Telecom Conference - Israel 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Telecom Conference - Israel 19 June 2001

Leading Content in the Future of Multi-channel Television 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Leading Content in the Future of Multi-channel Television

Multi-channel TV is growing across Europe 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Multi-channel TV is growing across Europe Multi-channel HH’s (m) % of TV HH’S % of TV HH’s Multi-channel HH’s (m) 68 75 79 85 94 105 119 138 152 163 26% 29% 30% 32% 35% 39% 44% 51% 55% 59% 1996 1997 1998 1999 2000E 2001E 2002E 2003E 2004E 2005E Source: Merrill Lynch (December 2000)

Audience Migration to Multi-channel TV 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Audience Migration to Multi-channel TV US Network vs Cable Audience Share UK Multi-channel TV* Audience Share 90% 19% 73% Network 17.8% 80% 70% 60% 54% 50% 15% 40% 46% 30% 27% Cable 11.8% 20% 10% 0% 92 93 94 95 96 97 98 99 00 10% 97 Q2 Q4 98 99 00 01 Q1 Source: PwC ‘Global Entertainment and Media Outlook’ (Sep 00) Audience share calculated as a % of total rating points Networks: ABC/CBS/NBC/Fox/UPN/WB Source: IPA Publications ‘Trends in Television 2001 Q1’ * Pay TV represents all non terrestrial commercial channels

Growth Drivers of Multi-channel TV 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Growth Drivers of Multi-channel TV Heavy investment in distribution infrastructure New technologies creates new distribution outlets Consumers want more choice Targeted reach for advertisers Large supply of Pay-TV channels Growing demand for quality content

Mega Brands Will Dominate 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Mega Brands Will Dominate

Consumers Want Local Services 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Consumers Want Local Services UK France Spain International Channels 87% 75% 74% Germany Italy Norway 45% 100% 79% Date: As at June 2001

Main-Stream Genre are Main Offering 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Main-Stream Genre are Main Offering UK France Spain - Ent. - Sport - Children - News - Music - Nature 73% 70% 61% Other Germany Italy Norway 67% 71% 68% Date: As at June 2001

Access to Content is Key 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Access to Content is Key Depth of library to support hundreds of hours per year Evergreen source of new product to drive rating Importance of programming franchises Quality and Quantity

Children is a Main Programming Anchor 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Children is a Main Programming Anchor Library Local Content Interaction Parental Approval A primary reason for subscription Reduce churn

Fox Kids Europe Fully integrated pan European 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Fox Kids Europe Fully integrated pan European children’s entertainment company Channels Owns and operates fully localised children’s channels Broadcasts in 54 countries, reaching more than 24 million homes in 16 languages Programme Distribution Distributes programmes to terrestrial broadcasters and third party cable and satellite channels Over 120 broadcasters in 50 markets Consumer Products Licenses merchandising rights to the Fox Kids library and third party properties throughout Europe Local offices in all major markets; represented in 24 countries Online & Interactive Localised websites in 13 languages Establishing the leading pan-European online community for children

Fox Family Worldwide (*) 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Ownership Structure Fox Broadcasting Saban 49.5% 49.5% Fox Family Worldwide (*) 76% Fox Kids Europe N.V. Public Shareholders 24% * Allen & Co. owns 1%

Strong Library 6,000 episodes 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Strong Library 6,000 episodes Ownership of Major Programming Franchises

Pan-European Channel Platform 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Pan-European Channel Platform Broadcasting local children’s channels in 54 countries Reaching 24 million homes in 16 languages N’lands UK CEE France Germany 5.9 m 5.4 m 4.5 m 2.0 m 1.8 m Nordic Poland Spain Italy Israel 1.5 m 1.4 m 1.1 m 0.7 m 0.1 m [1.2 m *]

Fastest growing channel in Europe 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Channels Expansion Distribution Operated by local management 520 carriage agreements Major DTH agreements are 5-10 years long 410 advertisers (FY 2000) 25 CAGR = 78% 24.0 19.9 20 15.1 13.5 15 Millions HH’s 12.2 10.7 9.0 10 9.5 6.4 7.7 3.5 5 6.1 4.3 3.5 Yr Ended 31 May: 1997 1998 1999 2000 Dec-00 DTH Cable Fastest growing channel in Europe

Audience Leadership Market Placing Channel Feed Demographic Source 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Audience Leadership Market Placing Channel Feed Demographic Source #1 Netherlands K6-12, Nationally Intomart, May 2001 #1 Scandinavia K6-10, CSD (Norway) Gallup Norway, Mar 2001 #1 France K4-10, CanalSatellite IPSOS, Apr 2001 #1 Spain K4-12, Digital Satellite Sofres, May 2001 #2 Poland All viewers 4+, Wizja TV AGB Polska, Apr 2001 #3 UK K4-15, Digital Satellite BARB/TNS, May 2001 Strong local approach 75% of channel programming from own library

Competitor Analysis Children’s Channels 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Competitor Analysis Children’s Channels Subscribers (mil) UK Neth France Germany Spain Italy Scand Poland CEE Israel Total Lang’s Fox Kids 5.3 6.0 2.0 1.8 1.1 0.6 1.5 1.4 4.5 0.1 24.3 16 Cartoon 7.2 3.0 1.8 - 1.1 1.6 1.9 1.4 4.6 0.5 23.1 9 Nickelodeon 7.0 - - - 1.0 - 0.6 - 1.0 - 9.6 10 Disney 4.8 - 1.1 1.8 0.8 0.7 - - 0.2 - 9.4 5 Other Local 2 1 2 1 3 1 - 3 3 2 Channels (a) (b) (a) UK: Discovery Kids, Trouble; BBC digital services expected Autumn 2001. Netherlands: Kindernet. France: Canal J, Teletoon. Germany: Junior. Spain: Megatrix, Club Super 3, Planeta Jr. Italy: Raisat Children. Israel: Hop, Children Channel. CEE & Poland: SuperMax, Minimax, Fantastica. (b) As of Aug 2001, currently reaching 5.2 mil

Strong emphasis on local content and interactivity 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Fox Kids Israel JV with Arieh Saban Launched February 15, 2001; 14 hours/day (6:00 - 20:00) Currently reaching 120,000 digital cable subs Team of 24 people managed by Tami Landsman Access to Saban library and with local productions Local website in Hebrew Channel is designed for Israeli market Strong emphasis on local content and interactivity

Multi-channel TV in Israel Recent Developments 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Multi-channel TV in Israel Recent Developments Launch of DBS - July 2000 Digital Cable - April 2001 Tiering - August 2001 Advertising on 5 thematic channels Multi-channel TV is already reaching 1.35 million HH’s

Israel is not a small market ! Multi-channel TV Subs (Mil) 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Israel is not a small market ! 10.2 Multi-channel TV Subs (Mil) 4.7 3.4 2.4 2.4 1.35 1.3 1.2 1.0 0.3 UK France Spain Germany Italy ISRAEL Denmark Norway Portugal Greece

Multi-channel TV in Israel Creation of an efficient market 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Multi-channel TV in Israel Creation of an efficient market MINIMISE REGULATORY UNCERTAINTY ALLOW ADVERTISING ON ALL CHANNELS Economic incentive for better programming Motivate launch of additional local channel Maximum benefit to the consumer

Multi-channel TV in Israel Opportunity for Win / Win / Win situation 22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt Multi-channel TV in Israel Opportunity for Win / Win / Win situation Channels Cable / DBS Consumer Better Economics Quality Variety

22 ספטמבר 18 yeled\Research Analyst Presentation\Fox Kids YNON.ppt