (910) (910) (910) (910) (910) (910) (910) (910) (910) - (750) (160)

TOTAL PRODUCTION COST (122,000) (122,000) (122,000) (122,000) (122,000) (122,000) (122,000) (122,000) (122,000) (122,000) (122,000) (122,000) - (122,000) 0

OVERHEAD (26,000) (26,000) (26,000) (26,000) (26,000) (26,000) (26,000) (26,000) (26,000) (26,000) (26,000) (26,000) - (26,000) 0

RESIDUALS (3,080) (3,300) (3,460) (3,680) (3,860) (4,040) (4,150) (4,210) (4,390) (4,560) (4,890) (4,150) - (4,200) (10)

CREATIVE SHARES 0 0 0 0 0 0 0 0 0 0 (1,390) 0 - 0 0

TOTAL REVENUES 224,880 243,090 256,260 274,190 289,390 304,470 313,960 319,440 334,270 349,010 378,210 314,045 316,950 2,490

RELEASING COSTS (135,615) (140,655) (144,455) (149,375) (154,145) (158,935) (161,895) (163,685) (167,915) (171,825) (179,725) (161,895) (150,495) (13,190)

PROD, O/H, PART, RESIDUALS (151,080) (151,300) (151,460) (151,680) (151,860) (152,040) (152,150) (152,210) (152,390) (152,560) (154,280) (152,150) (152,200) (10)

GROSS PROFIT (LOSS) ($61,815) ($48,865) ($39,655) ($26,865) ($16,615) ($6,505) ($85) $3,545 $13,965 $24,625 $44,205 $0 $14,255 ($10,710)

GROSS PROFIT MARGIN NA NA NA NA NA NA NA 1.1% 4.2% 7.1% 11.7% 0.0% 4.5%

17

AppendixAppendix

18

Cost Reduction PlanCost Reduction Plan ($ In Thousands) ($ In Thousands)

WIP

19

Revenue SummaryRevenue Summary ($ In Thousands) ($ In Thousands)

Payroll Periods 4 4 5 4 4 5 4 4 5 4 4 5 52

Before Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget TOTAL After TotalProject FY09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 FY10 FY10 Project

Live Action VFX:

G-Force 46,132 5,837 4,760 - - - - - - - - - - 10,597 - 56,729 G-Force Additional Work 3,000 1,500 1,500 1,000 - - - - - - - - - 4,000 - 7,000 G-Force 3D 5,213 2,225 2,258 970 - - - - - - - - - 5,453 - 10,666 G-Force 3D Additional Work - 300 300 400 - - - - - - - - - 1,000 - 1,000 2012 (Farewell Atlantis) 4,471 1,575 2,012 1,800 - - - - - - - - - 5,387 - 9,858 Cats & Dogs 2 4,349 1,781 1,880 2,565 1,688 - - - - - - - - 7,914 - 12,263 Alice in Wonderland 16,421 3,466 3,685 5,296 4,547 4,696 6,952 5,567 5,700 6,923 5,718 3,800 315 56,665 - 73,086

Alice in Wonderland 3D 50 100 200 350 300 450 550 450 450 550 450 450 675 4,975 - 5,025

TBD (Avatar, Limpet, John Carter of Mars) - - - - 350 750 1,100 1,200 1,800 2,250 1,850 2,200 1,871 13,371 - 13,371 TBD - Spiderman 4 - - - - - - 27 189 324 432 729 1,026 1,702 4,429 45,571 50,000 Subtotal 16,784 16,595 12,381 6,885 5,896 8,629 7,406 8,274 10,155 8,747 7,476 4,563 113,791

SPA:SPA - Cloudy 49,978 5,603 5,390 4,981 901 132 7 - - - - - - 17,014 - 66,992 SPA - Hotel T 5,452 200 200 286 497 687 982 906 1,107 1,696 1,394 1,470 1,821 11,246 44,676 61,374 SPA - Cloudy 3D 1,650 902 1,304 1,102 547 7 - - - - - - - 3,862 - 5,512 SPA - Smurf's - - - - - 28 28 105 376 726 1,286 1,521 1,823 5,893 24,107 30,000 Aardman - Arthur Christmas 504 29 29 29 29 29 29 29 435 474 533 799 750 3,194 61,174 64,872

Subtotal 6,734 6,923 6,398 1,974 883 1,046 1,040 1,918 2,896 3,213 3,790 4,394 41,209

Other - - - - - - - - - - - - - -

Total Revenue $23,518 $23,518 $18,779 $8,859 $6,779 $9,675 $8,446 $10,192 $13,051 $11,960 $11,266 $8,957 155,000$

Live Action VFX SPA Total Budget %

Green - Green Lit / Awarded to SPI 90,991$ 41,209$ 132,200$ 85%

Yellow - Not Yet Awarded to SPI 9,429 - 9,429 6%

Red - Not Awarded 13,371 - 13,371 9%

Gross Revenue 113,791 41,209 155,000 100%check

20

Open SeasonOpen Season Ultimate Ultimate($ in Thousands)($ in Thousands)

