Hugh Williams Executive Director, Programming, HomeChoice

2 Introducing HomeChoice Triple play TVoDSL operator based in UK under the HomeChoice brand Footprint is 2.4 million homes passed in London subscribers Planning national rollout for Broadcast Pay-TV and VOD channels movies available on demand music videos available on-demand Broadband with speeds up to 8Mb Proprietary Server-Based EPG & PVR Proprietary STB (already running MPEG4)

3 Key Operating Statistics HomeChoice footprint now at 2.4 million homes passed (10% of UK) Telephony take-up of 80% to 90% since launch in November 2004 Triple play penetration now in excess of 50% Average Revenue Per Subscriber currently £430 per year Launch footprint: 73 exchanges; 1.29M Homes Expansion completed in June 2005: 63 exchanges; 1.14M Homes

4 End-to-End Architecture (Simplified) Cat 5 -Or G Texas Instrument Chipset HOME BT Phone Line LAST MILE 7301 ASAM BT EXCHANGESBACKBONE Digital Compressio n System MV100 HEADEND ( x 3) VIDEO SERVERS

5 HomeChoice Product Offering Base pack £ promotional period (£17.99, thereafter) 1 Mb BroadbandDigital TV - 55 broadcast, on-demand & radio channels movies on-demand Unlimited free evening & weekend calls Telephony UPGRADES 2Mb - £5 Up to 8Mb - £12 Digital TV Big Pack - £10 (+15 channels) Max Pack - £20 (+35 channels) SVOD Movie Channel - £5 Sky Sport & Sky Movies- from £22 + Many Others BroadbandTelephony Free Anytime calls - £5 (2Mb / 8Mb) - £7 (1Mb) ++

6 HomeChoice Brand Brand Positioning Connectivity Entertainment & lifestyle Corporate- focused Consumer- centric ISP Broadcast TV Multi-channel TV Ways of life and consuming are changing dramatically, mainly driven by the advance of digital technologies. The concept of home has changed from a simple residence to a networked digital home. HomeChoice aims to be a leader in delivering the new possibilities in entertainment, communication and lifestyle services, offered by a networked digital home. HomeChoice helps people to better enjoy their time at home. Overview

7 On-demand childrens content gives confidence to parents On-demand music personalises music television for the first time On-demand movies offer superior viewing convenience On-demand TV lets viewers watch their favourite series at their own pace Discovery, National Geographic, Disney & Turner VOD New Possibilities for Programming New On-Demand Channels

8 1 – Viewing share average Jan-Dec 2005 figures as at Oct Reach as at December 2005 On-Demand Channels Have Leading Positions in Major Genres

9 Top Average Monthly Share of Viewings January –December 2005 In December 2005 each subscriber on average used interactive technology more than twice to find programmes. Customers scored functions for watching on demand TV and Movies (including rewind ect) over 7.5 out of 10. HomeChoice launched a Reminder button in July A customer survey conducted in August 2005 revealed that 50% used this function and viewed it as valuable.

10 Customer Surveys show that people use and enjoy on-demand content. In a recent survey of the HomeChoice customer base: –70% said they regularly used on-demand channel –70% said they regularly used the Replay service –Nearly 50% said they regularly used the on-demand movie service The on-demand functions of the HomeChoice service scored most highly as the reason for using and enjoying it.