This business summary (the “Summary”) contains confidential, non-public and proprietary information about Cdigix and its affiliates. Without the company’s prior written consent, readers must not release, copy or use the Summary for any reason other than evaluating a potential relationship with Cdigix and/or its affiliates. EDUCAUSE Policy Conference May 16, 2007.

© 2006 CDigix 2 To be the leading global provider of digital media services to the educational market by enabling universities to solve their entertainment and educational media needs; and by empowering students, alumni and faculty to consume, connect, and communicate via digital content. Strategic Intent - Where faculty, students and alumni love to experience any entertainment and educational media on demand. The Cdigix Vision Academic Learning Experiential Learning Community and Relationship Development

© 2006 CDigix 3 Business Timeline Secure content deals w/ Disney & others Beta launch at Duke May April 2002 Raise initial seed capital Launch initial venture 6/00 May Apr 2001 Secure additional content deals w/ Warner Bros. & others Pilot at Duke & Wake Forest Develop C-Labs & Cvillage May April 2003 Launch Ctrax at Yale University Raise Additional Investment $$ May April 2004 Sign 30 commercial university contracts Deploy at 21 schools in ’04-’05 school year including Purdue, Michigan, Tufts and Tulane May Aug 2005 Sept Dec 2006 Sign 43 additional commercial contracts Raise first institutional investment capital Dec Feb 2007 Company rededicates its focus to C-Labs product

© 2006 CDigix 4 Phase 1: Video The “Extra Slice” Syndrome –Students will not pay $0.01 but, –Students will devour content if free However, studios not yet willing to offer free or low cost to schools

© 2006 CDigix 5 Phase 2: Legal Music Services Labels have been generous in offering lower content cost for students Many schools have been willing to subsidize legal music services, but Students don’t see them as competitive with peer to peer –DRM restrictions and limits on selection, and The Model is changing to a “direct to consumer” advertising-only business Music services work best if paired with filtering system –Some Campuses at 70+% penetration

© 2006 CDigix 6 Phase 3: Video and Audio for Curriculum Digitizing audio and video libraries for academic on-demand use by students is core for schools Technology that delivers legal consumer services is same backbone for a/v curriculum delivery Schools need a shared solution as it’s too expensive to do it yourself Great possibilities for content sharing across schools to enhance learning and as source of new revenue

© 2006 CDigix 7 Take control of your media Stored in a central location Content is digitized & archived Presented in a unified format - regardless of source

© 2006 CDigix 8 A Solution for Staff: Minimal impact on IT Purchase 1 copy of media Resource saving Video Procurement A Solution for Professors: Control Viewing Periods Limit Access Distribute Lectures A Solution for Students: Anytime, anywhere access Never checked out Pause, restart, watch on the go Students Librarians&Staff Professors The Whole Campus Wins

© 2006 CDigix 9 Sample Partner Schools

© 2006 CDigix 10 What Others are Saying… “We’ve had wonderful use of C-Labs in bringing digitized movie material into our educational environment but we’re just scratching the surface nevertheless.” Charles Phelps, Provost, The University of Rochester

© 2006 CDigix 11 Summary Music market has moved to “direct to consumer” with advertising model Video (television) will likely follow but has not yet priced itself accordingly University demand for entertainment services has cooled within the last 12 months Schools need educational media services such as C-Labs to enhance the educational experience Cdigix will be back with consumer services if universities see a future need and the business model makes sense