FY09 Q4 & FY10 BUDGET Q4 FORECAST FY09 MRP VAR TO FORECAST VAR TO MRP

RETENTION RATE 51.5% 51.5% 51% - 0.0%

TOTAL DOMESTIC BOX OFFICE 84,000 $84,000 $84,000 - 0

DOMESTIC IMAX BOX OFFICE 5,000 5,000 5,000 - 0

TOTAL INTERNATIONAL BOX OFFICE 106,000 106,000 106,000 - 0

INTERNATIONAL IMAX BOX OFFICE 4,000 4,000 4,000 - 0

ADJUSTED GROSS RECEIPTS 169,689 169,679 169,659 10 30

DOMESTIC DVD SELL-THRU UNITS 5,324 5,324 5,324 - 0

DOMESTIC RENTALS 44,048 44,048 44,048 0 0

TOTAL DOMESTIC ADVERTISING (54,479) (54,481) (54,481) 2 2

DOMESTIC PRINTS (16,748) (16,748) (16,748) 0 0 - 5,041 Prints including IMAX

OTHER COSTS (4,912) (4,912) (4,912) 0 0

DOMESTIC THEATRICAL NET (32,091) (32,093) (32,093) 2 2

INT'L RENTALS 42,913 42,908 42,903 5 10 - Per SPRI 8-25-06

INT'L ADVERTISING (41,800) (41,800) (41,800) 0 0 - Per SPRI 8-25-06

INT'L PRINTS (19,486) (19,484) (19,484) (2) (2) - Per SPRI 8-25-06

OTHER COSTS (2,668) (2,668) (2,668) 0 0 - Per SPRI 8-25-06

INT'L THEATRICAL NET (21,041) (21,044) (21,049) 3 8

DOM. HOME VIDEO REVENUE 134,300 134,300 134,300 0 0 - Per SPHE 9-11-06

DOM. HOME VIDEO COSTS (45,550) (45,550) (45,550) 0 0 - Per SPHE 9-11-06

DOMESTIC HOME VIDEO NET 88,750 88,750 88,750 0 0

INT'L HOME VIDEO REVENUE 49,400 49,400 49,400 0 0 - Per SPHE 9-11-06

INT'L HOME VIDEO COSTS (23,400) (23,400) (23,400) 0 0 - Per SPHE 9-11-06

INT'L HOME VIDEO NET 26,000 26,000 26,000 0 0

PAY TELEVISION - ENCORE 15,358 15,358 15,358 0 0 - Based on Total DBO (35MM & IMAX)

NETWORK TV 2,583 2,583 2,583 0 0 - Per SPT 9-6-06

DOMESTIC SYNDICATION 3,667 3,667 3,667 0 0 - Per SPT 9-6-06

INTERNATIONAL TELEVISION 33,000 33,000 33,000 0 0 - Per SPTI 9-11-06

PAY PER VIEW 3,163 3,161 3,159 2 4 - Based on Total DBO (35MM & IMAX)

OTHER COSTS (523) (512) (500) (11) (23) - $500K @ All Levels.

TOTAL TELEVISION NET 57,248 57,257 57,267 (9) (19)

NON-THEATRICAL 1,566 1,566 1,566 0 0

MERCHANDISE, MUSIC & OTHER 7,860 7,855 7,749 5 111 - Per FY07 Budget

MERCH COST (1,512) (1,511) (1,511) (1) (1)

PRODUCTION COST (99,400) (99,400) (99,400) 0 0

OVERHEAD (13,000) (13,000) (13,000) 0 0

RESIDUALS (4,070) (4,070) (4,060) 0 (10) - confirmed 7-31-06

CREATIVE SHARES 0 0 0 0 0 - DBO Bonuses

TOTAL REVENUES $337,858 $337,846 $337,733 $12 $125

RELEASING COSTS (211,078) (211,066) (211,054) (12) (24)

PROD, O/H, PART, RESIDUALS (116,470) (116,470) (116,460) 0 (10)

GROSS PROFIT (LOSS) $10,310 $10,310 $10,219 $0 $91

GROSS PROFIT MARGIN 3.1% 3.1% 3.0% 0.0% 72.8%

21

Surfs UpSurfs Up Ultimate Ultimate($ in Thousands)($ in Thousands)

FY09 Q4 & FY10 BUDGET Q4 FORECAST FY09 MRP VAR TO FORECAST VAR TO MRP

RETENTION RATE 50% 50% 50% 0% 0%

DOMESTIC BOX OFFICE $58,000 $58,000 $58,000 $0 0

INTERNATIONAL BOX OFFICE 90,500 89,000 89,000 1,500 1,500

ADJ USTED GROSS RECEIPTS 139,882 139,793 139,643 -DOMESTIC DVD SELL-THRU UNITS 3,770 3,770 3,770 0 0

DOMESTIC RENTALS 29,216 29,216 29,210 0 6

TOTAL DOMESTIC ADVERTISING (58,650) (58,650) (58,650) 0 0

DOMESTIC PRINTS (6,790) (6,790) (6,790) 0 0

OTHER COSTS (4,980) (4,980) (4,980) 0 0

DOMESTIC THEATRICAL NET (41,204) (41,204) (41,210) 0 6

INT'L RENTALS 35,563 35,554 35,521 9 42

INT'L ADVERTISING (32,750) (32,750) (32,750) 0 0

(17,000) (17,000) (17,000) 0 0

OTHER COSTS (3,011) (3,010) (3,005) (1) (6)

