The Mendelsohn Affluent Survey: The Affluent and Luxury Marketplaces February, 2008 Monroe Mendelsohn Research, Inc. 841 Broadway New York, NY FAX

- 2 - Agenda Monroe Mendelsohn Research Selected Results from The 2007 Affluent Survey The 2008 Affluent Survey

- 3 - Monroe Mendelsohn Research

- 4 - Monroe Mendelsohn Research Founded in 1958 by Monroe Mendelsohn. Business grew based on high-quality research and integrity. MMR conducted only custom marketing research until 1978, when The Mendelsohn Affluent Survey was launched. Recently launched The Affluent Omnibus Survey. Continues to conduct custom marketing and media research studies.

- 5 - Mendelsohn's Affluent Survey An annual syndicated survey now going into its 32nd year. Measures "affluent" households across America — the top quartile ($85K+ in 2007). Collected data in 2007 by mail using a 16-page questionnaire that covered many topics. Produces an annual database of approximately 13,000 affluent respondents. Used for strategy, marketing, selling, and media selection purposes by many advertisers, ad agencies, publications, and cable networks that market to the many segments of affluent America.

- 6 - Mendelsohn's Affluent Omnibus Survey A new, recontact survey that complements the Affluent Survey. Allows subscribers to insert their own custom questions into the 2008 Mendelsohn Affluent Survey. Will be used for marketing and media purposes by participating advertisers, ad agencies, publications, cable networks, digital networks and other organizations that market to the many segments of affluent America.

- 7 - Selected Results from The 2007 Affluent Survey

- 8 - The Affluent Using MMR's definition of Affluent, there are slightly more than 29 million Affluent households according to the U.S. Census's latest survey.

- 9 - The Affluent (continued) These 29 million Affluent households comprise 25% of the U.S. population, but they earn more than half the total income.

The Affluent (continued) The 2007 Mendelsohn Affluent Survey projects that there are about 2.6 million "High Net Worth" households (with $1 million+ in liquid/investable assets) living in the U.S. They are labeled as "HNW" in this presentation. Households with $250K+ household income, the other Affluent segment profiled in this presentation, are labeled as "$250K+".

The Affluent (continued) HNW households tend to be older than $250K+ households

The Affluent (continued) About a third of HNW households report HHI of $250K+

The Affluent (continued) More than one third of the $250K+ segment report liquid assets of $1 million+

The Affluent (continued) The 867,000 households that have both $250K+ household income and liquid assets of $1 million+ constitute a prime target $250K+: 2,245,000 HNW: 2,600,000 Both: 867,000

The Affluent (continued) The Affluent are overwhelmingly white

The Affluent (continued) The majority of the Affluent have attended college

The Affluent (continued) The Affluent are overwhelmingly married/partnered

The Affluent (continued) Compared with all U.S. households, the affluent are currently more likely to live in the Northeast or the West

The Affluent (continued) A good number of the HNW segment is retired

The Affluent (continued) Professional/managerial adults in the $250K+ and HNW segments are likely to be C-suite types

The Affluent (continued) The $250K+ and HNW segments tend to have substantial total assets

The Affluent (continued) The majority of the Affluent use financial advisors

The Affluent (continued) The Affluent own their principal residence

The Affluent (continued) The $250K+ and HNW segments are more likely to own multiple residences

The Affluent (continued) The $250K+ and HNW segments also own other real estate

The Affluent (continued) The $250K+ and HNW segments are active in investing, traveling, etc.

The Affluent (continued) The $250K+ segment tends to travel frequently

The Affluent (continued) The $250K+ segment is more likely to fly "private"

The Affluent (continued) Europe is the most visited foreign travel destination among the $250K+ and HNW segments

The Affluent (continued) The Affluent are civic-minded

The Affluent (continued) The Affluent, especially the $250K+ and HNW groups, are spenders

The Affluent (continued) The Affluent are involved culturally

The Affluent (continued) The Affluent join private clubs

The Affluent (continued) Some of the Affluent enjoy boating

The Affluent (continued) The $250K+ and HNW segments are more likely to have wine cellars and to purchase by the case

The Affluent (continued) Wine is the Affluent's favorite alcoholic beverage

The Affluent (continued) The Affluent use the Internet

The Affluent (continued) The Affluent use the Internet to communicate and get information

The Affluent (continued) The Affluent also use the Internet to conduct business

The Affluent (continued) There are many cable networks that reach the Affluent

The Affluent (continued) The cable networks with the highest concentrations of $250K+ and HNW are the following

The Affluent (continued) The Affluent still read publications and can be reached by them

The Affluent (continued) The publications with the highest concentrations of $250K+ and HNW in rank order are the following

The Affluent (continued) As has been demonstrated, there are two ways of segmenting and targeting the luxury market—income and wealth. $250K+: 2,245,000 HNW: 2,600,000 Both: 867,000

Questions about the 2007 Survey

The 2008 Affluent Survey

The 2008 Affluent Survey Will again measure "affluent" households across America — the top quintile in 2008 ($100K+ in 2008 compared to $85K+in 2007). Will collect data by mail using a 20-page questionnaire in 2008 that will cover a number of new topics (compared to the 16-page questionnaire in 2007). Will add digital media brand audience metrics in 2008 (those URLs accessed by mobile phones and/or PCs) using a single source survey methodology. Will obtain details on usage of web-enabled mobile phones and PC’s in 2008.

The 2008 Affluent Survey (Continued) Will use “enhanced” category expenditure, investment and savings, real estate, and personal/household income scales in Will add a substantial number of category topics and expenditures in Will add use of video games (web and console-based) in Will add writing and reading blogs in Will add viewing of broadcast networks in Will add listening to satellite radio in Will add upscale stores shopped in 2008.

The 2008 Affluent Survey (Continued) “Enhanced” category expenditure scales will increase from a high of $7,500+ to $15,000+. “Enhanced” investment and savings scales will increase from a high of $2 Million+ to $3 Million+. “Enhanced” real estate scales will increase from a high of $1 Million+ to $3 Million+. “Enhanced” personal income scale will increase from a high of $200K+ to $500K+. “Enhanced” household income scale will increase from a high of $1 Million+ to $4 Million+.

Questions about the 2008 Survey