INT'L THEATRICAL NET (17,198) (17,206) (17,234) 8 36

DOM. HOME VIDEO REVENUE 96,100 96,100 96,100 0 0

DOM. HOME VIDEO COSTS (46,100) (46,100) (46,100) 0 0

DOMESTIC HOME VIDEO NET 50,000 50,000 50,000 0 0

INT'L HOME VIDEO REVENUE $50,600 50,600 50,600 0 0

INT'L HOME VIDEO COSTS ($26,000) (26,000) (26,000) 0 0

INT'L HOME VIDEO NET 24,600 24,600 24,600 0 0

PAY TELEVISION 12,274 12,274 12,274 0 0

NETWORK TV 2,980 5,500 5,500 (2,520) (2,520)

DOMESTIC SYNDICATION 3,900 1,380 1,380 2,520 2,520

INTERNATIONAL TELEVISION 29,000 29,000 29,000 0 0

PAY PER VIEW 2,139 2,138 2,126 1 13

OTHER COSTS (810) (805) (774) (5) (36)

TOTAL TELEVISION NET 49,483 49,487 49,506 (4) (23)

AIRLINE / NON-THEATRICAL 2,479 2,400 2,291 79 188

MERCHANDISE, MUSIC & OTHER 6,675 6,675 6,657 0 18

MERCHANDISING COSTS (1,793) (1,793) (1,801) 0 8

PRODUCTION COST (99,500) (99,500) (99,500) 0 0

OVERHEAD (19,500) (19,500) (19,500) 0 0

RESIDUALS (3,390) (3,390) (3,390) 0 0

CREATIVE SHARES 0 0 0 0 0

TOTAL REVENUES 270,926 270,837 270,659 89 267

RELEASING COSTS (197,884) (197,878) (197,850) (6) (34)

PROD, O/H, PART, RESIDUALS (122,390) (122,390) (122,390) 0 0

GROSS PROFIT (LOSS) ($49,348) ($49,431) ($49,581) $83 $233

GROSS PROFIT MARGIN -18.2% -18.3% -18.3% 93.3% 87.3%

22

Open Season 2 (direct to video)Open Season 2 (direct to video) Ultimate Ultimate($ in Thousands)($ in Thousands)

FY09 Q4 & FY10 BUDGET Q4 FORECAST GREENLIGHT VAR TO FORECAST VAR TO GREENLIGHT

RETENTION RATE . -

INTERNATIONAL BOX OFFICE 6,000$ 6,000

INT'L RENTALS 2,530$ 2,434$ -$ 96$ 2,530$

INT'L ADVERTISING (204) (204) - - (204)

INT'L PRINTS (366) (366) - - (366)

OTHER COSTS (292) (259) - (33) (292)

INT'L THEATRICAL NET 1,668 1,605 - 63 1,668

DOM. HOME VIDEO REVENUE 24,372 24,372 24,372 - -

DOM. HOME VIDEO COSTS (14,079) (14,079) (14,079) - -

DOMESTIC HOME VIDEO NET 10,293 10,293 10,293

INT'L HOME VIDEO REVENUE 8,622 8,622 8,622 - -

INT'L HOME VIDEO COSTS (5,087) (5,087) (5,087) - -

INT'L HOME VIDEO NET 3,535 3,535 3,535

PAY TELEVISION - - - - -

NETWORK TV 1,000 1,000 1,000 - -

DOMESTIC SYNDICATION - - - - -

INTERNATIONAL TELEVISION 1,000 1,000 1,000 - -

PAY PER VIEW - - - - -

OTHER COSTS (200) (200) (200) -

TOTAL TELEVISION NET 1,800 1,800 1,800

AIRLINE / NON-THEATRICAL 1,520 1,520 - 1,520

MERCHANDISE, MUSIC & OTHER 475 475 475 - -

PRODUCTION COST (11,250) (11,250) (10,000) - (1,250)

OVERHEAD - - - - -

RESIDUALS (1,173) (1,173) (1,081) - (92)

TOTAL REVENUES 39,519 39,423 35,469 96 4,050

RELEASING COSTS (20,266) (20,197) (19,366) (69) (900)

PROD, O/H, PART, RESIDUALS (12,423) (12,423) (11,081) - (1,342)

GROSS PROFIT (LOSS) 6,830$ 6,803$ 5,022$ 27$ 1,808$

GROSS PROFIT MARGIN 17.3% 17.3% 14.2%